The Trend of Green Building Industry Drives Rapid Market Expansion

As the building materials industry becomes a focal point for China’s carbon reduction efforts, the green transformation of the glass industry is now unstoppable. Although China’s Low-E glass industry has developed rapidly, it has not yet reached the level of leading international standards. In developed countries such as the United States, Europe, and Japan, the usage rate of Low-E glass exceeds 70%. In contrast, for a long time, China has met energy-saving requirements through improvements in overall building technology rather than mandatory application of individual products. As a result, the market penetration rate of Low-E energy-saving glass in China is only about 12%, indicating significant potential for growth. Especially in downstream markets, domestic Low-E glass is still primarily used in large public buildings, while the vast residential market remains largely untapped.

Guided by the “dual carbon” targets, it is foreseeable that both in terms of volume and added value, Low-E glass will bring new incremental markets to the industry chain. To provide a comparative perspective, if China installs 400 million square meters of new windows annually and all use Low-E glass, it could save 8.7 million tons of standard coal and reduce carbon dioxide emissions by 21 million tons each year.

From a cost analysis perspective, compared to ordinary glass, Low-E glass is 25% more expensive. However, since glass used in windows and doors accounts for up to 20% of a building’s materials, large-scale use can save over 60% in heating and cooling costs. This means that for a 100-square-meter building, even if all the glass used is Low-E, the additional cost can be recouped in just 2.8 years, making it a highly valuable investment for users.

From a market standpoint, China’s production of Low-E glass has already reached the forefront globally, with superior cost-performance advantages. Therefore, it has broad development prospects not only in the domestic market but also strong substitutability and competitiveness in the global market. The future development of the domestic Low-E glass industry cluster is highly regarded by various parties. According to industry authoritative forecasts, the compound annual growth rate (CAGR) of the Chinese market is expected to reach 5.86% from 2022 to 2027.

Edited on 6th Dec 2016