Automotive Window and Sealing Systems Market Overview
The global automotive window and sealing systems market is forecasted to reach $38.7 billion by 2025, registering a CAGR of 7.6% during the forecast period. The market has witnessed significant growth in recent years, owing to factors such as growth in the vehicle market and efforts made by automotive OEMs toward increasing the fuel economy of vehicles through the use of modified polymers.
On the basis of component, the automotive window and sealing systems market is categorized into glass run channel, waist belt seal, roof ditch molding, hood seal, trunk seal, front windshield seal, door seal, rear windshield seal, sunroof seal, encapsulated glass, corner molding, and end cap. Of these, glass run channel dominated the market in 2017, accounting for around 15% market share in terms of value. In addition, the market for glass run channel is projected to reach 783.5 million units by 2025, which can be mainly attributed to the high utilization of glass run channels by OEMs and the aftermarket.
Based on material, the automotive window and sealing systems market is categorized into thermoplastic elastomer (TPE), thermoplastic vulcanizer (TPV), ethylene propylene diene monomer (EPDM), and others. Of these, EPDM recorded the highest volume sales in 2017, accounting for over 85% market share. EPDM is expected to continue its market dominance in terms of both value and volume, owing to its increasing usage in passenger cars for weatherstripping applications. In terms of volume, the fastest growth in the market during the forecast period is expected from TPE, as it is colorable and involves no vulcanization or mixing, which makes it easier to process.
On the basis of end use, the automotive window and sealing systems market is categorized into OEMs and aftermarket. OEMs held a major share in the industry in 2017. Moreover, the OEMs category is expected to continue leading the market in the coming years. This can be attributed to the rapid increase in the adoption of passenger vehicles in the developing economies of the world, such as China and India, as a result of the increase in the disposable income of the inhabitants of these economies.
Automotive Window and Sealing Systems Market Dynamics
The automotive window and sealing systems market is predominantly driven by the growing vehicle market and continuous efforts by automotive OEMs toward increasing the fuel economy of vehicles through the use of modified polymers. Urbanization, around the world, has been on the rise, particularly in the developing and densely populated countries of the world such as China and India. Besides, the living standard of the inhabitants of these countries has improved considerably over the past few years, boosting their purchasing capability. This has resulted in the increased adoption of automobiles in these countries, which, in turn, has led to the increased demand for automotive window and sealing systems in the market.
With continuous research and development in the polymer technology, OEMs have been able to introduce improved and cost-effective polymers for use in automotive window and sealing systems. These polymers help decrease the overall weight of the vehicle, thus contributing to savings in fuel consumption. On an average, a 10% reduction in the vehicle weight helps save 4–7% of the total fuel consumption. Given the declining crude oil reserves and rising fuel prices, the demand for modified polymers is expected to further increase in the near future, which, in turn, will drive the automotive window and sealing systems market growth.
The growth of the automotive window and sealing systems market is hindered by factors such as the emergence of substitutes and stringent environment-related regulations on the use of materials in these systems. Techniques such as field-assisted glass–metal sealing permits the sealing of metals to glass and other insulators at temperatures significantly below the softening point of the glass. At present, materials such as EPDM, TPE, and TPV are used in window and sealing systems, but such advanced techniques can replace these systems in the near future.
Besides, regulations pertaining to volatile organic compound (VOC) levels in EPDM, the key material used in the production of automotive window and sealing systems, are hindering the market growth. In the U.S., these regulations dictate the maximum amount of the VOC a product may contain. EPDM is a preferred choice of OEMs for the manufacturing of these systems, as it is cost-effective. EPDM contains photochemically reactive VOCs which, on reaction with nitrogen oxides (NOx) in the presence of sunlight, create ground-level ozone. This ground-level ozone, an air pollutant, poses a serious threat to human health and the surrounding vegetation. This restrains the adoption of EPDM in these systems, which, in turn, hinders the growth of the automotive window and sealing systems market.
Automotive Window and Sealing Systems Market Competitive Landscape
Some of the key players in the global automotive window and sealing systems market are Cooper-Standard Holdings Inc., Magna International Inc., MINTH Group Ltd., PPAP Automotive Limited, DURA Automotive Systems, TOYODA GOSEI Co. Ltd., Lauren Manufacturing Company, Henniges Automotive, and Hutchinson.