The smart window market is in trends by increased adoption of energy efficient technologies. Smart windows, also known as switchable windows, dynamically control the amount of light, heat and glare passing through a window in response to environmental conditions. They have electrochromic layers which can be switched between clear and darkened states as per voltage controlled electron density. This helps in maximizing natural daylight use and reducing energy consumption by heating and cooling systems simultaneously.
The Global smart window market is estimated to be valued at US$ 5.76 Billion in 2024 and is expected to reach US$ 10.82 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 9.4% from 2024 to 2031.
Key Takeaways
Key players operating in the smart window market are Inter IKEA Systems BV, Somfy Systems Inc., The Shade Store LLC, Lutron Electronics Co. Inc., Griesser AG, Hunter Douglas and Springblinds. Key players are focused on developing innovative products to meet the rising demand from commercial and residential sectors.
The growing demand for smart windows from the commercial sector like offices, hospitals and educational institutions is driven by the need to optimize energy usage and provide occupant comfort. Smart windows help in reducing energy costs by controlling heat and glare without manual intervention.
Globally, the Smart Window Market Size is expanding rapidly due to strict energy efficiency regulations especially in North America and Europe. The huge potential for reducing electricity consumption through smart windows is attracting investments from window manufacturers as well as tech giants in this space. The Asia Pacific region is emerging as a lucrative market driven by growth in smart buildings and smart homes.
Market Key Trends
Electrochromism is a key trend gaining huge popularity in smart windows. Electrochromic windows change their tint or shade dynamically by varying the voltage. This provides complete control over daylight, heat and glare passing through without compromising on the view. Major window manufacturers are engaged in developing large-scale electrochromic smart windows for commercial use. Growing investments in research is expected to make electrochromic technology more affordable and efficient. Furthermore, integration of connectivity and automation using IoT and sensors is allowing smart windows to be operated and monitored remotely according to user preferences. This is making smart windows more valuable for optimizing energy usage and convenience.
Porter's Analysis
Threat of new entrants: Window shades and blinds market requires heavy investment in R&D for technological advancement. Existing players have strong brand recognition and economies of scale.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated product offerings from various manufacturers.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due high availability of raw material substitutes and focus on long term relationships with manufacturers.
Threat of new substitutes: Threat from new substitutes like curtains is low as smart windows offer convenience, remote operation and energy efficiency.
Competitive rivalry: Intense competition exists among existing players to gain market share through product innovations, partnerships and strategic collaborations.
Geographical Regions
North America dominates the smart window market with over 30% share in 2021 led by increasing construction of smart homes and non-residential projects incorporating smart technologies.
Asia Pacific is the fastest growing regional market expected to expand at a CAGR of 13.2% during the forecast period due to rapid urbanization, rising consumer disposable income and growing infrastructure development across India, China and Southeast Asian countries.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)