Smart Windows Markets

www.ecisolutions.com

WORLDWIDE SMART WINDOWS MARKETS: 2013-

2020

A NanoMarkets-FlexTech Alliance Webinar Wednesday June 26, 2013

© 2013 NanoMarkets, LC

www.nanomarkets.net

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ABOUT NANOMARKETS LC

• NanoMarkets provides industry analysis of advanced materials markets in

the energy and electronics sectors. We have been covering these

activities for a decade

• Our work includes market, company and technology analysis, market

forecasting and due diligence. NanoMarkets provides forecasts of all

major thin-film/printed markets

• Offerings include reports, custom consulting, seminars/webinars and in-

house training. NanoMarkets is based in U.S., with extensive

contacts all over the world

• NanoMarkets has issued many reports on the business opportunities for

“smart glass “ technologies. This Webinar is based on “Worldwide

Smart Windows Markets: 2013-2020 published by NanoMarkets


www.nanomarkets.net

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WORLDWIDE SMART WINDOWS MARKETS 2013-2020

Published in June of 2013

150 pages

Detailed industry forecasts

80 tables

Global perspective

Link to the report:

www.nanomarkets.net © 2013 NanoMarkets, LC

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http://nanomarkets.net/market_reports/report/worldwide_smart_windows_markets_2013_2020

WHAT ARE SMART WINDOWS?

• Self-dimming windows

• Self-cleaning windows

• Self-repairing windows

• BIPV glass

• OLED glass

• Transparent displays

• Low-e glass


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WORLDWIDE SMART WINDOWS MARKETS ($ Million)

2013 2016 2020

RESIDENTIAL 458 605 896

COMMERCIAL 319 421 646

TRANSPORT 1,555 2,565 3,726

TOTAL 2,332 3,591 5,268


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SIX FACTORS SHAPING SMART WINDOWS MARKET

• Rising real energy prices

• Adding value to commodity glass

• Real estate and automotive market recovery?

• Specifier skepticism

• Regulatory factors

• Comfort factors


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No technology breakthroughs in past year

SPECIAL FACTORS IN TRANSPORTATION

• Lowering cost of A/C

• Privacy based on the tint level of the film

• The "cool" factor when they buy a new car

• Aerospace as trend leader


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SPECIFIER SKEPTICISM – PERCEPTION PROBLEM TO

OVERCOME

• Cost too high? Consider price delta

• Performance not good enough?

• Opportunities for pioneering architects and

construction firms

• Smart windows firms need to spread influence

in the specifier community


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REGULATORY FACTORS

• LEED and zero energy in building codes

• Consumer labeling

• Financial incentives including tax incentives


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COMFORT FACTORS

• Advantages of natural light

• Right amount of light for all seasons

• Privacy

• More glass means smart glass


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STATE OF THE SW MARKET BY REGION

Plusses Minuses Smart

Windows

Market in 2016

US Housing market growing again May just be a bubble $1.1 billion

Europe Focus on sustainable construction

Good real estate prospects in Germany

Bad economy in many

countries

$0.9 billion

China Specifiers are often Western or Japanese

Emerging domestic SW firms

Unoccupied buildings $0.6 billion

Japan Consumers fond of new technology

Undervalued real estate market?

Deflating economy


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PASSIVE SMART WINDOWS TECHNOLOGIES

Pros Cons Opportunities

Window films Cost effective

response to energy

price rises

Passive tunability

Acceptance issues Mature product

Passive

Thermochromic

Performance

Limited suppliers

Improved

response times

Passive

Photochromic

Mature technology Limited suppliers Broader range

of dimability


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PASSIVE RESIDENTIAL SMART WINDOWS MARKETS

($ Million)

2013 2016 2020

WINDOW FILM 179 226 300

THERMOCHROMIC FILM 15 15 19

PHOTOCHROMIC FILM 5 7 11

TOTAL 199 248 330


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SMART WINDOWS MARKET EVOLUTION: FROM

PASSIVE TO ACTIVE

• Real energy price rise drive passive and

low-e

• Additional control and maturity of

passive drives active


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ACTIVE SMART WINDOWS TECHNOLOGIES

Pros Cons Opportunities

PDLC Privacy glass

market is

substantial

Opaque in off state

Mostly small

suppliers

Improved

manufacturing costs

SPD Clear to tinted;

broad spectrum

of applications

Growing in the

auto sector

Bad at blocking IR

One major supplier

Cost reductions

Electrochromic Electrochromic

glass widely

used in

automotive

Electrochromic film

seems likely to be

confined to niches

More cost effective

solutions

Broad tunability


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BENCHMARKING OF ACTIVE SMART WINDOWS

TECHNOLOGIES

PDLC Active On-Demand

Smart Windows

SPD Active On-Demand Smart Windows Electrochromic Active On-

Demand Smart Windows

Key advantages PDLC chemistry is relatively

easy to produce in a film

form

Can achieve a highly dark state that

blocks 99.5 percent of the entering

light, SPD technology does not create a

hazy appearance, and the degree of

clarity/opacity can be controlled by

changing the applied voltage

Faster switching time

compared to any other

technology

Key disadvantages It does not completely block

the light in the "off" state,

and in the "on" state, it has a

hazy appearance

Not as effective as electrochromic smart

windows in blocking IR radiation

Cost of manufacturing

electrochromic glass is

high and is limited to

applications that have flat

surfaces

Cost Moderate Highest High

Likely market

evolution

PDLC will continue to be a

niche product for providing

privacy in commercial

buildings

SPD will continue to grow and will have

broad adoption in residential and

commercial buildings, as well as

transportation.

Reduction of

manufacturing costs and

the development of

alternative low cost

products


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ACTIVE RESIDENTIAL SMART WINDOWS MARKETS

($ Million)

2013 2016 2020

PDLC 42 70 132

SPD 198 239 271

Electrochromic glass 14 36 123

Electrochromic film 6 13 40

Total 259 357 566


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FACTORS FOR SUCCESS IN THE SMART WINDOWS

BUSINESS

• Technology improvements

• Global manufacturing and distribution

• Advanced manufacturing technologies for economies of

scale

• Using established marketing, sales, and service

networks

• Branding


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SUMMING UP

• Smart windows are driven by rising real energy costs

• Shift from passive to active

• Limited opportunities for technology breakthroughs

and some niche technologies

• Strongly dependent on economy

• $2.3 billion market in 2013


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LAWRENCE GASMAN

Mr. Gasman's is the principal analyst and co-founder of

NanoMarkets. He is the author of recent studies related to smart

glass and windows technologies and market and his consulting

clients have included multinationals, start-ups and investors and

he has advised them on new product introduction, market

positioning and strategy, and sales potential. He has also

provided due diligence on mergers and acquisitions for his

financial clients and serves on the technology advisory board of a

major specialty chemicals firm.

Mr. Gasman has also spoken and written widely on the subject of

new materials markets. His recent appearances have included

talks at Semicon West, 2011Flex, SVC TechCon, and LED/OLED

Lighting Japan. Mr. Gasman's latest book is on the

commercialization of nanotechnology for Artech House.

Mr. Gasman was educated at Manchester University, The London

School of Economics and London Business School.


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[email protected]

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THANK YOU

FOR YOUR TIME!


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