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2025 Market Insights: What You Need to Know

Market trends in the OEM sector have a profound impact on our industry. From the moment a vehicle leaves the dealership, there is a risk of windscreen damage, necessitating potential replacements. Additionally, the types of cars sold in the coming months will shape the composition of the carpark on the road, affecting our industry.


Understanding future projections is vital. Data from the European Automobile Manufacturers' Association (ACEA) shows there are approximately 300 million cars and over 36 million vans in Continental Europe, with an average lifespan of 12 years. Nearly 15.07 million vehicles were sold annually in Western and Central Europe in 2024, according to S&P Global, and this number is expected to grow to 15.22 million in 2025 (+1% - Source: S&P Global).


Among the new models expected in 2025, we can notably mention the restyled Tesla Model Y, the second generation of the VW T-Roc, the resurrected Renault 4 and the brand new Dacia Bigster as market leaders. In total, no fewer than 90 new models are expected to be launched in Europe in 2025


Projections from S&P Global for 2025 also indicate that the global new car market will be dominated by fossil fuel vehicles at 45% (including Start&Stop vehicles), followed by hybrids at 31%, and electric vehicles (EVs) at 17%. Looking ahead, the market share for hybrid vehicles is expected to remain stable, while the EV sector is set to grow rapidly, overtaking internal combustion engine-based (ICE+Hybrids) vehicles by 2031, with over half the market. 


This highlights the increasing demand for equipment suited to electric and hybrid vehicles and reflects the changing composition of vehicles on the road. Additionally, we are seeing a shift in brand dynamics, with significant growth in new entrants like Chinese manufacturers (from 0.3% market share in 2020 to 4.8% forecasted in 2025 and 9.8% in 2034 according to S&P Global) and those focusing on EVs.


As technology, connectivity, and consumer needs evolve, the industry is moving towards a more tech-centric approach. Certain Advanced Driver-Assistance Systems (ADAS) technologies have become mandatory, with more to follow, complicating the design and calibration of windscreens and sensors. The demand for acoustic glass is also increasing, driven by the quieter operation of EVs and the proliferation of voice-activated features within vehicles.


This year marks an exciting milestone for AGC as we proudly unveil our co-developed PHUD technology, introduced by a leading manufacturer during the CES. This technology offers a revolutionary approach to enhancing both the driving experience and comfort. Alongside this, we are also pioneering switchable glazing solutions. These advancements reflect the broader, transformative changes sweeping through the industry, showcasing our commitment to innovation and leadership in automotive glass technology.


Although 2035 may seem distant, in business terms, it is just around the corner. AGC is not only keeping pace with these trends but is also leading in both the OEM and Automotive Replacement Glass (ARG) markets, striving to be your partner of choice in this dynamic landscape.