An excerpt from the NanoMarkets report, Smart Glass in the Automotive Sector

1. Four Key Drivers for the Use of Smart Glass in the Automotive Sector
NanoMarkets sees the use of smart glass in the automotive sector as being driven by factors
that are entirely traditional within the context of the automotive industry. More specifically, we
believe that the revenue potential for smart glass in automobiles and trucks should be appraised
against four criteria. These criteria are safety, comfort, fuel economy, and design/style.
The prominence of these factors has not changed much since the earliest days of the
automobile industry, although what has changed is the degree that some of these factors are
controlled by legislation. We also note that these are very big themes in the automotive industry
and that smart glass is only one of numerous technologies that will help achieve the necessary
goals required for each of the factors.
Safety: The importance of safety in the automotive sector is hardly in need of explanation, but
we note that this is certainly one factor whose already considerable importance is usually
reinforced these days by government regulation of various kinds.
NanoMarkets doesn't see smart glass as a revolutionary contributor towards enhancing safety
in automobiles and trucks. However, the role of smart glass is certainly significant in this
respect. In fact, the use of smart glass in dimmable mirrors is already and specifically intended
to promote safety in cars.
In fact, this smart mirror application has, to date, really been the one area where smart glass
can claim a significant commercial success. The big potential market is in the area of self-
cleaning glass, which if effectively applied to windshields would certainly enhance safety.
However, as we discuss in more depth later in this report, self-cleaning glass does not really
seem quite ready to deal with the clean-up job that must be done on automotive glass on a
regular basis.
Self-repairing glass might be considered a safety feature to the extent that it could help prevent
driver and passengers being showered with glass in the event of an accident. However as far
as we are aware, self-repairing glass has also never been used in this way and it is certainly
questionable whether it would really add that much to safety given the already high capabilities
of conventional laminated glass. However, there is at least some potential for revenue
generation here and we discuss this further, later in this report.
Automotive information systems may make some contribution to safety if only in an indirect
sense. With regard to the display glass that is used with them, we believe that most of it will be
conventional and not smart in any sense. There are a few caveats to this. Some of the
information displays may use touch-screen technology which includes a large area touch sense
embedded in the top glass. Augmented reality is also about device-embedded glass. Finally,
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2. we note that some R&D is being carried out to provide some kind of self-cleaning coating for
displays of all kinds.
Comfort: In the context of smart glass, comfort covers both driving comfort and passenger
comfort and smart glass can make a contribution to both. The extent to which smart glass could
contribute to all this, is not entirely clear and we note that, at the present time, there aren't many
places where one could point to a smart glass deployment in the automotive sector that could
be thought of as being primarily designed for comfort.
That said, self-cleaning and self-tinting windows may be thought of as enhancing comfort in the
sense that clean windows and avoidance of dazzling sunlight are obviously comfort-related
factors. Although one can never been sure, it seems to us that self-cleaning windows are likely
to be introduced more for safety or style reasons than for comfort reasons. Self-repairing
windows might also be thought of as a comfort-related material.
Automobiles and trucks also contain an increasing amount of electronic entertainment systems.
There is no reason to suppose that they would make much use of smart glass, but some of the
trends noted above for information systems, might also apply to entertainment systems. For
example, electronic entertainment systems might utilize touch sensors and in the future self-
cleaning glass, but the latter is little more than speculation at this point in time.
Design/style: Design and style are perennial factors in the marketing of automobiles and
trucks. Indeed, factors these often seem to be more important than performance factors in
shaping sales of these vehicles. This is partly because purchasing a car or truck is very much a
"fashion" decision, but also because the choice among vehicles in similar performance and
price range is typically made on the basis of aesthetics and design. The concept cars shown at
major auto shows are typically interesting because of the fact they are highly styled.
Most of the smart glass materials that we discuss in this report could be considered new
materials, so any use of them in automobiles and trucks might be a contribution to style. This
seems a promising direction for marketing and promoting smart glass in the automotive sector
in that design, style and image seem to be factors that are proven to promote the use of smart
glass in that the now entirely established use of smart glass in automotive mirrors and use of
tinted glass in windshield would once have been considered a style-related innovation; the kind
of thing that is shown at auto shows.
Another factor to consider is that design trends in the automotive sector are leading to growth in
the amount of glass used per vehicle. To the extent that this continues, automotive glass
markets can be expected to grow faster than the market for automobiles and trucks themselves.
Taller vehicles and new vehicle apertures have brought about an increase in the amount of
glass used. In addition, the global growth for the midsize vehicle segments has led to vehicle
manufacturers using more glass to generate a greater impression of light and space.
NanoMarkets, LC | PO Box 3840 | Glen Allen, VA 23058 | TEL: 804-938-0030 | FAX: 804-360-7259

3. There can be anything from six to more than 13 glazed apertures on current light vehicles, many
of which are "fundamental to the overall style and appearance of a . . . vehicle," according to a
Pilkington annual report." Pilkington has also said that the increasing use of panoramic and
cielo windshields and rooflights is a key differentiating feature "to bring value back into the
glazing."
Also, according to Pilkington, over the last 35 years, glazing area on equivalent models has
increased on the order of 50 percent. Average windshield glazed area has increased by over
60 percent over the same period and the use of large-area roof glass in vehicles has been
increasing significantly year on year.
Fuel economy. Another factor that is hardly in need of an explanation, but which may be
enhanced by some smart-glass functionality is fuel economy. We don't expect smart glass to be
a major factor in the battle to hold down energy costs and promote fuel efficiency, but it may
make some difference and we note also that there is plenty of room for improvement:
 After buildings, transportation is the second highest consumer of energy in the world.
High gasoline prices have driven an increasing interest in energy conservation amongst
consumers.
 Nonetheless, according to NanoMarkets' sources, only a small fraction, estimated to be
less than two percent of the total windows in buildings and automobiles, have an energy
saving "smart" functionality.
As a result of all this, automotive manufacturers are using a multi-faceted approach to improve
the fuel efficiency of the vehicles they produce and government mandates designed to save
energy are beginning to proliferate throughout the world.
How do such trends impact the markets and products that we discuss in this report? Both solar
coatings and low-e glass is now used routinely in windshields and other kinds of car windows
with the intention of making them more energy efficient. These are not smart glass in the sense
that we consider in the context of this report, but it does at least indicate that highly functional
glass has an accepted role to play in making vehicles more energy efficient.
However with regard to the materials that we discuss in this report the exact role that they might
play is still not clear. Self-cleaning and self-dimming glass could play some part. And
specialized display glasses may have some contribution to make on dashboard controls
designed to optimize fuel use. Finally, device-embodied glass may have some role to play in
environmental control systems.
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4. 1.1.4 The Future of Smart Glass in the Automotive Sector
In the following table NanoMarkets charts how the drivers just discussed are likely to impact the
future use of smart glass in the automotive sectors. The assessments are primarily a summary
of the comments presented above.
The Drivers Shaping Demand for Smart Glass in the Automotive Sector
Safety Comfort Design/Style Fuel Economy
Self-Cleaning Cleaner windshields Clear views of what is Self-cleaning self- Impact on fuel
make for safer driving. going on outside the repairing and self- economy not clear
This is a strong incentive car or truck enhances dimming windows
for using self-cleaning the driving experience would be a "cool"
coatings; but the for both the driver addition to any
performance of these and passengers vehicle and so might
coatings is not yet ready be considered a style
for auto applications feature, even if they
are primarily being
Self-Repairing Self-repairing coatings
introduced for their
may make auto
functionality
windows less shatter
proof. However, this
capability is already
provided
Self-Dimming Already well deployed Glare and bright Tinted films are
for auto mirrors and sunlight can be already an important
could add more control directly controlled part of the keeping
to tinted windows making for more the inside of vehicles
comfort for drivers cool. Self-dimming
and passengers glass can enhance the
capability.
Device-Embedded Touch-screens may be Touch-screens and Dash-boards are often Device-embedded
Glass the safest way to self-cleaning displays a key focus of design glass may have some
interact with complex may make a minor in cars and embedded impact in the area of
dash displays contribution to sensors and other environmental control
comfort devices may help in systems.
this regard.
Augmented displays
in windshields could
also be regarded as a
style feature
© NanoMarkets 2012
They are also general comments in that they apply differently to different glass areas in a car or
truck. Although the materials that we discuss in this report are fairly novel, the areas where they
are applied are quite traditional; but the "smarts" in smart glass adds a lot of functionality to
what is usually expected in these areas. In terms of the areas themselves, what we are talking
NanoMarkets, LC | PO Box 3840 | Glen Allen, VA 23058 | TEL: 804-938-0030 | FAX: 804-360-7259

5. about here are windshields, mirrors, sunroofs, other car/truck windows, and dashboard
instrumentation panels.
See www.nanomarkets.net for additional details about the NanoMarkets report, Smart Glass in
the Automotive Sector
NanoMarkets, LC | PO Box 3840 | Glen Allen, VA 23058 | TEL: 804-938-0030 | FAX: 804-360-7259