Intelligence
INTELLIGENCE: Smart windows market set for decade of steady growth
The smart windows market is experiencing significant growth, with projections indicating an increase from $5.83 billion in 2024 to $6.45 billion in 2025, at a CAGR of 10.7%. This expansion is driven by regulatory initiatives promoting energy efficiency, rising energy costs, and a focus on occupant comfort in various building types, alongside urbanization and infrastructure development.
Looking ahead, the market is expected to reach $9.54 billion by 2029, growing at a CAGR of 10.3%. Factors contributing to this growth include the rising demand for smart homes and buildings, a focus on health and well-being in building design, government incentives for energy efficiency, the development of smart cities, and increasing awareness of indoor air quality. Technological advancements such as IoT, AI, and integration with smart home ecosystems are also key trends.
The forecasted growth rate has been adjusted slightly to 10.3%, a 0.8% decrease from previous estimates, primarily due to the impact of tariffs and trade tensions affecting the global economy. This has implications for the availability of materials like thermochromic glass and automated shading systems, potentially leading to construction delays and increased costs.
The demand for smart home solutions is a significant driver for the smart window market, with consumers seeking enhanced convenience, energy efficiency, and security. Smart windows contribute to these goals by managing light, privacy, and energy use. For instance, 77% of UK adults are expected to own at least one connected home device, with a growing number of ‘advanced adopters’ owning more than three.
Key market players are focusing on developing automation and connected technologies, such as voice-activated and app-controlled windows. Marvin’s Smart Window and Door Line, introduced in February 2024, exemplifies this trend with features like voice commands and climate control settings. Additionally, Gauzy Ltd.’s acquisition of Vision Systems in February 2022 aims to expand its product offerings and global presence.
The smart windows market is led by companies such as Saint-Gobain S.A., AGC Inc., and Gentex Corporation, among others. North America was the largest market in 2024, with Europe projected to be the fastest-growing region.
The market encompasses revenues from installation, maintenance, support, consulting, and sales of related goods. The value of goods includes the ‘factory gate’ value, which is the price sold by manufacturers or creators, whether to other entities or directly to end customers.
Why this matters: With the fenestration market in so many countries at a crossroads, the importance of the smart window market is instrumental in driving growth. The figure from the UK that shows that 77% of UK adults are expected to own at least one home connected device is key to the continued growth of smart windows. These individuals have already bought into the innovation. It is the job of industry to deliver the products that ignite the desire from homeowners. The sales approach differs across the globe. For instance in France smart tech is often sold as standard – while in the UK it is sold as an added extra in many installations. Interesting the average price of a window in France is considerably higher than in the UK.
