China's Optical Glass Industry: Steady Expansion with Untapped Potential in High-End Market Domestic Substitution

1. Optical Glass Industry Chain

Optical glass: Specialized glass for optical applications, alters light direction/spectral distribution (UV/visible/IR).

Key properties: High transparency, uniformity, precise optical constants.

Types: Colorless, radiation-resistant, colored, UV/IR, quartz, other specialty glasses.

Industry Chain Structure
‣ Upstream: Quartz sand, rare earth materials
‣ Midstream: Optical glass production
‣ Downstream: Tablets, smartphones, optical instruments, automotive lenses

2. Stable Growth in China's Optical Glass Industry
*Source: China Optical Glass Industry Status In-Depth Analysis and Future Prospects Report (2024–2031), Guanyan Report Network*

Historical Milestones
▶ 1953: Gong Zutong produced China's first optical glass (Changchun Instrumentation Institute)
▶ Evolved from import dependency to global largest producer/consumer

Market Data (2019-2022)
▶ Production: 42,700 tons (2022, +5.43% YoY)
▶ Demand: 38,000 tons (2022, +6.15% YoY)
▶ Market size: ¥2.7B (2019) → ¥3.6B (2022), CAGR 7.46%

3. High-End Market: Import Dependency & Domestic Potential

Current Status
■ Domestic focus: Mid-low end products (homogenization, overcapacity)
■ High-end dominated by: Schott (Germany), Ohara, Hoya (Japan)

Growth Drivers
3.1 Automotive Industry ("Four Modernizations")
• Camera shipments: 28.55M (2018) → 61.31M (2022), CAGR >14%
• Market size: >¥10B (2022, +67.48% YoY) → Projected >¥23B by 2025

3.2 Smart City & Security
• Smart security market: >¥70B (2023, +18.18% YoY) → >¥100B by 2026
• Applications: Surveillance systems, smart cameras

3.3 Consumer Electronics
• Smartphone upgrades → Demand for high-performance glass (imaging/durability)