Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 11

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 4
Chunk 11
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 a transparent substrate,
such as glass, light control technologies allow for traditionally passive materials dynamic and multi-purpose functionality. By allowing
a surface to appear transparent, translucent or opaque on-command, light control technologies balance the benefits of natural light with
the need for privacy and energy efficiency. Light control technologies can be integrated into windows, partitions and other transparent
surfaces in a wide range of end-market applications.

The market potential for integrated
advanced light control products continues to grow as more material applications develop. According to a recent research report conducted
by Frost and Sullivan, the global smart glass market size is expected to reach $124 billion by 2028 and to grow at a CAGR of 22.8% from
2023 to 2028, driven primarily by the architecture and mobility markets.

Architectural applications
are poised to represent a significant growth opportunity as light control technologies are increasingly integrated into new building
construction in windows, skylights and partitions. Approximately 80% of flat glass produced globally has been historically used in building
and construction applications. Adoption of smart glass in architectural applications is expected to be driven by the need for on-demand
privacy and solar heat control in both new buildings and retrofits within the residential and commercial segments.

In the automotive market,
we expect to continue to benefit from the increasing adoption of light control technologies in applications such as glass rooftops, side
windows and windshields. In windshields for example, our technologies replace sun visors and can enhance the performance of head-up-displays,
or HUDs, by controlling contrast in varying lighting conditions. We are well-established in this space and are working with many traditional
and emerging OEMs and Tier 1 suppliers to incorporate our light control technologies into their products. For example, many electric
vehicles on the market today feature glass panoramic rooftops without mechanical shading in order to increase head room, as the vehicles’
batteries typically occupy additional space underneath the passenger compartment. Our technologies are being embedded in these rooftops
by various OEMs as a preferred solution to control light and heat, also helping to save energy and extend the driving range per charge.

From a policy perspective,
both the United States and the European Union are working to promote the development of environmentally sustainable technologies.
For example, in August 2022, the U. S. Federal Government passed the Inflation Reduction Act of 2022, which includes provisions
from the Dynamic Glass Act that extend meaningful investment tax credits to electrically-controlled variable tint materials. The