Market Insights
“The solar encapsulation market size was US$1.8 billion in 2024 and is likely to grow at a decent CAGR of 1.9 % in the long run to reach US$2.0 billion in 2031.”
Market Dynamics
Introduction
The solar encapsulant market has a significant role in the resilience and performance of photovoltaic (PV) modules, specifically with respect to protecting solar cells from environmental effects such as moisture, UV exposure, and mechanical damage. Encapsulants are crucial layers, typically constructed from materials like EVA, POE, or PVB, between the solar cells and the glass (or backsheet), to maintain structural integrity and allow light to transmit across the module's lifetime. As adoption rises for solar energy across the globe, especially for utility installations and residences, the call for high-performance encapsulation material has made its way to the forefront of design considerations.
At the same time, advances in PV cell technologies, such as bifacial and heterojunction technologies, have influenced how the material performance of encapsulants is prioritized. Ethylene Vinyl Acetate (EVA) is a well-established standard in the industry because it is cheaper to produce and relatively easy to process; however, new materials, examples as Polyolefin Elastomer (POE), are being utilized for their outstanding moisture barrier capability. Increased emphasis on module lifetime and variances across regions has increased focus on encapsulation material advancements and distinguishing encapsulation suppliers in a competitive marketplace.
Market Driver
One of the key drivers in the market for solar encapsulation is the tremendous increase in solar PV installations around the world due to the strong clean energy targets and supportive government policies. Countries are building solar infrastructure to decarbonize their energy systems, particularly always from the Asia-Pacific, Europe, and North America. This rising demand translates directly into a need for dependable encapsulation materials to extend module life and performance no matter the environmental conditions. With the evolution of solar technology, encapsulants are becoming more and more important as a factor in enabling long-term efficiency and return on investment for both residential and utility-scale applications.
Recent Market JVs and Acquisitions:
A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In September 2022, GS Energy and Hanwha Solutions' Chemical Division launched H&G Chemical, a JV to build a dedicated EVA film facility
- In 2023, DuPont acquired Laird Performance Materials.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Material-Type Analysis
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Ethylene Vinyl Acetate, Polyvinyl Butyral, Thermoplastic Polyurethane, Polyolefin Elastomer, and Other Material Types
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Ethylene Vinyl Acetate material is expected to remain dominant in the coming years.
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Technology-Type Analysis
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Crystalline Silicon Solar Technology and Thin-Film Solar Technology
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Crystalline Silicon Solar Technology is anticipated to hold the largest share of the market in the upcoming years.
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Application-Type Analysis
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Utility-Scale Solar, Residential Solar, and Commercial & Industrial (C&I) Solar
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Utility-scale solar is anticipated to dominate the market in the forecasted period.
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Region Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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The Asia-Pacific is expected to maintain its reign over the forecast period.
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By Material Type
“Ethylene vinyl acetate is expected to remain the dominant material of the market during the forecast period.”
Ethylene Vinyl Acetate (EVA) is by far the most common encapsulant material in the solar industry because of its outstanding optical transmittance, adhesive performance, and value. EVA is also compatible with crystalline silicon modules, and it's developed as a supply chain and processing technology, so it is the default choice for almost all solar panel manufacturers around the world.
Newer technologies are offering materials that outperform EVA, like Polyolefin Elastomer (POE) and Thermoplastic Polyurethane (TPU), which will have superior moisture barriers and fit better as cap materials in bifacial modules. However, the production and processing of EVA in this supply chain provides performance at a substantially lower price, and this will allow EVA to dominate, especially in regions where the focus is on lowering the cost-per-watt, where the utility-scale solar installations are the focus.
By Technology Type
“Crystalline silicon is expected to remain the dominant, fastest-growing technology of the market during the forecast period.”
Crystalline silicon (c-Si) technology dominates the solar market, accounting for over 85% of total worldwide PV installations, including monocrystalline and multicrystalline modules. All rely heavily on encapsulation as a means of protection from moisture, dust, and to protect against mechanical stress.
C-Si's dominance can be attributed to high conversion efficiency, a stable manufacturing ecosystem, and decreasing production costs. As encapsulation materials such as EVA and POE are specifically optimized for c-Si cells, this segment continues to drive the majority of demand in the solar encapsulation market.
By Application Type
“Utility-scale solar application is anticipated to be the dominant one in the market during the forecast period.”
Because of their scope, utility-scale solar projects account for the most encapsulant usage and can be in the multitude of megawatt range or a gigawatt and above for large installations. Utility-scale solar farms require encapsulation materials that are reliable and durable, with the ability to perform for a sustained period of time in various environments or conditions.
Used by governments and energy developers to achieve climate objectives at scale (notably in larger countries like China, India, the U.S., and many countries in the Middle East), utility-scale solar continues to own the majority of the solar encapsulation market given the volume and growth trajectory of utility projects.
Regional Analysis
“The Asia-Pacific is expected to remain the largest market for solar encapsulation during the forecast period.”
The solar encapsulation market is dominated by the Asia-Pacific region. This vast regional market is fueled by consistent growth in solar PV installations and the presence of large module manufacturers in China, India, South Korea, and Japan. China serves as the world's leader in both production and deployment of solar energy.
Asia-Pacific has a lot of forces working in its favour. The region offers well-established government backing, cheaper manufacturing in the region, and increasing demand for renewable energy. Furthermore, local encapsulant suppliers and vertically integrated solar supply chain players provide stability for development, making Asia Pacific not only the largest consumer of encapsulants but also the production location for encapsulation materials.
Key Players
The market is fragmented, with over 100 players. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the solar encapsulation market:
Here is the list of the Top Players (Based on Dominance)
- Targray Technology International Inc.
- Kuraray Europe GmbH
- 3M Renewable Energy
- ACC Silicones
- Akcome Film & Applied New Material
- Aeonian Photovoltaic
- Arkema
- Brij Encapsulants
- C.I. Kasei Company
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The market is segmented into the following categories.
Solar Encapsulation Market, by Material Type
- Ethylene Vinyl Acetate (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Polyvinyl Butyral (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Thermoplastic Polyurethane (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Polyolefin Elastomer (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Other Material Types (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Solar Encapsulation Market by Technology Type
- Crystalline Silicon Solar Technology (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Thin-Film Solar Technology (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Solar Encapsulation Market by Application Type
- Utility-Scale Solar (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Residential Solar (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Commercial & Industrial (C&I) Solar (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Solar Encapsulation Market by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s solar encapsulation market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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