Solar Encapsulation Global Market Report 2024

Solar encapsulation is a crucial process used to safeguard solar panels and equipment from degradation. This protective step is integral to the solar cell manufacturing process, shielding solar panels and equipment from various external and environmental factors that could cause deterioration. Solar encapsulation serves to increase the lifespan of solar cells, mitigate stability issues, and provide protection against ultraviolet (UV) radiation, corrosion, temperature changes, and low mechanical stress.

The primary types of materials used for solar encapsulation include non-ethylene vinyl acetate, UV-curable resin, and other materials. Ethylene-vinyl acetate is a material known for its good radiation transmission and low degradability to sunlight, making it a commonly used encapsulating agent in solar modules. Solar modules involved in solar encapsulation can include polycrystalline silicon cells, cadmium telluride, amorphous silicon cells, and other types. These solar modules find applications in various industries, including automotive, electronics, and other diverse applications.

The solar encapsulation market research report is one of a series of new reports that provides solar encapsulation market statistics, including solar encapsulation industry global market size, regional shares, competitors with an solar encapsulation market share, detailed solar encapsulation market segments, market trends and opportunities, and any further data you may need to thrive in the solar encapsulation industry. This solar encapsulation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The solar encapsulation market size has grown exponentially in recent years. It will grow from $3.34 billion in 2023 to $4.18 billion in 2024 at a compound annual growth rate (CAGR) of 25.3%. The growth observed in the historical period can be attributed to several factors, including increased government incentives and subsidies for solar energy adoption, heightened awareness and concern for environmental sustainability, a growing demand for clean and renewable energy sources, a reduction in the cost of solar energy production, and the increasing popularity of solar photovoltaic (PV) modules.

The solar encapsulation market size is expected to see exponential growth in the next few years. It will grow to $9.3 billion in 2028 at a compound annual growth rate (CAGR) of 22.1%. The anticipated growth in the forecast period can be attributed to the expanding solar energy sector in emerging economies, a rising demand for photovoltaic solar systems, the implementation of transparent conductive materials, and the integration of energy storage solutions with solar encapsulation systems. Significant trends expected in the forecast period encompass innovations in encapsulation materials, ongoing research and development in advanced encapsulation materials, the development of lightweight and flexible solar encapsulation materials, the emergence of smart encapsulation technologies for real-time monitoring and maintenance, and the customization of encapsulation materials to suit specific climate conditions.

The growth of the solar encapsulation market is being propelled by the increasing demand for rooftop photovoltaics (PV) installations in developing economies. Photovoltaic (PV) systems are designed to harness solar power, converting sunlight into electricity through components like solar panels. With environmental concerns rising and traditional energy sources depleting, there's a notable shift towards renewable energy, particularly solar energy. The installation of PV systems, including rooftop PV installations, is on the rise in developing economies. Solar encapsulation, a mandatory process ensuring the reliability and longevity of PVs, witnesses increased demand. For instance, in 2021, India installed 1.7 GW of rooftop solar, indicating a 210% YoY increase. The residential and commercial segments contributed significantly to the installed capacity. Japan, aiming for 108 GW of solar capacity by 2030, further underscores the increasing demand for solar PV installations, subsequently driving the solar encapsulation market.

The solar encapsulation market is experiencing growth due to the escalating energy demand and consumption during the historic period. Energy demand, reflecting the total electrical power needed by consumers and industries, has surged. Efficient encapsulation materials in solar PV systems enable decentralized power generation, reducing dependence on centralized grids and enhancing regional energy independence. In 2022, global electricity generation saw a 2.3% increase, and non-OECD countries witnessed a significant rise in primary energy consumption, led by China. This growth in energy demand is a key factor propelling the solar encapsulation market.

A notable trend in the solar encapsulation market is technological advancement, with major players focusing on introducing and implementing advanced encapsulation technology for solar modules. These technologies aim to improve PV module efficiency through innovative designs that replace gaps between solar cells. For instance, JA Solar Holdings launched the DeepBlue 4.0 X, an n-type PV module utilizing specialized encapsulation materials and patented Gapless Flexible Interconnection (GFI) technology to address mechanical stress and reduce the risk of microcracking.

Innovation in product development, such as backsheets, is a strategy employed by major companies in the solar encapsulation market to enhance their product offerings. Backsheets, protective layers in photovoltaic solar panels, shield solar cells from environmental factors and provide electrical insulation. Alishan Green Energy introduced BackPro backsheets, advanced solar module components with proprietary coatings for improved performance, UV resistance, and mechanical strength. This move positions them as a comprehensive source for encapsulant and backsheets needs in the solar energy sector.

In May 2023, First Solar, Inc. acquired Evolar AB for $38 million. This acquisition aims to accelerate the development of the next generation of photovoltaic technology, including highly efficient tandem devices. First Solar intends to leverage Evolar's expertise in solar technology, including encapsulation, to enhance its current research and development efforts and scale thin-film PV solutions for commercial applications. Evolar AB, a Sweden-based provider of solar technology, aligns with First Solar's strategic goals in advancing photovoltaic technology.

Major companies operating in the in the solar encapsulation market report are Minnesota Mining and Manufacturing Company, Akcome Science and Technology Co. Ltd., STR Holding Inc., Bridgestone Corporation, Dow Inc., Du Pont De Nemours and Company, Trosifol India Pvt. Ltd., First Solar Inc., Ai Technology Inc., Celanese Corporation, Eastman Chemical Company, Momentive Performance Materials Inc., Hangzhou First PV Material Co. Ltd., Changzhou Sveck Technology Co. Ltd., Coveme SpA, Encapsulantes de Valor Agregado S. A. de C. V., Eva SA, Folienwerk Wolfen GmbH, Guangzhou Baiyun Chemical Industry Co. Ltd., Henkel AG & Co. KGaA, Hiuv New Materials Co. Ltd., Isovoltaic AG, Jolywood Sunwatt Co. Ltd., Kansai Paint Co. Ltd., Krempel GmbH, Kuraray Co. Ltd., Madico Inc., Mitsui Chemicals Inc., Nippon Sheet Glass Co. Ltd., Renolit SE, Saint-Gobain SA, Sekisui Chemical Co. Ltd., Solutia Inc., Taiflex Scientific Co. Ltd., Toppan Printing Co. Ltd., Toray Industries Inc., UBE Industries Ltd., Wacker Chemie AG, Zhejiang Reisun Solar Energy Co. Ltd., PVB Interlayer Products Inc.

Asia-Pacific was the largest region in the solar encapsulation market in 2023. The regions covered in the solar encapsulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the solar encapsulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The solar encapsulation market includes revenues earned by entities by protecting PV cells against weather, corrosive environment, UV radiation, and low energy impacts. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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