PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1515513
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1515513
Solar Encapsulation Market size was valued at USD 4,987.45 Million in 2023, expanding at a CAGR of 7.98% from 2024 to 2032.
Solar panel encapsulation is the process of sealing photovoltaic (PV) cells and other components with polymeric materials to make them more durable and long-lasting. The encapsulant protects the cells from UV light, dust, and moisture, and cushions them while also binding them to the glass and backsheet. As the demand for renewable energy sources grows, driven by environmental concerns and energy transition policies worldwide, the solar encapsulation market is expected to expand significantly. Key factors influencing market dynamics include advancements in encapsulation materials, increasing PV installation capacities, and innovations in module design aimed at improving efficiency and durability.
Solar Encapsulation Market- Market Dynamics
Adoption of Renewable Energy Fuels Growth in Solar Encapsulation Market.
The global shift towards renewable energy driven by climate change concerns has prompted governments worldwide to prioritize clean energy sources, with solar power emerging as a leading contender due to its sustainability. Ambitious solar installation targets, such as the European Union's goal of 500 GW of solar photovoltaic capacity and India's target of 280 GW by 2030, highlight the scale of this transition. The increasing deployment of solar photovoltaic and concentrated solar power installations, alongside growing adoption in residential and commercial sectors, is driving demand for more efficient solar encapsulation components. Moreover, advancements in solar encapsulation materials aimed at enhancing lifespan and efficiency are accelerating the adoption of technologies.
A recent report by MLT Analytics, titled "MLT Analytics Report-New Solar Cell Technologies Accelerate a Transformational Shift in Encapsulant Sheet Adoption," sheds light on an interesting trend. The report highlights how advancements in solar cell technology are driving a significant shift in the adoption of encapsulant sheets.
Solar Encapsulation Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 7.98% over the forecast period (2024-2032)
Based on Material segmentation, Ethylene-Vinyl Acetate was predicted to show maximum market share in the year 2023
Based on Technology segmentation, Multi-Crystalline Silicon was the leading type in 2023
Based on Application segmentation, Industrial and Utility-Scale was the leading type in 2023
Based on region, Asia Pacific was the leading revenue generator in 2023
The Global Solar Encapsulation Market is segmented based on Material, Technology, Application, and Region.
The market is divided into seven categories based on Material: Ethylene Vinyl Acetate (EVA), Thermoplastic Polyurethane (TPU), Polyvinyl Butyral (PVB), Polydimethylsiloxane (PDMS), Ionomer, Polyolefin, and Others. Derived from ethylene and vinyl acetate, Ethylene Vinyl Acetate (EVA) is the leading choice in this category. As a widely used material in photovoltaic modules, EVA serves as a key encapsulant that protects solar cells from environmental factors while ensuring optimal performance and longevity. Its properties, including excellent adhesion, transparency, flexibility, and resistance to UV radiation, make it highly suitable for encapsulating solar panels.
The market is divided into three categories based on Technology: Thin Film, Multi-Crystalline Silicon, and Mono-Crystalline silicon. Having an efficiency of around 17-19% Multi-Crystalline Silicon is widely used in the solar industry. It is distinguished by its composition, where the silicon crystals are formed from multiple crystalline structures rather than a single uniform crystal lattice (as in mono-crystalline silicon). This production method typically results in lower manufacturing costs compared to mono-crystalline silicon, making it a popular choice for large-scale solar panel production.
Solar Encapsulation Market- Geographical Insights
Geographically, the Asia Pacific region is increasingly becoming a key player in the adoption of solar encapsulation technologies, driven by rising energy demands. Economically developing nations like India and China are making substantial investments in this technology, contributing to the global growth of the solar encapsulation market. Similarly, significant adoption of solar encapsulation is also observed in North America. Governments across different regions are offering tax incentives to promote solar technology adoption, positively impacting the global market. Furthermore, ambitious renewable energy goals and the growing installation of solar encapsulation systems are fueling the expansion of the global solar encapsulation market. This market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Several companies are leading the charge in the Solar Encapsulation Market. These include Mitsui Chemicals, Elkem ASA, Dow, 3M, DuPont, Saint-Gobain Group, RenewSys India, and Evonik Industries. Their dominance stems from a combination of factors. Some excel in material innovation, developing next generation encapsulants that improve solar panel efficiency and durability. Others leverage their global reach and manufacturing prowess to deliver cost-effective solutions. Additionally, a focus on sustainability is propelling some companies forward, as they develop products made from recycled materials or with superior recyclability at the end of their lifespan. This blend of innovation, scalability, and environmental consciousness allows these key players to stay ahead of the curve in the ever-evolving Solar Encapsulation Market.
In April 2024, A team from Austria developed a model to optimize lamination parameters and identify critical issues such as insufficiently crosslinked and inconsistent encapsulant laminations. The model shows promise, especially in the production of double-glass solar panels.
In August 2023, Verde Technologies Inc., specializing in perovskite-focused thin-film solar technology, partnered with Northern Illinois University (NIU) and the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) to commercialize its perovskite solar cells. NIU and Verde have secured an exclusive agreement with NREL granting them rights to a portfolio of NREL's perovskite solar technologies.
GLOBAL SOLAR ENCAPSULATION MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
3M
Canadian Solar
Dow
DuPont
First Solar
JA SOLAR Technology Co., Ltd.
Jinko Solar
Q CELLS
SunPower Corporation
Trina Solar
VIKRAM SOLAR LTD.
Mitsubishi Chemical Corporation