Encapsulant Market - Forecasts from 2025 to 2030

The encapsulant market is expected to grow at a CAGR of 8.65%, reaching a market size of US$7.56 billion in 2030 from US$4.99 billion in 2025.

The encapsulant market is expected to witness strong growth during the forecast period as its application in sectors such as automotive, electronics devices, and energy is showing significant growth. The increasing demand for electronics and electrical appliances due to the increased usage of the Internet and penetration of digital devices worldwide is expected to fuel market growth.

Furthermore, with the increasing adoption of solar photovoltaic (PV) panels, there is a significant demand for encapsulants to protect PV modules from environmental factors and ensure durability. The rising focus on the development of low-cost encapsulant materials is predicted to generate a market opportunity in the future. For instance,

• The United States announced funding for solar PV in the Inflation Reduction Act (IRA) introduced in 2022. This is significant in boosting the overall solar energy sector.
• In the global market, the sales of light-duty EVs were 6 million in the first half of 2023, representing nearly 14% of new LDVs sold worldwide. Most global EV sales, approximately 80%, were concentrated in the four largest markets: China, Europe, the United States, and India. China remained the world's largest EV market, with approximately 3 million EVs sold in 2023 H1, according to the ICCT (International Conference on Communication Technology).
• The Asia Pacific semiconductor market surpassed all other regional markets in sales as electronic equipment production shifted to the region. It has multiplied in size since and $290.0 billion in 2023. The largest country market in the Asia-Pacific region is China, which accounts for 53 percent of the Asia-Pacific market and 29 percent of the total global market.

Encapsulant market drivers

• Growing solar capacity worldwide

Encapsulating solar panels are used for securing solar cells with a safeguarding layer of encapsulant material. The encapsulation substance shields the solar cells from moisture, dirt, and various pollutants that may lead to damage to solar cells. The laminating of the solar cells could be done from materials such as ethylene-vinyl acetate (EVA), Polyolefin (POE), PVB, ionomer, or silicone. Encapsulant materials should be affordable and suitable. In 2023, solar PV alone accounted for three-quarters of renewable capacity additions worldwide. Solar PV generation increased by a record 270TWh in 2022, reaching almost 1300TWh.

It is estimated that the number of households relying on solar PV will grow from 25 million in 2023 to more than 100 million by 2030 in the Net Zero Emissions by 2050 Scenario. At least 190 GW will be installed from 2022 each year, and this number will continue to rise due to the increased competitiveness of PV. With this growing demand for solar panels in the market, the need for the encapsulant will rise during the forecast period.

Geographical outlooks of the encapsulant market

• The encapsulant market is segmented into five regions worldwide

By geography, the encapsulant market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.

The Asia Pacific region is expected to see the fastest growth in the encapsulant market due to increasing applications in consumer electronics and the automotive industry here. According to the India Brand Equity Foundation, in FY23, total automobiles exported from India stood at 47,61,487. Indian automobile exports of two-wheelers stood at 36,52,122 in FY23.

North America is expected to have a significant market share for encapsulant applications due to its major utilization in end-user industries such as the automotive and semiconductor industries. The U.S. Semiconductor industry is the global industry leader with 50.2% of global market share and sales of $264 billion in 2023, according to the Semiconductor Industry Association. The United States exported $52.7 billion in semiconductors in 2023.

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Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
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The encapsulant market is segmented and analyzed as follows:

By Type

• Epoxy
• Urethane
• Silicone

By End-user Industry

• Automotive
• Electricals and Electronics
• Energy and Power
• Medical
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Rest of South America
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe
• Middle East and Africa
• Saudi Arabia
• UAE
• Rest of the Middle East and Africa
• Asia Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific