Solar Encapsulation Market Size, Share, Growth Analysis, By Material(Ethylene vinyl acetate (EVA), polyvinyl butyral (PVB)), By Application(Construction, Electronics) - Industry Forecast 2024-2031

Solar Encapsulation Market size was valued at USD 3.13 Billion in 2022 and is poised to grow from USD 3.40 Billion in 2023 to USD 6.63 Billion by 2031, at a CAGR of 8.7% during the forecast period (2024-2031).

The solar encapsulation market is highly competitive, with numerous players operating in the industry. The market is characterized by a mix of established companies, emerging players, and regional manufacturers. These companies focus on developing and offering a wide range of solar encapsulation materials and solutions to cater to the diverse needs of solar panel manufacturers and end-users. Competition in the market is primarily driven by factors such as product innovation, performance, reliability, pricing, and customer service. 'DuPont - USA', 'STR Holdings, Inc. - USA', 'Mitsui Chemicals Tohcello, Inc. - Japan', 'Coveme - Italy', 'Bridgestone Corporation - Japan', 'Solutia (Eastman) - USA', 'Krempel GmbH - Germany', 'Hangzhou First PV Material Co., Ltd. - China', 'Toyo Aluminium K.K. - Japan', 'Toppan Printing Co., Ltd. - Japan', 'Folienwerk Wolfen GmbH - Germany', '3M - USA', 'Jolywood (Suzhou) Sunwatt Co., Ltd. - China', 'Mitsubishi Polyester Film, Inc. - USA', 'Targray - Canada', 'Changzhou Sveck Technology Co., Ltd. - China', 'Zhejiang Feiyu New Energy Co., Ltd. - China', 'Hangzhou Zhongtian Microelectronics Co., Ltd. - China', 'Hangzhou First Applied Material Co., Ltd. - China', 'Jinko Solar - China'

The demand for environmentally sustainable solutions and the imperative to reduce carbon emissions has increased significantly. This has led to a notable shift towards renewable energy sources due to growing environmental concerns and the depletion of conventional energy sources. Consequently, the solar encapsulation market is experiencing a surge in demand as it plays a vital role in facilitating the adoption of solar energy during the projected period. Additionally, the process of urbanization has contributed to the increased need for solar panels, consequently driving the demand for solar encapsulation. This factor is anticipated to be a major driver in the market. Furthermore, the solar encapsulation market is expected to witness substantial growth due to the rising awareness of the benefits of renewable energy and the desirable properties offered by solar encapsulation, such as excellent insulation, mechanical durability, and superior light transmission, throughout the forecast period.

Transition to Non-EVA Encapsulation Materials: Ethylene vinyl acetate (EVA) has been traditionally used as the primary encapsulant material in solar modules. However, there is a growing shift towards non-EVA encapsulation materials, such as polyolefin-based films, polyvinyl butyral (PVB), and thermoplastic polyurethane (TPU). These alternative materials offer improved long-term performance, higher adhesion, and enhanced resistance to potential-induced degradation (PID).

Asia-Pacific is expected to maintain its dominant position in the solar encapsulation market in terms of both market share and revenue. This region's continued growth can be attributed to the expanding applications of solar energy in power generation, construction, and agriculture. The increasing adoption of solar energy within the Asia-Pacific region contributes significantly to the market's overall progress.