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Solar Encapsulation Market To Reach $6.1 Billion By 2030, Driven By Rising Solar Installations
EINPresswire/ -- According to a new report published by Allied Market Research, titled Solar Encapsulation Market Size, Share, Competitive Landscape and Trend Analysis Report, by Material (Ethylene Vinyl Acetate, Non-ethylene Vinyl Acetate, UV Curable Resin, and Others), Technology (Polycrystalline Silicon Solar, Cadmium Telluride, Copper Indium Gallium Selenide, and Amorphous Silicon), and Application (Construction, Electronics, Automotive, and Others): Global Opportunity Analysis and Industry Forecast 2021-2030" The global solar encapsulation market size was valued at USD 2.6 billion in 2020, and is projected to reach USD 6.1 billion by 2030, growing at a CAGR of 8.7% from 2021 to 2030.
The Solar Encapsulation Market comprises polymer films and laminates (EVA, POE, PVB, TPO/EPE and blends) used to bond and protect photovoltaic cells inside modules — improving durability, optical performance and lifetime while reducing moisture ingress and UV damage. Market estimates vary by source, but industry reports put the global market in the multi-billion dollar range with steady mid-single to high-single digit CAGRs as PV deployment and module reliability demands rise.
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲:
𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀
Demand growth from accelerating PV deployment is the primary tailwind. Rapid utility-scale and distributed solar installations worldwide increase demand for encapsulant material volumes and for higher-performance films as module sizes and power ratings increase. This macro driver underpins most forecasts for solid market expansion.
Material transition and product innovation: the industry is moving beyond traditional EVA toward POE, EPE and composite constructions (e.g., EVA/POE stacks) because they deliver better moisture resistance, lower risk of PID, reduced yellowing and improved long-term optical stability — especially for large, high-efficiency cells and bifacial modules. That shift is reshaping supplier portfolios and R&D priorities.
Reliability and warranty pressure from module makers and project owners is increasing performance requirements for encapsulants. Longer warranties and stricter IEC/accelerated-aging test expectations push demand for higher-stability chemistries and improved lamination processes (crosslinkers, additives, barrier films), raising average selling prices for premium encapsulants.
Cost and supply-chain forces create tension: EVA remains widely used because of cost and process familiarity, but volatility in raw material prices, capacity expansions in Asia and trade policies (tariffs, anti-dumping) affect regional sourcing decisions and margins for producers. Manufacturers must balance cost competitiveness with the move to premium materials
End-market diversification beyond traditional utility/commercial PV, demand from building-integrated photovoltaics (BIPV), agrivoltaics and specialized modules (flexible, curved, floating) increases requirements for bespoke encapsulant properties (adhesion to different backings, flexibility, flame retardance), opening niche growth avenues for material innovators.
𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝗧𝗼 𝗔𝗻𝗮𝗹𝘆𝘀𝘁:
𝗦𝗲𝗴𝗺𝗲𝗻𝘁 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
The solar encapsulation industry is segmented on the basis of material, technology, application, and region. Depending on material, the market is categorized into ethylene vinyl acetate, non-ethylene vinyl acetate, UV curable resin, and others. Depending on technology, it is classified into polycrystalline silicon solar, cadmium telluride, copper indium gallium selenide, and amorphous silicon. According to application, it is classified into construction, electronics, automotive, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
Asia-Pacific is the largest regional market — driven by China’s massive module production capacity, large domestic installation pipelines in China, India and Southeast Asia, and a dense supply chain for polymer films and module manufacturing. Many encapsulant producers are vertically integrated or co-located with module makers in the region, which keeps volumes concentrated there.
North America and Europe are important premium markets: demand is being shaped by stricter reliability expectations, decarbonization targets and reshoring of module manufacturing (and related policy/tariff actions). These regions are quicker to adopt higher-performance encapsulants (POE/EPE) and value-added engineered films despite higher costs. Emerging markets in Latin America, MENA and Africa are volume growth opportunities as installation rates increase.
𝗙𝗼𝗿 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗜𝗻𝗾𝘂𝗶𝗿𝘆:
𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
The competitive landscape mixes chemical/polymer manufacturers, specialty film producers and module-grade materials suppliers. Key competitive levers are raw-material access, lamination process support, regulatory/compliance know-how, and partnerships with module manufacturers for co-development of formulations tailored to advanced cell types (e.g., N-type, TOPCon, tandem). Firms that can offer validated reliability data and application engineering win OEM adoption.
Consolidation and vertical integration continue: large chemical companies and regional film specialists expand capacity or form long-term supply agreements with module makers to secure volumes and accelerate adoption of next-gen encapsulants. New entrants focus on niche high-performance films (EPE/POE blends, UV-stable formulations) or on processing equipment additives to improve lamination yields.
𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗦𝘁𝘂𝗱𝘆
• The global solar encapsulation market is worth multiple billions (estimates vary by source) and is forecast to grow at a mid-to-high single-digit CAGR through the next decade.
• Asia-Pacific leads market volume and production, while North America and Europe lead in premium encapsulant adoption and reliability demands.
• A material transition from EVA to POE/EPE (and hybrid constructions) is underway, driven by better moisture resistance and long-term optical stability needed for larger, high-efficiency modules.
• Reliability test outcomes, longer warranties and module innovations (bifacial, larger wafers, new cell types) are the strongest technical drivers forcing encapsulant upgrades and supplier differentiation.
• Cost pressures and trade/policy dynamics remain major commercial constraints — suppliers who combine cost-competitive manufacturing with validated durability data will capture the largest share of future growth.
𝗧𝗿𝗲𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 𝗶𝗻 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆
Off-Grid Solar Market
Solar Windows Market
Solar EV charging Market
Solar Shingles Market
Solar Photovoltaic Glass Market
Solar Charge Controller Market
Solar Simulator Market
The Solar Encapsulation Market comprises polymer films and laminates (EVA, POE, PVB, TPO/EPE and blends) used to bond and protect photovoltaic cells inside modules — improving durability, optical performance and lifetime while reducing moisture ingress and UV damage. Market estimates vary by source, but industry reports put the global market in the multi-billion dollar range with steady mid-single to high-single digit CAGRs as PV deployment and module reliability demands rise.
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲:
𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀
Demand growth from accelerating PV deployment is the primary tailwind. Rapid utility-scale and distributed solar installations worldwide increase demand for encapsulant material volumes and for higher-performance films as module sizes and power ratings increase. This macro driver underpins most forecasts for solid market expansion.
Material transition and product innovation: the industry is moving beyond traditional EVA toward POE, EPE and composite constructions (e.g., EVA/POE stacks) because they deliver better moisture resistance, lower risk of PID, reduced yellowing and improved long-term optical stability — especially for large, high-efficiency cells and bifacial modules. That shift is reshaping supplier portfolios and R&D priorities.
Reliability and warranty pressure from module makers and project owners is increasing performance requirements for encapsulants. Longer warranties and stricter IEC/accelerated-aging test expectations push demand for higher-stability chemistries and improved lamination processes (crosslinkers, additives, barrier films), raising average selling prices for premium encapsulants.
Cost and supply-chain forces create tension: EVA remains widely used because of cost and process familiarity, but volatility in raw material prices, capacity expansions in Asia and trade policies (tariffs, anti-dumping) affect regional sourcing decisions and margins for producers. Manufacturers must balance cost competitiveness with the move to premium materials
End-market diversification beyond traditional utility/commercial PV, demand from building-integrated photovoltaics (BIPV), agrivoltaics and specialized modules (flexible, curved, floating) increases requirements for bespoke encapsulant properties (adhesion to different backings, flexibility, flame retardance), opening niche growth avenues for material innovators.
𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝗧𝗼 𝗔𝗻𝗮𝗹𝘆𝘀𝘁:
𝗦𝗲𝗴𝗺𝗲𝗻𝘁 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
The solar encapsulation industry is segmented on the basis of material, technology, application, and region. Depending on material, the market is categorized into ethylene vinyl acetate, non-ethylene vinyl acetate, UV curable resin, and others. Depending on technology, it is classified into polycrystalline silicon solar, cadmium telluride, copper indium gallium selenide, and amorphous silicon. According to application, it is classified into construction, electronics, automotive, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
Asia-Pacific is the largest regional market — driven by China’s massive module production capacity, large domestic installation pipelines in China, India and Southeast Asia, and a dense supply chain for polymer films and module manufacturing. Many encapsulant producers are vertically integrated or co-located with module makers in the region, which keeps volumes concentrated there.
North America and Europe are important premium markets: demand is being shaped by stricter reliability expectations, decarbonization targets and reshoring of module manufacturing (and related policy/tariff actions). These regions are quicker to adopt higher-performance encapsulants (POE/EPE) and value-added engineered films despite higher costs. Emerging markets in Latin America, MENA and Africa are volume growth opportunities as installation rates increase.
𝗙𝗼𝗿 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗜𝗻𝗾𝘂𝗶𝗿𝘆:
𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
The competitive landscape mixes chemical/polymer manufacturers, specialty film producers and module-grade materials suppliers. Key competitive levers are raw-material access, lamination process support, regulatory/compliance know-how, and partnerships with module manufacturers for co-development of formulations tailored to advanced cell types (e.g., N-type, TOPCon, tandem). Firms that can offer validated reliability data and application engineering win OEM adoption.
Consolidation and vertical integration continue: large chemical companies and regional film specialists expand capacity or form long-term supply agreements with module makers to secure volumes and accelerate adoption of next-gen encapsulants. New entrants focus on niche high-performance films (EPE/POE blends, UV-stable formulations) or on processing equipment additives to improve lamination yields.
𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗦𝘁𝘂𝗱𝘆
• The global solar encapsulation market is worth multiple billions (estimates vary by source) and is forecast to grow at a mid-to-high single-digit CAGR through the next decade.
• Asia-Pacific leads market volume and production, while North America and Europe lead in premium encapsulant adoption and reliability demands.
• A material transition from EVA to POE/EPE (and hybrid constructions) is underway, driven by better moisture resistance and long-term optical stability needed for larger, high-efficiency modules.
• Reliability test outcomes, longer warranties and module innovations (bifacial, larger wafers, new cell types) are the strongest technical drivers forcing encapsulant upgrades and supplier differentiation.
• Cost pressures and trade/policy dynamics remain major commercial constraints — suppliers who combine cost-competitive manufacturing with validated durability data will capture the largest share of future growth.
𝗧𝗿𝗲𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 𝗶𝗻 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆
Off-Grid Solar Market
Solar Windows Market
Solar EV charging Market
Solar Shingles Market
Solar Photovoltaic Glass Market
Solar Charge Controller Market
Solar Simulator Market

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