Solar Encapsulation Market: Current Analysis and Forecast (2023-2030)

The global Solar Encapsulation market is increasing exponentially. As the demand for renewable energy sources continues to surge, the solar encapsulation market has experienced remarkable growth in recent years. Several factors contribute to the increasing market size and significance of solar encapsulation technologies. The global push towards sustainability and the need to reduce carbon emissions have propelled the adoption of solar energy as a viable alternative to conventional fossil fuels. Governments worldwide are implementing policies and incentives to promote solar power generation, leading to a rise in solar installations. Moreover, advancements in solar technology have significantly improved the efficiency and durability of PV modules. Enhanced performance and reliability drive confidence in solar energy systems, prompting greater investment from both residential and commercial sectors. As a result, manufacturers and suppliers of solar encapsulation materials experience heightened demand to meet the requirements of an expanding market.

Furthermore, the increasing emphasis on product sustainability and environmental compatibility. Manufacturers are focusing on developing encapsulation materials that are non-toxic, recyclable, and environmentally friendly. This trend aligns with the broader sustainability goals of the renewable energy sector and resonates with environmentally conscious consumers and businesses.

For instance, in October 2023, Scientists from Spain's research center Tecnalia have encapsulated solar panels with a composite material that they claim has enhanced chemical recyclability.

Overall, the solar encapsulation market is experiencing robust growth driven by various factors, including the global shift towards renewable energy, technological advancements, cost reductions, sustainability initiatives, and geographical expansion.

Solar PV generation increased by 22%, an amount of 178 TWh in 2021 to exceed 1 000 TWh overall power. Solar PV is one of the world's lowest-cost options for electricity generation. Solar PV accounts for nearly 3.6% of electricity generation globally and it is the third largest renewable electricity technology behind wind and hydropower.

According to the SolarPower Europe, in 2023, the countries across the globe are expected to install between 341 to 402 GW of solar energy, which equals to 43% growth.

Based on Technology the market is divided into Thin Film, Multi-Crystalline Silicon, and Mono-Crystalline silicon based on technology. The monocrystalline segment dominated the market in 2022 and is expected to show the same fashion in the forecast period. The shift to more efficient monocrystalline solar PV accelerated in 2021, with the technology capturing almost all crystalline PV production. Monocrystalline panels are relatively more energy efficient and heat resistant, but at the same time, they are more expensive and leave a high carbon footprint while manufacturing. On the other hand, Mult-crystalline panels are more affordable but offer lower energy efficiency.

Based on End-User, the market is bifurcated into Residential and Commercial & Utility-scale. is divided into Residential, Commercial & Industrial, and Utility-scale segments. The Utility-scale segment acquired a majority share in the Solar encapsulation market and is expected to showcase a substantial growth rate during the forecast period. Utility-scale PV remains the most competitive source of PV generation globally; however, building large-scale installations is becoming increasingly challenging in many regions of the world due to the lack of suitable sites. Moreover, Solar PV is the main choice for the private sector if they want to invest in renewable energy.

Based on Material, the market is bifurcated into Ethylene Vinyl Acetate (EVA), Non-Ethylene Vinyl Acetate, UV Curable Resin, and others. The Ethylene Vinyl Acetate (EVA) segment holds a significant market share in 2022 and is expected to showcase the same trend in the forecast period. This is majorly due to the early adoption and excellent protection properties even in the harsh environments of the material. However, with the prevalence of new materials, the segment market share is expected to decrease in the forecast period.

The Ethylene Vinyl Acetate (EVA) segment is dominant in the global solar encapsulation market, driving its widespread adoption. EVA encapsulants have been the industry standard for decades, offering a range of advantages that make them an attractive choice for solar module manufacturers. EVA encapsulants provide excellent optical transparency, allowing maximum light transmission to the solar cells and thereby enhancing energy generation efficiency. Additionally, they offer superior adhesion properties, ensuring a secure bond between the solar cells and the module components and preventing delamination and moisture ingress. Moreover, Continuous research and development efforts to improve the material's properties, such as enhanced thermal stability, better UV resistance, and increased transparency, further increase the EVA segment's growth. This makes it a preferred choice for solar encapsulation in various applications.

For a better understanding of the market adoption of the Solar Encapsulation industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Brazil, and the Rest of North America), Europe (Germany, Italy, U.K., Netherlands, France, Spain, Rest of Europe), Asia-Pacific (China, Australia, Japan, India, South Korea, Vietnam and Rest of Asia-Pacific), Rest of World. North America is expected to experience a significant growth rate in the projected period. Government incentives such as tax credits and subsidies are increasing the adoption of solar power in residential and commercial sectors. For example, the United States offers a 26% tax credit through the federal investment tax credit (ITC). Moreover, the rising awareness of environmental sustainability is leading to a preference for eco-friendly solutions like solar energy. This trend is supported by advancements in solar panel technologies, enhancing efficiency and durability, thus increasing the need for quality encapsulation materials. Furthermore, the push for energy independence and security is urging demand for solar power as a renewable alternative to traditional fossil fuels. Moreover, these regions' established market players and infrastructure for solar energy installations are driving market expansion. Companies are investing in R&D to innovate new encapsulation materials that improve performance and cost-effectiveness. According to Solar Energy Industries Association, The U.S. installed 20.2 gigawatts of solar PV capacity in 2022 to reach 142.3 of total installed capacity, enough to power 25 million American homes.

Some of the major players operating in the market include First Solar Inc., H.B. Fuller Company, Dow Inc., Dupont, Mitsui Chemicals, 3M, JA Solar Technology Co., Renewsys India Pvt Ltd, Exxon Mobil Corporation, and Vishakha Renewables Pvt. Ltd.