Solar Encapsulation Market Research Report - Global Forecast till 2030

Solar Encapsulation Market Research Report Information By Technology (Thin-Film Solar Technology, Cadmium Telluride (CDTE), and Polycrystalline Silicon), End-Use (Automotive, Electronics, Construction and Others) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030

ID: MRFR/E&P/8941-HCR | | Region: Global | 185 Pages         

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Global Solar Encapsulation Market Overview


Solar Encapsulation Market Size was valued at USD 1.55 Billion in 2021. The Solar Encapsulation market industry is projected to grow from USD 1.87 Billion in 2022 to USD 11.37 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.28% during the forecast period (2022 - 2030). Solar encapsulation is a process where solar cell strings are encapsulated between two sheets of encapsulated foil. For commercial applications, solar cells require encapsulation with a low permeability barrier material toward atmosphere oxidizing agents, specifically water. Moreover, solar encapsulation is used in photovoltaic (PV) solar modules to provide adequate durability and protection against corrosion and delamination. Materials such as non-ethylene vinyl acetate, ethylene-vinyl acetate (EVA), and UV curable resins are used to laminate the solar cells and protect them from shocks and vibration. The major factors driving the growth of the market are the increasing growing share of renewable energy sources and the cost reduction potential of solar PV. Moreover, economic encapsulation techniques are expected to contribute to the growth of the solar encapsulation market.


Solar Encapsulation Market Trends


Surging Requirement of Environmentally Sustainable Solutions to boost market growth


There has been increased requirement of environmentally sustainable solutions as well as the growing need to reduce carbon footprint across the globe. As a result of growing environmental concerns and depleting conventional energy sources, there has been a significant shift toward renewable energy sources, which largely creates the demand for the solar encapsulation market during the forecast period.


Furthermore, the urbanization has increased demand for solar panels, which in turn increased demand for encapsulation, which may be the primary driving factor for the market. Moreover, rising awareness regarding the benefits of renewable energy, as well as the presence of properties such as good insulation, mechanical resistance, good light, and transmittance, are expected to drive growth in the solar encapsulation market during the forecast period.



Global Solar Encapsulation Market Overview


Source Secondary Research, Primary Research, MRFR Database and Analyst Review


Additionally, the development of low-cost encapsulant materials, such as cadmium telluride and amorphous silicon cells, and non-EVA-based encapsulations, including thermoplastic polyurethane (TPU) and polyvinyl butyral (PVB) is estimated to further extend profitable opportunities to the market players in the forecast period of 2022 to 2029. Furthermore, the implementation of favorable policies and subsidies on solar panel installation by governments from various countries are estimated to further provide growth opportunities for the solar encapsulation market.


Solar Encapsulation Market Segment Insights


Solar Encapsulation Technology Insights


Based on Technology, The Solar Encapsulation market segmentation includes the Thin-Film Solar Technology, Cadmium Telluride (CDTE), and Polycrystalline Silicon. The polycrystalline silicon solar segment held the highest revenue share in the solar encapsulation market in 2021. These solar cells are popular and provide efficiencies between 15 and 25%. In polycrystalline solar panels, solar cells with a metal flakes appearance were produced from polycrystalline wafers cut from blocks of molten silicon, comprised of melted silicon fragments.


Solar Encapsulation End-Use Insights


Based on End-Use, the Solar Encapsulation market segmentation includes automotive, construction, electronics, and others. Construction is the largest application category of solar encapsulation and comprises more than half the market due to the increasing demand for rooftop panel systems in the construction category.


Figure 2 Solar Encapsulation Market, by Technology, 2021 & 2030 (USD Billion)


Solar Encapsulation Market, by Technology, 2021 & 2030


Source Secondary Research, Primary Research, MRFR Database and Analyst Review


Solar Encapsulation Regional Insights


By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to hold a large market share for solar encapsulation worldwide by 2030. There is a rapid increase in consumer preference for EVs as a result of the industry-wide electrification trend & rising gasoline prices. Important automakers are placing a strong emphasis on introducing self-recharging EVs in response to this trend. For instance, the world's first solar-powered EV, which doesn't need to be charged for the majority of everyday use, will debut in 2022, according to American startup high-efficiency automobile business Aptera. It is expected that the introduction of such vehicles & growing adoption of solar cells in automotive vehicles will accelerate market expansion in North America.


Figure 3 SOLAR ENCAPSULATION MARKET SHARE BY REGION 2021 (%)


SOLAR ENCAPSULATION MARKET SHARE BY REGION 2021


Source Secondary Research, Primary Research, MRFR Database and Analyst Review


The Asia Pacific is expected to be the fastest-growing region in the solar encapsulation market. Asia Pacific has witnessed a significant increase in the number of solar cell material units because of the shift of module manufacturers from Europe to China. Price fluctuation in solar materials in Europe has resulted in the migration of many players to the Asia Pacific for material, which has supported the growth of the Asia Pacific solar encapsulation market.


Solar Encapsulation Key Market Players & Competitive Insights


Major market players are spending a lot of money on R&D to increase their product lines, which will help the Solar Encapsulation market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Solar Encapsulation industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.


The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Solar Encapsulation. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Solar Encapsulation industry must offer affordable products.


Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Solar Encapsulation industry to benefit customers and expand the market sector. The Solar Encapsulation market has recently given medicine some of the most important advantages. Major hair care product market players, including Johnson and Johnson, L'Oreal SA, Unilever, Henkel AG & Co. KGaA, Procter & Gamble, and others, are attempting to increase market demand by funding R&D initiatives.


STR Holdings, Inc. (OTCMKTSSTRI), through its’ subsidiaries, has been a worldwide leader in solar panel encapsulation, committed to providing its customers with environmentally-responsible solutions through continual research, development and innovation. STR is proud to have advanced the cause of renewable energy by contributing significant scientific innovations in the field of solar encapsulation. Our history in this field dates back to the original development of EVA-based solar encapsulants under contract to the Jet Propulsion Laboratory (1975-1986) through the successful sale of our North American Solar Assets in 2021.


Also, Hangzhou First Applied Material Co Ltd is a China-based company engages in the development, manufacturing and selling EVA solar cell film, polyamide hot-melt adhesive film, and solar battery panel. The company offers encapsulant EVA films, polyolefin films, and back sheet materials for PV modules; dry film photoresists and flexible copper clad laminates; aluminum laminated films; silicone encapsulant for LED; and co-polyamide hot melt web, a double-sided adhesive non-woven fabric used in the bonding of fabric, leather, metal, plastic, microfiber, non-woven fabric, wood, paper, and other materials.


Key Companies in the Solar Encapsulation market includes



Solar Encapsulation Industry Developments


In September 2022 GS Energy and Hanwha Solutions’ Chemical Division announced a joint venture named as H&G Chemical, to produce ethylene-vinyl acetate (EVA). H&G Chemical aims to quickly grow into a top-tier EVA manufacturer by combining Hanwha Solutions’ accumulated production capabilities with cost-effective raw materials of GS Caltex, a subsidiary of GS Energy.


Solar Encapsulation Market Segmentation


Solar Encapsulation Technology Outlook




  • Thin-Film Solar Technology




  • Cadmium Telluride (CDTE)




  • Polycrystalline Silicon




Solar Encapsulation End-Use Outlook



Solar Encapsulation Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America





Report Scope:

Report Attribute/Metric Details
Market Size 2021 USD 1.55 Billion
Market Size 2022 USD 1.87 Billion
Market Size 2030 USD 11.37 Billion
Compound Annual Growth Rate (CAGR) 10.28% (2022-2030)
Base Year 2021
Market Forecast Period 2022-2030
Historical Data 2018 & 2020
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered  Technology, End-Use, and Region
Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled First Solar, STR Holdings Inc., HANGZHOU FIRST APPLIED MATERIAL CO., LTD., Dow, DuPont, Mitsubishi Chemical Corporation, Cambiosolar, Kuraray Europe Gmbh, 3M, and RenewSys India Pvt. Ltd
Key Market Opportunities Developments of Materials and Implementation of Policies
Key Market Dynamics Surging Requirement of Environmentally Sustainable Solutions


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Frequently Asked Questions (FAQ) :

The Solar Encapsulation market size was valued at USD 1.55 Billion in 2021.

The market is projected to grow at a CAGR of 10.28% during the forecast period, 2022-2030.

North America had the largest share in the Solar Encapsulation market.

The key players in the market are First Solar, STR Holdings Inc., HANGZHOU FIRST APPLIED MATERIAL CO., LTD., Dow, DuPont, Mitsubishi Chemical Corporation, Cambiosolar, Kuraray Europe Gmbh, 3M, and RenewSys India Pvt. Ltd.

The Polycrystalline Silicon category dominated the market in 2021.

The Construction based had the largest share in the market for Solar Encapsulation.