Solar Encapsulation Market By Material Type (EVA, POE, TPU, PVB, Ionoplast, Others); By Technology (Crystalline Silicon, Thin-Film, Perovskite, CPV); By Application (Utility-Scale, Commercial Rooftop, Residential, BIPV); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

1. Introduction and Strategic Context

The Global Solar Encapsulation Market will witness a robust CAGR of 10.6% , valued at $3.9 billion in 2024 , and is expected to appreciate and reach $7.1 billion by 2030 , confirms Strategic Market Research.

 

Solar encapsulation plays a critical role in the photovoltaic (PV) value chain, ensuring the mechanical integrity, optical transparency, and environmental resistance of solar modules. Encapsulation materials protect photovoltaic cells from moisture, UV radiation, and physical damage, directly influencing module efficiency, longevity, and reliability. In the transition toward cleaner energy systems, solar encapsulation emerges as a foundational enabler of long-term solar module performance.

 

The global push for renewable energy adoption, supported by government subsidies, decarbonization goals, and utility-scale investments, is accelerating the deployment of PV systems across both mature and emerging markets. The market’s growth is also being shaped by rising solar module production, increasing installations of bifacial and high-efficiency modules, and the urgent demand for thermally stable, durable, and high-transmittance encapsulants .

 

From a macroeconomic perspective, four strategic forces define the trajectory of the market from 2024 to 2030:

• Climate Regulation and Renewable Mandates : Legislation such as the European Green Deal, India’s Renewable Energy Development Agency (IREDA) mandates, and the U.S. Inflation Reduction Act create substantial momentum for solar installations.

• Advances in Photovoltaic Technology : The growing prevalence of PERC , HJT , and TOPCon solar cells necessitates encapsulants with better thermal stability, UV resistance, and optical clarity.

• Material Science Innovations : Progress in cross-linkable polymers, thermoplastic elastomers, and edge-sealing techniques is reshaping encapsulation reliability and reducing module degradation.

• Investment and ESG Drivers : Institutional capital is increasingly funneled into solar infrastructure as part of broader ESG mandates. This surge in funding requires cost-efficient, scalable encapsulation solutions with minimal lifecycle emissions.

 

Key stakeholders across the value chain include:

• Photovoltaic module manufacturers

• Encapsulant and polymer resin suppliers

• Solar farm developers

• Clean-tech investors

• Research institutions

• Regulatory and environmental agencies

 

As solar modules become more efficient and cost-competitive, the role of encapsulation shifts from being a passive protective layer to an active performance enhancer. Innovations like anti- PID encapsulants , UV-stabilized polyolefins , and edge-sealant integration point toward a future where encapsulation directly drives output yield and lifecycle value.

 

• Global solar encapsulation demand tracks solar module production, which exceeded 650 GW in 2024 and is forecast to top 750 GW in 2025 (TaiyangNews 2025 Market Survey).

• EVA (ethylene–vinyl acetate) remains dominant (≈ 42 % of encapsulant area), but EPE (EVA-POE-EVA) has risen to ≈ 38 % due to TOPCon and HJT modules.

• U.S. module manufacturing capacity > 60 GW, up > 200 % since 2023 (SEIA 2025). Encapsulant consumption ≈ 65 000 t per year.

• EU installed PV ≈ 263 GW (2023), targeting 600 GW by 2030 (European Commission JRC 2023). Encapsulant consumption ≈ 30–35 000 t per year.

• Technical trends from open research show improved anti-reflective PDMS encapsulation (> 90 % transmittance, < 3 % reflectance), luminescent EVA (LDS) films increasing cell current by ≈ 3.4 %, and nondestructive gel-content QC methods for EVA curing control.

• European polymer research (Knausz 2015) quantifies encapsulant thermal-expansion and aging behaviour, confirming PET backsheet WVTR and OTR rise > 25 % after 2 000 h Damp Heat (85 °C/85 %RH).

 

United States — Statistical Highlights (2024-2025)

Metric	Value / Finding
Module manufacturing capacity	≈ 60 GW (2025)
Domestic module production (H1 2024)	4.2 GW modules produced
Installed PV capacity	> 210 GWdc total; +10.8 GWdc added Q1 2025
Encapsulant material demand (proxy)	≈ 65 000 t per yr (0.45 kg EVA /m² × 150 million m² modules)
Material composition	EVA ≈ 60 % share, POE/EPE ≈ 35 % (esp. TOPCon bifacial)
Jobs (2023)	280 000 U.S. solar workers
Reliability R&D	$ 345 M DOE SET Office FY 2024 budget

Technical insight: NREL 2024 baseline modules use ≈ 0.5 mm encapsulant layers (front + rear). Thermal crosslinking EVA curing target ≥ 80 % gel content per Li et al. (IEEE J. Photovolt. 2015) to ensure reliable bonding and minimize PID.

 

Europe — Statistical Highlights (2023-2025)

Metric	Value / Finding
PV installed capacity (2023)	263 GW EU-27 (+41 GW YoY)
2030 target (REPowerEU)	600 GW PV capacity (≈ 2.3× growth)
Manufacturing capacity goal	30 GW domestic line by 2025 / 40 % EU share by 2030
Encapsulant consumption (proxy)	≈ 30–35 000 t EVA/POE (45 GW installs × 0.45 kg/m²)
Backsheet WVTR trend	PET backsheet WVTR ↑ 25 % after 2 000 h DH aging (85 °C/85 % RH)
Thermal expansion coeff. of EVA	≈ (1.5 ± 0.2) × 10?4 K?¹ (−20 → 140 °C range)
Recycling & NZIA policy	≥ 40 % domestic content by 2030 (EU Reg. 2024/124)
Research investment	€ 0.5 B Horizon Europe PV materials program 2021-27

Scientific insight: European R&D demonstrates novel surface-structured PDMS encapsulants with 90 % transmittance and 2.8 % reflectance for hierarchical Si antireflection templates. These offer ~5 % optical gain potential in high-efficiency modules.

 

Materials Science Findings

Study	Key Technical Finding	Relevance
Bindra et al., Materials 2018	Hierarchically-textured Si templated PDMS films → R ≈ 2.7 %, T ≈ 90 % (300–1400 nm).	Improves light-coupling in encapsulation layers.
Masaadeh 2024 PhD, UEA	Liquid EVA (LDS) films with Si/Pb-QDs ↑ short-circuit current ≈ 3.4 %.	Emergent luminescent-down-shifting encapsulants raise module efficiency.
Li et al., IEEE 2015	EVA gel content ≥ 80 % correlates with optical haze factor; nondestructive QC possible.	Inline process control for module manufacturers.
Knausz 2015 PhD, Leoben	Quantified thermal expansion & WVTR/OTR changes in nine encapsulants and six backsheets under DH & climate tests.	Establishes aging behaviour database for EU PV quality standards.

 

Manufacturing and Supply Chain Data (2024-2025)

Indicator	U.S.	Europe
Resin source localisation	≈ 70 % domestic EVA resin output (China-based suppliers dominant globally > 85 %) but U.S. plants rising via IRA credits.	Europe import-dependent (> 90 % EVA/POE resin imported from Asia); EU targets local polymer plants under NZIA.
Leading film manufacturers	Hangzhou First (SC factory in Georgia 2024), HIUV (U.S. supply partners), 3M (U.S.), DuPont (U.S.).	Coveme (IT), Endurans (NL), Betterial (DE/CHN), Jolywood (EU facility planned 2025).
Process innovations	EPE co-extrusion lines and light-conversion films for TOPCon modules.	Shift to fluorine-free CPC backsheets and high-barrier PET coatings (EU Green Deal sustainability targets).
QC and testing	EVA gel content via optical reflection (Li et al. 2015); aging simulation to IEC 61215 and ISO 17025 labs (NREL, Fraunhofer ISE).	Adopted accelerated aging (85 °C/85 % RH 2 000 h) and Arrhenius WVTR modelling (Knausz 2015).

 

Market-Relevant Statistics (2024 Data)

Parameter	Global	U.S.	Europe
Total module output (2024)	≈ 650 GW	≈ 50 GW produced domestically	≈ 35 GW assembled / imported
Encapsulant area	≈ 6 × 10? m²	≈ 1.5 × 10? m²	≈ 1 × 10? m²
Material consumption (EVA+POE)	~100 000 t globally (2024)	~65 000 t	~35 000 t
Encapsulant price (2024)	$ 1.8–2.5 /kg (EVA film avg.) (industrial data)	$ 2.2 /kg import avg.	€ 2.3 /kg import avg.
EPE share growth rate	+ 25 % YoY (2023→2024)	High due to TOPCon adoption	Moderate (tech shift 2025+)

 

Strategic Highlights and Takeaways

1. Policy-anchored growth
In both the United States and Europe, policy frameworks are actively shaping the solar encapsulation market. The Inflation Reduction Act (IRA) in the U.S. and the Net-Zero Industry Act (NZIA) in the EU offer multi-year investment certainty for photovoltaic material production. Encapsulant manufacturers benefit directly through manufacturing tax credits, clean-energy subsidies, and “green procurement” incentives that encourage local sourcing and capacity expansion.

 

2. Material transition pathway
A major technological shift is underway toward EPE (EVA-POE-EVA) co-extruded encapsulant structures. This architecture combines the processability of EVA with the high insulation and moisture resistance of POE. Executives should prioritize investment in advanced co-extrusion equipment, process optimization, and formulation control to ensure better resistance against Potential-Induced Degradation (PID) and UV-Induced Degradation (UVID)—both critical for long-term module reliability.

 

3. Technological innovation
Next-generation encapsulants such as luminescent down-shifting (LDS) EVA films and anti-reflective PDMS layers can deliver 2–4 % efficiency gains in high-performance modules. These innovations allow Chief Marketing and Technology Officers to differentiate their products beyond commodity EVA films, appealing to premium segments focused on lifetime efficiency and optical performance.

 

4. Quality and reliability control
Modern quality assurance is moving from destructive to predictive testing. Real-time gel-content monitoring through optical reflection (IEEE 2015) and thermal-mechanical ageing models from European research (Leoben, 2015) provide powerful, nondestructive tools. These enable encapsulant suppliers and module producers to guarantee performance over extended warranty cycles, enhancing credibility in operations and maintenance (O&M) contracts.

 

5. Supply-chain localization risk
Despite policy incentives, both the U.S. and EU still import more than 70 % of encapsulant resins from Asia. This dependency poses tariff and logistics risks. Corporate strategists should consider upstream integration—such as investing in EVA monomer or POE resin production lines—to mitigate exposure, shorten supply routes, and secure material continuity during global trade disruptions.

 

6. Sustainability and ESG
Sustainability regulations, particularly the EU’s Ecodesign and Recyclability Regulation (EU 2023/503), now favour fluorine-free and low-VOC encapsulants. Financial officers must assess how carbon footprint accounting and environmental compliance influence project eligibility for green finance and procurement. Firms that lead in recyclable encapsulant design will gain a decisive ESG advantage in tender evaluations.

 

7. Financial implication
Encapsulant materials typically represent 4–6 % of a module’s bill of materials (BOM), yet their impact on total project economics is far greater. By improving material longevity and reliability, manufacturers can achieve double-digit returns on investment (ROI) through reduced degradation, longer warranties, and lower Levelized Cost of Electricity (LCOE). Strategic optimization of encapsulant quality is therefore a high-leverage financial decision rather than a marginal cost factor.

 

2. Market Segmentation and Forecast Scope

The solar encapsulation market is structured across four primary dimensions that reflect material science developments, solar technology types, adoption models, and geographic diffusion. Strategic Market Research projects significant divergence in sub-segment growth trajectories between 2024 and 2030, shaped by cell architecture transitions, regional policy dynamics, and climatic factors.

By Material Type

• Ethylene Vinyl Acetate (EVA)

• Polyolefin Elastomer (POE)

• Thermoplastic Polyurethane (TPU)

• Polyvinyl Butyral (PVB)

• Ionoplast

• Others (including silicones and polycarbonates)

Ethylene Vinyl Acetate (EVA) dominates the market, accounting for over 65% of global encapsulant usage in 2024 , due to its low cost, flexibility, and mature processing ecosystem. However, Polyolefin Elastomers (POE) are projected to be the fastest-growing sub-segment , with a CAGR exceeding 14% , driven by their superior moisture resistance and compatibility with bifacial and TOPCon solar technologies.

By Technology Type

• Crystalline Silicon Solar Modules (Monocrystalline and Multicrystalline )

• Thin-Film Solar Modules ( CdTe , CIGS, a-Si)

• Perovskite Solar Modules

• Concentrated Photovoltaic (CPV) Modules

Crystalline Silicon Modules accounted for the largest share in 2024, given their dominance in global solar capacity. As high-efficiency monocrystalline modules scale rapidly, their need for UV-stable, PID-resistant encapsulants will intensify. Meanwhile, Perovskite and thin-film modules are expected to create niche opportunities for flexible and hybrid encapsulation materials by 2027 and beyond.

By Application

• Utility-Scale Solar Installations

• Commercial Rooftop Solar

• Residential Solar Systems

• Building-Integrated Photovoltaics (BIPV)

Utility-scale projects remain the largest segment, particularly across China, the U.S., India, and the Middle East. However, BIPV and residential rooftop systems are gaining ground in Europe and Japan due to architectural integration trends and urban electrification initiatives. These segments are increasingly prioritizing transparent, color-stable encapsulants with customizable aesthetics.

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

Asia Pacific led the global market in 2024, supported by aggressive solar deployment in China, India, and South Korea . Europe follows closely, with strong demand for encapsulants used in advanced solar technologies and green building integrations. The Middle East is emerging as a high-growth region due to UV-intense climates , where encapsulant durability and thermal resistance are critical.

Each segment in this market responds to distinct value drivers:

• Material selection depends on compatibility with evolving solar cell types and long-term exposure risks.

• Application demand correlates with power generation targets, space constraints, and policy subsidies.

• Regional uptake varies based on climatic severity, cost sensitivity, and manufacturing infrastructure.

 

3. Market Trends and Innovation Landscape

The solar encapsulation market is undergoing a notable innovation renaissance, spurred by rapid photovoltaic (PV) technology evolution, heightened performance expectations, and increasingly diverse deployment environments. Between 2024 and 2030, this segment is poised for transformation, marked by the integration of advanced polymers , multi-layer encapsulation designs , and AI-augmented quality control processes .

Key Innovation Trends

• Shift from EVA to POE and Advanced Hybrids Traditional Ethylene Vinyl Acetate (EVA) , while cost-effective, has limitations including acetic acid formation and degradation under prolonged UV exposure. In response, the industry is witnessing a transition toward Polyolefin Elastomers (POE) , which offer better resistance to potential-induced degradation (PID) and lower water vapor transmission rates (WVTR) . Hybrid materials combining POE with ionoplast or silicone are being explored for niche and extreme climate applications.

“We are transitioning away from single-layer EVA toward advanced multi-layer POE- ionoplast hybrids to improve edge sealing and minimize module delamination,” noted a senior polymer engineer at a tier-1 solar module OEM.

• Encapsulation for High-Efficiency Cells The emergence of Heterojunction (HJT) and Tunnel Oxide Passivated Contact ( TOPCon ) technologies demands encapsulants with improved light transmittance, thermal cycling tolerance, and minimal yellowing. Material suppliers are racing to tailor encapsulants that preserve the electrical performance of these cells over 25–30 years.

“Incorporating non-yellowing thermoplastic resins is now central to ensuring the 30-year output guarantees required by utility-scale PPA contracts,” observed a European solar finance consultant.

• Smart Encapsulation Systems Some R&D labs and module integrators are testing self-healing encapsulants and phase-change material layers that react to thermal fluctuations. This could significantly reduce hotspot formation and improve output stability. These smart encapsulants remain at an experimental stage but signal a shift toward functional materials rather than passive protectants.

• Anti-Reflective & Anti-UV Additives Encapsulation materials are being embedded with nano -coatings , UV blockers , and anti-reflective agents to boost module efficiency by 1–2%. These additives improve photon capture while protecting cells from photochemical degradation.

R&D and Pipeline Dynamics

Global material companies are increasing their R&D investments into encapsulation layer co-extrusion , curing optimization , and field-aging simulation testing . Institutes like Fraunhofer ISE and NREL are collaborating with OEMs to accelerate lifetime modeling under multi-climatic scenarios (desert, coastal, alpine, and urban).

Recent lab-to-market developments include:

• A Japanese polymer manufacturer developing POE with a built-in UV stabilizer matrix to eliminate the need for external coating.

• A German start-up launching an AI-driven optical inspection system that can detect lamination voids in real-time on gigawatt-scale module lines.

• An American chemical firm introducing a low-temperature curing encapsulant compatible with flexible and perovskite modules.

Partnerships and Innovation Alliances

The period from 2022 to 2024 has seen a spike in cross-border partnerships between chemical firms, PV OEMs, and academic institutions. These alliances aim to close the gap between lab-tested formulations and scalable, field-ready encapsulants .

Key examples:

• Dow Inc. forming a joint research program with solar developers in the UAE to develop UV-stable encapsulants for desert deployment.

• Mitsui Chemicals entering a co-development pact with a European thin-film PV manufacturer to supply flexible, low-Shrinkage TPU layers .

These collaborations are shaping the future of solar module durability, especially in regions with volatile thermal cycles and extreme irradiance.

 

4. Competitive Intelligence and Benchmarking

The global solar encapsulation market is moderately consolidated, with a mix of multinational material science corporations, regional polymer manufacturers, and vertically integrated solar module producers. Competitive advantage in this space is determined by material innovation , geographic proximity to OEMs , cost-performance balance , and patent portfolios for high-performance encapsulant formulations .

Below is a strategic overview of 7 leading players shaping the solar encapsulation landscape from 2024 to 2030:

1. DuPont

As a historical innovator in polymer chemistry, DuPont remains a global benchmark in encapsulant innovation. The company’s solar business focuses on ionomer-based encapsulants and specialty adhesives designed for high-power crystalline silicon modules . DuPont leverages its global manufacturing footprint and deep R&D capabilities to co-develop formulations with tier-1 PV manufacturers.

Strategic Focus: High-durability materials for premium modules in utility-scale and commercial installations.

2. Mitsui Chemicals

Mitsui Chemicals is a leading supplier of polyolefin-based encapsulants , particularly those tailored for bifacial modules and TOPCon architectures . Its encapsulants are favored for their PID resistance and UV stability in humid and high-irradiance regions. The firm maintains regional production hubs in Japan and Southeast Asia to serve expanding Asia Pacific demand.

Strategic Focus: Mid-cost encapsulants optimized for high-growth Asian markets and thermal extremes.

3. 3M

Known for its innovation in multi-layer films and adhesives, 3M plays a niche but strategic role in the encapsulation supply chain. It provides UV-filtering materials and thermoplastic backsheet-integrated encapsulant solutions, with a strong footprint in North American and European utility projects. The company emphasizes environmental compliance and performance under dynamic mechanical load conditions.

Strategic Focus: Smart films and adhesive integration into module architecture.

4. Hangzhou First Applied Material

This Chinese market leader dominates the global supply of EVA-based encapsulants , particularly for mass-volume crystalline modules. Hangzhou First benefits from scale economics, close partnerships with major Chinese module OEMs, and low production costs. In 2024, it accounted for more than 30% of global encapsulant film production .

Strategic Focus: Cost leadership and module line integration for GW-scale Chinese manufacturers.

5. STR Holdings, Inc.

A U.S.-based encapsulant specialist, STR Holdings focuses on custom-engineered EVA and POE films designed for high-output and long-duration field performance. Although smaller in scale compared to multinational peers, STR serves niche demand from premium module manufacturers seeking tight optical tolerance and low shrinkage behavior .

Strategic Focus: Custom encapsulants for OEMs in North America and Europe.

6. Borealis AG

Borealis , a European chemical giant, entered the encapsulation market with advanced polyolefin materials that offer higher UV resistance and mechanical strength. In partnership with its parent group OMV , it leverages petrochemical vertical integration to maintain cost competitiveness while expanding across Europe and the Middle East.

Strategic Focus: High-quality encapsulants for premium European and GCC projects.

7. Arkema

Arkema focuses on developing next-generation thermoplastic encapsulants , especially suited for flexible solar and BIPV applications . The French firm invests heavily in R&D around high-transparency fluoropolymers , contributing to emerging segments like semi-transparent solar panels .

Strategic Focus: Innovation leadership in flexible and aesthetic-integrated encapsulation.

Competitive Summary

• Cost Leaders : Hangzhou First, STR Holdings (bulk crystalline modules)

• Innovation Leaders : DuPont, Mitsui Chemicals, Arkema (high-performance encapsulants )

• Geographic Specialists : Borealis (Europe/Middle East), 3M (North America/Europe)

The evolving PV module mix—from mono PERC to bifacial HJT—will continue to reward players that can rapidly customize formulations, reduce curing time, and enhance durability under harsher field conditions.

 

5. Regional Landscape and Adoption Outlook

The adoption of solar encapsulation materials is globally expansive but regionally nuanced, reflecting diverse solar cell technologies , climate conditions , policy frameworks , and manufacturing ecosystems . Between 2024 and 2030, growth in this market will be led by a mix of deployment momentum in Asia Pacific , advanced technology integration in Europe , and capacity expansions in the Middle East and Africa .

Asia Pacific

Asia Pacific is the dominant region in the global solar encapsulation market, accounting for over 45% of market revenue in 2024 . This leadership is driven by:

• Massive PV deployment in China and India

• Domestic module production hubs with in-house encapsulant sourcing

• Supportive policy environments such as India’s PLI (Production Linked Incentive) schemes

China leads both in terms of encapsulant production (e.g., Hangzhou First) and consumption, with utility-scale solar dominating. Meanwhile, India is emerging as a key downstream market, pushing for locally manufactured POE and EVA materials to support its national solar capacity targets of 280 GW by 2030 .

“Manufacturers in India are under pressure to source high-performance encapsulants domestically as they move from EVA to POE for advanced cell architectures,” notes a polymer technologist based in Pune.

Europe

Europe holds a strong position, particularly in technology refinement and niche market adoption , including BIPV and semi-transparent modules . Countries like Germany, France, and the Netherlands are incentivizing aesthetic-friendly and high-durability encapsulant solutions.

The region is also at the forefront of green procurement practices, favoring encapsulants with low lifecycle emissions and recyclability profiles . European PV integrators increasingly demand non-yellowing, anti-reflective POE and thermoplastic solutions.

Key market traits:

• Urban solar integration in smart buildings

• Increasing use of AI in QC processes for lamination accuracy

• Demand for compliance with RoHS and REACH standards

North America

The U.S. solar encapsulation market is entering a new growth phase thanks to:

• Policy backing under the Inflation Reduction Act (IRA)

• A strong wave of domestic module manufacturing investments

• Bifacial and utility-scale solar installations across the Southwest and Midwest

Encapsulants in the U.S. are expected to prioritize optical efficiency and thermal stability, particularly for large-scale utility projects with 25+ year PPAs. The trend toward glass-glass modules is also increasing the need for dual-sided UV-stable encapsulation films .

Middle East & Africa (MEA)

MEA is an emerging growth hub for encapsulation demand due to:

• High solar irradiance zones across the GCC and North Africa

• Megaprojects like Saudi Arabia’s NEOM and UAE’s Al Dhafra solar park

• Module degradation concerns in desert climates, prompting a shift toward high-durability POE and silicone encapsulants

Adoption challenges include limited local encapsulant manufacturing , making logistics and heat tolerance key differentiators for international suppliers entering the region.

Latin America

Latin America, led by Brazil, Chile, and Mexico , is gradually scaling up solar capacity. However, the encapsulant market is still import-reliant , with demand centered on cost-optimized EVA films for residential and distributed solar.

Governments across the region are expanding feed-in-tariffs and green energy auctions, opening pathways for more localized encapsulant value chains over time.

 

Comparative Outlook by Region:

Region	Key Traits	Fastest-Growing Segment	Barrier
Asia Pacific	High-volume, low-cost, manufacturing-driven	POE for bifacial modules	Price pressure, overcapacity
Europe	Advanced tech, regulatory strictness	Thermoplastics for BIPV	High material certification standards
North America	Utility-scale bifacial installations	UV-stable encapsulants	Domestic material sourcing
Middle East & Africa	Harsh climate, mega-scale projects	High-thermal POE/silicone	Import dependency
Latin America	Small-scale solar, imports	EVA films	Weak domestic R&D ecosystem

 

6. End-User Dynamics and Use Case

Solar encapsulation materials serve a diverse set of end users across the photovoltaic value chain. Each category demands encapsulants tailored to durability, optical performance, and cost-efficiency , depending on installation scale, climate exposure, and module design preferences.

1. Solar Module Manufacturers

Module manufacturers are the primary direct consumers of encapsulation films and sheets. Their requirements vary depending on:

• Module architecture ( monofacial vs. bifacial, glass-glass vs. glass- backsheet )

• Cell technology (PERC, TOPCon , HJT, or thin-film)

• Export destination climate

These players often work in long-term supply agreements with material vendors to ensure continuity in lamination properties and thermal behavior. OEMs focused on ultra-low degradation modules increasingly prefer PID-resistant POE films and thermoplastic encapsulants that enhance light transmission while reducing yellowing over time.

Large-scale OEMs in China are even vertically integrating their encapsulant production, especially for high-efficiency and bifacial module lines.

2. Utility-Scale Solar Developers

Developers engaged in solar parks and ground-mounted arrays prioritize:

• Encapsulants with 25–30 year field durability

• High resistance to UV, humidity, and thermal cycling

• Compatibility with glass-glass bifacial modules

Since many projects are located in arid zones , encapsulants need to perform under intense irradiance and temperature extremes. Developers often collaborate with EPC contractors and third-party engineering auditors to specify encapsulant performance thresholds during the procurement phase.

For example, encapsulant discoloration or lamination defects can affect power output warranties and lead to PPA disputes—highlighting the need for quality assurance in field-bound modules.

3. Commercial Solar Installers

Installers working on commercial rooftops (e.g., warehouses, malls, campuses) often balance between cost-efficiency and aesthetic durability . Lightweight modules with TPU-based encapsulants or transparent BIPV panels are growing in demand for building codes that favor fire resistance and architectural integration.

In this segment, ease of lamination , processing speed , and compatibility with aluminum-framed modules are also major considerations.

4. Residential Solar Providers

For residential installers , encapsulation is rarely a direct specification point. However, the demand flows indirectly through module choices that offer:

• Extended performance warranties (20–25 years)

• Minimal visual degradation

• High energy yield per watt

The residential market has seen increased preference for modules with POE-based encapsulants due to their longer lifespan in humid and coastal areas.

5. Research Institutions and PV Startups

Academic labs and PV technology startups are key end users of novel encapsulant materials . Their demand centers around :

• Perovskite and thin-film encapsulation

• Transparent conductive encapsulants

• Rapid-curing or self-healing polymers

Though not high-volume consumers, these players serve as innovation catalysts. Collaborations between encapsulant firms and R&D labs often drive new formulation patents and field pilots.

Use Case Highlight

A tertiary solar research facility in South Korea collaborated with a domestic polymer firm to develop an advanced POE encapsulant for field deployment in coastal utility arrays. After a 24-month test cycle, the encapsulant demonstrated 32% lower moisture ingress and 18% less yellowing compared to standard EVA films. The module retained over 98.7% of its initial power output, validating its use in high-humidity zones.

This result prompted the integration of the new encapsulant into a 50 MW solar park in the southern province, with expected module lifespans exceeding 28 years.

 

7. Recent Developments + Opportunities & Restraints

Recent Developments (2022–2024)

The solar encapsulation market has seen meaningful advancements across materials engineering, strategic partnerships, and technology integration in the past two years. Below are some of the most notable events:

• Mitsui Chemicals launched a new generation of dual-layer POE encapsulants targeting bifacial HJT modules, with superior UV aging performance and water vapor resistance. The rollout began in Japan and is expanding into Southeast Asia.

• DuPont Photovoltaic Solutions introduced a low-VOC, fast-curing encapsulant optimized for high-throughput module production lines, reducing lamination cycle time by 15% while maintaining PID resistance.

• Borealis AG , in partnership with a leading German module integrator, began pilot production of recyclable thermoplastic encapsulants aimed at circular solar manufacturing initiatives in the EU.

• Hangzhou First Applied Materials expanded its production facility in Vietnam to serve global module OEMs with high-volume EVA and POE sheets , ensuring diversification outside of China.

• A joint research project between Fraunhofer ISE and 3M tested advanced nanoparticle-infused encapsulants , achieving a 1.2% increase in module efficiency by improving light scattering and reducing UV degradation.

 

Opportunities & Restraints

Key Opportunities

• Expansion of Utility-Scale Solar in Harsh Climates The rise of mega solar projects in desert and tropical regions (e.g., UAE, Northern Africa, South India) will drive demand for PID-resistant , high-temperature-tolerant POE and silicone encapsulants .

• Material Circularity and Recyclability Europe’s regulatory push toward end-of-life solar recycling is creating white space for encapsulants that are non- crosslinked , thermoplastically bonded , and recoverable through mild chemical processes .

• Growth of BIPV and Aesthetic Solar Panels Urban markets in Europe, South Korea, and Japan are driving demand for clear, color-stable, and non-yellowing encapsulants suitable for façade-integrated modules and semi-transparent panels.

 

Key Restraints

• High Capital Cost for Advanced Encapsulant Production Thermoplastic and hybrid polymer lines require specialized extrusion equipment and cleanroom infrastructure, increasing entry barriers for small and medium suppliers .

• Material Qualification Bottlenecks New encapsulant types often face long certification cycles for IEC compliance (e.g., IEC 61215/61730), slowing time-to-market and adoption rates in highly standardized solar module markets.

 

Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 3.9 Billion
Revenue Forecast in 2030	USD 7.1 Billion
Overall Growth Rate	CAGR of 10.6% (2024 – 2030)
Base Year for Estimation	2023
Historical Data	2017 – 2021
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Material Type, By Technology, By Application, By Geography
By Material Type	EVA, POE, TPU, PVB, Ionoplast, Others
By Technology	Crystalline Silicon, Thin-Film, Perovskite, CPV
By Application	Utility-Scale, Commercial Rooftop, Residential, BIPV
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, etc.
Market Drivers	Solar expansion in harsh climates; Bifacial and HJT module growth; Focus on durability and PID resistance
Customization Option	Available upon request