Solar Encapsulation Market Report 2026

The solar encapsulation market size has grown exponentially in recent years. It will grow from $5.19 billion in 2025 to $6.3 billion in 2026 at a compound annual growth rate (CAGR) of 21.5%. The growth in the historic period can be attributed to increasing adoption of polycrystalline silicon solar modules, growth in cadmium telluride solar module applications, rising use of amorphous silicon cells, expansion of uv-resistant encapsulants, advancements in encapsulation materials and technologies.

The solar encapsulation market size is expected to see exponential growth in the next few years. It will grow to $13.22 billion in 2030 at a compound annual growth rate (CAGR) of 20.3%. The growth in the forecast period can be attributed to rising demand for durable and long-lasting solar panels, increasing focus on efficiency of encapsulation materials, growth in automotive solar applications, expansion of electronics and consumer solar device usage, development of advanced resin and adhesive films for encapsulation. Major trends in the forecast period include advancements in ethylene vinyl acetate (eva) encapsulants, growth in uv curable resin usage, expansion of silicone-based and polyolefin-based encapsulants, rising adoption in automotive and electronics applications, development of thermoplastic polyurethane (tpu) and polyamide (pa) materials.

The increasing adoption of rooftop PV installations is expected to drive the growth of the solar encapsulation market in the coming years. A PV system is an electrical power setup designed to deliver usable solar energy through photovoltaics (PV) and includes components such as solar panels that absorb and convert sunlight into electricity. The growth of rooftop PV installations is fueled by the transition to renewable energy in response to environmental concerns and the depletion of conventional energy sources. As more rooftop PV systems are deployed, the demand for solar encapsulation rises to ensure the reliability and longevity of PV modules, thereby supporting market expansion. For example, in October 2025, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that power generation from solar PV grew by a record 320 TWh in 2023, representing a 25% increase compared with 2022. Consequently, the rising adoption of rooftop PV installations is driving the growth of the solar encapsulation market.

Key companies in the solar encapsulation market are creating innovative products, such as backsheets, to improve their offerings and secure a competitive edge. Backsheets serve as protective layers in photovoltaic solar panels, safeguarding the solar cells from environmental factors while providing electrical insulation. For example, in August 2023, Alishan Green Energy Pvt. Ltd., an India-based manufacturer of solar encapsulation film, introduced BackPro backsheets. These advanced components for solar modules feature proprietary coatings that enhance performance, UV resistance, and mechanical strength. The product line includes a diverse range of both fluoro and non-fluoro backsheets, aiming to transform the solar energy sector. Notably, they are the first Indian producer of coated backsheets, establishing themselves as a comprehensive source for encapsulant and backsheets needs in the industry.

In May 2023, First Solar, Inc. acquired Evolar AB for $38 million. This acquisition aims to accelerate the development of the next generation of photovoltaic technology, including highly efficient tandem devices. First Solar intends to leverage Evolar's expertise in solar technology, including encapsulation, to enhance its current research and development efforts and scale thin-film PV solutions for commercial applications. Evolar AB, a Sweden-based provider of solar technology, aligns with First Solar's strategic goals in advancing photovoltaic technology.

Major companies operating in the solar encapsulation market report are Minnesota Mining and Manufacturing Company, Akcome Science and Technology Co. Ltd., STR Holding Inc., Dow Inc., Du Pont De Nemours and Company, Trosifol India Pvt. Ltd., First Solar Inc., Celanese Corporation, Eastman Chemical Company, Momentive Performance Materials Inc., Hangzhou First PV Material Co. Ltd., Changzhou Sveck Technology Co. Ltd., Coveme SpA, Encapsulantes de Valor Agregado S. A. de C. V., Eva SA, Folienwerk Wolfen GmbH, Guangzhou Baiyun Chemical Industry Co. Ltd., Henkel AG & Co. KGaA, Hiuv New Materials Co. Ltd., Isovoltaic AG, Jolywood Sunwatt Co. Ltd., Krempel GmbH, Kuraray Co. Ltd., Mitsui Chemicals Inc., Nippon Sheet Glass Co. Ltd., Renolit SE, Saint-Gobain SA, Sekisui Chemical Co. Ltd., Solutia Inc., Taiflex Scientific Co. Ltd., Toppan Printing Co. Ltd., Toray Industries Inc., UBE Industries Ltd., Wacker Chemie AG, Zhejiang Reisun Solar Energy Co. Ltd., PVB Interlayer Products Inc.

Asia-Pacific was the largest region in the solar encapsulation market in 2025. The regions covered in the solar encapsulation market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solar encapsulation market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The solar encapsulation market includes revenues earned by entities by protecting PV cells against weather, corrosive environment, UV radiation, and low energy impacts. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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