Solar Encapsulation Market Report 2025

This Solar Encapsulation report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The solar encapsulation market size has grown exponentially in recent years. It will grow from $4.18 billion in 2024 to $5.23 billion in 2025 at a compound annual growth rate (CAGR) of 25.1%. The growth in the historic period can be attributed to increased government incentives and subsidies for solar energy adoption, increased awareness and concern for environmental sustainability, growing demand for clean and renewable energy sources, reduction inThe cost of solar energy production, growing popularity of solar PV modules.

The solar encapsulation market size is expected to see exponential growth in the next few years. It will grow to $11.27 billion in 2029 at a compound annual growth rate (CAGR) of 21.2%. The growth in the forecast period can be attributed to expanding solar energy sector in emerging economies, rising demand for photovoltaic solar systems, implementation of transparent conductive materials, integration of energy storage solutions with solar encapsulation systems. Major trends in the forecast period include innovations in encapsulation materials, research and development in advanced encapsulation materials, development of lightweight and flexible solar encapsulation materials, emergence of smart encapsulation technologies for real-time monitoring and maintenance, customization of encapsulation materials for specific climate conditions.

The increasing demand for rooftop photovoltaic (PV) installations in developing economies is fueling the growth of the solar encapsulation market. A PV system is designed to generate usable solar power through photovoltaics (PV) and includes various components, such as solar panels, that absorb and convert sunlight into electricity. Due to growing environmental concerns and the depletion of conventional energy sources, there has been a significant shift toward renewable energy sources like solar energy and the installation of PV systems, including rooftop PV installations. As the number of rooftop PV installations rises in developing economies, the demand for solar encapsulation also increases, as it is a crucial process to ensure the reliability of PV systems and extend their lifespan. For example, in September 2022, the International Energy Agency, a France-based autonomous intergovernmental organization, reported that the number of households depending on solar PV is expected to grow from 25 million today to over 100 million by 2030. Additionally, the Environment and Trade Ministries of Japan aim to achieve 108 gigawatts of solar capacity by 2030, which is 1.7 times higher than the country’s previous target, suggesting that every building, parking lot, and farm in Japan will be equipped with rooftop panels. Therefore, the rising demand for solar PV installations will increase the need for solar encapsulation, thereby driving the solar encapsulation market.

The rising demand and consumption of energy are driving the growth of the solar encapsulation market during the historical period. Energy demand refers to the total electrical power required by consumers and industries at any given time. The implementation of efficient encapsulation materials in solar PV systems enables individual households, commercial buildings, and industrial facilities to generate their own electricity, decentralizing power generation, reducing the strain on centralized grids, and enhancing regional energy independence and resilience against supply fluctuations. For example, in June 2023, a report from the Energy Institute (EI), a UK-based professional membership organization for the energy sector, revealed that total global electricity generation saw a 2.3% increase in 2022. Additionally, primary energy consumption in non-OECD countries rose by 20.5 EJ from pre-COVID levels, primarily driven by China's increase of 14.6 EJ, which accounted for 72% of this rise. Therefore, the growing energy demand is anticipated to drive the expansion of the solar encapsulation market.

Technological advancement is a significant trend gaining traction in the solar encapsulation market. Key players in the industry are focusing on launching and implementing cutting-edge encapsulation technology for solar modules. These advanced encapsulation technologies fill the gaps between solar cells and enhance the efficiency of PV modules while featuring modular designs. By leveraging advanced encapsulation technologies, companies can expand their operations and secure a competitive advantage in the market. For example, in May 2022, JA Solar Holdings, a solar development company based in China, introduced DeepBlue 4 X, a new n-type PV module that utilizes specially designed encapsulation materials and patented GFI (Gapless Flexible Interconnection) high-density module encapsulation technology to address mechanical stress at cell interconnections and reduce the risk of microcracking.

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 include Minnesota Mining and Manufacturing Company, Akcome Science and Technology Co. Ltd., STR Holding Inc., Bridgestone Corporation, Dow Inc., Du Pont De Nemours and Company, Trosifol India Pvt. Ltd., First Solar Inc., Ai Technology 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., Kansai Paint Co. Ltd., Krempel GmbH, Kuraray Co. Ltd., Madico Inc., 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 2024. The regions covered in the solar encapsulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solar encapsulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Solar encapsulation is a crucial process used to safeguard solar panels and equipment from degradation. This protective step is integral to the solar cell manufacturing process, shielding solar panels and equipment from various external and environmental factors that could cause deterioration. Solar encapsulation serves to increase the lifespan of solar cells, mitigate stability issues, and provide protection against ultraviolet (UV) radiation, corrosion, temperature changes, and low mechanical stress.

The primary types of materials used for solar encapsulation include non-ethylene vinyl acetate, UV-curable resin, and other materials. Ethylene-vinyl acetate is a material known for its good radiation transmission and low degradability to sunlight, making it a commonly used encapsulating agent in solar modules. Solar modules involved in solar encapsulation can include polycrystalline silicon cells, cadmium telluride, amorphous silicon cells, and other types. These solar modules find applications in various industries, including automotive, electronics, and other diverse applications.

The solar encapsulation market research report is one of a series of new reports that provides solar encapsulation market statistics, including solar encapsulation industry global market size, regional shares, competitors with an solar encapsulation market share, detailed solar encapsulation market segments, market trends and opportunities, and any further data you may need to thrive in the solar encapsulation industry. This solar encapsulation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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