Solar Encapsulant Market

Solar Encapsulant Market Size (2024-2029):

The Global Solar Encapsulant Market was worth US$ 2.48 billion in 2023 and is anticipated to reach a valuation of  US$ 7.18 billion by 2029, with a CAGR of 23.67% during the forecast period 2024 and 2029.

Market Overview:

Solar encapsulations are products utilized in Photovoltaic (PV) solar modules to supply incredible durability and protection against corrosion and delamination. Materials such as ethylene-vinyl acetate (EVA), non-ethylene vinyl acetate, and UV-curable resins are used to laminate solar cells and protect them from shock and vibration. The growth in the demand for solar energy becomes the generation of a powerful growth of the encapsulation of the solar system. In addition, the demand for photovoltaic installations in the south will be increased due to assistance programs on the only energy market, as well as the demand for alternative energy sources. This trend is anticipated to create a lucrative growth opportunity for the solar encapsulant market. In addition, excellent mechanical properties and chimneys, such as durability and thermal resistance, have increased the demand for materials for encapsulation alone with applications for different residential, non-residential, and utility sectors.

Market Drivers:

The emergence of thin-film solar cell technology is a major driver in the global solar encapsulants market. Thin-film solar cell technology costs less than crystalline silicon solar technology. The use of this technology makes bulk production of solar cells economical. In addition, the growing demand for photovoltaic modules is a key driver of the solar encapsulants market.

Research and development of solar cell technology are anticipated to create lucrative opportunities in the global solar encapsulants market. Research into solar cell technology has resulted in the development of third-generation photovoltaic cells that have the potential to exceed current limits of efficiency and performance. The increase in government subsidies and market support programs has increased the demand for solar power as an alternative and efficient solution to reduce carbon emissions. In addition, the demand for the installation of photovoltaic cells on roofs is increasing.

Market Restraints:

The degradation of solar encapsulating material is a major factor hampering the solar encapsulants market. Exposure of encapsulating materials such as ethylene-vinyl acetate and polyolefin elastomer to moisture and corrosion results in the deterioration of solar encapsulating materials. The yellow browning of ethylene-vinyl acetate copolymer (EVA) encapsulants used in photovoltaic modules has caused significant power losses. Additionally, weather-degraded EVA films resulted in decreased UV absorption. This is anticipated to hamper the potential growth opportunities for the solar encapsulant market.

SOLAR ENCAPSULANT MARKET REPORT COVERAGE:

Market Segmentation:

Solar Encapsulant Market - By Material:

• Ethylene Vinyl Acetate      
• Polyvinyl Butyral  
• Polydimethylsiloxane        
• Ionomer  

The market can be segregated into ethylene vinyl acetate, polyvinyl butyral, polydimethylsiloxane, ionomer, and others. The other segment includes thermoplastic polyurethane and polyolefin. The ethylene-vinyl acetate segment has experienced significant growth in recent years due to the increase in its application in laminating photovoltaic cells.

Solar Encapsulant Market - By Technology:

• Monocrystalline Silicon     
• Thin Film 

The solar encapsulants market can be segmented into monocrystalline silicon solar technology and thin-film solar technology. The thin-film solar technology segment can be further subdivided into cadmium telluride, copper selenide, indium, gallium, and amorphous silicon. The monocrystalline silicon solar technology segment had a dominant market share in 2017 due to its advantages, such as higher efficiency and lower power consumption compared to other technologies.

Solar Encapsulant Market - By Application:

• Automotive           
• Construction         
•  Electronics 

The solar encapsulants market is segregated into automotive, construction, electronics, and others. The construction segment accounted for a significant share of the market in 2017 due to the rising call for roof panel systems in the construction industry.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The Asia-Pacific solar encapsulants market is anticipated to grow at a rapid rate during the forecast period owing to the increase in solar module production capacity of major manufacturers in India and China. The significant increase in solar technology production in emerging economies such as India and China can be attributed to government subsidies and increased mergers and acquisitions by local manufacturers. In addition, China has dominated the solar encapsulant market in the Asia-Pacific because of the augmented production of inexpensive ethylene vinyl acetate films and their application in solar PV modules. North America and Europe are primarily focused on research to maximize solar power generation. The market in the Middle East and Africa is also increasing due to the elevated utilization of solar energy for power generation, agriculture, and architecture, which is supposed to increase the demand for solar encapsulants.

Market Key Players:

Key players in the global solar encapsulant market are

1. Bridgestone,
2. Dai Nippon Printing Co. Ltd,
3. E.I. Dupont De Nemours & Co.,
4. First Solar Gmbh,
5. Isovoltaic Ag,
6. Mitsubishi Plastics Inc.,

Impact of COVID-19 on the Solar Encapsulant market:

The return of the global solar market to double-digit growth rates in 2019 marked a positive trajectory for the sector. But in 2021, the coronavirus pandemic has not left the solar energy industry. This year, new solar grid connections are anticipated to drop for the first time in many years. It is now of the utmost importance that governments do not ignore renewable energy and solar energy when developing economic stimulus packages. If the world is serious about meeting the climate goals of the Paris Agreement, not only do solar deployments need to regain their recent growth but also the rate of installation of solar energy, the cheapest power generation technology and more versatile, should increase much faster short and medium term. This year a global survey conducted in April by the Global Solar Council into the impacts of COVID-19 on solar energy: more than 71% of solar companies surveyed reported a drop in orders, of which 6 in 10 said orders had been reduced by up to 50%, and 3 in 10 saw a decrease from 50% to 90% (see page 63). The effect of the pandemic on installation rates varies across countries and segments, largely depending on the severity of countries' suffering from coronavirus and the response of governments.

Market Key Developments:

• In July 2016, Suzhou Zhongkang Power, a subsidiary of Jiangsu Akcome Science & Technology Co. Ltd., invested $ 149.97 million to build three photovoltaic power plants, with a combined power generation capacity of 120 MW.
• In June 2017, RIPL launched five Bus Bar (BB) photovoltaic solar cells. These cells offer less resistance and improve the overall performance of the module. The launch aimed to expand the company's photovoltaic cell product line into the global market.