Solar Encapsulation Market

Increasing demand for electricity generated from renewable sources to fuel the solar encapsulation market.

Global demand for energy is rising as world population is still increasing. Developed countries continue to consume huge amounts of energy while demand is increasing in developing countries. The world population in 2020 of 7.8 billion is projected to increase by 1 billion over the next 10 years and reach 9.6 billion by 2050, according to a UN report. Between 2005 and 2030, energy needs are projected to expand by 55 per cent, with demand increasing from 11.4 billion tons of oil equivalent to 17.7 billion. 

Additionally, Solar PV remains the powerhouse of growth in renewable electricity, with its capacity additions forecast to increase by 17% in 2021 to a new record of almost 160 GW. This is thereby projected to increase the demand for PV modules over the coming years. Moreover, as encapsulation of a PV module is an essential process to prolong its operational durability, the demand for solar encapsulation is also set to rise over the coming years.

Increasing government initiatives and stringent environment regulations

The growing adoption of renewable energy across the globe, in order to reduce the dependency on conventional fossil fuels, is boosting the solar encapsulation market. Further, numerous countries have initiated or are in the process of initiating projects and schemes, coupled with implementing several environmental regulations, to promote the usage of renewable energy, thus driving the industry growth. 

Stringent regulations to curb the greenhouse gas emissions heightening the Solar Encapsulation Market. In the year 2014, the European Union has announced directive 2003/87/EC with the target to reduce the emissions to 20% by 2020. Also, in 2016, the government of China under its thirteenth five-year plan has announced its plan to reduce the emission level to 18% by 2020. 

Moreover, several countries, such as Japan, the United States, the United Kingdom, France, Australia, India, and Brazil, have started taking initiatives to develop the solar power sector. In 2018, India announced its plans to create 10 GW of floating solar capacity; various other countries are following the trend, which is why solar power is anticipated to have a significant share in the total energy mix of the world during the projection period. This, in turn, is expected to drive the demand for solar encapsulation materials over the long term.

Growing adoption of off-grid solar equipment is surging the solar encapsulation market.

Off-grid solar solutions are an alternative for storing renewable energy amid the looming energy crisis and fluctuations in oil prices. Off-grid solar systems can work independently and store energy with the help of batteries. International agreements on lowering carbon emissions and pushing forward on sustainable development schemes are major factors driving the market. 

As per the world bank reports, the off-grid solar industry has grown into a $1.75 billion annual market, providing lighting and other energy services to 420 million user. Since 2017, revenues from the off-grid solar industry continue to rapidly grow, increasing by 30 percent annually. To date, more than 180 million off-grid solar units have been sold worldwide and the sector saw $1.5 billion in investments since 2012. 

With 840 million people still lacking access to electricity, the growth of the off-grid solar industry is critical to meeting the Sustainable Development Goal (SDG7) for universal access to affordable, reliable, sustainable and modern energy by 2030. The adoption of off-grid equipment is driven by increasing requirement for solar energy from small and medium enterprises (SMEs) and the growing government initiatives. 

This rise in off-grid solar equipment is expected to increase the demand for solar panels and encapsulation is an important step in the process of building solar panels. Thus, with the growing adoption of off-grid solar equipment globally, the market for solar encapsulation is also expected to rise over the forecast period.

The Global Solar Encapsulation Market Industry is projected to experience substantial growth over the next decade. With a market value anticipated to reach 5.33 USD Billion in 2024 and 13.0 USD Billion by 2035, the industry is set to expand significantly. The compound annual growth rate of 8.46% from 2025 to 2035 indicates a robust upward trend, driven by various factors including technological advancements, increased investment, and regulatory support. These projections highlight the potential for innovation and development within the solar encapsulation sector, suggesting a dynamic future for the industry.

Regulatory frameworks and incentives play a crucial role in shaping the Global Solar Encapsulation Market Industry. Governments are implementing favorable policies to encourage the adoption of solar energy, including tax credits, rebates, and grants for solar installations. Such initiatives not only lower the financial barriers for consumers but also stimulate demand for solar encapsulation materials. As regulatory support continues to strengthen, the market is poised for growth, with projections indicating a robust expansion trajectory. This supportive environment is likely to attract further investments and innovations in solar encapsulation technologies.

The Global Solar Encapsulation Market Industry is experiencing a surge in demand driven by the increasing global emphasis on renewable energy sources. Governments worldwide are implementing policies and incentives to promote solar energy adoption, leading to a projected market value of 5.33 USD Billion in 2024. This shift towards sustainability is not only a response to climate change but also a strategic move to enhance energy security. As countries aim to meet their renewable energy targets, the demand for solar encapsulation materials, which protect solar cells and enhance their efficiency, is expected to grow significantly.

Investment in solar infrastructure is a key driver for the Global Solar Encapsulation Market Industry. As countries invest heavily in solar farms and residential solar installations, the demand for high-quality encapsulation materials rises correspondingly. This trend is evident in various regions, particularly in Asia-Pacific and North America, where substantial financial commitments are being made to expand solar capacity. The anticipated compound annual growth rate of 8.46% from 2025 to 2035 underscores the potential for growth in this sector. Enhanced investment not only boosts production but also fosters innovation in encapsulation technologies.

Technological innovations in solar energy systems are propelling the Global Solar Encapsulation Market Industry forward. Advances in materials science, such as the development of more efficient encapsulants, are enhancing the durability and performance of solar panels. These improvements are crucial as they extend the lifespan of solar installations, making them more economically viable. The integration of new technologies is likely to contribute to the market's growth, with projections indicating a rise to 13.0 USD Billion by 2035. This trajectory suggests that ongoing research and development will continue to play a pivotal role in shaping the future of solar encapsulation.

The Global Solar Encapsulation Market Industry is benefiting from a heightened awareness of environmental sustainability among consumers and businesses alike. As individuals and organizations increasingly prioritize eco-friendly practices, the demand for solar energy solutions rises. This shift in consumer behavior is influencing manufacturers to adopt sustainable practices in their production processes, including the use of recyclable materials in solar encapsulation. The growing emphasis on sustainability is expected to drive market growth, as more stakeholders recognize the long-term benefits of investing in solar technology and its positive impact on the environment.

By Region, the study segments the Solar Encapsulation Market into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The sizable solar encapsulation industry in Asia-Pacific is likely to make the region the largest expanding global market for solar encapsulation. In the APAC region, the solar encapsulation market is predicted to have healthy growth over the forecast period. 

Rise in solar module production capacity of key manufacturers in China and India, the significant rise in solar technology production in China and India, government subsidies, increased acquisitions and mergers by local manufacturers, augmented production of cost-effective ethylene vinyl acetate films and applications in solar PV modules in China, rising renewable energy needs, and growing awareness about the different perks of PV technology in the countries of the region are adding to the solar encapsulation market growth in the region.

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, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Solar Encapsulation Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global solar encapsulation industry to benefit clients and expand the Solar Encapsulation Market sector is partnerships and acquisitions. The market for Solar Encapsulation Market is recognized as being extremely competitive and fragmented. 

The market for Solar Encapsulation Market offers considerable potential opportunities for domestic and unorganized companies. Some of the key players operating in the market are 3M (U.S.), Dow Inc. (U.S.), DuPont (U.S.), Arkema (France), Specialized Technology Resources (U.S), RenewSys (India), Solutia (U.S.), Mitsui Chemicals (Japan), Hangzhou First Applied Material (China), Borealis (Netherland), Kuraray (Austria), Hanwha (Japan), Targray (South Korea), and dnpSolar (Canada). To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

3M.: 3M offers diversified technology products, and has a global presence. 3M is one of the leading manufacturers of products that serves a wide range of the industry verticals. The company offers more than 60,000 products that are used in homes, businesses, schools, hospitals and other industries. 

The company operates in the business segments including safety and Construction, transportation and electronics, health care, and consumer. Moreover, 3M has corporate operations across 70 countries and sales in 200.3M products are sold through various distribution channels such as directly to users and through different e-commerce as well as traditional wholesalers, retailers, jobbers, distributors and dealers across variety of trades in many countries in the world.

Dow Inc.: Dow is one of the leading materials science companies. The company offers solutions including plastics, Construction intermediates, coatings and siliconesfor consumer care, infrastructure, and packaging industries.Dow operates across various countries and regions of world including the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. 

The company operates through its six major segments including Packaging, Specialty Plastics, Construction Intermediates, Infrastructure, Performance Materials and Coatings. The Packaging & Specialty Plastics segment of Dow offer functional polymers, such as polyolefin elastomers, semiconductive and jacketing compound solutions and wire and cable insulation. The ENGAGE   PV Polyolefin Elastomers (POE) by Dow is used for PV encapsulant films due to its long-term performance, reliability and lower overall costs.