Solar Encapsulation Market Size & Share 2026-2035

Solar Encapsulation Market Size

The global solar encapsulation market was valued at USD 36.2 billion in 2025. The market is set to grow from USD 37.7 billion in 2026 to USD 64.7 billion in 2035, at a CAGR of 6.2% according to Global Market Insights, Inc.

The shift toward localized solar manufacturing under national incentive programs will contribute to encapsulation material demand. Increasing push across countries for self-reliance in PV production will augment the adoption for high-quality encapsulants across domestic supply chains.

Growing installation of solar PV modules, driven by rising global clean energy targets, will foster demand for solar encapsulation materials. As of March 31, 2025, India’s MNRE reported a cumulative installed solar capacity of 107.95 GW, comprising 81.01 GW from ground-mounted (including floating/hybrid), 17.02 GW from grid-connected rooftop, and 4.74 GW from off-grid systems. Additionally, the expanding PV deployment will create significant demand for high-performance encapsulants, thereby augmenting the industry landscape.

Expanding solar module manufacturing capacity across developing and developed economies is anticipated to influence encapsulation material consumption. Governments are focusing on strengthening domestic module production to reduce import dependency, which in turn will accelerate demand for key PV components including encapsulants. Additionally, growing presence of vertically integrated manufacturers will further drive large-scale material sourcing, positively impacting the industry growth.

Increasing efforts to reduce the Levelized Cost of Electricity (LCOE) by improving module reliability will augment encapsulation material deployment. For instance, in October 2024, JinkoSolar Holding announced the global launch of its next-generation Tiger Neo 3.0 N-type TOPCon modules, delivering up to 670 W power output and module efficiency close to 24.8%, along with a 30-year linear performance warranty and improved first-year degradation of around 1%. Additionally, these materials offer better light transmission and thermal stability, directly supporting the goal of long-term energy yield, hence fostering product adoption across utility scale projects.

In addition, the increasing investments in solar projects in developing economies would allow the penetration of high quality encapsulation materials. Large-scale field installations would demand reliable and high performing encapsulants. This would allow the players to follow long-term and cost effective strategy in the solar value chain, which would drive the market outlook.

Solar Encapsulation Market Trends

• Surging use of transparent backsheet technology in solar modules will influence the deployment of compatible encapsulants. For instance, in May 2025, Trina Solar Co., Ltd. unveiled its upgraded Vertex N series based on next-generation n-type i-TOPCon technology, with commercial modules reaching up to 720W–740W power output and efficiency levels approaching 24%. These structures require specialized encapsulation materials that maintain optical clarity and adhesion. Moreover, rising demand for lightweight and aesthetically adaptable modules will complement the product uptake across diverse solar applications.
• Rising shift toward high-power density modules and advanced cell architectures will influence the demand for specialized encapsulants. Advancement of technologies like heterojunction and TOPCon along with ability to offer superior optical transmission, mechanical durability, and electrical insulation will further contribute to the business momentum. This evolution in cell design will require material innovation, thereby contributing to the ongoing development and adoption of advanced solutions.
• Advancements in high-reliability EVA and POE encapsulants to meet the rising demand for long-term field performance will contribute to product utilization. For instance, in 2025, Hangzhou First Applied Material advanced its encapsulation portfolio by commercializing next-generation co-extruded POE/EPE encapsulant films optimized for TOPCon and bifacial modules, with enhanced PID resistance beyond 300 hours. Moreover, the increasing need for encapsulants with enhanced adhesion and optical clarity will stimulate the product demand.
• Rising attention to module aesthetics and performance in the rooftop and BIPV segments is likely to be synergistic with the acceptance of customized encapsulation materials. Adoption trends in various end-use categories now demand encapsulants with excellent transmittance, resistant to UV degradation, and that can be pigmented appropriately. Increasing design flexibility will also accelerate the use of solar in both residential and commercial applications.

Solar Encapsulation Market Analysis

• The solar encapsulation market from crystalline segment is estimated to be valued at more than USD 53 billion by 2035, given its reliance in low cost solar modules that utilize commodity encapsulation technologies. Modules typically utilize EVA-based encapsulants, which provide sufficient thermal resistance and UV blocking for a cost effective encapsulation solution. Low cell structure requirements and moderate cell efficiency necessitate commodity lamination materials, which benefits industry development.
• The thin film segment will grow at 4% CAGR by 2035, driven by the expansion of vertically integrated domestic manufacturing requiring robust encapsulation solutions tailored for glass‑based thin-film modules. For instance, in 2025 First Solar, announced its total global nameplate manufacturing capacity is anticipated to exceed 25 GW by 2026, supported by continued investments in advanced cadmium telluride (CdTe) technology, U.S. domestic supply chain localization, and rising demand for utility-scale solar projects under the Inflation Reduction Act (IRA).

The commercial & industrial segment held a market share of 44.5% in 2025, driven by increased adoption of high-performance modules demanding premium encapsulation systems.

• In November 2024, RenewSys became the first Indian PV manufacturer to earn a 5‑star BEE rating for its 650 Wp TOPCon glass–glass modules. Moreover, stringent commercial performance standards will continue to boost demand for advanced encapsulants.
• The utility application will grow at over 7% CAGR by 2035 driven by utility-scale PV plants that will require high durability and possessing PID-resistant encapsulants for sustained performance. For example, in March 2025, JinkoSolar Holding jointly announced the commercial implementation of its newest Tiger Neo TOPCon modules with module efficiencies at nearly 24.8%, with more advanced encapsulation materials with improved PID resilience, reduced moisture permeability and enhanced thermal stability to ensure long-term performance, in utility scale and desert applications. Also, surging investments in grid-connected solar parks would further boost the industry figures.
• The residential application is anticipated to be valued over USD 17.8 billion by 2035, owing to rising household adoption of rooftop solar systems requiring durable and aesthetically compatible encapsulation materials. Residential modules utilize encapsulants that offer superior UV resistance, long-term optical clarity, and enhanced lamination stability to ensure performance and reliability in diverse weather conditions. In addition, increasing focus on building-integrated solar and premium roof aesthetics will further support the demand for high-quality encapsulants across this segment.

The U.S. Solar Encapsulation market was valued at USD 9.8 billion in 2025. The North American industry held a market share of 29.7% in 2025.

• In the U.S. market, increasing federal investments in domestic solar supply chain resilience, supporting encapsulant production and adoption. In May 2024, the U.S. Department of Energy announced a USD 71 million investment in solar manufacturing R&D, focused on both silicon and thin-film PV technologies, to strengthen domestic encapsulant and module component production. This initiative will complement adoption of high-performance encapsulation solutions across the economy.
• The European market will expand at over 6.5% CAGR to 2035 fueled by increasing demand for POE and co-extruded films, offering better durability for modules. Rising support for BIPV applications across countries including France, Netherlands and Germany among others will drive the market growth. In addition, shifting focus on enhancing domestic encapsulant production aligning with the EU goals is set to drive the industry scenario.
• The Asia Pacific market is expected to be valued at more than USD 20.5 billion by 2035, driven by the need for encapsulation materials in extreme environmental conditions and rapid regional PV manufacturing expansion. In May 2025, Alishan Green Energy reported a current encapsulant production capacity of 4.2 GW and plans to expand to 15 GW by 2026. Moreover, increasing regional module production will complement the distribution across the region.

Solar Encapsulation Market Share

• The companies maintain their leadership through capacity expansions, in-house production of advanced EVA/POE films, and strong ties with leading solar module manufacturers. Their strategies also include region specific product customization, backward integration, and continuous investment in R&D for durability and UV stability to ensure long term competitiveness in the encapsulant landscape.
• Leading players in the industry are prioritizing the development of PID-resistant and high-transparency encapsulation materials, coupled with strategic collaborations for product testing under extreme climate conditions. These firms are also enhancing supply chain resilience by setting up domestic production hubs and entering long-term agreements with vertically integrated solar manufacturers to increase encapsulant market penetration.
• Top companies in the market are emphasizing strategic localization of production, backward integration with polymer base material suppliers, and co-development partnerships with module brands. Their approach also includes scaling film extrusion technologies, improving lamination performance, and maintaining compliance with IEC and BIS standards, enabling sustained competitiveness across global module assembly operations.

Solar Encapsulation Market Companies

Eminent players operating in the solar encapsulation industry are:

• 3M
• Alishan Green Energy
• Al Technology
• Changzhou Betterial Film Technologies
• Crown Advanced Materials
• Cybrid Technologies
• Dow Corning
• DuPont
• Eastman
• Endurans Solar
• Enrich Encap Pvt Ltd.
• First Solar
• Hangzhou First PV Material
• Jiangsu Sveck New Material
• Jolywood (Suzhou) Sunwatt
• Momentive
• Mitsubishi Chemicals
• RenewSys India
• SATINAL SpA
• Shanghai HIUV New Materials
• Sunlink Photovoltaic
• Zhejiang Sinopont Technology

Solar Encapsulation Industry News

• In 2025, HANGZHOU FIRST APPLIED MATERIAL CO., LTD. introduced advanced encapsulation solutions specifically optimized for TOPCon and HJT modules, including specialized POE, EPE, and low-acid EVA materials designed to reduce MID and PID degradation while improving long-term module reliability and moisture barrier performance.
• In February 2025, Shin-Etsu Chemical Co., Ltd. expanded its solar encapsulation production plant in Texas in order to strengthen the domestic supply chain of high performance solar materials for U.S. Market. The facility expansion has been designed for manufacturing of advanced encapsulants for bifacial, TOPCon and next generation high efficiency solar modules.
• In December 2024, Cybrid Technologies launched RayBo, a high-performance encapsulant for TOPCon modules to improve reliability and power output. The RayBo film protects against irreversible damage caused by UV radiation, preserving more than 99.5% of initial power after testing, and transforms damaging UV into improving blue light, consequently raising power output.

Solar Encapsulation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in “USD Billion” from 2022 to 2035, for the following segments:

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Market, By Panel Type

• Crystalline
• Thin film
• Others

Market, By Material Type

• EVA
• POE
• EPE

Market, By Application

• Residential
• Commercial & industrial
• Utility

Market, By End Use

• Construction
• Electronics
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Austria
  • Denmark
  • Finland
  • France
  • Germany
  • Italy
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East and Africa
  • Israel
  • Saudi Arabia
  • UAE
  • Jordan
  • Oman
• Latin America
  • Brazil
  • Chile
  • Argentina
  • Peru