Solar Encapsulation Market

Solar Encapsulation Market Size

The global solar encapsulation market size was valued at USD 34.7 billion in 2024 and is estimated to grow at a CAGR of 6.1% from 2025 to 2034. 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 Ministry of New and Renewable Energy reported a cumulative installed solar capacity of 107.95GW, comprising 81.01GW from ground-mounted (including floating/hybrid), 17.02GW from grid-connected rooftop, and 4.74GW 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. In June 2023, JinkoSolar announced its Tiger Neo N-type TOPCon module line using improved encapsulation materials, designed for a 30-year performance warranty. 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.

Growing investments in solar projects across emerging economies will foster the penetration of robust encapsulation materials. Large scale installations require components that can withstand harsh environmental conditions over extended periods. This will further push developers to adopt encapsulants that ensure long-term protection and efficiency, thereby supporting large-volume procurement, positively influencing the market growth.

Solar Encapsulation Market Trends

• Surging use of transparent backsheet technology in solar modules will influence the deployment of compatible encapsulants. In September 2023, Trina Solar introduced its Vertex N 610W series with transparent backsheets and n-type i-TOPCon cells, aimed at high-power generation and reduced BOS costs. 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. In November 2023, Hangzhou First applied for certification of its co-extruded film models EP304 and EP308. These films demonstrated extended PID resistance of up to 288 hours in glass-glass TOPCon modules and efficient lamination processing at 140–160°C within 12–20 minutes. Moreover, the increasing need for encapsulants with enhanced adhesion and optical clarity will stimulate the product demand.
  
• Increasing focus on module aesthetics and performance in rooftop and BIPV installations is anticipated to complement the adoption for customized encapsulation materials. Modern solar systems now require encapsulants with high transparency, UV resistance, and color adaptability to meet both technical and visual requirements. The growing design flexibility will additionally support the integration of solar across residential and commercial applications, thereby influencing product penetration.
  

Solar Encapsulation Market Analysis

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• Based on panel type, the market is segmented into crystalline, thin film, and other categories. The solar encapsulation market was valued at USD 17 billion, USD 27.7 billion, and USD 34.7 billion in 2022, 2023, and 2024, respectively.
  
• The crystalline segment is estimated to be valued at more than USD 51 billion by 2034, due to its widespread use in low cost solar modules that rely on standard encapsulation solutions. These panels typically incorporate EVA based encapsulants, which offer sufficient thermal stability and UV protection at competitive pricing. Their simple cell structure and moderate efficiency requirements allow for the use of conventional lamination materials, thereby supporting the solar encapsulation market growth.
  
• The thin film segment will grow at 4.1% CAGR from 2025 to 2034, driven by the expansion of vertically integrated domestic manufacturing requiring robust encapsulation solutions tailored for glassbased thin-film modules. For instance, in September 2024, FirstSolar inaugurated a USD 1.1billion Alabama facility, adding 3.5GW of vertically integrated module capacity. Moreover, the plant’s fully controlled process, from glass sheet to Series7 modules, will necessitate consistent high-performance encapsulants to maintain module integrity and efficiency, driving the business scenario.
  

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• Based on applications, the solar encapsulation market is segmented into residential, commercial & industrial, and utility segments. The commercial & industrial segment held a market share of 44.7% in 2024, 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 5star BEE rating for its 650Wp TOPCon glass–glass modules. Moreover, stringent commercial performance standards will continue to boost demand for advanced encapsulants.
  
• The utility application will grow at 7.5% CAGR from 2025 to 2034, owing to large-scale solar installations requiring durable and PID-resistant encapsulants for long-term performance. In January 2024, JA Solar began mass production of its DeepBlue 4.0 Pro monocrystalline modules with 22.5% average efficiency, optimized for utility-scale deployment using encapsulants with enhanced PID resistance. Moreover, rising investments in grid-connected solar parks will stimulate the solar encapsulation market statistics.
  
• The residential application is anticipated to be valued over USD 17.1 billion by 2034, 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.
  

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The U.S. solar encapsulation market was valued at USD 4.7 billion, USD 7.6 billion, and USD 9.5 billion in 2022, 2023, and 2024, respectively. The North American industry held a market share of 29.8% in 2024.

• Increasing federal investments in domestic solar supply chain resilience, supporting encapsulant production and adoption, will drive the U.S. market. 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 U.S.
  
• The European market will expand at 6.7% CAGR from 2025 to 2034, 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 19.7 billion by 2034, 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 4.2GW and plans to expand to 15GW by 2026. Moreover, increasing regional module production will complement the distribution across the region.
  

Solar Encapsulation Market Share

• The top 5 players, including 3M, Dupont, Hangzhou First PV Material, Mitsubishi Chemicals, RenewSys India, hold about 35.5% market share in the market. These 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
• Al Technology
• Celanese
• Dow Corning
• DuPont
• Eastman
• First Solar
• Hangzhou First PV Material
• Mitsubishi Chemicals
• Momentive
• RenewSys India
• STR Holdings
• Trosifol
  
• First Solar is one of the top players in the solar encapsulation market in 2024, Supported by its vertically integrated thin-film module production and in-house manufacturing of advanced encapsulation materials. The company reported a total revenue of USD 4.2 billion in 2024. The company focuses on high durability solutions tailored for utility-scale deployment and expanding the U.S. based supply chains.
  
• 3M is supported by its development of next-generation encapsulant adhesives and multi-layer films designed for enhanced UV resistance and long term durability. The company reported total net sales of USD23.6billion for the year 2024 and is engaging in strategic partnerships with solar module manufacturers to optimize lamination processes.
  

Solar Encapsulation Industry News

• In December 2024, Cybrid Technologies introduced RayBo, an advanced encapsulant tailored for TOPCon modules to enhance durability and performance. The RayBo film offers superior UV-induced degradation protection, retaining over 99% initial power after testing, and converts harmful UV into beneficial blue light, thus boosting output. This innovation addresses critical encapsulation challenges in next-generation solar technologies, supporting long-term module reliability and industry growth.
  
• In March 2023, Dow launched its DOWSIL PV Product Line featuring six silicone-based sealants and adhesives designed for PV module assembly. These materials enhance frame sealing, junction box bonding, potting, and BIPV integration, critical for long-term module reliability. Their introduction will influence demand for advanced encapsulation components by ensuring durability and moisture protection across solar module production.
  

The solar encapsulation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in “USD Billion” from 2021 to 2034, 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