Solar Encapsulation Market Size to Grow $7.2 billion by 2028 at a CAGR of 8.0%.

Solar Encapsulation Market

Global Solar Encapsulation Market Overview:

The solar encapsulation market is projected to reach USD 7.2 billion by 2028 from an estimated USD 4.9 billion in 2023, at a CAGR of 8.0% during the forecast period. Solar encapsulation is the technique of sealing and protecting solar cells with a layer of materials, most often polymers such as ethylene-vinyl acetate (EVA) or polyolefins (POE). This protective layer is important to the longevity, durability, and efficiency of solar panels. Encapsulants of excellent grade are highly transparent, allowing maximum sunlight to enter the cells and improve their power generation. They can also improve light trapping within the cell and reduce optical losses. Rising growth in the demand for solar energy along with increasing adoption of photovoltaics technology solutions are the factors expected to drive the demand for the solar encapsulation market.

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The Thermoplastic polyurethane (TPU) segment, by materials, is expected to grow at the highest CAGR during the forecast period.

Based on materials, the solar encapsulation market has been segmented into Ethylene-vinyl Acetate (EVA), Polyvinyl Butyral (PVB), Polydimethylsiloxane (PDMS), Ionomer, Polyolefin, Thermoplastic Polyurethane (TPU).  The Thermoplastic polyurethane (TPU) segment is expected to be the fastest growing segment during the forecast period. TPU boasts excellent mechanical properties like abrasion resistance, high elasticity, and good low-temperature performance. Compared to EVA, TPU shows less yellowing and degradation under UV exposure, potentially leading to a longer lifespan for the solar panel. Currently, TPU is more expensive than EVA, making it less commercially viable for large-scale solar module production.

Solar Encapsulation Market Size
Solar Encapsulation Market Size

The Crystalline Silicon, by technology, is expected to be the largest segment during the forecast period.

This report segments the solar encapsulation market based on technology into crystalline silicon and thin-film solar technology. The crystalline silicon technology segment is further sub-segmented into mono crystalline and polycrystalline silicon solar technology. The thin-film solar technology segment is sub-segmented into Cadmium telluride (CdTe), Copper-Indium-gallanium-selenide (CIGS) and Amorphous Silicone. The crystalline silicon of the solar encapsulation market based on technology is expected to be the largest segment during the forecast period. Crystalline silicon has a reasonably high energy conversion efficiency, reaching up to 25% in laboratory settings and ranging from 18% to 22% in commercially available modules. This means that it produces more electricity per unit area of sunlight than many other technologies. Ongoing R&D efforts continue to push the efficiency limitations of crystalline silicon, making it a viable option even against newer technologies.

The Ground-mounted, by application, is expected to be the largest segment during the forecast period.

This report segments the solar encapsulation market based on application into four segments: Ground-mounted, Building-integrated photovoltaics, Floating Photovoltaics and others. The Ground-mounted segment is expected to be the largest segment during the forecast year. The ground-mounted PV systems market is predicted to increase significantly during the forecast period, owing to an increasing number of utility-scale projects worldwide. According to the Solar Energy Industries Association (SEIA), solar installation has increased by over 33% globally, with ground-mounted systems accounting for the largest share. Additionally, Ground-mounted ones can be adjusted according to the season or support a solar tracker that follows the sun’s path throughout the day. A ground-mounted system with a tracker can be 10% to 45% more efficient than a rooftop solar system.

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Asia Pacific is expected to be the largest region in the solar encapsulation market.

Asia Pacific is expected to be the largest solar encapsulation market during the forecast period. Governments in Japan, South Korea, and China are actively actively promoting the advancement and integration of solar technology as a critical component of their strategies to reduce carbon emissions and encourage the adoption of sustainable energy solutions. In particular, Japan and South Korea have made significant investments in solar technology, directing their efforts toward diverse applications such as building-integrated photovoltaics.

Some of the major players in the solar encapsulation market are Mitsui Chemicals, Inc. (Japan), Elkem ASA (Norway), Dow (US), 3M (US), and DuPont (US). The major strategies these players adopt include new product launches, contracts, agreements, partnerships, and investments & expansions.