Solar Encapsulation Market to Hit $6.1 Billion by 2030, Driven by Booming PV Demand

📈 Rising Solar Installations Push Solar Encapsulation Market Toward 8.7% CAGR Growth

WILMINGTON, DE, UNITED STATES, July 28, 2025 /EINPresswire.com/ --

According to a recent report by Allied Market Research, the solar encapsulation market is poised for substantial growth, projected to rise from $2.6 billion in 2020 to $6.1 billion by 2030, registering a CAGR of 8.7% during the forecast period. This robust expansion is largely fueled by the accelerating global adoption of solar photovoltaic (PV) systems, rapid infrastructure development, and growing demand for energy-efficient solutions.

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🔬 What Is Solar Encapsulation?

Solar encapsulation refers to the process of sealing solar PV modules with protective layers to shield them from environmental damage such as moisture, dust, and UV radiation. Encapsulants play a critical role in improving the durability, efficiency, and lifespan of PV modules by acting as a barrier to oxygen and moisture ingress. This protection helps reduce performance degradation caused by prolonged exposure to harsh outdoor conditions.

As solar energy continues to evolve into a primary clean energy source, the need for reliable encapsulation technologies becomes essential. It directly influences the performance and stability of solar modules—an area previously considered a bottleneck for large-scale solar adoption.

📈 Key Growth Drivers of the Solar Encapsulation Market

🌍 Global Push Toward Renewable Energy: Solar PV is expected to contribute up to 20% of global energy supply by 2050, creating vast opportunities for encapsulation materials.

🏗️ Boom in Infrastructure & Construction Projects: With the increasing use of solar-integrated buildings, the construction sector heavily influences the solar encapsulation market.

🔋 Growth in PV Energy Storage Systems: The rise in solar-plus-storage systems boosts the demand for encapsulants that can maintain performance over time.

💡 Technological Advancements in PV Cells: Modern encapsulants are being developed to meet the optical, mechanical, and thermal demands of evolving solar technologies.

🔍 Market Segmentation Insights

🧪 By Material

The market is segmented into ethylene vinyl acetate (EVA), non-EVA, UV curable resins, and others. EVA dominates the market due to its low cost, excellent adhesion, and proven reliability in harsh climates. It accounted for the largest share in 2020 and continues to be the preferred choice for module manufacturers.

⚙️ By Technology

Among technologies, polycrystalline silicon solar modules lead the market. Known for their cost-efficiency and decent conversion rates, these modules are widely used across residential and commercial sectors. Other technologies include cadmium telluride, copper indium gallium selenide (CIGS), and amorphous silicon.

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🏢 By Application

The construction sector holds the largest share in the application segment. With increasing emphasis on green buildings, smart cities, and solar-integrated rooftops, the demand for long-lasting and visually appealing encapsulation materials is surging. Other key sectors include automotive, electronics, and industrial applications.

🌏 By Region

In 2020, Asia-Pacific emerged as the dominant regional market, driven by heavy solar investments from countries like China, India, Japan, and South Korea. The region’s rapid urbanization, favorable policies, and massive solar installation targets make it a global leader in the solar encapsulation industry.

💥 Impact of COVID-19 on the Solar Encapsulation Market

The pandemic posed significant challenges for the global solar industry. Manufacturing delays, workforce shortages, and supply chain disruptions led to a temporary dip in solar panel production and installation. Consequently, the solar encapsulation market faced a setback, especially in early 2020.

🔻 Key COVID-related impacts:

Temporary closure of encapsulation material manufacturing units

Delayed solar projects due to labor migration and lockdowns

Drop in demand from the construction and utility sectors

Disruption in import-export of critical raw materials

However, with governments focusing on green recovery and stimulus packages targeting renewable energy, the market has shown signs of resilient recovery since 2021.

🧪 Competitive Landscape

The solar encapsulation market features several key players actively investing in R&D and expanding their manufacturing capacities. Major companies include:

3M Company

Dupont De Nemours Inc.

Dow Inc.

First Solar

AKCOME

STR Holdings, Inc.

Hangzhou First PV Material Co. Ltd.

Bridgestone Corporation

JGP Energy

DNP Solar

These companies focus on introducing UV-resistant, transparent, and flexible encapsulants to cater to evolving PV module designs.

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🏁 Conclusion

The global solar encapsulation market is well-positioned for sustained growth over the coming decade. With solar energy gaining momentum as a reliable and cost-effective renewable energy source, the need for durable and efficient encapsulation materials is more critical than ever.

From driving efficiency to protecting investments, solar encapsulants play a vital role in the clean energy transition. As technology advances and solar installations become increasingly mainstream, stakeholders in this market have a golden opportunity to innovate and lead in shaping a greener, energy-secure future. 🌞🔋

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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