Encapsulant Materials for PV Modules Market Size, Share, Growth, and Industry Analysis, By Type (EVA Film & POE Film), By Application (Monofacial Module & Bifacial Module), and Regional Forecast to 2033

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ENCAPSULANT MATERIALS FOR PV MODULES MARKET OVERVIEW

The global Encapsulant Materials for PV Modules Market Market was valued at USD 6.22 billion in 2024 and is projected to reach USD 6.34 billion in 2025, further expanding to USD 6.58 billion by 2033, growing at a CAGR of 1.9% from 2025 to 2033.

The Encapsulant Materials for PV Modules Market is paramount to the solar energy ecosystem because these materials offer protection to photovoltaic cells from moisture, UV, and physical damage, gently ensuring long-term durability and, hence, field efficiencies. There are encapsulant materials like EVA, POE, or TPU that greatly contribute to the quality and life of encapsulation. With the demand for solar energy globally comes the demand for encapsulants globally. So, this is an increase in demand for high-quality encapsulants from here. The developments of technology upgrades and money into new renewable energy technology projects internationally are going to positively influence encapsulant materials and technology. The predominant region is Asia-Pacific (China and India specifically), which is presently the largest market for encapsulant materials, as they encompass a considerable percentage of the solar installations globally, coupled with the fact that they are an important player in a lot of the manufacturing and innovations.

COVID-19 IMPACT

Encapsulant Materials for PV Modules Industry Had a Negative Effect Due to supply chain disruptions, investment uncertainty, and delays during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic imposed substantial and negative disruptive impacts on the Encapsulant Materials for PV Modules Market. The pandemic disrupted global supply chain activity and manufacturing activities, including a global decline in demand across the solar industry due largely to project delays and a slumping of market demand for photovoltaic components, i.e., encapsulants. Given that many of the relevant production facilities were at least temporarily shut down or sorely restricted in capacity, the ability to supply raw materials was disrupted or forced to incur increased costs. On top of that, there was uncertainty about investment. It all but stopped the market growth as a slowdown in construction really took hold. Ultimately, the whole industry saw a considerable decrease in revenue and project activity that only began to recover after increased "post-pandemic" renewable investments in the industry were on sandy ground, when strictures were just easing up.

LATEST TREND

Market growth is driven by POE film adoption for high-efficiency solar modules

A major trend in the Encapsulant Materials for PV Modules Market is the rise of polyolefin elastomer (POE) film due to manufacturers shifting to high-efficiency bifacial and TOPCon solar modules. POE film has greater resistance to potential-induced degradation (PID), low water vapor transmission rates, and superior UV stability, which makes it a great option for double-glass modules in a hostile external environment. Manufacturers are expecting high performance and looking at initiatives like taking EVA-POE-EVA in a hybrid structure (EPE) and then estimating a cost/benefit basis with POE and EVA, as we see an increase in much higher prices for POE. Recently, both Sveck and Wanhua Chemical each launched ultra-clear POE films with over 92% light transmittance, both of which provide improved bifacial gain and a lower lamination time. In summary, all manufacturers are looking at ways to improve durability, including both low cost of PV modules, long-term reliability, and improved efficiency in solar module design.

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ENCAPSULANT MATERIALS FOR PV MODULES MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into EVA Film & POE Film

• EVA Film: EVA (Ethylene Vinyl Acetate) film has low cost, decent UV protection, and high transparency and is simple to laminate, making it the most widely integrated encapsulating system in PV modules overall. It has decent adhesion to glass and solar cells, but it has the propensity to yellow and suffer from potential-induced degradation (PID) over time. Despite its drawbacks, EVA is still widely used in common solar modules, as technology for manufacturing is well established, and good amounts of EVA are readily available. EVA will most likely perform acceptably in moderate environmental conditions, making it suitable for the majority of residential, utility, and commercial applications.

• POE Film: POE (Polyolefin Elastomer) Film has experienced a burst of activity recently as it has excellent PID resistance, low vapor water diffusion, and good UV stability. POE film is being used in bifacial and double-glass PV modules, and durability issues overseeing optical clarity are paramount. While POE is certainly a more expensive material to use compared with EVA and has a higher process temperature than EVA to bring it into the final product, POE will provide improved resistance in harsh or humid climates. Additionally, to better thermal stability, POE has excellent electrical resistivity and chemical resistance properties, making it an excellent candidate for the next generation of high-efficiency solar modules.

By Application

Based on application, the global market can be categorized into Monofacial Module & Bifacial Module

• Monofacial Module: Monofacial modules are solar modules that produce energy from only one side. Based on the design simplicity and low cost of production, monofacial modules have serviced and dominated the solar module market. The encapsulant material incorporated in bonding the monofacial module is normally an EVA material, due to its low cost and economic properties, ease of use, predictable energy performance, and general acceptability by consumers. One important drawback with monofacial modules is that monofacial modules are generally not as effective as bifacial modules. That said, this has yet to impede significant use of monofacial modules in residential and commercial real-world uses. Demand for the encapsulants directive in uniface modules remains steady, especially in areas of the world where price/installation is the main priority.

• Bifacial module: Bifacial modules allow for sunlight utilization from both the front side and rear side of the module, increasing energy and efficiency, no less! Bifacial modules' encapsulant design typically uses more advanced materials based on POE, and not just because of its clarity, but because it has a better UV and moisture barrier too. Bifacials are becoming a quickly evolving, utility-scale project market that has expanded possibilities of marketable high-performance encapsulants. In the residential and commercial markets, bifacial modules work best in high reflectivity issues where rear-side generation can greatly affect the overall yield of the system.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factor

Market growth is fuelled by rising solar adoption, government incentives, and demand for reliable PV modules

The implementation of solar energy globally is a big factor in the growth of the encapsulant materials industry. Countries are spending significant amounts of funds on renewables to reach renewable energy commitments and ultimately to decrease carbon emissions. They are emitting an increasing rate of greenhouse gases into the atmosphere. Therefore, demand is increasing for quality, reliable PV modules, which builds a case for improvement processes, particularly among modules with quality encapsulants that either contain PO or POE to protect the solar cells more consistently to help further enhance long-term performance. The expanding demand for encapsulants is mostly attributed to more government incentives around the world and cheaper costs for solar installations.

Market growth accelerates with advanced PV technologies, driving encapsulant innovation and efficiency

With the expansion of PV technologies, including bifacial modules, and substantially larger efficiencies with technologies such as TOPCon and HJT, high-tech encapsulant materials are increasingly needed. Next-generation module designs call for a range of encapsulants with better UV resistance (and lower water vapor transmission) and better optical performance. The use of POE and hybrid structure products is ever growing in popularity because of the technical performance need. As cell efficiency and module designs continue to improve, encapsulants must also improve their performance to enable both higher efficiency and durability.

Restraining Factor

Market growth is hindered by high POE costs limiting widespread adoption

One of the main limiting factors for the Encapsulant Materials for PV Modules Market Growth is the exorbitant cost for the advanced encapsulant materials such as POE, compared to standard EVA. Even though POE has superior durability and performance properties, the prohibitive cost and technical processing impediments inhibit large-scale applications, especially in developing countries and in markets where cost is the most important consideration. and may influence manufacturers' purchasing decisions such that they will be looking for a trade-off of cost and performance on larger applications. This inertia means that many PV module manufacturers continue to use accepted (lower-cost) materials, and this limits the transition to higher-performance encapsulants used in PV Modules and creeping into related equipment.

Market growth expands with rising solar adoption in developing countries and investments

Opportunity

A growth opportunity in the Encapsulant Materials Market associated with PV Modules is the rapid increase in solar installations in developing countries. Countries across Asia, Africa, and Latin America are directing significant gains into solar energy to address growing energy needs and sustainability goals. Further expansion in these countries signifies a strong demand for durable and cost-effective encapsulant materials. Additionally, sponsored legislation, government programs, and direct funding for qualified green energy projects signal a major increase in opportunity for continued market growth. In time, as the infrastructure is built to have the studied areas pivot to solar, the need for advanced encapsulants for PV Modules and ancillary equipment will be significant.

Market growth depends on durable encapsulants resisting extreme conditions for reliability

Challenge

Long-term viability and performance of PV modules in extreme conditions is the fundamental challenge in the Encapsulant Materials for PV Modules Market. For encapsulant materials in PV modules, it is essential to be able to tolerate UV exposure, temperature change, and moisture without degradation and delamination, although delamination is degradation to the extent that it creates a surface over time. There, everything is a technical challenge for manufacturers to produce materials with both sufficient durability and price. When an encapsulant material underperforms, it causes module underperformance and reduced lifespan, which can influence faith in and employability of solar technologies.

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ENCAPSULANT MATERIALS FOR PV MODULES MARKET REGIONAL INSIGHTS

• North America

Market growth in North America thrives on solar adoption, R&D, and incentives

The Encapsulant Materials for PV Modules Market is a leading force in North America due to the area's focus on utilizing renewable energies and new solar technologies. North America also has strong research and development infrastructure, loaded with government incentives, and an escalating number of solar installations in the built environment. The need for high-performance encapsulants continues to expand, especially for utility-scale solar projects. In particular, the United States Encapsulant Materials for PV Modules Market will remain a major growth area, partly due to the rigorous requirements to deploy in the solar space, particularly sustainable infrastructure in the built environment. The addition of advancements in encapsulation technology in the United States Encapsulant Materials for PV Modules Market lends itself to larger contributors to propelling the market growth within North America.

• Europe

Market growth in Europe thrives on clean energy focus, regulations, and innovation

Europe will also have a tremendous impact on the Encapsulant Materials for PV Modules Market, primarily due to the emphasis on generating clean energy and rigorous regulations. The push for high-efficiency and durable solar modules creates a real need and demand for functional, usable encapsulant materials. Countries including Germany, France, and the Netherlands will continue to put positive additions to market value, primarily because of the climate-centric news and push-up of market demand. Europe’s emphasis on sustainable manufacturing processes along with innovative ideas that help better encapsulant materials and manufacturing may help to develop next-generation encapsulant technologies.

• Asia

Market growth in Asia is driven by solar adoption, manufacturing, and innovation

Asia is a big contributor to the Encapsulant Materials for PV Modules Market Share due to large solar installations and manufacturing capability. Countries, including China, India, and Japan, have led the industry in adopting solar energy and therefore created a great deal of demand for encapsulant materials. China dominates the global PV module manufacturing industry and is a clear epicentre of encapsulant manufacturing and innovation. The ability for the region to produce encapsulant material in a cost-effective manner and the government support for renewable energy improved regional industry expansion.

KEY INDUSTRY PLAYERS

Market growth accelerates as key players innovate, expand partnerships, and enhance encapsulant technology

Important market players for the Encapsulant Materials for PV Modules are advancing development through innovation, partnerships, and focused growth. Companies such as DuPont, Hangzhou First, Sveck, and Mitsui Chemicals dedicate considerable time to research and development of encapsulants that would be environmentally stable, perfectly transparent, and strong. These organizations are in the meantime exploring the encapsulants for high-efficiency and bifacial modules as the technology in the current PV module landscape is moving on at a fast pace. In regard to growth, they are also scaling their capacity by partnering with manufacturers of solar modules, working with suppliers, and accessing new markets. The power of applying technology while leveraging their historical experiences is creating competition and contributing to the market's overall evolution.

List of Top Encapsulant Materials For Pv Modules Companies

• First (China)
• Sveck (China)
• HIUV (China)
• Betterial (China)
• Tianyang (China)

KEY INDUSTRY DEVELOPMENT

August 2023: DuPont de Nemours, Inc., continues to advance encapsulant film innovation for high-efficiency solar modules. This next generation of film will enhance adhesion and efficiency and lower degradation over time. The new encapsulant is capable of withstanding harsher environmental conditions than previous iterations, resulting in a longer lifespan of solar products. By innovating such technology, DuPont is becoming recognized as a leader in sustainability and technological advances in the PV encapsulant industry.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.