Solar Encapsulation Market Size To Reach $16.99 Billion By 2033

July 2025 | Report Format: Electronic (PDF)

Solar Encapsulation Market Growth & Trends

The global solar encapsulation market size is projected to reach USD 16.99 billion by 2033, growing at a CAGR of 6.9% from 2025 to 2033, according to a new report by Grand View Research, Inc. The rising global adoption of solar photovoltaic (PV) systems, driven by climate commitments, falling module costs, and supportive energy policies, is fueling demand for advanced encapsulation materials. These materials, including Ethylene Vinyl Acetate (EVA), Polyolefin Elastomers (POE), and Thermoplastic Polyurethane (TPU), are critical for protecting solar cells against moisture, UV radiation, and mechanical stress. They are central to ensuring long-term reliability, energy yield, and lifecycle efficiency in solar modules deployed across rooftops, utility-scale, and emerging off-grid installations.

The demand for solar encapsulation is growing across major markets, including Asia Pacific, North America, Europe, and the Middle East & Africa, as countries accelerate renewable energy transitions. Nations such as China, India, the U.S., Germany, and the UAE lead large-scale PV deployment, prompting increased use of high-performance encapsulants. Innovations in module technology, such as bifacial panels, heterojunction cells, and tandem perovskite-silicon modules, require enhanced encapsulation solutions with superior optical transmission, thermal stability, and mechanical durability. Manufacturers focus on material R&D, localized production, and recyclability to meet evolving design requirements and comply with stricter environmental standards.

Government initiatives such as India’s Production Linked Incentive (PLI) scheme for solar manufacturing, the U.S. Inflation Reduction Act (IRA), and Europe’s REPowerEU program create a favorable ecosystem for encapsulant supply chain expansion. Public-private investments in domestic solar module production and sustainable energy infrastructure drive the demand for advanced encapsulant films with long-term performance reliability. Leading companies, including First Solar, DuPont, 3M, Dow, Mitsui Chemicals, Inc., and HANGZHOU FIRST APPLIED MATERIAL CO., LTD., are actively innovating in product development, focusing on UV resistance, low water vapor transmission, and compatibility with next-gen solar cell architectures.

The rise of hybrid and distributed solar systems combining PV with energy storage and smart inverters further underscores the need for durable encapsulation solutions in grid-tied and off-grid applications. Despite challenges such as raw material price volatility, recyclability concerns, and intense competition from low-cost manufacturers, the market continues to grow steadily. Advances in lamination techniques, the emergence of lead-free and thermoplastic alternatives, and expanding regional manufacturing capacities are expected to strengthen the solar encapsulation industry. As global energy systems become cleaner and more decentralized, encapsulation materials will remain foundational to the performance and longevity of the world’s expanding solar infrastructure.

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Solar Encapsulation Market Report Highlights

Based on material, the Ethylene Vinyl Acetate (EVA) segment dominated the global market with a revenue share of approximately 64.45% in 2024, owing to its proven performance, cost-effectiveness, and widespread compatibility with crystalline silicon solar modules. EVA is the most used encapsulant due to its excellent optical transparency, strong adhesive properties, and long-term durability under harsh environmental conditions. It is widely adopted across residential, commercial, and utility-scale solar installations where reliability and lifecycle stability are essential. The material's ability to provide strong lamination, protect against UV radiation, and ensure mechanical integrity makes it ideal for standard solar module designs. EVA's well-established manufacturing processes and global availability have further solidified its position as the preferred encapsulation material in the evolving photovoltaic industry.
Based on technology, the crystalline silicon solar segment held the largest market share in 2024, accounting for approximately 84.40% of total revenue. This dominance is primarily attributed to its high conversion efficiency, long-term reliability, and widespread adoption across residential, commercial, and utility-scale solar projects.
Crystalline silicon technology, encompassing monocrystalline and polycrystalline variants, is well-suited for diverse climatic conditions and delivers a superior performance-to-cost ratio compared to alternative PV technologies. Its compatibility with established encapsulation materials, especially Ethylene Vinyl Acetate (EVA), further enhances durability and energy output. As solar energy deployment scales rapidly worldwide, crystalline silicon modules continue to lead due to their mature manufacturing infrastructure, global availability, and technological enhancements supporting improved light absorption and reduced degradation.
Key industry participants in the solar encapsulation industry include First Solar, DuPont, 3M, Dow, Mitsui Chemicals, Inc., HANGZHOU FIRST APPLIED MATERIAL CO., LTD., LG Chem, JA Solar Technology Co., Ltd., Shin-Etsu Chemical Co., Ltd., and RenewSys India Pvt. Ltd., among others.