Global Solar Encapsulant Film Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 - 2032

Global Solar Encapsulant Film Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 - 2032

Global Solar Encapsulant Film Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 – 2032

The Solar Encapsulant Film Market is valued at US$ 2.5 billion by 2023 and is expected to grow to US$ 4 billion at a CAGR of 4.8% during forecast period 2032.

The glass layers of the solar module house the solar panels, which give the photovoltaic system longevity and protection. Increasing the longevity of these solar panels is often the main goal of encapsulation. The materials that are chosen for encapsulation usually have characteristics like durability, fire retardancy, or corrosion resistance. Most of the time, automating the encapsulation process is difficult and requires a large amount of energy and resources. Nonetheless, encapsulating materials are becoming more and more popular in a variety of industries, such as the automobile and building sectors. Encapsulation guarantees solar PV modules' dependable operation, hence saving consumers' maintenance expenses.

The solar energy industry segment that produces encapsulant films for use in photovoltaic (PV) modules is included in the market for solar encapsulant films. Because these coatings protect solar cells and improve their overall efficiency and longevity, they are essential to the construction of solar panels. This market niche makes a substantial contribution to the longevity and efficacy of solar panels, making it an essential part of the solar energy sector. It is projected that the market for these films would continue to grow and develop due to the increasing need for sustainable energy sources. Significantly, the uses for solar encapsulant films go beyond the production of conventional solar panels; they are being used more and more in cutting-edge technologies like solar-powered cars and building-integrated photovoltaics (BIPV), which is expanding their market reach.

There are several reasons why rooftop photovoltaic (PV) installations are becoming more and more popular in developing countries, including increased energy self-sufficiency, financial gains, and environmental advantages. It is difficult for many emerging nations to guarantee a steady and reliable source of electricity. Installing rooftop photovoltaic systems allows towns, businesses, and individuals to produce their own electricity. This increases their energy self-sufficiency and lessens their reliance on centralised energy infrastructures. Over time, solar panel and photovoltaic system costs have continuously decreased. Remarkable long-term cost savings are possible with rooftop solar in developing economies with high electricity bills. Both home and business users are particularly drawn to this cost-effectiveness.

A growing number of people in developing economies are showing interest in sustainable energy alternatives as environmental challenges receive more attention worldwide. By producing power without releasing greenhouse gases into the atmosphere, rooftop photovoltaic installations help combat climate change and air pollution. Many governments in developing nations are enacting policies and laws to promote the use of renewable energy sources, such solar panels installed on rooftops. These policies include a variety of incentives that increase the financial attraction of PV installations for people and companies thinking about making investments. These include tax breaks, subsidies, net metering programs, and expedited approval processes.

“Ethylene-vinyl acetate segment, by material type, to be largest market from 2023 to 2030.”

The solar encapsulation market is categorized into segments based on the materials used for encapsulation, including ethylene-vinyl acetate (EVA), polyolefin elastomer (POE), polyvinyl butyral (PVB), and others. The exceptional resistance to corrosion and delamination of ethylene-vinyl acetate solar encapsulation has led to a notable increase in demand. This kind of solar encapsulation increases the effectiveness of solar modules by offering superior barrier protection against things like humidity, UV rays, and harsh weather conditions to a significant extent. The market for EVA-based encapsulant film is expanding due to a number of important factors. These include the growing use of solar energy as a sustainable power source, government programs encouraging the use of renewable energy, and technical developments that call for the development of more effective and durable encapsulation materials.

“Polycrystalline silicon segment, by technology, to be largest market from 2023 to 2030.”

The solar encapsulation film technology segments into amorphous silicon, cadmium telluride, copper indium gallium selenide, and polycrystalline silicon solar. In the global market, polycrystalline silicon solar has the most market share. The large percentage is mostly due to the high efficiencies—which range from 15% to 25%—that these cells offer.

“Europe to be largest region in Solar Encapsulant Film Market.”

By region, the market is divided into North America, Europe, APAC, and Others. Others are further divided into the Middle East and South America. The European PV Module Encapsulant Film market is expected to grow from its 2022 size of over US$ 900 million to over US$ 1.5 billion by 2032. The projected expansion is likely to be driven by developments in encapsulant materials, with the region's growing need for renewable energy sources serving as a major catalyst. Numerous governments in Europe have established challenging goals to increase the share of renewable energy in their energy portfolios. Europe will consume 41% of the world's renewable energy by 2050, which will have a big impact on the market for PV module encapsulant films.

In the global solar EVA film market, the Asia-Pacific region holds the largest market share, which may be attributable to a number of important factors. First off, the existence of multiple emerging nations has contributed to the region's sharp increase in construction activity. Due to the region's offices and construction industry's present high demand for Solar EVA Film, the region's heightened construction activity has resulted in a rise in demand for the material.

In addition, the market's demand for Solar EVA Film has been greatly impacted by the increasing use of renewable energy sources. The Asia-Pacific region has seen a rise in interest in and use of Solar EVA Film as a result of this move towards renewable energy sources. It is predicted that the Chinese market would grow to a value of over US$ 600 million in the meantime. From 2023 to 2033, the PV Module Encapsulant Film market in China grew steadily, with a compound annual growth rate of approximately 6%. Remarkably, China holds a nearly 50% market share in the worldwide PV module encapsulant film market in 2022, making it the world's top producer of PV modules. Strong government incentives and support, as well as the accessibility of affordable labour and supplies, are credited for the expansion of the Chinese solar industry.

Competitive Landscape

The competitive landscape of the Solar Encapsulant Film Market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Solar Encapsulant Film holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Solar Encapsulant Film Market is highly competitive, with numerous companies vying for market share.

Major Players:

3M

Borealis

Changzhou Betterial Film Technologies Co., Ltd.

Jiangsu Sveck Photovoltaic New Material

Hangzhou First Applied Material

Shanghai HIUV New Materials Co.

Mitsui Chemicals Company

Arkema

Cybrid Technology

Recent Developments:

Changzhou Betterial Film Technology Co., Ltd. unveiled Billirial, a thermoplastic polyolefin encapsulating film with high dependability intended for perovskite applications, in August 2022. GCL Optoelectronics placed an order for the first batch of this encapsulating film, which is expected to be delivered by June 2023.

Changzhou Betterial Film Technology Co., Ltd. made a significant investment in Anhui Jingyimen Technology Development Co., Ltd. in June 2022. The purpose of this investment was to help China's automotive functional film sector develop state-of-the-art coating, synthetic, and polymer structure design techniques.

The Satinal Group introduced STRATO PLUS, a translucent EVA film with thermosetting properties, in February 2020. The ultimate in EVA film technology for glass applications was STRATO PLUS. The only EVA film that came in lengths up to 2,600 mm was STRATO.