The global solar encapsulation market is expected to grow from USD 2.87 billion in 2022 to USD 11.37 billion by 2030, at a CAGR of 10.28% during the forecast period.
Solar encapsulation is the process of protecting solar cells from environmental factors such as moisture, dust, and UV radiation. It is an essential step in the manufacturing of solar modules, and it plays a critical role in ensuring the long-term performance and reliability of solar modules.
Therefore, increasing installations of solar panels worldwide and technological advances improving functionalities of solar modules contribute to the market growth. Besides, initiatives to encourage renewable and energy-saving resources are major trends increasing the market prominence of solar encapsulation.
With the growing PV installations in residential rooftop applications, the market is projected to witness a significant rise in its revenues during the years to come.
Competitive Analysis
Manufacturers strive to increase production capacities of encapsulation resins with improved cost efficiency and digitalization. They also explore the possibility of new product development after mastering the existing ones.
For instance, recently, on August 10, 2021, Researchers at Institute for Solar Energy Research Hamelin (ISFH - Germany) announced the development of two different techniques integrating stone veneers in conventional solar modules to make them suitable for BIPV projects in stone facades.
All panels are bifacial heterojunction solar cells encapsulated between two sheets of polyolefin encapsulation film. These panels are considered an ideal solution for aesthetically demanding applications in buildings with stone facades.
· First Solar
· STR Holdings Inc.
· HANGZHOU FIRST APPLIED MATERIAL CO., LTD.
· Dow
· DuPont
· Mitsubishi Chemical Corporation
· Cambiosolar
· Kuraray Europe Gmbh
· 3M
· RenewSys India Pvt. Ltd
Improvements in Solar Encapsulation Techniques & Materials Boost Market size
The market outlook appears promising mainly due to the continually growing energy demand worldwide. Rise in solar panel installations in residential as well as commercial sectors drives the solar encapsulation market growth. Additionally, increasing government initiatives and awareness for solar encapsulation benefits influence market revenues. Also, the vast uptake of thin-film solar and cadmium telluride (CDTE) technology fosters the market's size.
Increasing installations of rooftop and ground-mounted solar panels in industrial sectors and utility-scale systems are other significant trends influencing the market growth. Substantial investments by industry players to drive technology upgrades and improve materials, alongside declining prices of essential raw materials and components, push the solar encapsulation market growth.
EVA has long been the key material for the encapsulation of silicon PV modules. The vast availability of cheap & easy to process EVA from an established, cost-optimized supply chain positively impacts market growth. Furthermore, increasing research activities for specialized application of various vital raw materials in PV modules creates vast market opportunities.
Prohibitive Costs Restrict Market Growth
High costs related to the production and maintenance of solar encapsulation are significant factors obstructing market growth. Nevertheless, rising electricity prices and the availability of cost-competitive solar encapsulation techniques would support the market growth throughout the assessment period. Recent developments in module technology have created major opportunities for the use of another class of materials, polyolefins (POEs).
COVID-19 Impacts on the Market
The onset of COVID-19 could hardly affect the solar encapsulation industry. Industry players faced major challenges, including disrupted supply chains, attracting workers from quarantines, and logistic issues in delivering end products.
At the same time, the pandemic reassured a robust rise in the renewable energy market, continually propelling energy demand. The solar encapsulation market value is projected to pick up further, following lockdown mandates relaxed in many countries.
Segmentation
The market is segmented into technologies, materials, end-uses, and regions. The technology segment is sub-segmented into thin-film solar technology and polycrystalline silicon. Among these, the polycrystalline silicon segment accounts for the largest market share. The material segment is sub-segmented into ethylene-vinyl acetate, polydimethylsiloxane, ionomers, polyvinyl butyral, and others.
Among these, the ethylene-vinyl acetate segment holds a larger market share as it has good radiation transmission and low degradability to sunlight. The end-use segment is sub-segmented into automotive, electronics, construction, and others. The region segment is bifurcated into Asia Pacific, Americas, Europe, and rest-of-the-world.
Regional Analysis
Europe dominates the global solar module encapsulation market size, heading with the rapid development and R&D investment in solar energy. Moreover, long-term contracts offered to renewable energy producers that are proportionate to the cost of generation of each technology boost the solar encapsulation market size.
Favorable government policies aimed to promote solar energy influence the region's solar encapsulation market share. Additionally, considerable investments in solar energy due to the rising focus on developing renewable energy sources increase the solar encapsulation market value.
More Trending Reports:
English
Arabic
Français
Español
Português
Deutsch
Türkçe
Italiano
Russian
Romaian