Ethylene Vinyl Acetate Market Poised to Grow on Back of High Demand from Solar Panel Manufacturing Industry
Ethylene vinyl acetate (EVA) is a copolymer of ethylene and vinyl acetate which finds extensive usage as an encapsulant in photovoltaic (PV) module manufacturing. As an encapsulant, EVA protects PV cells from moisture and helps in improving their performance. It provides excellent adhesion to both front glass as well as back sheet. The global solar panel market has been growing rapidly over the past few years owing to supportive government policies and initiatives encouraging the adoption of renewable energy. With increasing deployment of solar panels worldwide, demand for EVA from this application segment is projected to surge substantially.
The global ethylene vinyl acetate market is estimated to be valued at US$ 1710.66 Mn in 2024 and is expected to exhibit a CAGR of 3.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The high demand from solar panel manufacturing is one of the major drivers propelling the growth of ethylene vinyl acetate market. Solar panel encapsulants account for over 40% of the overall EVA consumption. The government targets to increase usage of renewable sources of energy along with falling prices of solar panels have boosted the solar energy market size significantly. According to the International Renewable Energy Agency (IRENA), globally over 100 GW of solar PV was added in 2021 alone. This rising deployment of solar panels directly translates to increased consumption of EVA. Apart from this, EVA finds wide applications in hot melt adhesives, packaging, and cables. The growth in end-use industries is further augmenting demand.
SWOT Analysis
Strength: Global ethylene vinyl acetate market Size is used as an effective polymer in several end use industries such as solar panels, medical devices, and footwear. EVA provides excellent flexibility, transparency, and reliability in production processes. EVA products show consistent performance even in extreme temperatures due to their durable nature.
Weakness: Fluctuating raw material prices impact the cost of EVA production. Rising crude oil prices increase the commodity prices of ethylene and vinyl acetate, making EVA slightly expensive. EVA has poor mechanical properties and low melting point in comparison to other polymers.
Opportunity: Surging demand for renewable energy sources is driving the solar PV industry. EVA encapsulants protect photovoltaic cells from moisture and UV damage, thereby enhancing module efficiency. Growing medical devices market especially for implants and prosthetics boosts EVA usage.
Threats: Strict regulations regarding toxic emissions can adversely impact manufacturing units. Intense competition from substitute polymers may reduce EVA consumption gradually.
Key Takeaways
The global ethylene vinyl acetate market is expected to witness high growth backed by increasing solar installations and growing medical device industry. The global ethylene vinyl acetate market is estimated to be valued at US$ 1710.66 million in 2024 and is expected to exhibit a CAGR of 3.4% over the forecast period 2024 to 2031.
Asia Pacific dominates the global market due to large solar PV sector and rapidly expanding construction industry in China and India. Key regional players are expanding their production capacities to meet local demand.
Key players operating in the ethylene vinyl acetate market are DuPont, ExxonMobil, FPC, Hanwha Group, LyondellBasell, Sipchem, and Formosa Plastics. They are focusing on developing novel EVA grades with enhanced properties to strengthen their market position. Technological innovation and partnerships remain crucial for gaining competitive edge. New product launches with optimized performance characteristics could boost revenues. Collaboration with end users aids in developing customized polymer solutions.
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