Solar Encapsulation Market Share

APAC Market Statistics

Asia Pacific solar encapsulation market is projected to hold the largest revenue share of 68.5% by 2036. Rising urbanization in the region drives the market by increasing the demand for solar panels in urban infrastructure and residential areas.  According to the World Economic Forum, the share of the world’s population living in cities is expected to rise from 55% in 2022 to 80% by 2050. Urbanization fosters technological advancements and innovation. As cities evolve, there is need for better, more efficient solar technologies, including improved encapsulation materials that can withstand urban environmental conditions.

China is at the forefront of advancements in solar technology. Innovations in encapsulation materials such as improved EVA formulations and alternative materials are driven by the need for higher efficiency and durability in solar panels.

India is one of the fastest-growing countries adopting solar panels. The government provides various incentives, including subsidies, tax benefits, and favorable policies to promote solar energy. These incentives boost the installation of solar panels and increase the need for high-quality encapsulation materials.

North America Market Analysis

North America solar encapsulation market will register significant revenue by 2036, propelled by the increasing number of solar farms, which are massive solar PV panel systems that feed the grid with electricity. This may significantly augment the market demand for solar encapsulation, as it is essential to provide structural support to the solar cell in the solar panels.

In the U.S., the solar encapsulation market is driven by the expansion of solar parks and large-scale solar farms, particularly in sunny states like California, Texas, and Arizona. To withstand the harsh environmental conditions, there is an increase in the demand for effective encapsulation solutions. In 2023, the U.S. Energy Information Administration stated that there are more than 5,000 solar farms in the nation. In 2022, they produced 3.4% of the nation's electricity.

Additionally, Government of Canada has introduced new regulations aimed at growing the renewable energy sector, whereby all electricity used in government buildings and operations by 2025 will come from renewable sources. Also, investments by major firms contribute significantly to the solar encapsulation market expansion.