Solar Encapsulation Market Trends

Growth Drivers

• Increased spending in the construction industry - Many new construction projects adhere to green building standards and sustainability certifications, which often include solar energy systems. Building Research Establishment Environmental Assessment Methodology (BREEAM) is an internationally recognized measure of a building’s sustainability. Approximately 1.5 million buildings have been BREEAM certified, with a further 2.9 million registered for certification across 103 countries.
  
  Moreover, government policies promoting energy efficiency and renewable energy in construction projects further drive the demand for solar panels and their encapsulation. Overall, the growing investments in construction and infrastructure development are creating a favorable environment for the expansion of the solar encapsulation market.
• Surging production of automobiles - The automotive industry is exploring the integration of solar panels into vehicles, such as solar roofs or auxiliary power systems. These applications require advanced encapsulation materials to ensure durability and performance. Moreover, rising investments in solar technology along with collaborative efforts between automotive and solar industries can lead to the development of new encapsulation technologies.  For instance, leading national renewable energy provider Pivot Energy proudly announced with American EV maker Rivian on a total of 60 Megawatts (MWdc) of solar energy.

Challenges

• Market saturation - In regions where solar energy adoption is already high, there may be fewer new installations, reducing the demand for additional encapsulation materials. High market saturation can lead to increased competition among manufacturers, driving down prices for encapsulation materials and affect profit margins.
• Supply chain disruption - Encapsulation materials such as ethylene-vinyl acetate (EVA) or specialized resins rely on specific raw materials. Disruptions in the supply of these materials can lead to shortages, affecting production schedules and increasing costs. Moreover, in efforts to address supply chain disruptions, manufacturers might turn to alternative suppliers or materials that could affect the quality and performance of encapsulation products.