US Solar Encapsulation Market 2025 – 2034

Reports Description

As per the US Solar Encapsulation Market analysis conducted by the CMI team, the US solar encapsulation market is expected to record a CAGR of 8.34% from 2025 to 2034. In 2025, the market size was USD 1.91 Billion. By 2034, the valuation is anticipated to reach USD 3.91 Billion.

Overview

Concerns regarding the adverse effects of fossil fuels are compelling the government of the US to focus on the development of renewable energy sources for reducing their carbon footprint. The IPCC and UN Environment Programme have already warned regarding climate change’s catastrophic consequences.

Solar energy, which is abundant and carbon-free, is looked upon as one of the torchbearers regarding the replacement of fossil fuels. Also, the provision of low interest loans, feed-in-tariffs, and tax credits for making solar projects monetarily viable for consumers and developers is boosting the US solar encapsulation market.

Key Trends & Drivers

• Advancements in Solar Technology

Noteworthy advancements imply improvement in efficiency and bringing down the costs of photovoltaic modules and components such as solar encapsulants. Polysilicon solar cells have raised their efficiency for the last few years through R&D activities. The first generation cells were known to hold efficiencies under 10%, the existing commercial monocrystalline cells are reported to achieve efficiencies crossing 22%. Solar energy is also finding acceptance in the form of distributed rooftop installations in place of large-scale parks.

Lightweight and flexible building integrated photovoltaics are making a beeline to the expansion of the US solar encapsulation market. On the whole, continuous breakthroughs regarding reduction in production costs and conversion efficiency are extendingphotovoltaics as one of the most versatile renewable resources with huge untapped opportunities.

What’s trending in the US Solar Encapsulation Market?

The demand for environmentally sustainable solutions for reducing carbon emissions is increasing on a significant note. This has, in turn, resulted in switching over to renewable energy sources owing to the rise in environmental concerns and depletion of traditional energy sources. As such, the key players are banking on long-term benefits offered by solar encapsulation such as mechanical durability, unparalleled insulation, and superior transmission of light all through the forecast period.

Key Threats

• Complexity of Recycling

Solar photovoltaic recycling is complex as far as the technical standpoint is concerned. For instance, the EoL PV module flow is heterogeneous in size, composition/condition, or technology. Also, the solar PV panels that are in existence are not designed such that they could be recycled. In other words, performance requirements and durability requirements have resulted in the formation of sealed, sandwich-like, and encapsulated structures, thereby making separation of constituent materials tough.

Solar encapsulation materials like Polyvinyl Butyral (PVB) and Ethylene-vinyl acetate (EVA) are generally tough to segregate in a solar panel at the time of recycling. Such materials have been designed to be resistant to environmental factors and durable, thereby making their recovery and separation challenging. Furthermore, encapsulation materials, over the period of time, could degrade owing to long-term exposure to environmental factors and sunlight. This degradation could render separation more challenging, as contaminated materials may not adhere to the prescribed quality standards for reuse.

Opportunities

With prices of solar modules falling, it is turning out to be significant to incorporate less expensive encapsulation technologies. This cost pressure in industry is likely to extend support to panel manufacturers to switch toward economical encapsulation strategies. The photovoltaic industry is on the lookout for acquiring certain new encapsulation technologies that do help in cost saving as well as have a performance edge. This translates into a long-term opportunity for encapsulant manufacturers and suppliers to derive certain improved encapsulants serving the above-mentioned requirements. Also, replacement of a cost-effective material such as PET or fluoropolymer along with maintaining EVA for structural stability.

Category Wise Insights

By Material

• Ethylene Vinyl Acetate (EVA)

EVA is known for higher optical clarity, which allows for maximum light to get transmitted to the solar cells, thereby maximizing energy output. Moreover, its robust adhesion to solar cells and glass ascertains the integrity of the module and averts delamination. Plus, the elasticity and cushioning render protection to sensitive solar cells from thermal contraction and expansion and mechanical stress. Rise in adoption of solar energy at the global level, especially in the US, is expediting demand for EVA. Falling prices of solar panels and government incentives are driving expansion of the solar power infrastructure, which, in turn, is increasing demand for EVA as one of the encapsulants.

• Thermoplastic Polyurethane (TPU)

TPU is visibly being used in solar PV modules’ backsheets owing to its higher abrasion resistance, resistance to oil and chemicals, and outstanding elasticity. TPU, unlike EVA, does exhibit less yellowing under exposure to ultraviolet rays, which is capable of increasing the lifespan of the solar panels. Also, TPU’s properties make it suitable for bifacial solar modules. Furthermore, TPU is lightweight.

• Polyvinyl Butyral (PVB)

PVB encapsulants do shield photovoltaic cells from dust, moisture, and the other environmental elements, thereby averting degradation and maintaining the optimum performance. Plus, the rise in the number of building-integrated photovoltaics (BIPV), wherein solar panels are integrated into windows and building facades, is creating novel opportunities for PVB, as it does offer solar energy efficiency and structural strength. Also, extensive research is being conducted regarding enhancement of PVB’s properties, such as adhesion, optical clarity, and resistance to environmental vagaries.

• Polydimethylsiloxane (PDMS)

PDMS does offer superlative protection against UV radiation, moisture, and the other environmental factors that could otherwise degrade solar panels’ performance over the period of time. Its optical properties, coupled with its ability to be textured for radiative cooling, are likely to result in more efficient conversion of solar energy. PDMS is also getting explored for its potential with respect to sustainable energy solutions inclusive of thermal management in the energy storage systems.

• Ionomer

Ionomers are known for low moisture vapor transmission rate (WVTR) with high light transmittance, thereby rendering them attractive for improving solar panels’ performance and longevity. They are also known for exhibiting a notable resistance to high temperature and UV radiation, which is one of the crucial factors regarding solar panels’ long-term performance. Their high light transmittance ascertains that the maximum quantity of sunlight reaches solar cells for the generation of electricity.

• Polyolefin

Polyolefins are conducive to bifacial modules, which do generate power from two sides, which need specialized encapsulation with good adhesion and light transmission. Increasing adoption of solar farms at a large scale calls for polyolefins as long-lasting encapsulation materials. They are also gaining traction in commercial and residential solar installations owing to their improved performance as well as the potential for longer warranties.

By Technology

• Crystalline Silicon Solar

Crystalline silicon (both – multicrystalline and monocrystalline) solar modules are recommended for their ability to perform well in different weather and high conversion efficiency, thereby rendering them one of the reliable choices for solar projects at a large scale. Research states that this segment holds more than 85% of the market share. Federal policies such as the Investment Tax Credit (ITC) and state-level mandates regarding clean energy are further encouraging adoption of crystalline silicon solar technology.

• Thin-film Solar

Thin-film cells are more lightweight and flexible as compared to conventional crystalline silicon panels, thereby allowing for integration into various curved surfaces, thereby building the materials for portable devices and windows. Thin-film solar is best suited for building-integrated photovoltaics (BIPV), where it is integrated into roofing materials, facades, and windows. Moreover, transparent versions are able to provide power without blockage of natural light. The other application areas include floating solar farms, thereby reducing reliance on fossil fuels.

By Application

• Ground-mounted

Ground-mounted solar installations are recommended due to their ability to provide a consistent and reliable energy supply, thereby making them one of the cornerstones of the US solar encapsulation market. They are usually cost-effective as compared to the other solar applications, such as BIPV, particularly for various large-scale projects. They also have the capacity of getting easily integrated into grid infrastructure, thereby making them conducive to utility companies. Ground-mounted solar systems play a vital role in cutting down on carbon emissions.

• Building-integrated Photovoltaic (BIPV)

BIPV systems imply integration of solar technology into the construction’s design, thereby making it a part of windows, facades, or roofing. Specialized encapsulation materials are important in order to protect solar cells within BIPV modules from temperature fluctuations, moisture, and UV radiation. The US solar encapsulation market is witnessing advancements in materials such as polyolefin elastomer (POE), ethylene vinyl acetate (EVA), and thermoplastic polyurethane (TPU), which are used for enhancing the lifespan and performance of BIPV modules.

• Floating Photovoltaic

Floating photovoltaics (FPVs) are generally installed on various water bodies such as lakes, reservoirs, and water treatments, thereby doing away with the need for land that would otherwise be used for development or agriculture. The water under floating panels does provide a natural cooling effect, which helps in lowering the solar modules’ operating temperature. The cooling effect does lead to increased efficiency and energy yield. FPV installations also aid in reducing evaporation of water from reservoirs, thereby driving conservation of water resources, especially in the arid regions.

How are Automotive Applications transforming the US Solar Encapsulation Market?

Solar panels are increasingly being used in various vehicle integrated photovoltaics with the objective of supplementing conventional charges/power ancillary features. With automakers racing to electrify their fleets, the potential for deployed panel area is huge. Features such as rear spoilers and sunroofs are getting re-engineered for harvesting photons. With these trends, the automotive market is likely to overtake the construction vertical during the forecast period as a leader of the US solar encapsulation market.

Report Scope

Key Developments

The US solar encapsulation market is witnessing a significant organic and inorganic expansion. Some of the key developments include –

• In February 2025, Advanced Polymer Technology Corp. announced that it was expanding its solar encapsulation production operations in Houston, Texas. The basic objective is that of improving production of high-performance, advanced encapsulant materials designed for the next-generation photovoltaic modules inclusive of high-efficiency and bifacial solar cells.

The strategic move mentioned above dos extend support to the growing demand for UV-resistant, durable, and thermally stable encapsulations as various utility-scale solar projects are gaining momentum all across the US

Leading Players

The US solar encapsulation market is highly competitive, with a large number of service providers globally. Some of the key players in the market include:

• First Solar
• DuPont
• 3M
• SKC Co. Ltd.
• Mitsui Chemicals Inc.
• Hangzhou First Applied Material Co. Ltd.
• STR Holdings Inc.
• Solutia Inc.
• Advanced Polymer Technology Corp.
• TPI Polene Power Public Co. Ltd.
• Others

These firms apply a plethora of strategies to enter the market, including innovations, mergers and acquisitions, and collaboration. The US solar encapsulation market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

The US Solar Encapsulation Market is segmented as follows:

By Material

• Ethylene Vinyl Acetate (EVA)
• Thermoplastic Polyurethane (TPU)
• Polyvinyl Butyral (PVB)
• Polydimethylsiloxane (PDMS)
• Ionomer
• Polyolefin

By Technology

• Crystalline Silicon Solar
• Thin-film Solar

By Application

• Ground-mounted
• Building-integrated Photovoltaic
• Floating Photovoltaic