Published: May 2017
Report Code: PE10950
Category : Unconventional & Renewable Energy
Solar encapsulations are materials deployed in solar photovoltaic (PV) modules to extend the useful life of PV installations. Ethylene vinyl acetate (EVA), polyvinyl butyral (PVB), polydimethylsiloxane (PDMS) and ionomer are the most commonly-used materials in solar PV modules. These materials possess unique characteristics such as corrosion resistant, flame retardant or hard wearing.
With no substitutes available in the global solar encapsulation market, the growing demand for solar PV modules is expected to witness increase in the implementation of solar encapsulation technology during the forecast period (2017-2023).
Solar encapsulation ensures better durability, protection against corrosion and degradation, and enhances the overall efficiency of solar panels. Additionally, encapsulation of solar cells ensures the safe working of PV modules, which helps in reducing the maintenance costs.
Solar encapsulation finds application in diverse end-use industries such as construction, automotive and electronics. Construction industry is one of the major consumers in the global solar encapsulation market. Additionally, the increasing production of low cost EVA films, growing demand in PV solar modules and rising renewable energy targets set by the governments in China and India are expected to drive the market for solar encapsulation in Asia-Pacific during the forecast period.
SOLAR ENCAPSULATION MARKET, BY APPLICATION, USD MILLION (2013-2023)
The global market for solar encapsulation is expected to witness a CAGR of 24.3% during the forecast period due to the increasing electricity demand, rising demand for solar PV modules and the growing awareness towards renewable energy resources. Based on materials, Ethylene Vinyl Acetate (EVA) is expected to be the largest segment in the global solar encapsulation market during the forecast period. Based on technology, single crystal/polycrystalline silicon technology dominated the global market for solar encapsulation. The segment is expected to continue its trend during the forecast period. Construction industry emanated the largest demand in the global solar encapsulation market, which is expected to remain the largest application area during the forecast period.
Growing focus of the key players in the Asia-Pacific region is expected to support the overall growth of the global solar encapsulation market. Companies such as Bridgestone Corporation, First Solar, Inc. and 3M Company are increasingly investing in R&D activities and focusing on strategic partnerships and other expansion plans to strengthen their market presence in the Asia-Pacific region.
The factors driving the growth of global solar encapsulation market are increasing government initiatives and rising demand for solar rooftop PV installations across the globe. Government initiatives such as increase in government tariffs and market assessment programs have led to the worldwide adoption of solar energy as an efficient and alternative solution to reduce carbon emission levels. This is expected to drive the global market for solar encapsulation during the forecast period.
The rising demand for electricity, technological advancements, growing adoption of renewable energy sources and growing R&D investments is projected to bolster the market growth during the forecast period. Increasing construction activities and emergence of innovative organic solar technology is likely to attract huge investments in the global market for solar encapsulation during the forecast period.
The negligible product substitutes and increasing R&D initiatives by major players such as Bridgestone Corporation, STR Holdings, Inc. and E. I. du Pont de Nemours and Company is expected to drive down the encapsulation prices in the near future. Such trend is expected to further propel the demand for solar encapsulation during the forecast period.
The increasing demand for electricity due to the rapidly growing population is expected to further spur the global market for solar encapsulation during the forecast period. Countries such as China and India are expected to grow at a significant level during the forecast period, owing to the increasing government focus on encouraging the renewable energy sources and increasing the installations of PV modules. Additionally, tax benefits and various targets for renewable energy set by the government to maximize the solar potential in North America and Europe is expected to increase the demand for solar encapsulations in these regions during the forecast period. Moreover, the increasing applications of solar energy for power generation, agriculture and architecture in Middle East and Africa is estimated to further boost the demand for solar encapsulations during the forecast period.
Some of the major factors hindering the growth of the global market for solar encapsulation include yellow browning of EVA encapsulants and the gradual degradation of EVA films due to weathering exposure. These have resulted in significant power losses and decline in the UV absorption which is expected to hamper the potential growth opportunities of global solar encapsulation market during the forecast period.
Moreover, the high equipment cost would further pose as a major challenge for the growth of solar encapsulation market during the forecast period.
Some of the key players in the global market for solar encapsulation include Bridgestone Corporation, STR Holdings, Inc., E. I. du Pont de Nemours and Company, First Solar, Inc., 3M Company, Solutia Inc., The Dow Chemical Company, Mitsui Chemicals Tohcello.Inc., Lucent CleanEnergy and Wacker Chemie AG.
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