Mexico Solar Encapsulation Market Overview, 2030

The dynamics of Mexico’s solar encapsulation sector are distinctly influenced by its arid northern deserts, significant solar exposure, and tough climatic conditions. Regions like Chihuahua, Sonora, and Coahuila are particularly prominent due to their plentiful sunlight, making them prime locations for large-scale solar power installations. Nevertheless, these settings bring forth technical obstacles, especially regarding encapsulation substances that must endure high levels of UV rays, elevated temperatures, dust storms, and sand erosion. During the initial stages of solar energy expansion in Mexico, EVA (Ethylene Vinyl Acetate) sheets dominated the market as the go-to option for encapsulation. Although they were cost-efficient and widely accessible, early EVA versions faced issues like yellowing caused by UV exposure and possible energy loss, which affected both the efficiency and lifespan of the modules. To overcome these challenges, local manufacturers and laminators have increasingly embraced UV-stabilized EVA formulations that include additives for color retention, along with POE (Polyolefin Elastomer) composites that offer enhanced moisture protection and electrical insulation. These innovations help ensure greater durability of modules in extreme desert conditions, which is crucial for utility-scale developments where investors seek consistent performance. Mexican market has seen the adoption of reinforced edge seals. Fine dust and sand particles prevalent in dry regions can compromise encapsulant layers over time. Innovative edge sealing technologies, paired with improved encapsulant materials, now prevent delamination and enhance module efficiency. On the innovation side, Mexico's research focuses on quicker-curing chemistries that are compatible with local production processes. Domestic manufacturers are developing encapsulants that cut down lamination cycle durations, boosting output and lowering expenses. This progression aligns with Mexico’s expanding position as a manufacturing center for both local initiatives and exports to the U.S. market facilitated by trade pacts.

According to the research report, ""Mexico Solar Encapsulation Market Overview, 2030,"" published by Bonafide Research, the Mexico Solar Encapsulation market is anticipated to add to more than USD 40 Million by 2025–30. The requirement for solar encapsulation materials in Mexico is significantly influenced by the expansion of large solar energy facilities in states with high sunlight exposure such as Sonora and Coahuila, as well as the growing utilization of solar systems on industrial rooftops in major industrial centers like Monterrey and Guadalajara. These uses demand encapsulants that must function effectively under prolonged exposure to severe sunlight, elevated temperatures, and the challenges posed by dust and sand. One notable trend affecting the market is the relocation of laminate production operations to Mexico to bolster U.S. supply chains. The Inflation Reduction Act (IRA) in the U.S. is encouraging local and regional production, leading to increased integration of Mexican plants into North American solar manufacturing networks. This adjustment not only aids global module companies in decreasing transportation expenses but also enhances supply chain stability. Consequently, regional laminators have become more significant, often procuring encapsulant films from international leaders like DuPont, 3M, and Mitsui Chemicals, while also exploring local sourcing to limit reliance on imports. The potential within Mexico’s encapsulation sector goes beyond just large-scale initiatives. The maquiladora rooftop solar initiatives where manufacturers set up solar panels on their facilities are rising as a primary source of demand. These programs resonate with corporate sustainability targets, creating an effective route for integrating solar capacity into export-oriented industries. Furthermore, Mexico’s advantage in cross-border logistics establishes it as an essential link between U.S. needs and supply from Latin America, providing opportunities for encapsulant producers to grow. From a regulatory perspective, compliance is vital for securing investment. Solar modules must conform to IEC standards (IEC 61215, IEC 61730) to gain international acceptance and also fulfill NOM (Normas Oficiales Mexicanas), the national electrical standards of Mexico. These certifications guarantee product reliability, enduring durability, and eligibility for funding, thereby boosting investor trust in the fast-expanding Mexican solar sector.

Mexico Solar Encapsulation Market by materials is divided into Ethylene Vinyl Acetate (EVA), Thermoplastic Polyurethane (TPU), Polyvinyl Butyral (PVB), Polydimethylsiloxane (PDMS), Ionomer and Polyolefin is greatly determined by factors such as expenses, weather conditions, and the scale of the projects. Ethylene Vinyl Acetate (EVA) is currently the most prevalent encapsulant, especially in affordable utility-scale solar facilities located in regions like Sonora, Chihuahua, and Durango. Project developers and engineering firms frequently opt for EVA because of its widespread presence, simple lamination process, and budget-friendly nature, which suits many large project developers who are mindful of costs. Even though EVA has weaknesses when exposed to high UV light such as yellowing and possible deterioration in extremely hot desert environments its consistent performance history and reliable local production chains still make it a favored choice. In contrast, for more severe conditions, such as those found in northern deserts of Mexico, where solar panels face harsh exposure to sunlight, extreme heat, and regular dust storms, there is an observable trend toward Polyolefin Elastomers (POE). POE’s resistance to PID (Potential-Induced Degradation) renders it especially effective for N-type bifacial solar cells, which are increasingly utilized in advanced solar farms in desert areas. Its enhanced resistance to moisture and electrical leakage helps ensure that solar modules maintain their efficiency and financial viability in situations that could hasten EVA’s deterioration. Although POE is somewhat pricier, its long-lasting reliability makes it appealing to developers concentrated on performance reliability and sustained profits. On the other hand, Thermoplastic Polyurethane (TPU) has experienced limited use within the solar industry in Mexico. Its outstanding strength and mechanical durability provide benefits for specific applications, notably in unique or specialized setups like flexible solar solutions, EV rooftops, or BIPV facades.

Mexico Solar Encapsulation Market by technology is divided into Crystalline Silicon Solar and Thin-Film Solar. Crystalline silicon technology stands out as the primary option for solar energy production, leading in both large-scale utility projects and commercial rooftop installations. Crystalline modules, whether they are monocrystalline or polycrystalline, are popular choices due to their superior energy conversion rates, lower levelized cost of electricity (LCOE), and excellent adaptability to the country’s high-sunlight areas. In the northern regions, like Sonora, Coahuila, and Chihuahua, extensive solar farms primarily utilize crystalline panels as they can optimize energy output per square meter. This is vital for projects where financing and enduring performance guarantees are key factors in investment choices. Encapsulation materials such as EVA and POE are mainly tailored for crystalline modules, which strengthens their usage in Mexico’s dominant solar industry. The robustness of crystalline technology is also well-suited to Mexico’s harsh conditions, as panels are expected to resist desert dust, sand erosion, and extreme UV radiation for many years of service. On the other hand, thin-film technology has found limited but specific uses, especially where lightweight rooftop setups are necessary. Structures with weight restrictions like warehouses, maquiladoras, and older commercial buildings often struggle to support the termsal mass of crystalline modules. In these situations, thin-film solar, especially cadmium telluride (CdTe) and amorphous silicon (a-Si), emerges as a viable alternative due to its lighter weight, flexibility, and enhanced performance in diffuse light scenarios. Thin-film panels also experience less efficiency drop in hotter climates, making them suitable for select areas in Mexico. Nevertheless, their lower efficiency relative to crystalline and constrained local supply chains have limited their wider use. Looking ahead, crystalline is projected to stay the leading technology because of its scalability, cost-effectiveness, and compatibility with Mexico’s utility-focused solar market.

Mexico Solar Encapsulation Market by application is divided into Ground-mounted, Building-integrated photovoltaic, Floating photovoltaic and Others (Automotive, Construction, and Electronics). Ground-mounted solar systems serve as the foundation for the nation’s photovoltaic growth, particularly in regions with high solar irradiance like Sonora, Coahuila, and Chihuahua. These areas offer extensive land suitable for large solar installations that feed power into the national grid and export electricity through agreements with the U.S. Ground-mounted setups take advantage of economies of scale, long-term power purchase contracts (PPAs), and funding arrangements that support utility-scale projects. In this area, encapsulation materials prioritize durability, UV protection, and resistance to sand abrasion, ensuring the longevity of modules in desert climates. Building-integrated photovoltaics (BIPV) form a smaller yet expanding segment, especially in Mexico’s resort areas and urban smart-building projects. Resorts along the Riviera Maya and in Baja California are increasingly integrating solar façades, skylights, and rooftop systems as part of their sustainability efforts and strategies to lower energy costs. BIPV solutions require high-performance encapsulants that provide weather resistance, optical clarity, and design adaptability to fulfill architectural needs. Floating PV is attracting interest in Mexico’s farming and water-deficient regions. Pilot initiatives in irrigation ponds and reservoirs are being implemented, producing electricity while also minimizing evaporation, thus addressing two issues at once. The encapsulation in floating PV systems must endure high moisture levels, hydrostatic pressure, and biofouling, which encourages suppliers to explore advanced POE mixes with enhanced edge seals for reliability in water settings. Lastly, EV solar integration is in its early phase, with experimental solar buses being tested in urban mobility efforts. These budding initiatives aim to incorporate lightweight solar panels into vehicle roofs to enhance range and lessen dependence on grid charging.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Solar Encapsulation Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Materials
• 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
• Others (Automotive, Construction, and Electronics) Show more