United States Solar Encapsulation Market Overview, 2030

The solar encapsulation market in the U.S. is experiencing significant changes as the Inflation Reduction Act (IRA) propels large-scale utility projects while increasing the usage of rooftop solar in both residential and commercial spaces. Traditionally, American solar panels used ethylene vinyl acetate (EVA) sheets extensively due to their affordability, ease of application, and clarity. Nonetheless, practical issues like yellowing, potential induced degradation (PID), and sensitivity to moisture have prompted manufacturers to explore alternatives such as polyolefin elastomers (POE), ionomer films, and innovative formulations featuring anti-PID technologies. These newer options have greatly enhanced durability, especially for bifacial modules and extensive solar farms that face varying weather conditions, from intense heat in the Southwest to moisture-rich coastal areas. From a technical perspective, the encapsulation functions as an optically clear, adhesive, and protective layer that connects the solar cells to glass while safeguarding against moisture intrusion, UV damage, and mechanical pressure. Its efficiency has a direct effect on warranty durations, stability of energy output, and the financial credibility of solar projects making it a vital component for funding in the U.S. renewable energy landscape. The capacity of encapsulants to alleviate stress fractures, preserve adhesion, and accommodate high-efficiency technologies such as heterojunction and TOPCon cells is essential for continued growth. Research and innovation within the U.S. are now leaning toward bio-based and recyclable encapsulation materials, UV-blocking additives to extend durability, and optimized encapsulant stacks for bifacial and tandem cell designs. Prominent firms are investigating thermoplastic polyurethanes (TPU) and polyolefins without crosslinking to enhance production efficiency in module manufacturing. With gigafactories ramping up production under IRA support, local supply chains are beginning to take shape to lessen dependency on overseas sources. The combination of favorable policies, advanced materials, and demand generated from various rooftop and large-scale utility projects sets the U.S. encapsulation market up for substantial long-term growth.

According to the research report ""US Solar Encapsulation Market Overview, 2030,"" published by Bonafide Research, the US Solar Encapsulation market is anticipated to grow at more than 7.53% CAGR from 2025 to 2030. The solar encapsulation sector in the United States is substantial and growing rapidly, driven by both local manufacturing incentives and robust demand downstream. The Inflation Reduction Act (IRA) has hastened investments in module assembly facilities, establishing encapsulants as a vital component within the local supply chain framework. Historically, the market has been dominated by ethylene vinyl acetate (EVA), but there is now a notable shift towards polyolefin elastomers (POE), particularly for N-type high-efficiency cells such as TOPCon and heterojunction. These sophisticated cells are particularly vulnerable to potential-induced degradation (PID), thus anti-PID POE encapsulants have become the go-to option for maintaining long-term reliability and energy output. In terms to POE, materials such as ionomers and thermoplastic polyurethane (TPU) are emerging in specialized uses for Building-Integrated Photovoltaics (BIPV), glass-glass modules, and solar technology in vehicles. Key players in the U.S. encapsulation industry include DuPont, 3M, and various regional OEM-supported supply chains, all of which are increasing production capacity to meet the domestic content stipulations for tax credits related to the IRA. Their product lines focus on improvements in durability, including UV-stabilized films, encapsulants free from crosslinking for quicker lamination processes, and those tailored for bifacial performance. The landscape of opportunity is broad bringing encapsulant production back to the U.S. decreases reliance on imports and aligns with national energy goals; BIPV is increasingly popular in cities, where encapsulants must comply with both electrical and architectural criteria; and utility-scale upgrades necessitate encapsulant replacements in aging solar module collections. Adherence to regulations is essential, as certifications like UL 61730 and IEC 61215 are critical for obtaining project financing and insurance. These standards ensure the safety, reliability, and longevity of modules across varying climates, directly affecting the financial viability of solar assets. With evolving materials, regulatory backing, and a focus on domestic manufacturing, the U.S. encapsulation industry is set for prolonged progress, harmonizing innovation with compliance to uncover lasting prospects across residential, commercial, and utility-scale solar sectors.

In the solar encapsulation sector, by materials is divided into Ethylene Vinyl Acetate (EVA), Thermoplastic Polyurethane (TPU), Polyvinyl Butyral (PVB), Polydimethylsiloxane (PDMS), Ionomer and Polyolefin. The choice of materials significantly influences the performance, durability, and versatility of solar panels. Ethylene Vinyl Acetate (EVA) remains the leading choice for extensive solar installations due to its established ease of processing, strong bonding properties, and affordability. EVA provides excellent transparency for optimal light passage, and its compatibility with large lamination production lines establishes it as the preferred option for utility-scale projects. Nonetheless, EVA has certain drawbacks concerns such as potential-induced degradation (PID) and discoloration from extended UV exposure have prompted manufacturers to seek alternative solutions. This has opened the door for Polyolefin Elastomers (POE), which are gaining traction, particularly in bifacial solar panels. POE presents outstanding moisture resistance and enhanced electrical insulation, making it ideal for newer cell technologies like N-type and heterojunction (HJT) modules that are more susceptible to PID. Its capacity to endure varying environmental conditions positions POE as the most rapidly growing material in the encapsulation field. On another front, Thermoplastic Polyurethane (TPU) is being explored in new areas such as electric vehicle (EV) rooftops and portable solar systems. TPU offers distinct benefits, including high flexibility, resistance to impacts, and recyclability, making it suitable for automotive and consumer electronics where solar integration requires lightweight and robust materials. Although not yet common in large solar farms, TPU’s significance is likely to increase with the rise of mobile solar technologies. Polyvinyl Butyral (PVB) is finding more frequent use in building-integrated photovoltaics (BIPV) and solar façades. Renowned for its strong adhesion to glass and outstanding safety features, PVB facilitates the seamless integration of solar panels into architectural structures.

The solar encapsulation industry, by technology is divided into Crystalline Silicon Solar and Thin-Film Solar, each offering unique performance traits and usage areas. Crystalline silicon (c-Si) technology remains the top player in the global market, particularly in large-scale solar projects, attributed to its high efficiency, established dependability, and cost-effectiveness. Crystalline panels, whether monocrystalline or multicrystalline, are prevalent in extensive solar installations where land and financial input require the utmost energy output per square meter. The encapsulation substances in crystalline panels, such as EVA and POE, are designed for strong bonding, excellent light transmission, and long-lasting durability against moisture and UV damage, influencing the warranty period of installations. In countries like the U.S., India, and China, crystalline technology underpins national renewable energy frameworks due to its affordability and scalability. Thin-film solar technologies, such as cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and amorphous silicon (a-Si), cater to more specific markets. Thin-film panels are appreciated for their lightweight, flexible, and adaptable designs, making them ideal for situations where crystalline panels are not suitable. They are commonly found in aerospace and defense industries, where minimizing weight and adaptability are essential, as well as in flexible rooftops, portable gadgets, and off-grid applications where easy installation and versatility take precedence over peak efficiency. Thin-film encapsulants need to endure significant temperature variations and retain optical clarity without increasing weight, driving advancements in transparent barrier films and UV-resistant coatings. While crystalline silicon remains the preferred choice for large installations, thin-film technology continues to find specialized opportunities in aerospace, building-integrated photovoltaics, and flexible solar solutions. These segments contribute to a diverse range of encapsulation solutions, meeting mainstream energy demands while also addressing unique, high-value applications.

solar encapsulation industry by application is divided into Ground-mounted, Building-integrated photovoltaic, Floating photovoltaic and Others (Automotive, Construction, and Electronics), each fostering distinct material and technological requirements. Ground-mounted installations are the leading application, particularly in extensive utility farms located in regions like Texas and California, where ample land and regulatory incentives facilitate large-scale projects. These installations depend on robust encapsulation materials such as EVA and POE to ensure that panels endure decades of harsh exposure to severe UV radiation, humidity, and physical pressures. The aim here is to enhance performance per acre, placing reliability and sustained energy output as the foremost concerns. Building-Integrated Photovoltaics (BIPV) are on the rise as metropolitan areas adopt smart architecture and eco-friendly design. BIPV solutions substitute conventional construction elements with energy-producing façades, windows, and roofs. In these scenarios, encapsulation is critical, delivering optical transparency, fire resistance, and visual integration, which allows modules to blend effortlessly into architectural styles. Europe, with its strict sustainability guidelines, is spearheading the adoption of BIPV technologies, where materials like PVB and ionomers are ideal for glass-glass configurations. Another developing area is Floating Photovoltaics (FPV), where experimental projects are proliferating in water bodies like reservoirs, lakes, and hydroelectric dams. FPV systems are especially compelling in territories with scarce land resources, including some regions of Asia and the Middle East. The encapsulation in this context must resist high humidity, water vapor ingress, and temperature variations while ensuring electrical insulation. This segment may be modest but presents considerable growth opportunities as nations consider hybrid hydro-solar initiatives. The others segment comprises novel applications such as solar roofs for electric vehicles (EVs), portable gadgets, and construction-adapted solutions. Encapsulation for these sectors requires lightweight, flexible, and impact-resistant films such as TPU, which can handle mobility and frequent mechanical impacts.

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