Denmark Solar Encapsulation Market Overview, 2030

The solar encapsulation sector is experiencing a significant transition from EVA as the primary material to a wider array of options such as POE, ionomer, and EPE. This shift is motivated by the necessity to tackle persistent performance challenges like yellowing, potential-induced degradation (PID), and cracking in cells or interconnections. This change indicates a more widespread reevaluation of needs encapsulants are seen not just as protective barriers but also as critical components for yield improvement throughout the entire lifespan of the module. The unique non-polar properties of POE provide excellent resistance to moisture and PID, making it particularly suitable for glass–glass and bifacial modules in environments characterized by high humidity or elevated voltage. Ionomers offer remarkable mechanical strength, resistance to impacts, and clarity of optics, making them ideal for high-end modules that come with longer warranties or those deployed in areas more prone to hail. EPE, a hybrid of co-extruded EVA/POE, strikes a balance between cost, ease of processing, and barrier effectiveness, allowing manufacturers to tailor characteristics to meet the demands of different climates and uses. In terms to diversifying materials, there is a surge in innovation for recyclable encapsulation films aimed at supporting goals of a circular economy and adhering to new regulations regarding end-of-life. Lamination methods suitable for tandem modules are being created to facilitate the use of perovskite–silicon and other multi-junction designs, which necessitate low-temperature curing to safeguard delicate top cells while ensuring adhesion and optical performance are maintained. For mass production, expedited curing POE formulas are enabling shorter lamination periods on large-scale manufacturing lines while boosting output without sacrificing gel content or durability in the long run.

The solar encapsulation industry growth is driven by the swift expansion of high-efficiency module manufacturing and the transition towards more advanced encapsulant materials. The uptake of POE is increasing, especially for N-type and bifacial modules, where its excellent moisture barrier features, resistance to PID, and UV stability aid in maintaining performance in high-humidity, high-voltage, and high-irradiance conditions. Simultaneously, glass-glass module structures are becoming more common, propelled by their improved strength, longer lifespan, and suitability for bifacial designs thereby boosting the demand for encapsulants with low water vapor transmission rates and sustained optical clarity. Sustainability is also influencing purchasing decisions, as manufacturers are looking into circularity efforts like recyclable encapsulation films, formulations with reduced VOCs, and materials made for easier separation at the end of their useful life to comply with new regulatory and ESG standards. The competitive environment includes a combination of Chinese film manufacturers, utilizing their scale and cost advantages, alongside European and US material leaders, who contribute advanced polymer technologies, specialized formulations, and robust partnerships with premium module OEMs. Many suppliers are focusing on investments in co-extrusion, quick-curing chemistries, and lamination processes compatible with tandem cells to cater to the next generation of gigawatt-scale module production. Throughout every region and market segment, adherence to IEC 61215 (design qualification and type approval) and IEC 61730 (safety qualification) continues to be a key factor for bankability, ensuring modules fulfill global standards for durability, safety, and performance. These certifications are essential for obtaining project financing, minimizing warranty liabilities, and meeting insurer demands. As module designs diversify and performance expectations grow, encapsulation is transforming from a mere protective layer into a vital component that enables long-term energy production, lifecycle dependability, and sustainability within the competitive solar manufacturing landscape.

The solar encapsulation market by materials is divided into Ethylene Vinyl Acetate (EVA), Thermoplastic Polyurethane (TPU), Polyvinyl Butyral (PVB), Polydimethylsiloxane (PDMS), Ionomer and Polyolefin Ethylene?vinyl acetate (EVA) retains about 70% of the market share for encapsulation, continuing to be the go-to material for standard PV modules due to its affordability, high light transmittance, and compatibility with traditional lamination methods. It leads in production for residential, commercial, and utility-scale applications where environmental pressure is moderate and cost per watt is a major factor. Nonetheless, its tendency to yellow, produce acetic acid, and allow moisture under prolonged exposure to UV light and humidity has created opportunities for alternatives in more challenging applications. Polyolefin elastomer (POE) is the fastest-growing segment, propelled by the quick adoption of N-type and bifacial modules, along with glass-glass designs. The non-polar chemistry of POE offers better moisture resistance, high resistance to potential-induced degradation (PID), and improved UV stability, making it suited for environments with high humidity, high voltage, and high sunlight exposure. Polyvinyl butyral (PVB), traditionally used in safety glass for cars, is becoming a niche yet expanding option for PV, appreciated for its strong adhesion, optical clarity, and resistance to impacts qualities that are beneficial for building-integrated photovoltaics (BIPV) and applications that need significant mechanical strength, like areas at risk of hurricanes or hail. Ionomer encapsulants fill another specialized niche, providing excellent mechanical properties, clarity, and thermal resistance, making them appropriate for premium projects that require long warranties, hail resistance, or concentrated PV systems. Despite their higher costs limiting widespread usage, both PVB and ionomer are increasingly being adopted in specialized areas where longevity and performance during their lifecycle are more important than initial costs.

The solar encapsulation market by technology is divided into Crystalline Silicon Solar and Thin-Film Solar. Crystalline silicon modules represent approximately 85% of the photovoltaic market, prevailing as the leading technology for large-scale, commercial, and residential applications due to their superior efficiency, established longevity, and reliable financial backing. Various designs such as monocrystalline PERC, TOPCon, and heterojunction (HJT) are commonly used, providing excellent energy output and consistent reliability in a variety of environments. With their well-established manufacturing processes, compatibility with large wafers, and reliable supply networks, they stand out as a cost-effective option for mass production. Ongoing improvements in cell and module technologies are helping to enhance their performance toward theoretical limits. Concurrently, thin-film technologies which encompass cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and particularly perovskite-based structures are increasingly popular for next-generation solutions, notably in tandem modules. Tandems utilizing perovskite and silicon take advantage of the different absorption properties of these materials to exceed the efficiency limits of single-junction cells, with laboratory tests showing over 29% efficiency and commercial models moving towards larger production. The natural benefits of thin films including lightweight design, flexibility, adjustable transparency, and reduced temperature coefficients make them ideal for building-integrated photovoltaics (BIPV), portable energy solutions, and specialized applications where appearance and form are important. In tandem systems, thin-film perovskites serve as the upper layer, absorbing high-energy light while the crystalline silicon layer captures the rest of the light spectrum, enhancing total energy production without significantly enlarging the module size. Research and development efforts are concentrated on enhancing the stability of perovskites against moisture, heat, and ultraviolet light, as well as on creating protective encapsulation and lamination techniques that safeguard fragile surfaces while maintaining efficiency in gigawatt-scale production lines.

Solar Encapsulation market by application is divided into Ground-mounted, Building-integrated photovoltaic, Floating photovoltaic and Others (Automotive, Construction, and Electronics). Ground-mounted PV systems make up about 75% of global installed capacity, leading in utility-scale adoption because of their cost-effectiveness, ability to scale, and fit for high-sunlight areas. These setups often come with single or dual-axis trackers, providing substantial power through long-term Power Purchase Agreements and taking advantage of reduced costs in buying and building. On the other hand, building-integrated photovoltaics (BIPV) is the fastest-growing category, fueled by the push for sustainability in cities, green building certifications, and improvements in the appearance of modules. BIPV incorporates solar panels into building façades, roofing materials, and skylights, allowing generation on-site without needing extra land while complying with design and energy-positive building regulations. Floating PV is growing quickly in Asia, where limited land availability and ample water surfaces like lakes, dams, and irrigation channels make it a viable option. The cooling effect provided by water enhances the efficiency of the panels, and pairing it with hydropower systems cuts down on the costs of grid connections. Engineering adjustments, including corrosion-resistant frames and UV-stable floats, are essential for lasting performance in wet and saline conditions. Meanwhile, automotive and IoT-integrated solar is a developing market, utilizing lightweight, flexible, and highly efficient solar panels to energize electric vehicle roofs, auxiliary systems, and small electronic devices. In cars, embedded solar can boost driving range or assist with climate systems, whereas in IoT gadgets like sensors, trackers, and wearables it allows for self-sustaining, maintenance-free use by collecting ambient light. Although it currently represents a small portion of total capacity, these uses are becoming more popular as new material developments enhance energy density, flexibility, and durability.



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)?