EVA and POE are the dominant encapsulation polymers with EPE – essentially a blend of EVA and POE – gaining traction
China’s EVA resin supply reached 70% in 2023 and is expected to exceed 85% by 2030 due to rising PV demand
Transparent EVA led with a 42% share in 2023 while EPE grew to 27%–38% with steady growth expected through 2025
LG and Dow dominate POE supply as China’s attempts at local production have struggled, keeping POE’s share at 11%–14%
The TaiyangNews Backsheets and Encapsulation 2024-25 market survey examines the material trends in solar modules. Our previous technology articles highlight the rising demand for encapsulation materials and the market shifting from EVA to EPE (See Transition Of Encapsulation Materials & Structures From EVA To Alternative Technologies). At the component level, encapsulation materials consist of only 2 mainstream polymer chemistries – EVA and POE – given that the trending EPE is only a blend of EVA and POE. Thus, the market shares of these 2 different polymers are hard to estimate. While alternate polymer chemistries such as silicones and thermoplastic polyolefins are available commercially, they are rather a niche. At the component level, i.e. the resin supplier level, several companies in China achieved mass production of EVA resin starting in 2023, bringing the local supply rate to approximately 70%, according to the CPIA roadmap. Driven by the growing demand from the photovoltaic and other industries, the localized supply rate of EVA resin is expected to exceed 85% by 2030. As for the POE, LG and Dow are the main suppliers. There have been efforts to localize POE production in China, but without much success so far.
The encapsulation segment can be bifurcated into 4 product categories – transparent EVA and POE, white EVA and EPE. The choice between EVA, EPE, and POE depends on performance requirements, environmental conditions, and budget. EVA is the most cost-effective, but it has limitations in terms of durability. EPE offers a balanced solution with better UV and moisture resistance at a moderate price while POE provides the best protection and longevity, ideal for high-performance and bifacial modules, albeit at a higher cost. White EVA is a variant of EVA that incorporates white pigments to enhance light reflection and improve module efficiency. It carries forward all traits of transparent EVA, with improved optical gains through increased reflections from cell gaps. White EVA is commonly used on the rear side of monofacial PERC modules (see Solar Encapsulation Market Moving From EVA Toward EPE).
Transparent EVA still dominates this segment with a market share of close to 42% in 2023, according to CPIA. As monofacial modules continue to lose ground to their bifacial counterpart, so does white EVA, with a share of 16%. The share for POE in its pure film form was 14%, while EPE has enhanced its presence, commanding slightly above 27%, leaving only a decimal space for other encapsulation materials. CPIA notes that the shares would remain at about the same level for 2024 and 2025, with a slight uptrend for EPE products. However, according to our research, based on responses from leading encapsulation material suppliers, EVA’s market share in 2023 aligned with CPIA’s estimate of 42%. In contrast, EPE was expected to have a stronger presence with a 38% market share, followed by POE at 11% and white EVA at 9%. Similar to CPIA’s findings, most encapsulation suppliers believe these shares will remain relatively stable, with a slight upward trend for EPE.
As India aims to strengthen its solar PV manufacturing industry, TaiyangNews Solar Technology Conference India 2025 will provide a platform for experts to discuss cutting-edge advancements. To be held on April 10-11, 2025, in New Delhi, the event will feature technologists, scientists, and engineers driving innovation in the sector. Day 2 will feature a session on "Advancing Solar Module Performance and Reliability Through the Right Bill of Materials." InYoung Suh, Director of Business Development, Hangzhou First and Dr. Khushbu Patel, AGM, Business Development ALISHAN GREEN ENERGY, will discuss innovations in encapsulants and back sheets. Early-bird registrations are on here.
The text is an excerpt from the latest TaiyangNews Market Survey on Backsheets & Encapsulation Materials 2024/25, which can be downloaded for free here.