The solar encapsulation market exceeded 500 GW in 2023, driven by rising PV industry demand
HANGZHOU FIRST leads with 50%+ market share, shipping 2.3 billion m² in 2023, followed by Sveck and HIUV, with HIUV expanding via joint ventures in the US, Turkey, and India
Betterial and Sinopont are reshaping rankings, with Betterial reaching 3rd place in H1 2024 while Cybrid expanded production in the year
Global suppliers like RenewSys, Endurans, Alishan Green Energy, and Satinal are gaining ground, while Sunlink and Enrich expanded encapsulant production in India
The solar encapsulation market is not just gaining traction but surging ahead. One sure indication is that this survey features products from 6 new companies compared to the previous version. A couple of these are traditional backsheet companies that have ventured into encapsulation, a strategic move most likely prompted by the shrinking backsheet market due to the wider adoption of glass-glass module configurations. After all, encapsulant materials are polymers, similar to backsheets, with the primary difference being their chemical composition. We have 4 debutants in this survey, 2 of which are suppliers of both backsheets and encapsulation materials and 2 are exclusive encapsulant suppliers.
In 2023, the total market size for the solar encapsulation segment surpassed 500 GW, reflecting the rapid expansion of the global photovoltaic industry. Leading the segment was HANGZHOU FIRST, which solidified its position as the undisputed market leader. The company commanded approximately 50% market share, shipping an estimated 260 GW of encapsulation material, equivalent to about 2.3 billion m2. A presentation from the company’s senior engineer, Stephen Tang, at the TaiyangNews Cell & Module Production Equipment & Processing Materials Conference put the company’s 2023 encapsulation production capacity at more than 380 GW and 50 GW for backsheets, supported by 4 manufacturing facilities in China and 2 overseas – one in Thailand and one in Vietnam. As for 2024, the company retains its status as the segment leader with more than 50% market share. By Q3 2024, the company shipped slightly above 2 billion m², while Q3 shipments alone accounted for 700 million m2 (see Hangzhou First: Comprehensive Encapsulation Solutions For BC Modules).
Sveck occupied the 2nd position in both 2023 and 2024. The company shipped 636 million m² in 2023, which grew by about 17% to 727 million m² in 2024. However, the company has the same capacity of close to 1.2 billion m².
Traditionally, HIUV has held the 3rd position in shipments. According to the company, it shipped 563 million m² in 2023. HIUV operates 6 manufacturing facilities – 5 in China and 1 in Vietnam – amounting to a total capacity of about 1.1 billion m2. In 2024, HIUV took a step toward expanding its international footprint by signing a joint venture with H.B. Fuller in the US, with another joint venture planned in Turkey. Additionally, in 2025, the company will establish a new factory in India with an initial capacity of 5 GW, which will later expand to 15 GW, further solidifying its global expansion strategy. During the recent TaiyangNews High-Efficiency Solar Technologies 2024 Conference, Jitin Rai Khanna, Global Sales Director at HIUV, showcased the company’s TOPCon encapsulation solutions, 0BB interconnection technology, and encapsulant recommendations for different cell technologies (watch the presentation here).
However, market research firm EnergyTrend has identified the top 7 encapsulant suppliers based on their H1 2024 shipments, according to which Betterial, a new entrant to the survey, ranks 3rd with shipments of 270 million m2. Similarly, EnergyTrend estimates, another new entrant to the survey, Sinopont slots in next with shipments of 180 to 200 million m2 in H1 2024. The details regarding the company’s capacity are unavailable.
Once the backsheet segment leader who also turned out to be an important encapsulation material supplier follows it very closely, Cybrid’s 2023 shipments totaled 267 million m2 and 127 million m2 in H1 2024. The Shanghai Stock Exchange listed company operates 4 manufacturing facilities in China and 1 in Vietnam. Cybrid significantly increased its production capacity from 310 million m2 in 2023 to 500 million m2 in 2024.
Lushan, the only company not part of EnergyTrend’s list, is placed 7th with shipments of 100 million m2. EnergyTrend emphasizes that Tier II manufacturers are rapidly capturing market share, expanding their presence swiftly. A notable change in the rankings is Betterial's leap into the top 3 with robust shipment growth, trailing Sveck by only 10 million m2, making it the standout performer in H1 rankings. The research firm also noted that the combined shipments of the top 3 companies exceeded 1.94 billion m2, accounting for over 75% of the market share.
EnergyTrend estimates that based on 2024 data, the corresponding demand for encapsulation films will reach 2.57 billion m2 in 2025, a year-on-year increase of 15%, expanding the market space. Crown, another well-known name in the solar packaging materials business, supplies both backsheets and encapsulation materials. It has a total encapsulation production capacity of 25 GW – 15 GW in China and 10 GW in Vietnam – equivalent to 220 million m². In 2023, Crown shipped 64 million m² and expects to exceed 80 million m² in sales volume in 2024.
Jolywood, the market leader in backsheets, ventured into the supply of encapsulation materials a few years ago. The company started with a capacity of over 20 million m² in 2023, which has since increased severalfold to 130 million m² in 2024. It is estimated to reach 320 million m² in 2025. Interestingly, Jolywood claims that its shipments precisely match its production capacity, implying a 100% utilization rate.
In addition to these Chinese companies, the survey also features 5 encapsulation suppliers from around the world outside China. RenewSys, like Jolywood, is a company with somewhat peculiar business streams. In addition to being a leading backsheet and encapsulation material supplier, the company is also a longtime solar module producer. The company supplies all varieties of mainstream encapsulants such as EVA, POE and EPE, with a total capacity of 4 GW.
Endurans, with its deep roots in non-fluoropolymer backsheet making, stepped into encapsulant manufacturing last year. It has a variety of encapsulants on offer, including single-layer options like EVA and POE, as well as multi-layer encapsulants such as EPE.
India-based Alishan Green Energy, a new entrant to the survey, is also a young enterprise that supplies both backsheets and encapsulation materials. It is backed by Alishan Group, a conglomerate with several business verticals including mining, construction, hospitality, textiles, FMC, entertainment and energy. The company shipped encapsulation material of 6.2 million m2 in 2023 and close to 11 million m2 in 2024 backed with a current capacity of close to 20 million m2.
Sunlink is another new entrant to the survey, also from India. Established in 2017, the company offers 3 encapsulation variants – EVA, POE and EPE – with a total capacity of 5 GW. Enrich, another Indian company, is also a new entrant to our survey. Established in 2018, it has the production capacity to support 14.4 million m2 of EVA and POE encapsulants, equivalent to 1.5 GW. Satinal, an Italian company with a strong background in the glass industry, has leveraged its expertise to become an encapsulant manufacturer. In addition to focusing on mainstream encapsulants, Satinal also offers sustainable products. In particular, it offers carbon-neutral EVA apart from standard EVA, POE and thermoplastic olefin (TPO). The company has 10 GW of production capacity.
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.