TaiyangNews, a leading online news and information technology platform for global solar energy, has released its comprehensive 2024-2025 market survey report on backsheets and encapsulation materials for solar modules. The report, now in its fifth edition, provides valuable insights into the evolving solar market, examining trends, technological advancements, and market shifts in response to pressures on the solar value chain.
The solar industry is currently navigating an intense period of overcapacity and record low prices, which have significantly impacted material suppliers across the value chain. The pricing squeeze on solar modules, paired with the rapid evolution of solar cell technologies such as TOPCon, HJT, and XBC, is driving new developments in materials, especially in backsheets and encapsulation solutions. TaiyangNews’ latest survey, which gathered responses from 17 companies and detailed 184 products, sheds light on this dynamic segment of the market.
Encapsulation Materials Take Center Stage
The survey reveals that encapsulation materials are rapidly gaining dominance in the solar module polymer segment. With solar manufacturing hitting nearly 500 GW in 2023 and projected to surpass 600 GW in 2024, encapsulation material production is keeping pace, with decentralized production slowly moving beyond China.
The encapsulation market continues to be shaped by 2 core polymer chemistries: EVA and POE. To balance cost and reliability, the segment has developed a coextruded structure, combining EVA and POE, known as EPE. As module makers push for more efficient materials, demand for both POE and EPE is increasing, with POE demonstrating higher reliability in testing compared to EVA, though at a higher cost.
HANGZHOU FIRST has emerged as an unprecedented leader in the encapsulation segment, commanding over 50% of the market share. The top 3 companies now control approximately three-quarters of the segment.
Technological Developments: Meeting Evolving Demands
The survey underscores how encapsulation solutions are increasingly tailored to specific solar cell and module technologies, no longer a “one size fits all” approach. With the rise of TOPCon technology, encapsulation solutions now need to address 2 key degradation mechanisms - moisture-induced degradation (MID) and potential-induced degradation (PID). To meet these challenges, encapsulation options like POE, EPE, and optimized EVA are gaining traction.
For HJT modules, the need for encapsulants that can protect against UV-induced degradation (UVID) while offering moisture resistance is creating an entirely new set of requirements. This has led to the development of innovative down-conversion encapsulants, which not only prevent UVID but also enhance performance by improving light absorptance.
Challenges and Shifts in the Backsheet Market
The report also highlights the ongoing struggles of the backsheet segment, which has seen a steady decline in market size, now shrinking by over 50% since 2022. As glass-glass configurations gain traction - especially with the rise of TOPCon technology—fluoropolymer-based backsheets have lost ground, with dual-sided coated alternatives becoming more popular. Non-fluoropolymer chemistries, including coextruded designs, are also gaining a foothold in the market.
As the demand for more advanced and reliable solar technologies grows, backsheet manufacturers are focused on reducing water vapor transmission rates to meet the moisture sensitivity of n-type cell technologies. Additionally, the push for sustainability, low carbon footprints, and recyclability is influencing the backsheet market’s competitive landscape.
Quote from Shravan Chunduri, Head of Technology, TaiyangNews:
“The ongoing transformation in the solar industry, driven by advances in cell technology and materials innovation, has created a highly competitive and rapidly evolving market for backsheets and encapsulation materials. As the demand for highly reliable, cost-effective materials increases, we are seeing new solutions emerge to meet the unique challenges of different cell types, especially in the context of evolving market conditions. Our survey provides key insights into how material suppliers are navigating these changes, and how the industry is moving towards more sustainable and high-performance solutions.”
The TaiyangNews Backsheet & Encapsulation Materials Market Survey Report 2024-2025 serves as a vital resource for stakeholders seeking to understand the key dynamics at play in the evolving solar market and the materials that are essential for the future of solar technology.
Download the TaiyangNews Backsheet & Encapsulation Materials Market Survey Report 2024-2025 report through this link: https://taiyangnews.info/reports/solar-backsheets-encapsulants-market-survey-202425
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