Global Solar Encapsulant Market Set to Exhibit Huge Expansion in Future
One of the major factors fuelling the surge in the demand for solar encapsulant is the burgeoning demand for photovoltaic (PV) modules across the world. There has been a huge rise in the production of PV modules in several countries over the last few years, on account of their numerous useful characteristics such as the ability to provide eco-friendly and environmentally sustainable solutions and their economic viability. For instance, as per the China Photovoltaic Industry Association (CPIA), the solar panel production capacity of China is expected to rise from 48 gigawatts (GW) to 110 GW from 2016 to 2020.
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The other important factor propelling the demand for solar encapsulant technology is the soaring awareness amongst the people about the various advantages of solar cell technology over the conventionally used energy sources. In addition to this, there has been a massive rise in awareness about green construction since the last few years, which has tremendously boosted the demand for renewable energy sources in many regions. Furthermore, the numerous benefits associated with the adoption of solar energy such as availability of tax credits and low maintenance costs are also pushing the need for solar encapsulant materials across the globe.
Due to the above-mentioned factors, the global solar encapsulant market generated revenue of $1,036.0 million in 2017 and is expected to reach valuation of over $4,555.4 million by 2023. The market is predicted to exhibit a CAGR of 28.4% during the forecast period (2018–2023). The Solar encapsulant technology is adopted in construction, automotive, and electronic applications. Out of these, the adoption of solar encapsulant technology was found to be the highest in construction applications in 2017 and this trend is expected to continue during the forecast period as well, due to the high rooftop PV panel installation rate.
One of the prominent trends currently being observed in the solar encapsulant market is the rising incorporation of thin-film solar cell technology. This is mainly credited to the fact that the conventionally used crystalline silicon solar technology-based solar modules have high production costs and fragile nature. In addition to this, the thin-film solar cell technology has lower costs than the crystalline silicon solar technology and the modules made from the thin-film technology are flexible in nature.
Geographically, the Asia-Pacific (APAC) region registered the highest utilization of solar encapsulant technology-based materials during the historical period (2013–2017) and is also predicted to observe the highest growth in the usage of solar encapsulant materials during the forecast period. This is primarily attributed to the surging production capacity of the solar modules by the major solar module manufacturing companies in the region. As per the Energy Trend, the Photovoltaic (PV) installation production capacity of China was 31% of the total production capacity in the world (70.3 GW) in 2017.
Therefore, it can be said without any hesitation that due to the rising adoption of renewable energy and soaring usage of PV modules, the demand for solar encapsulant technology will surge throughout the world in the coming years.