Encapsulant Market expected to reach USD 7.56 billion by 2030
Encapsulant Market Size & Growth
According to a research study published by Knowledge Sourcing Intelligence (KSI), the encapsulant market will expand from USD 4.99 billion in 2025 to USD 7.56 billion in 2030 at a CAGR of 8.65% during the forecast period.
Due to its increasing use in industries including automotive, electronics, and energy, the encapsulant market is anticipated to develop significantly over the course of the projected period. The market is anticipated to rise as a result of the growing demand for electronics and electrical appliances brought on by the growing Internet and global adoption of digital gadgets.
Solar cells are secured with a protective layer of encapsulant material in encapsulating solar panels. The encapsulating material protects the solar cells from contaminants, moisture, and other elements that might harm them. Materials like ethylene-vinyl acetate (EVA), polyolefin (POE), PVB, ionomer, or silicone might be used to laminate the solar cells. Encapsulant materials must to be appropriate and reasonably priced. Additionally, as solar photovoltaic (PV) panels become more widely used, there is a growing need for encapsulants to shield PV modules from the elements and guarantee their longevity. It is anticipated that the growing emphasis on creating affordable encapsulant materials will lead to future market opportunities.
Driving reasons for this market expansion include the widespread use of digital and internet gadgets in many facets of life and business. Applications for semiconductors now have more room thanks to the utilization of smart gadgets. The need for semiconductor packing is further demonstrated by the development of AI. Demand for semiconductors is rising in the market for data centers, household appliances, laptops and PCs, as well as for industrial and automotive applications and carbon-neutral renewable energy applications.
The global encapsulant market includes a wide range of types including Epoxy, Urethane, Silicone. By End User, the market is segmented into Automotive, Electricals and Electronics, Energy and Power, Medical and Others.
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Encapsulant Market Report Highlights
- When exposed to UV or visible light, flexible and rigid PCB platforms are shielded by Dymax’s Encapsulants for Microelectronic Component Protection. Additionally, chip encapsulants stick to flex circuit substrates like PET and polyimide. Multi-Cure 9037-F is a chip encapsulant made for uses that call for a damming substance or a thixotropic, high-viscosity encapsulant. Chip-on-glass, chip-on-board, chip-on-flex, and several more wire bonding applications require this.
- To boost its ability to produce semiconductor packaging materials, Sumitomo Bakelite Co., Ltd. purchased more property and constructed a new facility. According to Sumitomo Bakelite Co., Ltd., it has the biggest global market share (about 40%) for Epoxy Resin Molding Compounds for the Encapsulation of Semiconductor Devices, or SUMIKON EME.
- Asia-Pacific The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. The market for encapsulants is anticipated to develop at the quickest rate in the Asia Pacific region because of the growing use of these materials in consumer electronics and the automotive sector.
Report Coverage:
| Report Metric | Details |
| Encapsulant Market Size in 2025 | US$4.99 billion |
| Encapsulant Market Size in 2030 | US$7.56 billion |
| Growth Rate | CAGR of 8.65% |
| Drivers |
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| Restraints |
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| Segmentation |
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| List of Major Companies in Encapsulant Market |
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Encapsulant Market Growth Drivers and Restraints
Drivers:
- Renewable Energy Adoption (Solar PV Growth): The rapid growth in the number of solar photovoltaic installations increases demand for long-lasting encapsulants that keep the PV cells safe against weather and UV rays.
- Rising Demand in Consumer Electronics: Encapsulants are applied in numerous electronic applications primarily to provide an insulating barrier in miniaturised electronics while maintaining reliability from thermal and moisture stress in high-demand consumer electronics.
Restraints:
- Environmental Regulations and Sustainability Pressure: European regulations such as RoHS and WEEE drive manufacturers to produce encapsulants that are environmentally friendly, resulting in higher compliance costs and minimising the flexibility of formulations.
- Volatile Raw Material Costs: Variations in the pricing of chemicals from petroleum refining used in the production of encapsulants create costly unpredictability in the manufacturing of encapsulants and can adversely impact margins.
Encapsulant Market Key Developments:
- HIUV expands globally with photovoltaic encapsulant film production partnerships, including H.B. Fuller in the U.S., enhancing efficiency and supply chain.
- India-bound solar modules get a boost: RenewSys signs contract to supply 700 MW of POE encapsulants between August–December 2025.
Encapsulant Market Segmentation
Knowledge Sourcing Intelligence has segmented the encapsulant market based on type, end user industry, and region:
Encapsulant Market, By Type
- Epoxy
- Urethane
- Silicone
Encapsulant Market, By End-User Industry
- Automotive
- Electricals and Electronics
- Energy and Power
- Medical
- Others
Encapsulant Market, By Region
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Others
Encapsulant Market Key Players
- 3M
- Aptek Laboratories, Inc.
- Dow
- Dymax
- Henkel AG & Co. KGaA
- KYOCERA AVX Components Corporation
- Nagase America LLC
- Panasonic Industry Co., Ltd.
- PARKER HANNIFIN CORP
- Sanyu Rec Co., Ltd.
- Shin-Etsu Chemical Co., Ltd
- Sumitomo Bakelite Co., Ltd.
About Knowledge Sourcing Intelligence (KSI)
Knowledge Sourcing Intelligence (KSI) is a market research and consulting firm headquartered in India. Backed by seasoned industry experts, we offer syndicated reports, customized research, and strategic consulting services. Our proprietary data analytics framework, combined with rigorous primary and secondary research, enables us to deliver high-quality insights that support informed decision-making. Our solutions empower businesses to gain a competitive edge in their markets. With deep expertise across ten key sectors, including ICT, Chemicals, Semiconductors, and Healthcare, we effectively address the diverse needs of our global clientele.
