The encapsulant market is expected to be valued at USD 4.1 Billion in 2024. The encapsulant industry is predicted to rise at a promising CAGR of 8.7% from 2024 to 2034. The global market is anticipated to reach USD 9.5 Billion by 2034.
| Attributes | Key Insights |
|---|---|
| Estimated Market Size in 2024 | USD 4.1 Billion |
| Projected Market Value in 2034 | USD 9.5 Billion |
| Value-based CAGR from 2024 to 2034 | 8.7% |
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From 2019 to 2023, the market witnessed robust growth, with a CAGR of 10%. This period was marked by increasing demand across various industries, including electronics, automotive, and renewable energy sectors.
Technological advancements, particularly in encapsulant materials and manufacturing processes, contributed to enhanced performance and reliability of products, further driving market expansion.
Looking ahead to the forecasted period from 2024 to 2034, the market is expected to grow slightly slower, with a projected CAGR of 8.7%. Despite the slightly lower growth rate, the market is anticipated to maintain positive momentum, supported by sustained demand from key industries, ongoing technological innovation, and increasing emphasis on sustainability.
Emerging applications in advanced packaging, medical devices, and aerospace industries are likely to contribute to market expansion during this period.
| Historical CAGR from 2019 to 2023 | 10% |
|---|---|
| Forecast CAGR from 2024 to 2034 | 8.7% |
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The table presents the top five countries ranked by revenue, with South Korea holding the top position.
South Korea is leading in the market is its robust and advanced electronics manufacturing sector. South Korea is home to several major electronics companies, including Samsung, LG, and SK Hynix, global leaders in producing semiconductors, displays, and electronic components.
The companies drive significant demand for encapsulants to protect and enhance the reliability of their electronic products. The strong emphasis on technological innovation and research and development further reinforces its position as a leader in the market.
Epoxy resins are widely used in construction applications such as adhesives, coatings, sealants, and composites due to their superior bonding strength, durability, and resistance to chemicals and weathering.
| Countries | Forecast CAGRs from 2024 to 2034 |
|---|---|
| United States | 8.7% |
| South Korea | 10.7% |
| Japan | 10.1% |
| China | 9.4% |
| United Kingdom | 9.7% |
In the United States, the market is primarily driven by its extensive use in the solar energy sector. With a growing emphasis on renewable energy sources, particularly solar power, encapsulants are widely utilized in producing solar photovoltaic (PV) modules.
These encapsulants protect the delicate solar cells from environmental factors such as moisture, dust, and mechanical stress, ensuring the long-term durability and performance of solar panels.
The electronics and automotive industries in the USA also contribute to the demand for encapsulants, particularly in manufacturing electronic components and automotive electronics.
South Korea leads in the market due to its strong presence in the electronics manufacturing industry. Encapsulants are extensively used in producing various electronic devices, including semiconductors, displays, and consumer electronics.
Companies like Samsung and LG are global leaders in these sectors, driving significant demand for encapsulants to protect sensitive electronic components from moisture, heat, and mechanical damage. The focus on renewable energy and the increasing deployment of solar panels further contribute to the demand for encapsulants in the country.
In Japan, the market is mainly used in electronics and automobiles. Japanese companies are renowned for technological advancements in electronics manufacturing, including semiconductors, optical devices, and consumer electronics.
Encapsulants are critical in protecting these high-tech components from environmental hazards and ensuring their reliability. The automotive industry is a significant consumer of encapsulants, using them to produce automotive electronics, sensors, and control modules.
The market is driven by the massive electronics manufacturing sector, encompassing a wide range of products, including smartphones, computers, and consumer electronics. Encapsulants protect electronic components from moisture, dust, and mechanical stress during manufacturing and usage.
The rapid expansion in the solar energy industry contributes to the demand for encapsulants, essential for manufacturing solar PV modules. With ambitious renewable energy goals, the demand for encapsulants in the solar sector is expected to grow.
In the United Kingdom, the market is primarily driven by the automotive and renewable energy sectors. The automotive industry relies on encapsulants for various applications, including automotive electronics, sensors, and control units. Encapsulants help protect these components from harsh operating conditions and ensure their longevity.
Focusing on renewable energy, particularly solar power, drives demand for encapsulants to produce solar panels. As the United Kingdom continues to invest in renewable energy infrastructure, the demand for encapsulants is expected to grow steadily.
The below section shows the leading segment. Based on curing type, room temperature registers at 8.6% CAGR by 2034. Based on chemistry, the epoxy segment is anticipated to expand at 8.4% CAGR by 2034.
Room temperature sensors play a crucial role in ensuring optimal operating conditions, energy efficiency, and occupant comfort in buildings, production facilities, and storage environments.
| Category | CAGR from 2024 to 2034 |
|---|---|
| Room Temperature | 8.6% |
| Epoxy | 8.4% |
This segment refers to temperature sensors designed to measure ambient or room temperature. These sensors are commonly used in various applications, such as HVAC systems, weather monitoring stations, and indoor environmental control systems.
With a forecasted CAGR of 8.6% by 2034, the room temperature sensor market is expected to witness steady growth driven by the increasing demand for environmental monitoring and automation in residential, commercial, and industrial settings.
The epoxy segment pertains to epoxy paints, widely used in various industries for their durability, chemical resistance, and protective properties. Epoxy paints have extensive applications in sectors such as construction, automotive, aerospace, and industrial equipment, where they are used for coating surfaces to provide corrosion protection, enhance aesthetics, and improve durability.
With a projected CAGR of 8.4% by 2034, the epoxy market is expected to grow steadily, supported by ongoing infrastructure development, automotive production, and industrial activities.
The competitive landscape of the encapsulant market is characterized by several key players vying for market share. There are numerous smaller players and regional manufacturers contributing to market competitiveness.
Strategic collaborations, mergers and acquisitions, and investments in research and development are common strategies companies employ to strengthen their market position and gain a competitive edge in the market.
Some of the key developments
| Attributes | Details |
|---|---|
| Estimated Market Size in 2024 | USD 4.1 billion |
| Projected Market Valuation in 2034 | USD 9.5 billion |
| Value-based CAGR 2024 to 2034 | 8.7% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | Value in USD billion |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East and Africa |
| Key Market Segments Covered | Curing Type, Chemistry, End-Use Industry, Region |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel |
| Key Companies Profiled | Encapsys LLC; Lycored; TasteTech; Givaudan; Balchem Inc.; FrieslandCampina; BASF SE; DSM;Microtek Laboratories, Inc.; Legris Industries Group |
As of 2024, the market for encapsulant is expected to be valued at USD 4.1 billion.
By 2034, the market value of the encapsulant is expected to reach USD 9.5 billion.
From 2024 to 2034, the encapsulant market is expected to flourish at a CAGR of 8.7%.
The epoxy segment is expected to expand at 8.4% CAGR by 2034.
South Korea is likely the top-performing market, with a CAGR of 10.7%.
| Estimated Market Value, 2025 | USD 8,030.3 million |
|---|---|
| Projected Market Value, 2035 | USD 12,234.2 million |
| Value-based CAGR (2025 to 2035) | 4.3% |
| Estimated Market Size (2024E) | USD 38754 million |
|---|---|
| Projected Market Value (2034F) | USD 63126.2 million |
| Value-based CAGR (2024 to 2034) | 5% |
| Market Size Value in 2023 | USD 5,952.8 million |
|---|---|
| Market Forecast Value in 2033 | USD 14,547.9 million |
| Growth Rate (2023 to 2033) | 9.3% CAGR |
| Market Estimated Size (2022E) | USD 104.5 Million |
|---|---|
| Projected Market Valuation (2032F) | USD 159.6 Million |
| Value-based CAGR (2022 to 2032) | 4.3% |
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