Who are the key players in US Encapsulants Market industry?

The US Encapsulants Market features key players such as Dow Inc., Henkel AG & Co. KGaA, Huntsman Corporation, HB Fuller, and 3M Company. These companies are known for their extensive product portfolios, technological advancements, and robust distribution networks catering to diverse applications within the encapsulants market.

What is the US Encapsulants Market growth?

The US Encapsulants Market has experienced significant growth, driven by increasing demand in electronics and renewable energy sectors. Recently, Dow Inc. reported accelerated sales in encapsulants for solar modules, contributing to an estimated CAGR of over 6% from 2023 to 2028 for the overall market.

Which segment accounted for the largest US Encapsulants Market share?

Electronics applications accounted for the largest share in the US Encapsulants Market. The segment benefits from rising demand for encapsulants in semiconductors, microchips, and electronic components, ensuring protection against moisture, dust, and other environmental factors. Companies like 3M focus heavily on serving these electronics encapsulation needs.

What are the factors driving the US Encapsulants Market?

Growing adoption of renewable energy, particularly solar panels, is a key market driver. Encapsulants are essential for modular protection and durability. For example, Henkel AG has invested in innovative, high-performance solar encapsulant products, addressing the rising energy demand and stringent quality standards in the US market.

Which type accounted for the largest US Encapsulants Market share?

Silicone encapsulants hold the largest share in the US market due to their superior electrical insulation, flexibility, and resistance to extreme temperatures. Major players like Huntsman Corporation emphasize silicone products for critical uses in automotive, electronics, and energy sectors, contributing to their market dominance.

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US Encapsulants Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2035)

Name: US Encapsulants Market
Brand: Bussiness Insights

US Encapsulants Market Market: by Type (Epoxy, Polyurethane, Silicone, Acrylic, Others), Application (Electronics, Automotive, Construction, Energy, Healthcare, Others), Distribution Channels (Direct, Indirect, Online, Distributors, Wholesalers, Others), Technology (Thermosetting, UV Curing, Hot Melt, Solvent Based, Water Based, Others), Organization Size (Small, Medium, Large) and By US Historical & Forecast Period (2020-2035) Comprehensive Study 2025

Last Updated: 23-07-2025 | Format: PDF | Report ID:1714 | Author: Mike

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US Encapsulants Market Outlook 2025-2035

The US encapsulants market is projected to witness significant growth from 2025 to 2035, driven by expanding demand across key industries such as electronics, automotive, and energy. Technological advancements in encapsulation materials and growing requirements for product reliability are fueling market expansion.

Latest Market Dynamics

Key Drivers

Rapid advancement in electronics miniaturization drives encapsulant adoption, with companies like Dow Inc. launching new advanced epoxy solutions to enhance device longevity.
Increasing penetration of electric vehicles propels encapsulant use in automotive electronics, highlighted by BASF's 2024 collaboration with US automakers for customized polyurethane encapsulants.

Surge in adoption of silicone encapsulants for their superior thermal stability, accelerated by Wacker Chemie AG's expansion in 2024 of silicone production facilities in the US.
Growth in demand for UV curing encapsulants in high-speed manufacturing, supported by Dymax Corporation's 2025 launch of rapid-curing, low-VOC products targeting electronics manufacturing.

Expanding renewable energy installations, with encapsulant demand rising for solar PV modules, as demonstrated by Henkel’s development of specialized encapsulants for US solar farms (2024).
Healthcare sector growth opens opportunities for medical-grade encapsulants, evident in H.B. Fuller’s launch of biocompatible encapsulants for medical devices in early 2025.

Fluctuation in raw material prices challenges cost sustainability, impacting manufacturers like Huntsman Corporation, which implemented cost improvement programs in 2024.
Compliance with stringent environmental and safety regulations, as seen with Parker Hannifin adapting formulations to meet new US EPA standards effective from mid-2024.

High initial costs for advanced encapsulant technologies restrict small-scale manufacturers’ entry, seen in continued market dominance by leading players such as 3M Company.
Limited awareness regarding encapsulation benefits in traditional industries, with Master Bond Inc. investing in educational outreach to increase market penetration.

In 2025, epoxy encapsulants lead the US market, capturing the highest share due to their superior adhesion, mechanical properties, and broad application scope in electronics and automotive. Polyurethane encapsulants, valued for flexibility and resistance, follow closely, while silicone types gain traction for high-temperature requirements, particularly in energy and automotive industries. The composition of market share underscores the demand for performance-driven materials as reliability and efficiency become key differentiators.

The electronics sector dominates US encapsulants market applications in 2025, attributed to the surging demand for encapsulated components in consumer gadgets and industrial automation. Automotive applications account for a significant portion, reflecting the push for electronics integration in next-generation vehicles. The energy sector, including solar and wind, also contributes notably as encapsulants enhance performance and longevity in harsh environments. This distribution highlights strong momentum for encapsulants in markets focused on reliability and efficiency.

The US encapsulants market revenue is on a robust growth trajectory, rising from $980 Million in 2020 to a projected $2,460 Million by 2035. This increase is powered by rising adoption in electronics, electric mobility, and renewable energy industries. Steady year-on-year growth indicates consistent demand for innovative encapsulation materials, underscoring their critical role in ensuring product reliability and regulatory compliance across applications.

US encapsulants market exhibits a healthy year-on-year growth rate, averaging around 6.2% from 2020 to 2035. Notable peaks in 2025 and 2030 reflect technology launches and regulatory changes driving adoption. The consistent upward trend highlights resilient market fundamentals and ongoing innovation in encapsulant solutions, positioning the industry for sustainable, long-term expansion.

Regional demand for encapsulants in the US is highest in the Midwest, accounting for almost half of the total market, due to heavy electronics and automotive manufacturing. The West leads in renewable energy applications, while the South’s industrial base also significantly contributes. This regional split reveals concentrated demand hubs driven by industry clusters, with each region leveraging its industrial strengths to drive encapsulant consumption.

Market share remains consolidated among top players in 2025, with Dow Inc. leading, followed by 3M Company and Henkel AG. BASF SE and H.B. Fuller are also notable contributors. This competitive distribution highlights the importance of innovation, broad product portfolios, and strong partnerships for market positioning, with tier-one players setting industry standards for encapsulant performance and application versatility.

OEMs constitute the largest buyer segment for encapsulants in the US, driven by their integration in electronics and automotive assembly. Component manufacturers are the next largest group, followed by construction solution providers and others. This buyer landscape emphasizes the strategic importance of encapsulant suppliers in supporting advanced manufacturing across varied sectors.

Metrics	Details
Years	2020-2035
Base Year	2025
Market Size	Revenue (USD Million)
Regions	Midwest, West, South, Others
Segments	Type (Epoxy, Polyurethane, Silicone, Acrylic, Others), Application (Electronics, Automotive, Construction, Energy, Healthcare, Others), Distribution Channels (Direct, Indirect, Online, Distributors, Wholesalers, Others), Technology (Thermosetting, UV Curing, Hot Melt, Solvent Based, Water Based, Others), Organization Size (Small, Medium, Large)
Players	Dow Inc., Henkel AG & Co. KGaA, BASF SE, Huntsman Corporation, H.B. Fuller Company, 3M Company, Wacker Chemie AG, Master Bond Inc., Hitachi Chemical Company Ltd., LORD Corporation, Parker Hannifin Corporation, Permabond LLC, Dymax Corporation, Shin-Etsu Chemical Co., Ltd., Avery Dennison Corporation

June 2024: Wacker Chemie AG announced the extension of its silicone encapsulant production capacity in Tennessee to meet growing demand in electronics.
July 2024: Henkel launched a new line of high-performance, UV-curable encapsulants for solar PV manufacturers in the US.
August 2024: BASF SE entered a strategic partnership with a major US electric vehicle manufacturer to supply customized polyurethane encapsulants.
September 2024: H.B. Fuller unveiled biocompatible encapsulants designed for medical device OEMs in North America.
October 2024: Parker Hannifin introduced a new eco-friendly encapsulant series compliant with latest US environmental regulations.

About the Author

Mike

Lead Industry Analyst

Mike is a Lead Industry Analyst specializing in market research, industry analysis, and business consulting across Chemical & Material. Mike brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Mike has helped organizations translate data into actionable growth strategies.

Chemical & MaterialMarket ResearchIndustry AnalysisStrategic Consulting

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US Encapsulants Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2035)

US Encapsulants Market Outlook 2025-2035

Latest Market Dynamics

Key Drivers

Key Trends

Key Opportunities

Key Challenges

Key Restraints

Market Share by Type, 2025

Market Share by Application, 2025

Market Revenue (USD Million), 2020-2035

Year-on-Year Growth (%), 2020-2035

Market Share by Region, 2025

Market Share by Players, 2025

Market Share by Buyers, 2025

Study Coverage

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