Solar street lighting Market Trend, Share, Growth, Size, Analysis and Forecast 2030

Industry Prospective:

The global solar street lighting market was worth around USD 5,291.5 million in 2021 and is estimated to grow to about USD 12303.5 million by 2028, with a compound annual growth rate (CAGR) of approximately 15.1 percent over the forecast period. The report analyzes the solar street lighting market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the solar street lighting market. 

Solar street lighting Market: Overview

Solar street lighting is expected to see a bright demand outlook over the forecast period as demand for better and sustainable outdoor lighting increases across the world. Solar lighting works by absorbing the energy from the sun during the daytime and storing it to use in the nighttime when needed. This is a sustainable lighting option and will see an increase in popularity as the demand for electricity increases.

Lighting mechanism that excludes the regular power supply of electricity and functions completely on the solar energy is termed as solar lighting systems. The internal structure of the solar-based street lighting system comprises PV (photovoltaic) modules for battery charging, light emitting diodes (LED), compact fluorescent lamp, light source, and re-chargeable lead acid battery for storage and other electronics hardware to complete the circuit. Solar photovoltaic modules are anticipated to have 15-20 years of service life. The operation of these solar street lights can be automatic with the integration of high standard sensors, which from dusk to dawn remains in operating mode or by simply setting up and adjusting the timer. Tubular batteries which provide solar lighting systems require low maintenance which leads to a long life.

Government initiatives to utilize alternate source to power systems and reduce the depletion of fossil fuels which are used for generating electricity is likely to be the key factor responsible for the growth of the solar street lighting market. For instance, an initiative taken by the Government of India called as the Prakash Path replaced approximately 35 million street lights and 770 million incandescent bulbs with LED bulbs. In addition to this, Electric Vine Industries partnership with ENGIE in 2017, declared an investment of approximately USD 200 million for the installation of solar microgrids in Indonesia. Growing infrastructural projects leads to the rising demand for solar street lights which can be used in parking lots, pathways, and others. Moreover, increasing potential of solar technologies and increasing demand for continuous power supply will positively boost the market growth. Furthermore, technological innovations in the design of the product and declining cost of battery have positively reduced the prices of solar lightening components making them an alternative for households and municipalities. Such factors tend to positively impact the market growth.

COVID-19 Impact:

The COVID-19 pandemic led to a downfall in the adoption of solar street lighting as the world was focused on battling the pandemic and hence the solar street lighting market witnessed a slow growth trend in 2020. Lockdown restrictions across the world hampered the production of solar street lighting and also distribution which had a negative impact on the solar street lighting market.

Hampered installations under the lockdown mandates that dictated strict prohibition on outdoor activity also led to a slow down of the solar street lighting marketplace.

The negative trend of the solar street lighting market is expected to diminish as the pandemic subsides and the adoption of solar street lighting picks up across the world. Increasing focus on sustainability and rising investments from the government to adopt solar street lighting are expected to prominently govern market potential in the post-pandemic era.  

Solar street lighting Market: Growth Drivers

Increasing Focus on Sustainability

The world has seen a substantial rise in focus on sustainability as the environment deteriorates and one of the major contributors to this is the energy generation sector this, in turn, has propelled the demand for renewable energy sources. The rising focus on creating more sustainable power solutions and decreasing dependency on conventional power generation is expected to majorly propel the adoption of solar street lighting over the forecast period. Increasing focus on managing the growing demand for energy will also shape the solar street lighting market growth through 2028.

Solar street lighting Market: Restraints

High Installation Costs to Hinder Solar street lighting Market Growth

Solar street lighting solutions are costly to fix and install and this factor is a major hampering factor for the global solar street lighting marketplace. Solar solutions are still relatively expensive due to the high costs of panels and the supporting structure that they require and this is what creates a major obstacle for installation. This is expected to hamper the solar street lighting market growth in low-income economies and hence slow down the global market pace through 2028.

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Global Solar street lighting Market: Segmentation

The global solar street lighting market is segregated based on type, lighting source, application, and region.

By lighting source, the market is divided into CFL and LED. The LED segment is projected to have a bright outlook over the forecast period. The increasing popularity and high availability of LED lighting solutions are expected to boost the demand for this segment in the global solar street lighting market landscape. This segment will hold a major market share by the end of the forecast period.

By Application, the solar street lighting market is segmented into residential, commercial, and industrial. The industrial segment is expected to lead the solar street lighting market growth in terms of the application over the forecast period.  The rising focus on sustainable energy generation and stringent mandates to incorporate renewable energy is expected to boost the adoption of solar street lighting in this application through 2028.

Report Scope:

Recent Developments

• In January 2020 –  SolarOne Solutions Inc. a leading name in lighting solutions in the United States was selected by Eagle Butte community center for the installation of SolarOne off-grid solar streetlights to achieve reduced carbon footprint.

Regional Landscape

Asia Pacific region leads the global solar street lighting market in terms of revenue and volume share and this can be attributed to rapid industrialization and urbanization in this region. Increasing focus on sustainability and rising adoption of renewable energy resources are other factors that influence the solar street lighting market potential over the forecast period. Nations of India, China, and Japan are anticipated to be the most notable markets in this region through 2028. Supportive government initiatives to boost the installation of solar street lighting solutions are also expected to have a positive impact on solar street lighting market growth in the Asia Pacific region.

The market for solar street lighting in North America is expected to see good growth owing to the rising focus on sustainability and the increasing popularity of solar lighting solutions.

Competitive Landscape

Some of the main competitors dominating the global solar street lighting market include - Philips Lighting Holding B.V., Bridgelux, Inc., Omega Solar, Dragons Breath Solar, Solektra International, SOKOYO Solar Group, Sunna Design, Solar Street Lights USA, Urja Global Ltd.

Global solar street lighting market is segmented as follows:

By Type

• Standalone
• Grid Connected

By Lighting Source

• CFL
• LED

By Application

• Residential
• Commercial
• Industrial

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa