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Global solar street lighting market is estimated to witness a major jump in revenue from US$ 4,438.0 Mn in 2022 to US$ 15,716.4 Mn by 2030 at a CAGR of 17.19% over the projection period 2023-2030. In terms of volume, the market is expected to register a CAGR of 15.01% during the forecast period.
Solar streetlights have emerged as a reliable and cost-effective solution for outdoor lighting in recent years. These raised light sources are powered by solar panels that are usually mounted on the lighting structure or integrated into the pole itself. The solar panels absorb sunlight during the day and convert it into electrical energy, which is stored in a rechargeable battery. This stored energy powers a fluorescent or LED lamp during the night, providing an energy-efficient lighting solution for a wide range of applications.
One of the significant advantages of solar streetlights is their easy installation, as they do not require complex wiring or trenching. This makes them an ideal lighting solution for off-grid areas where conventional lighting infrastructure is expensive to install and maintain. Additionally, solar streetlights are eco-friendly, as they do not produce any greenhouse gases or other harmful emissions, reducing their impact on the environment.
Solar streetlights have major applications in highways, roadways, parking lots, and airport runways, among others. In highways and roadways, they enhance the safety and security of drivers and pedestrians by providing adequate lighting at night. In parking lots, they improve visibility, making it easier for drivers to park their vehicles safely. In airport runways, they ensure safe takeoffs and landings by providing sufficient lighting for aircraft operations.
Moreover, solar streetlights have become an integral part of the global push towards sustainable and renewable energy sources. With the increasing adoption of solar energy and the development of smart cities worldwide, the demand for solar streetlights is expected to grow significantly in the coming years. Furthermore, advancements in solar technology and the decreasing cost of solar panels are likely to make solar streetlights even more affordable and accessible to consumers, further driving the growth of the market.
Increasing Demand for Energy-Efficient Lighting Solutions
The demand for energy-efficient lighting solutions has been on the rise in recent years due to growing concerns over environmental sustainability and the need to reduce carbon emissions. Solar street lighting systems are an effective solution to meet this demand as they use renewable energy from the sun and do not rely on the power grid. The use of solar street lighting can help reduce carbon emissions, lower energy bills, and provide reliable lighting solutions in remote areas with limited access to electricity.
Government Initiatives and Subsidies
Governments around the world are increasingly promoting the adoption of solar street lighting systems through various initiatives and subsidies. For instance, the Indian government's Atal Jyoti Yojana scheme provides subsidies for the installation of solar street lights in remote areas. Similarly, in the US, the Energy Policy Act of 2005 provides tax credits for the installation of solar-powered lighting systems. These initiatives and subsidies have encouraged the adoption of solar street lighting systems and have contributed to the growth of the market.
High Upfront Costs
One of the major constraints of the solar street lighting market is the high upfront costs associated with the installation of these systems. Although solar street lighting systems have a low operational cost, the initial investment required for the installation of these systems is significant. This can deter many potential buyers from adopting these systems, particularly in developing countries where budget constraints are more significant.
Limited Battery Storage Capacity
Another constraint of the solar street lighting market is the limited battery storage capacity of these systems. The battery storage capacity of solar street lights determines the amount of energy that can be stored and used during periods of low sunlight or at night. The limited battery storage capacity can result in reduced lighting output during these periods, which can be a significant drawback for users who require consistent lighting solutions. This can limit the adoption of solar street lighting systems in areas with limited sunlight or during the winter months when sunlight is scarce.
The standalone segment held the highest market share of the global solar street lighting market in 2022 and is expected to continue its dominance over the projection period. These types of solar street lights are an excellent source for emergency lighting and back lighting. Furthermore, the high costs related to conventional streetlight infrastructure across off-grid areas along with ongoing electrification programs will stimulate the demand for standalone solar street lights.
In terms of components, the solar panel segment has the highest market share in 2022. The installation and operational costs of solar panels are lower as compared to lamp and battery type components. Additionally, the lamp segment has the fastest CAGR in the solar street lighting market during the forecast period, owing to the increasing demand for energy-efficient lighting solutions.
The major application of solar streetlights is in highways & roadways and is expected to continue its dominance in the application of solar streetlights. Solar streetlights enhance security and sustainability of roads and nearby areas. Moreover, the demand for solar streetlights in public parks, residential areas, and commercial buildings is also expected to drive the growth of the solar street lighting market during the forecast period.
The Asia Pacific region is the highest shareholder region in the global solar street lighting market and has recorded the highest CAGR during the forecast period. In the Asia Pacific region, many countries are undergoing rapid, sustainable, and smart infrastructural developments due to numerous smart cities projects in countries such as Bangladesh, Singapore, Indonesia, and others. Furthermore, government initiatives pertaining to the adoption of energy-efficient lighting systems along with declining product costs and expansion of manufacturing facilities will propel the market growth in the Asia Pacific region.
Moreover, the region has a high potential for solar power generation due to its abundant solar radiation and favorable climate conditions. Many countries in the region, such as India and China, are among the largest consumers of energy in the world and are taking measures to reduce their dependence on fossil fuels. This has resulted in the implementation of various policies and initiatives to promote the use of renewable energy sources, including solar energy.
Additionally, the rapid urbanization and development of smart cities in the region have led to an increase in the demand for sustainable and energy-efficient lighting solutions. For instance, in India, the government has launched the Smart Cities Mission to develop 100 smart cities across the country. This has resulted in the installation of solar street lighting systems in many of these cities, which has driven the growth of the solar street lighting market in the region.
Furthermore, the declining product costs and the expansion of manufacturing facilities have contributed to the growth of the solar street lighting market in the Asia Pacific region. The increasing competition among manufacturers has resulted in the development of innovative and cost-effective solar street lighting solutions, making them more affordable and accessible to consumers.
The key players in the global solar street lighting market are Signify Holding BV, Jiangsu SOKOYO Solar Lighting Co. Ltd., Philips Lighting Holdings B.V., Acuity Brands, Dragons Breath Solar and Bridgelux Inc. among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip of emerging market. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.
List of Key Companies Profiled:
Strategies Adopted by Key Market players
The following are the different segments of the Global Solar Street Lighting Market:
By Type segment of the Global Solar Street Lighting Market is sub-segmented into:
By Component segment of the Global Solar Street Lighting Market is sub-segmented into:
By Application segment of the Global Solar Street Lighting Market is sub-segmented into:
By Region segment of the Global Solar Street Lighting Market is sub-segmented into:
|Market Size Value in 2022||US$ 4,438.0 Mn|
|Expected Revenue in 2030||US$ 15,716.4 Mn|
|Unit||Value (USD Mn)|
|Segments covered||By Type, By Component, By Application, By Region|
|Key Companies||Acuity Brands, Inc., Bajaj Electricals Ltd., Bridgelux Inc., Cooper Lighting, LLC, Dragons Breath Solar, Jiangsu SOKOYO Solar Lighting Co., Ltd., Omega Solar, Philips Lighting Holding B.V., Signify Holding BV, Sol Inc., Solar Street Lights USA, Solektra International LLC, Sunna Design, Urja Global Ltd., VerySol Inc., Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
Global Solar Street Lighting Market is projected to grow at a CAGR of 17.19% during the forecast period 2023-2030.
Solar Street Light (SSL) are majorly used for outdoor street lighting which are powered by solar panels and are operated on standalone mode into the pole itself.
Global Solar Street Lighting Market is driven by the increasing urbanization and rising focus on solar energy.
Highways and roadways segment are a huge opportunity ground for solar streetlights.
Standalone segment dominates the global solar street lighting market.
Lamp segment is expected to grow with the fastest CAGR during the forecast period.
The market has been classified into North America, Europe, Asia Pacific, Middle East & Africa (MEA) and South America.
Based on Application, the global solar street lighting market is further classified into parking lot, highways & roadways, airport runway, manufacturing site, playgrounds, garden and others.
Higher initial installation cost and investment of solar streetlight restrain the market growth.
US is the highest shareholder in the North America solar street lighting market in terms of revenue.
Brazil is expected to project the highest CAGR of 17.56% in the South America solar street lighting market.
Philips Lighting Holdings B.V., Signify Holding BV, Acuity Brands, Bridgelux Inc., Bajaj Electricals Limited, Urja Global Ltd, Cooper Lighting LLC, Dragons Breath Solar, Omega solar, Solar Street Lights USA and Solektra International LLC among others.