June 18, 2024
Solar Street Lighting Market

Solar Street Lighting Market is Estimated to Witness High Growth Owing to Advancements in Solar Panel Efficiency

The solar street lighting market involves street lighting powered by photovoltaic panels and rechargeable batteries. Solar street lights have advantages such as reduced maintenance and electricity costs compared to traditional street lights. The need for sustainable and environment-friendly lighting solutions is increasing due to rising electricity bills and grid supply issues. Solar street lights provide lighting in areas lacking access to electricity grids.

The Global Solar Street Lighting Market is estimated to be valued at US$ 38.15 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2031.

Key Takeaways

The key opportunities in the Solar Street Lighting Market Size include increasing usage in smart city projects and rural electrification programs across developing regions. Additionally, advancements in solar panel efficiency and battery technologies are reducing LED lighting costs, making solar street lights more viable.

Key players operating in the solar street lighting are VerySol Inc., Solar Street Lights USA, Dragons Breath Solar, Urja Ltd., Solektra International LLC, Bridgelux Inc., SOKOYO Solar Group, Sunna Design, Sol Inc., Signify Holding, Omega Solar, SolarOne Solutions Inc., Hitechled, Fevino Industries LLP, Systellar, Wolta Power System, SunMaster, Wipro Lighting, Swami Energy, and Sunrise Solar.

Technological advancements in highly efficient polycrystalline and monocrystalline solar panels as well as lithium-ion batteries are resulting in street lights with longer operating durations before recharge is needed. This is reducing maintenance and operational costs. Advancements in LEDs and driver circuits are also optimizing light output while lowering energy consumption.

Market Drivers

The growing demand for energy-efficient and eco-friendly lighting solutions is a major factor driving the solar street lighting market. Governments across various countries are promoting the replacement of conventional street lights with solar variants to reduce carbon footprint and energy costs. Favorable government policies offering subsidies for the installation of solar street lights are also fueling adoption. Additionally, increasing rural electrification activities in developing regions provide opportunities for solar street light vendors.

Current Challenges in the Solar Street Lighting Market

The solar street lighting market faces some key challenges currently. High upfront installation costs for solar street lights continue to be a barrier to mass adoption. Heavy subsidy support is still required in many markets to encourage wider usage. Weather dependency also remains an issue as overcast conditions can reduce sunlight availability and affect battery charging. Technical limitations of battery storage capacity pose runtime challenges during prolonged overcast periods. However, ongoing technology advancements are addressing these issues through improvements in battery storage, charge controllers as well as light weight and efficient solar panels with better integration design.

SWOT Analysis

Strength: Solar energy offers clean, renewable source of power generation without reliance on electricity grids or high fossil fuel costs. Solar street lights reduce long term operational costs compared to traditional street lights.

Weakness: High upfront capital costs involved in installation of solar panels, batteries and other system components. Technical limitations in battery backup duration under low sunlight conditions.

Opportunity: Growing focus on clean energy solutions at global level presents significant market potential. Rapid technology advancements making systems more efficient and affordable overtime.

Threats: Weather dependence impacts reliable performance. Subsidy cuts or policy changes can affect demand in the short term. Prices of critical raw materials like lithium may impose cost pressures.

Geographical Regions

The Asia Pacific region currently accounts for a major share of the global solar street lighting market. Countries like India, China, Australia have pushed strong subsidy support and adoption drives, making the region a prime center. North America and Europe are other major value centers with growing governmental focus on cleaner outdoor infrastructure upgrades.

The Middle East and Africa region is expected to be the fastest growing regional market for solar street lights over the coming years. Off-grid usage across remote areas and new infrastructure development pushes the demand outlook positively for countries in these regions. Initiatives by Gulf nations to switch to renewable energy systems also create opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it