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  • Published In : May 2024
  • Code : CMI7030
  • Pages :141
  • Formats :
      Excel and PDF
  • Industry : Energy

Market Size and Trends

The global solar street lighting market is estimated to be valued at USD 13.66 Bn in 2024 and is expected to reach USD 38.15 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 15.8% from 2024 to 2031.

Solar Street Lighting Market Key Factors

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The adoption of solar street lighting is expected to grow significantly due to increasing focus on renewable energy resources and government initiatives to adopt energy-efficient and eco-friendly lighting solutions. Many countries globally are replacing their conventional street lights with solar street lights to reduce their energy consumption and carbon footprint. Additionally, the falling costs of LEDs and solar panels is making solar street lighting more affordable which is further fueling their demand. Concerns around climate change and energy security are also driving the large-scale installation of solar street lights in both developed and developing nations.

Growing concern towards reduction of electricity bills

The spiraling electricity prices across the globe have enhanced the focus on developing sustainable alternatives for street lighting. The conventional street lighting systems primarily rely on electricity grids which have witnessed a steep rise in tariffs over the past few years. According to reports, some cities spend up to 30% of their overall electricity consumption just for illumination of streets and outdoor public places. At the same time, a majority of this lighting is often operational even during daytime, resulting in colossal wastage of energy. Solar street lighting provides a highly feasible solution to curb these unnecessary expenditures. With integrating solar photovoltaic panels, these lights can derive power from natural sunlight during day, thereby eliminating dependency on grids. This has substantial potential to bring down energy costs substantially for urban local bodies. As per analysis, solar street lights with basic LED bulbs pay for themselves within 3 to 5 years through electricity cost savings alone in most cities across the world. Some studies also indicate O&M costs for solar lights are 80% lower than traditional street lamps over their lifespan. This compelling business case is a key driver attracting more municipalities and public authorities to include solar options in their street lighting infrastructure upgrades.

Market Concentration and Competitive Landscape

Solar Street Lighting Market Concentration By Players

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Concerns over environmental sustainability

Rising environmental awareness among public and private entities has heightened the importance of minimizing carbon footprint from urban lighting networks. Street and outdoor lighting typically involve the usage of conventional lamps and fixtures which release harmful pollutants and greenhouse gases during electricity production from fossil fuels. Based on rough estimates, street lighting is responsible for approximately 10% of total carbon emissions from the buildings sector worldwide. Additionally, traditional systems utilize inflammable and non-ecofriendly chemicals in their components which release emissions on disposal and degrade soil and water quality. On the other hand, solar photovoltaic energy and LED bulbs provide a clean mechanism of illumination without any pollutants. This makes solar street lights a highly sustainable green solution aligned with global decarbonization goals. Governments across many developed and developing nations are actively promoting the widespread adoption of solar lights to reduce light pollution and dependence on dirtier fuel sources. Sustainability centric public procurement policies and subsidies are encouraging local authorities to install solar alternatives on a larger scale. Thus, growing environmental stewardship among key stakeholders worldwide is a pivotal driver propelling the global solar street lighting industry.

Key Takeaways from Analyst:

Governments and municipalities are investing heavily in solar street lighting to reduce carbon emissions and energy costs. Another major driver is the falling prices of solar components such as photovoltaic panels and LED lights, which has made solar street lighting much more financially viable compared to conventional street lighting systems.

The high upfront costs associated with installing solar street lighting infrastructure could act as a restraint in certain price-sensitive countries. Availability of low-cost capital financing and subsidy schemes would help offset this restraint. The market may also face constraints due to unpredictable weather conditions which could impact the performance of solar systems.

Asia Pacific, led by China and India, will dominate the global solar street lighting market due to rapid urbanization, growing solar adoption, and supportive government policies in these countries. Europe will also grow substantially owing to European Union's push for clean energy. However, regions with cold weather conditions such as Nordics may see slower adoption rates.

Market Challenges: High initial investment costs

High initial investment costs are significantly restraining the growth of the global solar street lighting market. Setting up solar street lighting infrastructure requires a substantial upfront capital expenditure which local municipalities and governments, especially in developing regions, are hesitant to allocate due to budget constraints. Solar street lights have advanced batteries and LED light panels which make the initial installation expensive compared to traditional street lighting systems.  The high capital expenditure is a barrier even for developed countries to retrofit their existing street lighting networks with solar alternatives on a large scale. While solar street lighting provides long term savings on energy costs and lower maintenance needs over the lifecycle, recovering the high upfront investment is a slow process. This deters many potential purchasers who prefer options with lower initial prices. Additionally, solar infrastructure also requires sufficient maintenance and periodic change or cleaning of solar panels to optimize performance throughout the product's lifespan. This ongoing operational cost is another hurdle for cash-strapped local authorities.

Market Opportunities: Integration of IoT capabilities to enable smart city applications

The integration of Internet of Things (IoT) capabilities to enable smart city applications can provide immense opportunities to drive innovations and modernization in the global solar street lighting market. Solar street lights with IoT sensors allow city administrators to remotely monitor the performance and functionality of each light in real-time. The lit lights can be dimmed or brightened based on ambient lighting conditions. Additionally, the lights can be automatically switched on at dusk and off at dawn through built-in sunset-sunrise algorithms. This makes the lighting infrastructure more energy efficient while cutting costs significantly.  IoT integration further helps collect useful data from the lights. Environmental sensors can detect air pollution, noise levels and traffic congestion. Camera sensors provide real-time feed of the street conditions. This wealth of data helps urban planners and law enforcement agencies optimize public services, improve infrastructure design and ensure safety.

Solar Street Lighting Market By Product Type

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Insights, by Product Type: The Rise of LED

Light-emitting diode (LED) is expected to contribute 72.3% share of the market in 2024, owing to various advantages over other technologies. LED lights have a much longer lifespan than traditional lighting like incandescent bulbs - they can last around 50,000 hours which is nearly 20 years of use if used for 4 hours each day. This reduces maintenance and replacement costs significantly for users. LED lights are also very energy efficient, using at least 75% less energy than traditional lighting to produce the same amount of light. This lends to major savings in energy costs. From an environmental perspective, LED lights do not contain mercury which is a toxic material found in CFL bulbs. They are 100% solid state with no fragile glass tubing to break like in incandescent bulbs. LED lights emit very little heat and have an extremely low carbon footprint. Their high durability and efficiency have made LED the lighting technology of choice for most street lighting projects globally.

Insights, by Connection Type: Standalone Success

In terms of connection type, standalone is expected to contribute 75.6% share of the market in 2024, chiefly due to lower installation and operational costs. Standalone systems have an advantage as they do not require any infrastructure for grid connectivity which reduces initial setup expenses considerably. There are no transmission losses or additional charges applicable for grid supplied electricity. This makes them very cost effective for lighting up streets, highways, and roads in rural/off-grid areas which form a major part of any country. Their independent functioning with battery backup also provides uninterrupted lighting even in cases of power outages unlike grid tied systems. The reliable standalone systems are well suited for the price sensitive needs of many municipal and public works departments across developing nations. 

Insights, by End User: Commercial Cornerstone

In terms of end user, commercial is expected to contribute 38.4% share of the market in 2024, primarily because of greater needs. Streets, highways, and parking lots in commercial areas like factories, business parks, markets, etc. require higher levels and densities of lighting compared to residential zones. Well-lit roads and walkways are important for visual appeal and safety purposes to support night time commercial activities. Many business owners prefer the low maintenance solar street lights as they eliminate the costs associated with power cables and electricity bills. Their self-sufficient function makes commercial users highly reliant on solar technology to meet lighting needs efficiently in open and expansive locations.

Regional Insights

Solar Street Lighting Market Regional Insights

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The Asia Pacific region currently dominates the global solar street lighting market. The region is expected to account for 37.8% of the market share in 2024. Countries like China, India, and Japan have established robust solar manufacturing industries over the past decade which has enabled large scale production of solar panels and associated products like street lights. The region is home to some key industry players and several small and medium enterprises involved in solar product manufacturing. Governments across Asia Pacific have also introduced supportive policies and subsidies that have boosted the adoption of solar street lighting solutions in both urban and rural areas. This has established a sizeable demand in the regional market. Additionally, the moderate climatic conditions allow for efficient operation of solar lighting systems throughout the year.

Middle East & Africa has emerged as the fastest growing regional market for solar street lights. Many countries in the region still lack access to reliable electricity grid infrastructure. This has made off-grid renewable energy solutions highly relevant. Successful pilot projects by private firms and non-profits have showcased the merits of utilizing the abundant solar resource for lighting community spaces and streets. Recognizing this, governments are promoting the use of solar street lights through rural electrification programs. International organizations are also extending financial and technical aid for the installation of large number of systems. The pay-as-you-go business models adopted by lighting companies have further accelerated sales across Africa.

Market Report Scope

Solar Street Lighting Market Report Coverage

Report Coverage Details
Base Year: 2023 Market Size in 2024: US$ 13.66 Bn
Historical Data for: 2019 To 2023 Forecast Period: 2024 To 2031
Forecast Period 2024 to 2031 CAGR: 15.8% 2031 Value Projection: US$ 38.15 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East & Africa: GCC Countries, South Africa, and Rest of Middle East & Africa
Segments covered:
  • By Product Type: Compact fluorescent lamps (CFL) and Light-emitting diode (LED)
  • By Connection Type: Standalone and Grid Connected
  • By End User: Commercial, Residential, and Industrial 
Companies covered:

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

Growth Drivers:
  • Growing concern towards reduction of electricity bills
  • Concerns over environmental sustainability 
Restraints & Challenges:
  • High initial investment costs
  • Dependence on weather conditions

Key Developments

  • In January 2024, Lord’s Mark Industries won a contract for smart solar street lighting in Ayodhya, India
  • In 2023, India’s WindStream Energy Technologies developed a hybrid wind-solar street light system for hilly, coastal, and rural areas
  • In 2023, AGC launched ST57 Solar LED Street Light for eco-friendly lighting
  • In 2021, Servotech launched a game-changing range of solar street lights

*Definition: The global solar street lighting market is a sector comprised of companies that design, manufacture, and distribute solar-powered street lighting systems for outdoor areas. These systems typically consist of solar panels that charge integrated batteries during the day to power LED street lights at night. The market has grown significantly in recent years as cities and towns worldwide shift towards more energy efficient and environmentally friendly outdoor lighting options.

Market Segmentation

  • Product Type Insights (Revenue, USD Bn, 2019 - 2031)
    • Compact fluorescent lamps (CFL)
    • Light-emitting diode (LED)
  • Connection Type Insights (Revenue, USD Bn, 2019 - 2031)
    • Standalone
    • Grid Connected
  • End User Insights (Revenue, USD Bn, 2019 - 2031)
    • Commercial
    • Residential
    • Industrial
  • Regional Insights (Revenue, USD Bn, 2019 - 2031)
    • North America
      • U.S.
      • Canada
    • Latin America
      • Brazil
      • Argentina
      • Mexico
      • Rest of Latin America
    • Europe
      • Germany
      • U.K.
      • Spain
      • France
      • Italy
      • Russia
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • Australia
      • South Korea
      • ASEAN
      • Rest of Asia Pacific
    • Middle East & Africa
      • GCC Countries
      • Israel
      • Rest of Middle East & Africa
  • Key Players Insights
    • 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
    • Sunrise Solar

Frequently Asked Questions

The CAGR of the global solar street lighting market is projected to be 15.8% from 2024 to 2031.

Growing concern towards reduction of electricity bills and concerns over environmental sustainability are the major factors driving the growth of the global solar street lighting market.

High initial investment costs and dependence on weather conditions are the major factors hampering the growth of the global solar street lighting market.

In terms of product type, Light-emitting diode (LED) is estimated to dominate the market revenue share in 2024.

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 are the major players.

Asia Pacific is expected to lead the global solar street lighting market.

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