SOLAR STREET LIGHTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Solar Street Lighting Market Size and Forecast – 2025 to 2032

The global solar street lighting market is estimated to be valued at USD 15.85 Bn in 2025 and is expected to reach USD 44.81 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 16.0% from 2025 to 2032.

Key Takeaways

• By Product Type, Compact fluorescent lamps (CFL) hold the largest market share of 72.8% in 2025 owing to its lower upfront cost makes cfl attractive in budget‑sensitive markets.
• By Connection Type, Standalone expected to hold the largest market share of 76.1% in 2025 owing to the independence from electrical grid.
• By End User, Commercial acquired the prominent market share of 38.9% in 2025 owing to the cost savings on energy and operations.
• By Region, Asia Pacific dominates the overall market with an estimated share of 38.3% in 2025 owing to the rapid urbanization & infrastructure expansion.

Market Overview

The Solar Street Lighting Market is expanding rapidly as businesses and governments increasingly adopt energy-efficient and sustainable outdoor lighting solutions. Rapid urbanization, ongoing infrastructure development, and proactive government initiatives promoting renewable energy are driving the installation of solar-powered street lights. Innovations in LED technology, smart lighting systems, and battery storage are improving performance and reliability. Across urban, commercial, and rural areas, these solutions provide cost-effective, environmentally friendly, and low-maintenance alternatives to traditional grid-connected street lighting systems.

Current Events and Its Impact on the Solar Street Lighting Market

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Segmental Insights

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Solar Street Lighting Market Insights, By Product Type - Compact fluorescent lamps (CFL) contribute the highest share of the market owing to its suitability for low power solar systems

Compact fluorescent lamps (CFL) hold the largest market share of 72.8% in 2025. The solar street lighting market increasingly adopts Compact Fluorescent Lamps (CFL) due to their cost-effectiveness and suitability for low-capacity solar systems. CFLs deliver sufficient illumination for moderate lighting requirements while keeping initial costs lower than advanced LED alternatives. Their widespread availability and presence in existing installations make them a practical option in emerging regions. Governments and community electrification programs actively choose CFL-based solutions for their simplicity, reliability, and ease of installation and replacement in off-grid or budget-limited areas. For instance, Power and New and Renewable Energy Minister Raj Kumar Singh launched the Gram Ujala scheme, under which rural consumers exchange incandescent and CFL bulbs for energy-efficient ones, paying ₹10 per bulb while carbon credits cover ₹60 per unit.

Solar Street Lighting Market Insights, By Connection Type - Standalone contribute the highest share of the market owing to its rapid installation & low civil works

Standalone expected to hold the largest market share of 76.1% in 2025. The adoption of standalone solar street lighting systems is rising as they operate independently of the electrical grid, making them perfect for remote and off-grid areas. These systems cut installation costs by removing the need for cabling and infrastructure while minimizing operational expenses and maintenance. Governments and organizations actively promote their use through supportive policies, renewable energy programs, and development projects in urban and rural regions. Improvements in solar panels, battery storage, and smart lighting technologies boost their performance, reliability, and energy efficiency, establishing them as versatile and sustainable outdoor lighting solutions. For instance, Scottish solutions company Eco Group, in partnership with Kight Off-Grid Solutions, has launched Eco Off-Grid, a standalone LED street lighting system that operates independently of the grid to lower energy costs and reduce carbon footprints.

Solar Street Lighting Market Insights, By End User - Commercial contribute the highest share of the market owing to its rapid urbanization & commercial infrastructure growth

Commercial acquired the prominent market share of 38.9% in 2025. Businesses are increasingly adopting solar street lighting to lower energy costs and reduce operational expenses while improving safety and visibility in outdoor areas like parking lots, campuses, and business parks. Companies actively pursue sustainable solutions to fulfill environmental and corporate responsibility goals. Expanding urban development and commercial infrastructure drive the need for reliable, low-maintenance lighting. Furthermore, government incentives and innovations in smart LED and battery technologies motivate businesses to deploy solar street lighting systems that deliver efficiency, durability, and ease of management. For instance, in July 2024, Energy Assets Net Zero (EA NZ), part of the Energy Assets group, has introduced a new asset adoption package that designs, installs, and maintains solar PV systems for commercial and industrial customers with no upfront costs.

Role of AI (Artificial Intelligence) in the Solar Street Lighting Market

Artificial Intelligence (AI) is reshaping the solar street lighting market by allowing stakeholders to manage lighting systems more intelligently and efficiently. AI-driven systems actively optimize energy use by adjusting brightness according to real-time traffic, weather, and occupancy conditions. They perform predictive maintenance to minimize downtime and extend the lifespan of lights, while remote monitoring enables cities and businesses to control networks effectively. By incorporating AI, solar street lighting delivers improved performance, reduced operational costs, and enhanced safety, creating smarter, more responsive, and sustainable solutions. For instance, in July 2025, UK-based AI Factories Corp has formed a strategic partnership with iLamp to deploy intelligent, solar-powered street lighting across the U.S., creating the world’s first distributed AI computing network within urban lighting systems.

Regional Insights

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Asia Pacific Solar Street Lighting Market Trends

Asia Pacific dominates the overall market with an estimated share of 38.3% in 2025. The Asia Pacific solar street lighting market is growing rapidly as urbanization and infrastructure development accelerate and governments actively promote renewable energy initiatives. Countries in the region are implementing smart city projects, integrating solar lighting with IoT-enabled controls, sensors, and adaptive technologies. Declining costs of solar panels and battery storage are making installations more affordable, while demand in rural and off-grid areas continues to increase. These developments highlight a regional shift toward energy-efficient, low-maintenance, and environmentally friendly outdoor lighting solutions. For instance, in August 2025, Waaree Energies has launched innovative flexible, lightweight solar modules designed for curved surfaces and structures unsuitable for traditional glass panels.

North America Solar Street Lighting Market Trends

Municipalities and commercial sectors in North America are increasingly adopting sustainable, energy-efficient solar street lighting solutions, driving growth in the market. Investments in smart city projects are integrating solar lights with IoT-enabled controls, motion sensors, and adaptive brightness systems. Advances in LED efficiency and battery storage are improving reliability and lowering maintenance requirements. Furthermore, government policies, incentives, and efforts to reduce carbon emissions are actively promoting the installation of solar street lights across urban, suburban, and off-grid areas throughout the region. For instance, Edmonton has launched a pilot project installing solar-powered crossing lights to test the feasibility of Rectangular Rapid Flashing Beacons.

India Solar Street Lighting Market Trends

The Indian government and private sectors are actively expanding the solar street lighting market by focusing on rural electrification and sustainable urban infrastructure. Renewable energy initiatives and smart city projects are driving the deployment of solar lights equipped with LED technology, battery storage, and intelligent controls. Declining costs of solar panels and energy-efficient components are making installations more accessible, while off-grid and remote areas increasingly adopt standalone solar systems. These developments demonstrate India’s move toward reliable, low-maintenance, and eco-friendly outdoor lighting solutions across urban and rural regions. For instance, Telangana-based WindStream Energy Technologies has launched a hybrid wind-solar LED street light system, generating more energy per square foot than solar lights, with its first installation at the National Institute of Rural Development and Panchayat Raj in Hyderabad.

United States Solar Street Lighting Market Trends

Cities and commercial sectors in the United States are driving the growth of the solar street lighting market by prioritizing sustainable and energy-efficient outdoor lighting. Smart city initiatives are integrating solar lights with motion sensors, IoT-enabled controls, and adaptive brightness systems to enhance performance. Advances in LED technology and battery storage are increasing reliability while lowering maintenance requirements. Government programs, incentives, and environmental regulations are actively promoting adoption, leading to widespread installations across urban streets, suburban areas, highways, and off-grid locations, and supporting a shift toward greener, more resilient infrastructure.

End-user Feedback and Unmet Needs in the Solar Street Lighting Market

• Reliability and Consistent Performance: End-users often highlight intermittent lighting during cloudy days or extended rainy seasons as a challenge. Many systems struggle to maintain brightness throughout the night, leading to safety concerns. Users seek solar street lights with higher battery capacity, improved energy storage, and advanced sensors that ensure consistent illumination in varying weather conditions.
• Maintenance and Durability Concerns: Frequent maintenance of solar panels, batteries, and LEDs remains a key concern for municipalities and commercial operators. Components can degrade due to harsh environmental conditions or poor-quality materials. End-users demand longer-lasting systems with durable hardware, corrosion-resistant materials, and modular designs that allow easy replacement, minimizing operational disruptions and maintenance costs.
• Cost and Affordability: While solar street lights reduce energy expenses, the initial investment can be high, especially for large-scale installations. Small towns and budget-constrained areas often face financial barriers. End-users are seeking cost-effective solutions, including scalable systems, government incentives, and low-maintenance options that balance upfront expenditure with long-term savings

Solar Street Lighting Market Trend

Integration with Smart City Initiatives

Solar street lighting is increasingly incorporated into smart city projects, leveraging IoT-enabled controls, sensors, and adaptive brightness technologies. This integration allows cities to optimize energy usage, reduce operational costs, and improve safety in public spaces. Municipalities are adopting intelligent monitoring systems that enable real-time performance tracking, predictive maintenance, and remote control. The trend reflects a shift toward urban infrastructure that combines sustainability with digital innovation, enhancing efficiency and citizen experience.

Advancements in LED and Battery Technologies

The market is witnessing rapid adoption of advanced LED lighting and high-capacity, long-lasting battery storage. LEDs provide brighter, more uniform illumination with lower energy consumption, while modern batteries extend operational hours during low sunlight periods. These improvements enhance system reliability and reduce maintenance frequency. Combined with solar panels, these technologies make installations more efficient and cost-effective, enabling widespread deployment in urban, rural, and off-grid areas while meeting the growing demand for durable, energy-efficient outdoor lighting.

Solar Street Lighting Market Opportunity

Rural Electrification and Off-Grid Expansion

Expanding access to electricity in rural and remote regions presents a major opportunity for solar street lighting. Standalone systems can provide reliable illumination in areas lacking grid infrastructure, improving safety, mobility, and community development. Governments and NGOs are increasingly funding rural electrification projects, enabling widespread deployment of solar solutions. This creates potential for manufacturers and service providers to cater to underserved markets, offering cost-effective, low-maintenance, and environmentally friendly lighting systems tailored to remote and off-grid communities.

Market Report Scope

Solar Street Lighting Market News

• In December 2025, PENRO Isabela has launched a sustainable energy initiative installing 300 LED solar-powered street and road lights—60 per barangay—across five barangays in the Tumauini Watershed Natural Park.

Analyst Opinion (Expert Opinion)

• The Solar Street Lighting market is moving beyond mere adoption to strategic deployment driven by measurable performance outcomes and regional policy alignment. Data shows that over 89 million solar streetlights have been installed globally, with the Asia Pacific alone accounting for more than half of total deployments, underscoring concentrated public and private investment in renewable infrastructure. These installations aren’t symbolic; they are replacing traditional high‑pressure sodium fixtures with solar LED systems that cut energy consumption by up to 65% in many networks, empirically validating the energy efficiency thesis. 
• In major economies, deployment patterns reflect targeted public policy: China’s rapid urban and rural electrification efforts have driven widespread solar lighting adoption, while India’s national programmes have triggered millions of units in both urban and rural zones, improving both energy access and street safety. These initiatives are backed by tangible examples of smart infrastructure integration, with IoT‑enabled controls in an increasing share of new networks that offer remote diagnostics, adaptive dimming, and performance analytics, which are transforming maintenance and operational models from reactive to proactive.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2020 - 2032)
• Compact fluorescent lamps (CFL)
• Light-emitting diode (LED)
• Connection Type Insights (Revenue, USD Bn, 2020 - 2032)
• Standalone
• Grid Connected
• End User Insights (Revenue, USD Bn, 2020 - 2032)
• Commercial
• Residential
• Industrial
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
• 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

Sources

Primary Research interviews

• City and municipal authorities responsible for street lighting
• Solar street lighting manufacturers and suppliers
• Installation and maintenance service providers
• Renewable energy experts and consultants
• Utility companies and grid operators

Databases

• International Energy Agency (IEA) databases
• World Bank Energy Data Portal
• United Nations Data (UNData)
• National Renewable Energy Laboratory (NREL) datasets
• Government energy statistics portals (e.g., U.S. EIA, EU Energy Portal)

Magazines

• Solar Power World
• Renewable Energy World
• PV Magazine
• Lighting Today
• Electrical India

Journals

• Renewable & Sustainable Energy Reviews
• Solar Energy
• Journal of Cleaner Production
• Energy Policy
• IEEE Transactions on Sustainable Energy

Newspapers

• The Guardian – Environment Section
• The New York Times – Energy & Climate
• Times of India – Renewable Energy
• Financial Times – Energy & Utilities
• The Hindu – Science & Technology

Associations

• International Solar Alliance (ISA)
• Solar Energy Industries Association (SEIA)
• European Photovoltaic Industry Association (EPIA)
• World Bank’s Lighting Global Initiative
• International Electrotechnical Commission (IEC)

Public Domain sources

• Government policy and regulatory documents
• National energy reports and statistics
• Solar project tenders and contracts
• Environmental impact assessments
• Open-access technical reports and white papers

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of information for last 8 years