Solar Street Lighting Market is Anticipated to Witness High Growth Owing to Rising Adoption of Renewable Energy Sources

Solar Street Lighting Market

 Solar street lighting systems are used to illuminate outdoor roads, paths, streets, and walkways. These systems use photovoltaic panels to charge batteries during the day which power LED lights at night. The key advantages of solar street lights include maintenance-free operations, lower installation and operating costs compared to conventional lighting, and environmental sustainability as they help reduce carbon emissions. The growing need for efficient, affordable, and durable outdoor lighting solutions is driving the demand for solar street lighting systems across both developing and developed nations.

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.

Favorable government policies promoting renewable energy adoption and increasing investments in smart city projects are fueling market growth.

Key Takeaways

The rising adoption of energy-efficient technologies across commercial and residential sectors worldwide also presents an opportunity for manufacturers to tap the untapped rural markets. Countries with high Solar Street Lighting Market Size irradiation can become major manufacturing hubs to capitalize on this opportunity.

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. These players are focusing on new product launches and partnerships to expand their global footprint.

The growing need to replace ageing infrastructure in developed nations and rapidly improving living standards in emerging economies offer lucrative growth opportunities in new rural electrification projects and smart city developments. Further, the increasing presence of international development organizations funding such initiatives in remote areas provides a boost to global expansion.

Market Drivers

Favorable government policies promoting renewable energy: Governments across many countries offer subsidies and tax rebates on solar products to encourage renewable energy adoption. This makes solar street lighting systems more affordable, thereby boosting demand.

Increasing investments in smart city initiatives: Mega infrastructure projects worldwide involving development of smart and sustainable cities generate substantial demand. Solar street lighting is seen as a integral component of such initiatives.

Market Restrain

High initial setup costs: Despite falling prices, the upfront capital costs of installing solar street lighting systems remains unaffordable for many municipal bodies and local administrations in underdeveloped regions. This limits their widespread adoption.

Intermittency issues: Dependence on sunlight poses challenges particularly in areas experiencing long winters or frequent cloud cover. Batteries need frequent replacement to ensure adequate backup during outages. This increases operating costs over time.

Segment Analysis

The solar street lighting market is segmented into grid connected and standalone. The grid connected segment dominates the market as it allows automatic switching between solar power and grid power based on availability. These lights are cost effective and require low maintenance.

The market is also segmented based on product type into compact fluorescent lamps (CFL), light emitting diode (LED), and others. The LED segment dominates as LED lights have a longer lifespan of around 50,000 hours as compared to 10,000 hours for CFL. LED lights are highly efficient and provide bright illumination with minimal energy usage.

Global Analysis

In terms of regional analysis, Asia Pacific is expected to witness fastest growth during the forecast period due to rising government initiatives to adopt clean energy technologies for street lighting in developing countries such as India and China. North America and Europe will also grow substantially due to rising emphasis on renewable energy and reducing carbon emissions. Government incentives and subsidies along with falling prices of solar products will drive adoption across all regions.

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