Solar Lighting Systems Market

Solar Lighting Systems Market Outlook (2023 to 2033)

A newly-released industry analysis by Fact.MR reveals that worldwide sales of solar lighting systems have reached US$ 7 billion in 2023 and are projected to climb to US$ 26 billion by the end of 2033. The global solar lighting systems market is predicted to surge ahead at a prolific CAGR of 14% from 2023 to 2033.

In a solar lighting system, solar panels are used to capture and store solar energy during the day, which is then used to power lighting fixtures at night. The system is made up of several parts, such as solar panels, batteries, charge controllers, and lighting fixtures. The system's primary element, the solar panel, is in charge of gathering solar energy and transforming it into electrical energy.

• Demand for off-grid solar lighting systems is gaining traction because they can produce electricity in remote regions and store it for later use. They are powered effectively by batteries that are built into them.

Growing usage of energy-efficient solar lighting systems for roads, rising adoption and falling prices of LEDs, and expanding demand from emerging and developing markets are the main factors driving market growth. Due to growing government initiatives promoting the use of renewable energy sources, demand for solar lighting systems is on the rise. Solar-powered lighting systems are employed in remote and outdoor locations where grid-based electricity is unreliable or unpredictable.

Increasing need for smart and environmentally friendly home systems that use AI assistants to control the lighting system is driving the demand for solar lighting systems in the residential sector. As they offer strong luminous power with minimal energy consumption, they are increasingly employed for decoration purposes during house parties and celebrations, helping to reduce electricity costs. They are widely used in the entertainment sector for both indoor and outdoor shooting because of their affordability.

New market opportunities are anticipated to arise from the advent of cutting-edge technology such as IOT-enabled lighting systems and increased funding for smart city programs. Additionally, increased consumer awareness and the requirement to reduce carbon emissions are driving market demand.

Report Attributes	Details
Solar Lighting Systems Market Size (2023)	US$ 7 Billion
Projected Market Value (2033)	US$ 26 Billion
Global Market Growth Rate (2023 to 2033)	14% CAGR
Market Share of LEDs (2023)	75%
China Market Growth Rate (2023 to 2033)	16% CAGR
Germany Market Growth Rate (2023 to 2033)	13% CAGR
United States Market Value (2023)	US$ 2 Billion
Canada Market Growth Rate (2023 to 2033)	12% CAGR
Key Companies Profiled	Solar Electric Power Company Clear Blue Technologies Inc. SunMaster Sunna Design SolarOne Solutions, Inc. Sol Inc. Jain Irrigation Systems Ltd. Halonix Technologies Ltd. Exide Industries Ltd. Azuri Technologies Ltd. Deepa Solar Systems Pvt. Ltd. Dragons Breath Solar COVIMED Group FlexSol Solutions B.V. Cooper Lighting, LLC Kamworks Microenergy Credits

Which are the Prominent Factors Spearheading Solar Lighting Systems Market Growth?

“Surging Demand for Energy-efficient Solar Lighting Products”

One of the most efficient kinds of clean energy is solar energy, and many countries are doing a wonderful job of encouraging individuals and businesses to invest in solar panels. Solar lights are affordable, have less maintenance, and are ecologically beneficial.

Primary factors driving the growth of the solar road lighting industry around the world are precise carbon emission regulations and supportive government policies for the adoption of sustainable power sources. Some countries are also making efforts to increase the use of renewable energy sources such as wind and sunlight. The use of non-sustainable energy sources has led to an increase in carbon footprint, which has been targeted for reduction. As a result, the rules must be followed with greater strictness.

The market is expanding rapidly as a result of the growing demand for energy-efficient solar lighting systems caused by pollution and environmental concerns. Other factors influencing the expansion include an increase in the usage of renewable energy for lighting and increased demand from emerging and developing countries.

“Favorable Government Support for Encouraging and Incentivizing Solar Energy”

Government assistance is essential for promoting and rewarding solar energy. Subsidies, tax credits, grants, and other forms of assistance are available to manufacturers to lower costs and increase output. Launching novel initiatives, and a rise in spending on green technology R&D have all helped the market expand.

• In 2022, the Department of Energy and the United States government worked together to develop the Community Solar Subscription Platform. Through the low-income home energy aid program, it planned to link households and offer them solar energy, which will enable them to cut their electricity costs by 20%. The partnership sought to assist families in the five states around Washington, D.C.
• The Indian government supported solar lighting through various programs and plans and assisted in growing the solar energy sector. These include decentralized and off-grid solar PV applications programs that support LED lighting, lithium-ion batteries, PV cells, and other sustainable and renewable technologies. This plan aims to make solar power accessible to everyone in the area, even in minuscule and outlying areas.

“Rapid Integration of Smart Solar Lighting Solutions”

Smart solar lighting represents a revolutionary advancement in the field of outdoor lighting, combining the power of solar energy with intelligent control systems. These systems are equipped with cutting-edge technology, such as Internet of Things (IoT) devices and sensors, enabling remote monitoring, automated operation, and energy optimization.

By intelligently adjusting brightness levels, scheduling lighting cycles, and detecting motion, smart solar lighting solutions offer significant benefits in terms of energy efficiency, cost savings, and environmental impact. Through cloud-based platforms and mobile applications, users can remotely monitor the status of each lighting unit, detect faults, and make adjustments, thereby streamlining maintenance and enhancing operational efficiency.

What Could Possibly Hinder the Sales Growth of Solar Lighting Systems?

“High Initial Cost of Solar Lighting Systems and Weather Dependency”

• High Initial Costs: The initial investment required for setting up solar lighting systems can be a deterrent for some potential customers. However, the long-term cost savings and environmental benefits often outweigh the initial costs.
• Weather Dependence: Solar lighting systems rely on sunlight to generate electricity. Hence, their efficiency can be affected during cloudy or rainy weather conditions, impacting consistent performance.
• Competition from Traditional Lighting Solutions: Traditional lighting solutions powered by grid electricity or conventional fuels still dominate certain markets. Convincing customers to switch to solar lighting can be challenging in such regions.

What is Helping Start-ups Gain a Prominent Place in This Industry?

“New Companies Offering Affordable & Sustainable Solar Solutions for Homes & Businesses”

Growing global emphasis on sustainability and environmental consciousness has provided a significant boost to start-ups in the solar lighting industry. Customers increasingly seek eco-friendly and energy-efficient lighting solutions, and start-ups, often founded with a green vision, can cater to this demand effectively.

New companies are working closely with local communities to ensure that their installations have a minimal impact on the local ecosystem and employ only top-quality, ecologically friendly materials in their solar panels.

• One of the most promising renewable energy start-ups in Chile is called CleanLight. The modular nature of CleanLight's technology is one of its main advantages. Solar panels produced by the firm are made to be quickly built and disassembled, which makes them perfect for usage in remote locations without access to traditional infrastructure. Because of its modular design, CleanLight can also tailor their solar products to each community they work with.

Country-wise Insights

Why is Demand for Solar Lighting Systems Increasing Rapidly in the United States?

“Rapid Rise in Solar Projects across the Country”

• The market in the United States is valued at US$ 2 billion in 2023.

The United States has been at the forefront of adopting solar lighting systems. Remote and rural areas in the United States also benefit from solar lighting solutions where extending the power grid is not cost-effective.

Market expansion is fueled by the rise in solar projects and the huge demand for portable solar chargers. Due to growing environmental awareness that strives to reduce carbon footprint and promote clean and green technology systems, the United States is projected to have considerable market growth.

How is the Solar Lighting Systems Industry Faring in Germany?

“Market Benefiting from Ongoing Road & Highway Infrastructure Development Plans”

• Sales of solar lighting systems in Germany are set to rise at a CAGR of 13% from 2023 to 2033.

Germany is a global leader in renewable energy adoption, including solar technology. Solar street lights and outdoor solar-powered installations are common in German cities, providing efficient and environmentally friendly illumination.

Over the projection period, it is anticipated that ongoing road and highway infrastructure development plans in Germany would fuel demand for solar lighting systems. The market is driven by the rising demand for decorative and outdoor architectural lighting and surging sales of nanocomposite solar cells.

Why is China a Key Market for Solar Lighting System Manufacturers?

“Favorable Government Schemes for Sustainable Energy Development”

• The market in China is predicted to soar at a CAGR of 16% through 2033.

China manufactures and exports a substantial portion of solar lighting products, including solar panels, batteries, and LED lights. China has seen a rise in government programs focused on deploying street lighting solutions, which is anticipated to support market expansion.

Due to growing support from the government and expanding consumer awareness of adopting sustainable lighting solutions, China holds a prominent share of the market.

Category-wise Insights

Which Light Source Holds a Dominant Stance in the Market?

“LED Solar Lighting Systems Gaining Popularity Due to Their Higher Energy Efficiency”

Based on light source, the market is divided into LED and Others.

• In 2023, LED solar lighting systems account for 75% share of global revenue due to their higher energy efficiency, eco-friendly nature, durability & long lifespan, and affordability.

LED technology is well-liked by consumers due to its high energy and cost-effectiveness. In addition, they are employed extensively for developed infrastructure needs in residential, commercial, industrial, and public areas. These lights also use less energy, which decreases the need for electricity from the grid.

Demand for colored solar lights has increased due to rising technological advancements, including the insertion of LED chips for improved brightness and enhanced color. Additionally, smart lighting controls have made it possible for users to control the lighting system using voice assistants or mobile applications. Examples of these controls include the installation of motion sensors, daylight sensors, and intelligent dimming controls in LED solar lights.

Competitive Landscape

As per a new industry analysis by Fact.MR, a market research and competitive intelligence provider, top producers of solar lighting systems are continually concentrating on the development of new products, product standards, quality control, and supply chain management to preserve their market position. To secure long-term contracts, other significant market participants and local companies take part in auctions of various renewable energy development projects.

For instance,

• In 2020, the French business Sunna Design SA bought the North American company SOL Inc. to commercialize solar LED lighting solutions throughout developing countries.

Key Segments of Solar Lighting Systems Industry Research

• By Light Source :

  • LED
  • Others

• By Grid Type :

  • Off-Grid
  • Hybrid

• By Application :

  • Commercial
  • Highways & Roadways
  • Industrial
  • Residential
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa