The trend of solar street lights is growing rapidly in the next 5 years. The solar lighting system market is expected to grow at a CAGR of 15.6 percent to USD 10.8 billion by 2024, up from USD 5.2 billion in 2019. Growing demand for energy-efficient solar lighting systems for highways, increased use of renewable energy for lighting, rising penetration and decreasing cost of LEDs, and rising demand from developing and emerging countries are major drivers of market growth. Furthermore, underlying opportunities for this market include a decrease in the cost of solar lighting systems, favorable government initiatives, and advancements in solar lighting system technology.
Solar street lights (SSL) are widely used for outdoor street lighting because they use solar power as their primary source of energy. With no reliance on conventional energy sources, these lighting mediums operated in stand-alone mode, obviating the need for a general grid of any power requirements. A re-chargeable lead acid battery for storage, PV (photovoltaic) modules for charging the battery, light source (compact fluorescent lamps (CFL) and light emitting diodes (LED), suitable electronics for the operation of the tamp, and safe charging and discharging of the battery, and mechanical hardware for fixing these sub systems comprise the standalone solar photovoltaic street lighting system.
The main advantage of these lighting systems is that they can operate automatically from dusk to dawn or on a pre-set timer. Tubular batteries, which are included with solar street lighting systems, require very little maintenance and have a long life. Given these benefits, the global solar street lighting market is expected to be worth US$ 12.54 billion by the end of 2027, up from US$ 3.76 billion in 2018. Between 2019 and 2027, the global solar street lighting market is expected to grow at a CAGR of 16.24 percent.
Commercial will account for the lion's share of the solar lighting system market during the forecast period.
By application, the solar lighting market is divided into highways and roadways, industrial, commercial, residential, and other sub segments. During the forecast period, commercial applications are expected to account for the majority of the solar lighting system market. Solar lighting systems are used in commercial settings like corporate offices, schools, and universities. Commercial spaces require indoor lighting to illuminate cellars, corridors, and basements, as well as outdoor lighting to illuminate pathways and perimeters, among other things. Solar lighting systems have been installed in these locations.
Demand for Greener Solutions Pushes the Commercial Sector to the Frontlines
Solar street lighting solutions are used in a variety of settings, including residential, commercial, and industrial. Because of rising initiatives by governments and civic authorities to use solar lighting, the commercial segment is expected to lead the global market. Solar street lighting solutions are currently used on streets, roadways, and a variety of other commercial establishments. The growing demand for solar lighting in areas such as parking lots, pathways, subways, perimeter security lighting, and public area lighting has also contributed to the segment's growth. Global citizens are becoming more aware of the dangers of climate change. The Asia Pacific region is emerging as a key region in the global solar street lighting market.
In 2018, Asia Pacific was the largest regional segment for the global solar street lighting market, accounting for 45.4 percent of the market. Asia Pacific's major revenue generators are China, Japan, India, South Korea, and Australia. The Indian government is focusing on the development of smart cities in the country, with a goal of having at least 100 of them by 2030. Solar LED street lights, as opposed to traditional street lights, are a cost-effective solution because they do not require trenching or grid connection, and they are highly valuable in sun-rich countries, making them an ideal choice for off-grid usage. As a result, the demand for solar LED lighting is skyrocketing. In 2018, the Middle East and Africa were the second-largest markets for solar street lighting. Kenya, South Africa, Ghana, and Nigeria lead the solar street lighting market in Africa, where there is a need for a clean and dependable source of off-grid electricity.
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Europe is also expected to offer lucrative opportunities in the solar street lighting market, with Germany and the United Kingdom leading the demand as the region makes a significant shift toward greener solutions. As part of their carbon emission reduction goals, the European government and the EU as a whole have supported wind projects with favorable incentives. This factor has a positive impact on market growth. Analysts predict that it will experience significant growth in the near future, surpassing the growth rate of the Asia Pacific market by 2020. This anticipated growth is the result of numerous initiatives, such as subsidies, campaigns, and various programs launched by the World Bank and the IMF.
Expansions, Acquisitions, and New Contracts in Global Solar Street Lighting Market
In November 2019, the French company Fonroche Éclairage, a subsidiary of the Fonroche group specialising in street lighting and renewable energy production, has been selected to supply and install solar street lamps in several localities in Benin. The value of this contract is US $24.2 Mn. Signify announced a new project in June 2019 to install solar panel powered street lights in the Infanta Elena Park in Seville, Spain to improve visitor safety and energy efficiency.
In December 2018, India's Ministry of New and Renewable Energy announced that 304,500 solar street lights will be installed under phase II of the Atal Jyoti Yojna in Uttar Pradesh, Bihar, Jharkhand, Odisha, Assam, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, North Eastern states including Sikkim, Andaman & Nicobar, and Lakshadweep, and parliamentary constituencies covering 48 aspirational districts.
In the coming years, off-grid will be a major shareholder grid type in the solar lighting system market
Off-grid solar power systems are self-contained systems that are not connected to any power grid. These systems collect and store solar energy, which is then converted to electricity when needed. Off-grid systems are heavily used in a number of developing countries, including Indonesia, Bangladesh, India, Tanzania, Ethiopia, Cambodia, and Kenya. These countries' governments are encouraging the installation and deployment of off-grid solar lighting systems.
The Brazilian Development Bank (BNDES), Columbia's Institute for Planning and Promotion of Energy Solutions (IPSE), the Ministry of New and Renewable Energy (MNRE), and India's Jawaharlal Nehru National Solar Mission (JNNSM) are among the organizations assisting in the growth of the global off-grid solar lighting system market. Aside from the governments of these countries, a few international organizations have also promoted the use of off-grid solar lighting systems. For example, the World Bank has been promoting off-grid solar lighting in Africa in collaboration with the International Finance Corporation.
APAC to account for the largest market size of solar lighting system during forecast period
APAC is a potentially lucrative market for solar lighting systems, with enormous potential for the development and implementation of new technologies. Solar lighting systems are being deployed in countries such as China, Japan, India, South Korea, and Australia. China is APAC's largest market for the deployment of solar lighting system solutions. Rising urbanization in this region's developing countries has resulted in an increase in energy demand. As a result, demand for solar street lights in this region is increasing.