Solar Lighting System Market Size, Share and Trends 2024 to 2034

Solar Lighting System Market Size and Forecast 2024 to 2034

The global solar lighting system market size is projected to reach around USD 42.02 billion by 2034 from USD 10.21 billion in 2024, at a CAGR of 15.20% between 2024 and 2034. Increasing environmental consciousness, as well as the desire to cut carbon emissions, is the key driver of the solar lighting system market.

Solar Lighting System Key Takeaways

• Asia Pacific dominated the solar lighting system market in 2023.
• North America is expected to grow at a faster rate in the market over the projected period.
• By grid type, the off-grid segment dominated the market in 2023.
• By grid type, the hybrid segment is expected to grow at a significant rate in the market over the forecast period.
• By application, the commercial segment led the market in 2023.
• By application, the highways & roadways segment is anticipated to grow at the fastest rate in the market during the forecast period.

Asia Pacific Solar Lighting System Market Size and Growth 2024 to 2034

The Asia Pacific solar lighting system market size was exhibited at USD 3.19 billion in 2023 and is projected to be worth around USD 15.34 billion by 2034, poised to grow at a CAGR of 15.34% from 2024 to 2034.

Asia Pacific dominated the solar lighting system market in 2023. The market is growing due to the surge in smart city developments, infrastructure projects, and city expansion efforts across various nations. China is leading this growth, driven by increased government spending on public infrastructure and a rise in commercial and industrial projects. Similarly, initiatives from the governments of India, South Korea, and China are focused on installing street lighting solutions. Solar LED lighting is favored for its cost-effectiveness and sustainability, requiring no trenching and proving highly efficient in areas with plenty of sunlight.

• In May 2022, Lord’s Marks Industries announced that it had bagged a contract from Bihar, India government to devise the world’s largest solar-based lighting project across the state.

North America is expected to grow at a faster rate in the solar lighting system market over the projected period. By holding a significant share of the market, a focus on sustainable energy and the decreasing reliance on fossil fuels drives this trend. Moreover, the market's growth is supported by the presence of numerous solar lighting system manufacturers, which gives a diverse range of products and technological innovations. The efficient distribution network in North America also plays an important role in making solar lighting products widely available and accessible across the region.

• In May 2024, LONGi (North America), a global leader in solar technology, announced the launch of its latest module, Hi-MO 5 Ice-Shield, specifically designed for durability and reliability in the face of increasing extreme hail and windstorms. Establishing a new industry benchmark for quality and performance, the Ice-Shield module significantly improves reliability while maintaining the higher power generation and reduced LCOE and BoS costs of the Hi-MO 5 module.

Top Solar Power Generating States in India (2023)

Market Overview

The solar lighting system market includes the sector responsible for producing, distributing, and installing lighting systems that operate on solar energy. These systems use photovoltaic panels to convert sunlight into electrical power, which is stored in batteries for use when sunlight is insufficient or at night. Solar lighting solutions are employed in a variety of settings like residential, commercial, industrial, and outdoor and provide an eco-friendly and sustainable alternative to traditional grid-based lighting options.

How is AI Changing the Solar Lighting System Market?

Recent progress in artificial intelligence (AI), particularly through machine learning and computer vision, has shown great promise in enhancing the performance of the solar lighting system market. By examining large datasets from solar installations and using sophisticated algorithms, AI can fine-tune the setup of solar arrays to suit different environments. Additionally, machine vision technology can facilitate real-time tracking and adjustment of panels to optimize solar energy capture throughout the day and across seasons. On a more granular level, AI techniques can be used to design, simulate, and test innovative nano-scale structures by improving the efficiency of converting photons into electrons.

• In July 2024, American utility and power generation company AES Corporation introduced Maximo, an AI-enabled solar installation robot. The robot is designed to significantly improve the speed, efficiency, and safety of solar panel installation. Maximo can install solar panels in half the time and at half the cost of traditional methods.

Solar Lighting System Growth Factors

• Increasing government initiatives and incentives are expected to drive the solar lighting system market growth soon.
• Decreasing the costs of solar technology can fuel the solar lighting system market growth further.
• The demand for solar lighting systems is also being boosted by government-sponsored projects for rural electrification.

Market Scope

Market Dynamics

Driver

Urbanization's surge sparks demand for sustainable energy solutions

As the global population grows, new technologies emerge, infrastructure development is accelerating, and urbanization is growing rapidly. This shift has increased the demand for sustainable energy and efficient electricity use. As a result, there is a growing need for energy-efficient solutions, especially solar panels, to support the goals of smart city projects in developing countries. Moreover, solar lighting's appeal is boosted by its low maintenance and lower operational costs compared to traditional lighting systems, which is driving its adoption in various underdeveloped areas.

Restraint

Lack of perception and awareness

Misunderstandings and limited awareness about the solar lighting system market may hinder its widespread adoption. Some organizations and consumers might not fully recognize the benefits of solar lighting systems or might believe that these systems are less reliable or efficient compared to traditional lighting options. Additionally, the lack of financial resources and access to funding could be a barrier to adopting solar lighting, particularly in developing or underserved communities where the initial investment can be challenging to afford.

Opportunity

Mainstream applications

As LED lighting continues to be adopted across residential, commercial, and industrial sectors, its potential for growth remains substantial. This widespread integration is expected to make LEDs a mainstream choice, driving prices down as technology advances. Also, supportive government initiatives and a shift toward sustainable lighting options are likely to benefit the market. Efforts from both the government and industry players to promote LEDs over CFLs and incandescent bulbs, such as offering subsidies, are poised to create significant growth opportunities for the solar lighting system market.

• In January 2024, Lord's Mark Industries Private Ltd., a diversified business group, won the contract to set up an LED-based smart solar street lighting system at Ayodhya in Uttar Pradesh ahead of the Ayodhya Ram Temple inauguration. The Ayodhya project is part of a series of contracts that Lord's Mark Industries has been awarded under the 'Ayodhya Solar City Program' by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), Government of Uttar Pradesh.

Grid Type Insights

The off-grid segment dominated the solar lighting system market in 2023. Their increased use in developing countries is attributed to the lower installation costs and the absence of a need for wide cabling infrastructure. Furthermore, solar lights can provide illumination in remote areas lacking reliable or grid access. In a typical off-grid setup, solar panels capture sunlight and convert it into electricity, which is then stored in local batteries to power the lights during nighttime.

• In March 2022, Bboxx, a next-generation utility, launched a new service to provide renewable solutions to off-grid communities in Africa. The service named ‘Flexx by Bboxx’ will offer entry-level clean energy products for the people at the bottom of the energy pyramid. As part of the launch, Bboxx announced two new solar-powered products under the banner Flexx. The first one is an upfront cash sales product named Flexx10, a ‘plug-and-play’ portable solar lantern. Flexx10 can charge mobile phones.

The hybrid segment is expected to grow at a significant rate in the solar lighting system market over the forecast period. This can be attributed to the rising demand for sustainable and innovative products alongside the broader adoption of new technologies. Hybrid solar lighting (HSL) systems, also known as hybrid lighting solutions, merge solar power with artificial lighting to illuminate indoor spaces. They work by directing sunlight through fiber optic cables into rooms without windows or skylights and then supplementing this natural light with artificial lighting.

Application Insights

The commercial segment led the solar lighting system market in 2023. This growth is driven by increasing efforts from governments and local authorities to adopt solar lighting and other renewable energy sources. Therefore, solar lighting solutions are being deployed in various locations, including streets, roadways, and commercial properties. Also, the rising demand for solar lighting in public spaces such as airports and parking lots and for perimeter security further boosts the expansion of the commercial market.

The highways & roadways segment is anticipated to grow at the fastest rate in the solar lighting system market during the forecast period. The growing popularity of off-grid solar streetlights can be attributed to their low cost and minimal maintenance needs. Additionally, the increased brightness and efficiency of LED lights contribute to their widespread adoption.

Solar Lighting System Market Companies

• Philips
• Sunna Design Inc.
• Solar Electric Power Company
• Solar Street Lights USA
• Shenzhen Jiawei Solar Lighting
• Eaton Corporation
• Greenshine New Energy
• Yingli Solar
• Array Technologies

Recent Developments

• In April 2024, the Queensland Government announced a multi-million-dollar investment aimed at bolstering Queensland’s renewable energy sector, specifically in solar panel recycling.
• In April 2024, one of the world’s largest PV module manufacturers, Chinese giant JinkoSolar, said that the first of its Neo Green panels – made in ‘Zero Carbon Factory’ certified facilities have rolled off the production line.
• In April 2024, Repsol completed construction of its Frye Solar project located in Swisher County, Texas, with a total installed capacity of 637 MW and 570 MW currently in operation.
• In October 2022, the City of Princeton, Texas, installed 37 smart off-grid solar streetlights in the Princeton Municipal Park to improve its local infrastructure, increase energy resilience, and promote sustainable alternatives.

Segments Covered in the Report

By Grid Type

• On-grid
• Off-grid
• Hybrid

By Application

• Highways & Roadways
• Industrial
• Commercial

By Geography

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