Market Definition
Solar LED Lighting is a reliable and cost-effective lighting solution that uses solar power as its primary energy source. Photovoltaic panels are installed on the top of the pole or sometimes integrated into the bar, which aims to help with solar energy storage. These solar panels are then connected to a rechargeable battery which powers the LED lamp when the sun sets, resulting in solar panels absorbing the sunlight during the day, converting it into electrical energy to power the LED at night. The light gets turned on and off mostly by sensors monitoring the outdoor light using solar panel voltage.
Market Insights
The Global Solar LED Lighting Market is projected to grow at a CAGR of around 20% during the forecast period, i.e., 2023-28. It owes to the growing inclination of individuals from traditional lighting to advanced solar lighting primarily due to the sturdy increase of CO2 emissions & greenhouse gases in the environment. As a result, numerous countries are focusing on shifting toward greener solutions & sustainable development. Several countries are actively looking for various methods to reduce carbon dioxide emissions by installing solar LED lights and moving toward Smart electricity solutions due to rapid urbanization.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 20% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA | |
| Key Companies Profiled | Bisol, Greenshine New Energy, Solar Lighting International, Anuhi Longvolt Energy Co., Ltd., Solar Electric Power Company (SEPC), Solux, Orion Solar, Leadsun, Bridgelux, Inc, SOKOYO Solar Group, Urja Global, Solektra International |
| Unit Denominations | USD Million/Billion |
In addition, as solar panels provide independence from power grids, their implementations and utilization is multi-dimensionally spreading in remote and rural areas where the connection of traditional power system is not currently possible. Besides, multiple added features such as minimal maintenance and lower operational costs, with illumination even in a grid outage, further extend the industrial expansion.
However, the lighting systems' high installation costs and weather dependency will likely impede market growth. On the contrary, the government and related bodies' initiatives to promote the utilization of solar lighting by providing LED lighting at a subsidized rate in combination with the sustainable and renewable property of the product are likely to bode well for market acceleration. For instance,
Market Dynamics
Key Driver: Rising Urbanization Instigating the Need for Sustainable Energy Sources
With the growing population, the introduction of new technologies, and infrastructural development, urbanization is spreading globally, consecutively raising demands for sustainable sources and utilization of energy and electricity. Therefore, the need for energy-efficient tools such as solar energy panels to fulfill the goals of smart cities in developing countries is driving the market growth. Besides, the minimal maintenance and lower operational costs compared to conventional lighting have increased the installation of solar lighting in numerous underdeveloped areas. Furthermore, lucrative features such as energy efficiency, low operating and maintenance costs, quick fault detection, and real-time control decisions via central control units or devices are further driving the market.
Possible Restraint: High Initial Installation Costs and Weather Dependency of the Lighting System
Though the lighting system is renewable and energy-saving, the initial installation expenses of solar LED lighting are high, which might restrain the market extension. In addition, the habitual dependency on coal and other fossil fuel for electricity generation is delaying the transition to solar energy, which, combined with higher installation costs, is challenging the industrial acceleration. Moreover, the manufacture and operation process of the lighting system is likely to be impacted by snow buildup and dust particles on panels, reducing the operational potential and functionality of the lights are bound to hinder the expansion of the industry.
Growth Opportunity: The Potential for LED Lighting to Become Mainstream
As LED light is getting integrated into residential, commercial, and industrial sectors, there is still much more potential scope to cover, leading to it becoming mainstream by taking over and a decline in the prices due to rising LED technology. In addition, favorable governmental and other initiatives and the consumer shift to sustainable electricity and lighting sources will likely be bound well for the market. Moreover, government and market players combined efforts to spread the utilization of LED over CFL or other incandescent lightbulbs, like providing LED at a subsidized cost, are bound to give the industry lucrative growth opportunity.
Key Trend: Independency from The Power Grid Resulting in Increased Adoption in Rural & Remote Areas
Solar LED lighting provides a productive solution to dependency on the power grid and power lines. Thus, raising its adoption in rural and remote areas, where connecting power grid and lines would be more financially draining. Hence, it has made possible transmission of electricity to areas where currently lighting system implementation through traditional methods is not possible. Consecutively, installing different lighting, such as street lights, completely independent from the power grid, has turned into a trend, extending the industry. Furthermore, added benefits such as low-maintenance costs and declining prices of solar panels have been further curating the positive graph of the industry.
Market Segmentation
Based on Application
Among all, Commercial Application is projected to acquire the largest market share in the forecast period. It is attributed to the surging initiatives by various country governments and civic authorities opting for solar lighting and other renewable energy sources. As a result, solar lighting solutions are getting implemented in streets, roadways, and other commercial establishments.
Adding to this, the surging demand for solar lighting in numerous public areas such as airports, parking lots, public area lighting, and perimeter security lighting is further garnering more acceleration to the commercial application of the market. Furthermore, to extend the utilization and adoption of solar panel energy and solar lighting, government and related authorities are offering tax rebates and incentive schemes to commercial consumers strengthening the market flow. For instance,
Based on Product Type
Among the two, Stand-Alone Product Type has acquired a higher market share during the historical period and is bound to continue in the same flow during the forecast period. It is owed to Stand-Alone power systems being off-grid and independent of electricity grids. They collect and store solar energy and provide it with power even when the on-grid electricity is off. Besides, countries like Indonesia, India, Tanzania, and Kenya promote installing and deploying off-grid solar lighting systems due to their high dependency on stand-alone product types. Moreover, a stand-alone allowing the storage and saving of solar power in batteries and utilization independent of the grid, compared with the on-grid system, which does not provide power during grid outages, is adding to the market extension.
Regional Projection
Geographically, the Global Solar LED Lighting Market expands across:
Globally, the Asia-Pacific region accounted for the largest market share during the historical period and is anticipated to continue in the same trend during the forecasting period. The market is expanding owing to the rising number of smart cities, infrastructure development, and numerous city expansion projects in several countries. In addition, China is leading the region’s growth with increasing government expenditure on public infrastructure and rising commercial and industrial projects. Along similar lines, several initiatives by the government of India, China, South Korea, and Australia aim to install street lighting solutions actively, as Solar LED is a cost-effective and sustainable solution that does not require trenching and is highly effective in areas that receive lots of sunlight. For instance:
On the other hand, Europe is expected to experience significant market expansion, attributed to countries like the UK and Germany leading the market expansion by shifting to greener energy solutions to fulfill their carbon emission reduction and sustainable energy production goals.
Recent Developments in the Global Market
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Frequently Asked Questions
A. The Solar LED Lighting Market is projected to grow at a CAGR of around 20% during 2023-28.
A. Rising urbanization instigating the need for sustainable energy sources is expected to drive the Solar LED Lighting Market during 2023-28.
A. Bisol, Greenshine New Energy, Solar Lighting International, Anuhi Longvolt Energy Co., Ltd., Solar Electric Power Company (SEPC), Solux, Orion Solar, Leadsun, Bridgelux, Inc, SOKOYO Solar Group, Urja , and Solektra International are the top players in the Solar LED Lighting Market.
A. Commercial Application is anticipated to emerge as an area of remunerative opportunities for the leading Solar LED Lighting Market players during the forecast period.
A. Geographically, the Asia-Pacific region would provide lucrative prospects for the Solar LED Lighting Market in the years ahead.
A. Independence from the power grid leading to more utilization in rural and remote areas are the key trends shaping the Solar LED Lighting Market growth during 2023-28.
A. Spreading and Growing LED technology are the growth opportunities driving the Solar LED Lighting Market through 2028.
A. High initial installation costs and weather dependency on the lighting system are the possible restraints affecting the growth of the Solar LED Lighting Market.
