Global Solar LED Lighting Market Research Report: Forecast (2023-2028)

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 & Analysis: Global Solar LED Lighting Market (2023-28)

The Global Solar LED Lighting Market was valued at USD 9.1 billion in 2022 and 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.

In addition, as solar panels provide independence from power grids, their implementations & utilization is multi-dimensionally spreading in remote & rural areas where the connection of traditional power system is not currently possible. Besides, multiple added features such as minimal maintenance & lower operational costs, with illumination even in a grid outage, further extend the industrial expansion.

However, the lighting systems' high installation costs & weather dependency will likely impede market growth. On the contrary, the government & related bodies' initiatives to promote the utilization of solar lighting by providing LED lighting at a subsidized rate in combination with the sustainable & renewable property of the product are likely to bode well for market acceleration. 

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 & 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: 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 & declining prices of solar panels have been further curating the positive graph of the industry, hence enhancing the Global Solar LED Lighting Market size.

Market Segmentation

Based on Application

• Residential
• Commercial
• Industrial

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,

• In October 2022, the City of Princeton, Texas, installed 37 smart off-grid solar street lights in the Princeton Municipal Park to improve its local infrastructure, increase energy resilience, and promote sustainable alternatives.

Based on Product Type

• Stand-alone
• On-grid

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:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

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, the India Brand Equity Foundation (IBEF) states that India intends to produce 500GW of energy from renewable sources by 2030, with substantial share of solar energy. For rural electrification, reforms and policies, such as Deendayal Upadhyay and Gram Jyoti Yojna, aims to install several Solar LED lights as illumination solutions.

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 Solar LED Lighting Market

• In January 2021, Greenshine New Energy announced the delivery of its two new solar pathway lighting projects for public use intended to increase safety and security in the high-foot traffic area and to increase the usage of energy-efficient lighting.

Gain a Competitive Edge with Our Global Solar LED Lighting Market Report

1. Global Solar LED Lighting Market Report by Markntel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
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