Solar Lighting System

Solar Lighting System

Solar lighting systems are becoming increasingly prevalent worldwide for several reasons. This includes the increasing usage of solar energy, the growing demand for sustainable solutions, and the requirement to provide reliable sources of light in remote areas without electricity grids. Furthermore, increasing penetration and decreasing the cost of LEDs is further anticipated to increase the adoption of solar lighting systems in the coming years. Moreover, government initiatives to achieve carbon neutrality have also played a crucial role in propelling the market growth.

Deploying solar lighting systems in developing countries presents promising opportunities for market growth. These countries often need more infrastructure and face challenges providing basic amenities like electricity. Solar lighting systems offer an efficient and cost-effective solution, thus driving their adoption. The demand for sustainable energy is exponentially increasing, and countries are heavily adopting solar energy, further increasing the adoption of solar lighting systems.

The Asia Pacific Solar Lighting System market is estimated to witness the fastest growth owing to rising government initiatives towards renewable sources and clean energy. Moreover, the adoption of solar lighting in the Asia Pacific region is the need to provide electricity to rural areas. Many remote and rural areas like India, Indonesia, and the Philippines need access to reliable electricity. Furthermore, the increasing popularity of off-grid solar lights has also played an essential role in driving the solar lighting system market. As they are easy to install and cost-effective, off-grid solar lights have become popular for lighting remote locations, streets, and public spaces throughout Asia.

The North America and Europe region is anticipated to capture a significant market share due to an increased focus on sustainable energy and reduced fossil fuel reliability. Moreover, the presence of various solar lighting system manufacturers further contributes to the market's expansion, as it offers a wide range of products and technological advancements. Furthermore, the efficient distribution network in the European region has facilitated the widespread availability and accessibility of solar lighting products. Other factors contributing to the growth of the solar lighting market in Europe and North America include government incentives, favorable regulations supporting renewable energy, and increased awareness among consumers about the benefits of solar lighting systems.

The Rest of the World solar lighting market is experiencing significant growth primarily due to the installations of off-grid solar lights. The need to provide electricity to rural areas, government support and incentives, increasing investments from organizations across the globe, increasing use of off-grid streetlights, attractive payment models, and the presence of ample amounts of solar radiation is further expected to increase the adoption of solar lighting systems in the region. Moreover, in the major areas of Africa, people are still utilizing kerosine oil to produce light. Providing them with solar lights will further reduce the usage of kerosine oil for lighting purposes, thus reducing the carbon emissions and cost spent on burning kerosine, which will further increase the adoption of solar lights in the region. Moreover, companies in these regions are offering pay-as-you-go payment models to reduce the burden of the high upfront costs associated with the procurement of these solar lights.

The growing need for reliable sources of light in remote areas, rising penetration and decreasing cost of LEDs, and increasing adoption of solar streetlights in urban areas are the major drives responsible for the growth of the market. However, the high initial cost of investment, dependence on weather conditions, and increasing e-waste from solar lighting devices are the major challenges in the worldwide adoption of solar lighting systems.

According to the report by SolarPower Europe, in 2023, the world is expected to install between 341 to 402 GW of solar energy, which equals to 43% growth.

• Based on grid type, solar lighting systems come into three connection types: off-grid, on-grid, and hybrid grid, but among them, off-grid lighting systems are anticipated to capture the major market share in the forecast period, owing to their wider adoption in developing countries as installing these lights is cheaper and does not require any cabling infrastructure, and the capability to offer lights even in remote areas where there is absence of grid or unreliable grid. Hybrid solar lighting systems are also anticipated to capture a significant market share as they are connected to the grid. In the absence of solar energy, the electricity is consumed directly from the grid, thus offering more reliable and operational electricity.
• Based on application, the solar lighting system market is categorized into five segments: commercial, highways and roadways, industrial, residential, and others. The commercial segment is anticipated to capture the major market share in the forecast period as these lights are installed in schools, corporate offices, and universities. Moreover, the commercial segment uses outdoor and indoor solar lights to light the basements, corridors, basements, etc. Installing solar lights in commercial areas helps in decreasing energy and maintenance costs. Highways and roadways are also anticipated to capture the second largest market share owing to increased adoption, low cost and maintenance related to off-grid solar streetlights, and increased brightness and efficiency offered by LED lights.
• For a better understanding of the market adoption of the solar lighting industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S., and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), Rest of World. Asia Pacific is expected to experience a significant growth rate in the projected period. The primary factors driving this growth are the mature and aging installed infrastructure and the presence of major solar lighting companies in the region. Moreover, the need to provide reliable sources of electricity in rural regions is further growing the need for solar panel recycling.
• Some of the major players operating in the market include Sol by Sunna Design, Su-Kam, SolarOne, Clear Blue Technologies, Solar Lighting International, Azuri Technologies Ltd, SUNMASTER, SEPCO, Signify Holdings, and SOLEKTRA RWANDA.