Solar Street Lighting Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Solar Street Light Market was valued at about $ 1,476 million in 2022 and is projected to reach $ 3,946 million by 2022, registering a robust CAGR of 14% from 2024 to 2030. The increasing adoption of solar energy solutions and the growing demand for energy-efficient lighting systems in urban and rural areas will drive the market growth significantly. As governments and municipal governments continue to focus on sustainable energy and energy conservation, solar street lighting has become a viable alternative to conventional street lighting systems, thereby reducing the operational costs and reducing the carbon footprint. The growth of the market is mainly driven by the technological advancements in the solar industry, the decreasing cost of solar panels, and the growing emphasis on smart city initiatives. Moreover, the development of integrated LED technology and smart sensors is expected to increase the functionality and efficiency of solar street lights, thereby attracting more urban planners and property owners. The key players in the market, such as Signify (formerly Philips Lighting), SolarCity, and Sunna Design, are focusing on forming strategic alliances and making investments to enhance their product offerings and expand their geographical reach. In addition, the collaborations for the development of smart street lights are increasing, which will further boost the market growth.

Regional Market Size

Regional Deep Dive

The solar street lighting market is expected to grow significantly over the forecast period, driven by the growing urban population, increasing demand for sustainable energy, and government initiatives to promote the use of clean energy. In North America, Europe, and Asia-Pacific, the market is characterized by technological advancements, such as smart lighting systems and IoT integration, which enhance energy efficiency and operational efficiency. In the Middle East and Africa, and in Latin America, the market is growing, mainly driven by international financing and government initiatives.

Europe

• The European Union's Green Deal aims to make Europe climate-neutral by 2050, which includes significant investments in renewable energy projects, including solar street lighting.
• Countries like Germany and France are implementing regulations that encourage the installation of solar street lights in public spaces, driven by sustainability goals and urban development plans.

Asia Pacific

• China is rapidly expanding its solar street lighting market, with government-backed projects that aim to enhance rural electrification and reduce carbon emissions.
• Innovations in solar technology, such as the development of high-efficiency solar panels and energy storage systems, are being spearheaded by companies like LONGi Solar and Trina Solar, making solar street lighting more viable.

Latin America

• Brazil is implementing solar street lighting projects in rural areas as part of its national electrification strategy, aiming to improve public safety and reduce energy costs.
• Innovative financing models, such as pay-as-you-go solar solutions, are being adopted in countries like Mexico, making solar street lighting more accessible to local governments and communities.

North America

• The U.S. Department of Energy has launched initiatives to promote solar energy adoption, including solar street lighting, which is expected to enhance energy efficiency in urban areas.
• Companies like Signify and SolarOne Solutions are leading the market with innovative solar street lighting solutions that incorporate smart technology, improving functionality and user experience.

Middle East And Africa

• The African Development Bank is funding solar street lighting projects in several African nations to improve safety and accessibility in urban areas, particularly in regions with limited electricity access.
• Countries like South Africa and Kenya are seeing a rise in public-private partnerships that focus on deploying solar street lighting as part of broader smart city initiatives.

Did You Know?

“Approximately 1.2 billion people worldwide lack access to electricity, making solar street lighting a crucial solution for enhancing safety and infrastructure in off-grid areas.” — International Energy Agency (IEA)

Segmental Market Size

The Solar Street Lighting market is expected to experience robust growth, driven by the increasing urbanization and the need for sustainable energy solutions. The factors that are driving the market include stringent regulations imposed by governments on carbon emissions and the rising preference for energy-efficient lighting systems. The technological advancements in the solar panel and the batteries have increased the efficiency of the system, making it a viable alternative to traditional street lighting. The market is currently in the deployment stage. Notable examples include the installation of solar-powered street lights in the cities of Los Angeles and New Delhi, which are deploying solar-powered solutions. The major application areas include street lighting, parks, and areas that are not connected to the power grid. The key trend that is shaping the market is the mandate on governments to adopt sustainable energy.

Future Outlook

The solar street light market is expected to grow at a CAGR of 14.1% from 2022 to 2030. The growth is mainly driven by the increasing demand for energy-saving and sustainable lighting solutions, especially in urban areas where traditional street lighting systems are being replaced. By 2030, the share of solar street lights in the global street lighting market is expected to reach around 25%, as governments and local governments attach importance to smart city and renewable energy. In addition, the development of IoT and smart sensors will further improve the functionality and efficiency of solar street lights. These developments will not only improve energy management, but also facilitate remote monitoring and maintenance, thereby reducing the cost of operation. The support of government policies and subsidies will also drive the growth of the market. Cities are rethinking their urban planning, and the solar street light market will become an important part of urban development, in line with the trend of reducing global warming and improving public security.