Solar Street Light Outlook
The global solar street lighting market size is valued at $5.7 billion with sales of 1,545.9 thousand lighting units in 2019 and projected to witness a CAGR of 9.4% during the forecast period (2020-2030). The declining price of solar street lighting solutions and increasing number of smart cities are the major growth driving factors. Besides, increasing urbanization in developing regions is creating ample opportunities for the solar street lighting industry to grow.
Aside from the aforementioned factors, the growing number of smart cities is also contributing to the soaring sales of solar street lighting systems around the world. Over the last few years, there has been a significant increase in the construction of smart cities in countries such as the United States, India, China, and South Korea, and this trend is expected to continue in the near future. Furthermore, many countries' governments are making large investments in the development of smart cities, which is also increasing sales of solar street lights.
According to the research, the highway and roadway category held the largest solar street lighting market share in 2019, owing to wide application of lighting products in highways and roadways. The category is further expected to grow fastest in the market during the forecast period. This can be ascribed to increasing government focus toward high-class infrastructure developments, which is further pushing the demand for outdoor lighting.
During the historical period (2014-2019), Asia-Pacific region held the largest share in the global solar street lighting industry, due to increasing infrastructure projects and government initiatives in China, India, Japan, Australia, and South Korea for the deployment of solar lighting systems. According to the International Energy Agency (IEA), China was the largest market in the APAC region in 2019 for the implementation of solar lighting system solutions and accounted for 42.8% share in total global solar photovoltaic (PV) capacity. The APAC region is also expected to maintain its dominance in terms of market share in the industry during the forecast period.
Factors that affect solar street lighting market’s size
Consumer education is among the top factors facing solar street lights’ penetration into the market. It is important to consider raising the level of awareness of the target market through stating the available options, their benefits, together with the hazards associated with the use of more dangerous sources of energies to light people’s homes. If consumers get appropriate awareness, it becomes easier for more people to trust solar street lighting products; thus, increasing the size and forecast of the solar street lighting market.
This is assumed to be the prevalent conditions in the areas or countries supporting the growth of the solar energy industry. The enabling environment is all about the roles of the national governments, and those of regulatory bodies. The business model viability of a nation can be gauged using national policies.
Affordability to Finance
Affordability affects the penetration of the solar street lighting market in most parts of the world. Limited financing alternatives can be felt on different distribution value chain levels, from the manufacturers to dealers, distributors, importers, and even users. The fact that there is no detailed information regarding the solar lighting industry, foreign direct investors have been facing a serious impediment.
Thus, it is easy to conclude from the preceding paragraphs that demand for solar street lighting devices will increase globally in the coming years, owing primarily to rising construction of buildings and infrastructure modernization and renovation projects, increased construction of smart cities, and extensive development of roadways, railway lines, and airports in many countries. The solar street lighting industry will absolutely develop well in the future.