SOLAR STREET LIGHTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The global solar street lighting market is estimated to be valued at USD 13.66 Bn in 2024 and is expected to reach USD 38.15 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 15.8% from 2024 to 2031.

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The adoption of solar street lighting is expected to grow significantly due to increasing focus on renewable energy resources and government initiatives to adopt energy-efficient and eco-friendly lighting solutions. Many countries globally are replacing their conventional street lights with solar street lights to reduce their energy consumption and carbon footprint. Additionally, the falling costs of LEDs and solar panels is making solar street lighting more affordable which is further fueling their demand. Concerns around climate change and energy security are also driving the large-scale installation of solar street lights in both developed and developing nations.

Growing concern towards reduction of electricity bills

The spiraling electricity prices across the globe have enhanced the focus on developing sustainable alternatives for street lighting. The conventional street lighting systems primarily rely on electricity grids which have witnessed a steep rise in tariffs over the past few years. According to reports, some cities spend up to 30% of their overall electricity consumption just for illumination of streets and outdoor public places. At the same time, a majority of this lighting is often operational even during daytime, resulting in colossal wastage of energy. Solar street lighting provides a highly feasible solution to curb these unnecessary expenditures. With integrating solar photovoltaic panels, these lights can derive power from natural sunlight during day, thereby eliminating dependency on grids. This has substantial potential to bring down energy costs substantially for urban local bodies. As per analysis, solar street lights with basic LED bulbs pay for themselves within 3 to 5 years through electricity cost savings alone in most cities across the world. Some studies also indicate O&M costs for solar lights are 80% lower than traditional street lamps over their lifespan. This compelling business case is a key driver attracting more municipalities and public authorities to include solar options in their street lighting infrastructure upgrades.

Rising environmental awareness among public and private entities has heightened the importance of minimizing carbon footprint from urban lighting networks. Street and outdoor lighting typically involve the usage of conventional lamps and fixtures which release harmful pollutants and greenhouse gases during electricity production from fossil fuels. Based on rough estimates, street lighting is responsible for approximately 10% of total carbon emissions from the buildings sector worldwide. Additionally, traditional systems utilize inflammable and non-ecofriendly chemicals in their components which release emissions on disposal and degrade soil and water quality. On the other hand, solar photovoltaic energy and LED bulbs provide a clean mechanism of illumination without any pollutants. This makes solar street lights a highly sustainable green solution aligned with global decarbonization goals. Governments across many developed and developing nations are actively promoting the widespread adoption of solar lights to reduce light pollution and dependence on dirtier fuel sources. Sustainability centric public procurement policies and subsidies are encouraging local authorities to install solar alternatives on a larger scale. Thus, growing environmental stewardship among key stakeholders worldwide is a pivotal driver propelling the global solar street lighting industry.