The global solar street LED lighting market may exceed $15 billion in 2024
The global street lighting market accounts for nearly 20%-35% of total energy consumption, reflecting the growing need to reduce electricity consumption. In addition to this, stringent government regulations on energy saving and stringent measures to curb greenhouse gas emissions are expected to boost the growth of the solar street lighting market in the coming years.
The depletion of fossil fuels has greatly contributed to the increase in the cost of electricity, leading to the need to find alternative energy sources. Compared with other traditional street lights, solar street lights can provide reliable, sustainable and affordable electricity. Falling costs of solar modules and favorable government initiatives such as tax breaks and subsidies for solar products will support solar street lighting market growth over the next eight years.
According to a report by Global Market Insights, the solar street lighting market was valued at US$2.9 billion in 2015 and is expected to exceed US$15 billion by 2024, with a compound annual growth rate of 20% during this period.
In 2015, the U.S. solar street lighting market was worth approximately $197 million. The U.S. market is expected to witness substantial growth from 2016-2024 due to strict regulatory norms to reduce carbon emissions and promote energy conservation. The Nigerian solar street lighting market was valued at USD 164.14 million in 2015 and is expected to witness high growth from 2016-2024, driven by rising electricity demand and greater shift to off-grid connectivity as a priority energy source. The Indian solar street lighting market is expected to grow at a CAGR of 19% over the next 8 years due to favorable government policies promoting the adoption of renewable energy for conventional street lighting.
Solar street lighting has a variety of applications in industrial, residential and commercial sectors. The residential market for solar street lighting was valued at $630.8 million in 2015 and is expected to surge in the future due to the low maintenance cost of solar street lighting and government initiatives to build green buildings in cities and industrial areas. The solar street lighting market in the commercial sector is set to grow at a CAGR of 20.23% due to stringent regulatory norms to reduce carbon emissions and government support for electrification projects in rural areas. The solar street lighting market in the industrial sector will grow at a rate of 18.90% from 2016 to 2024, as reduced power consumption helps minimize capital expenditures.
Solar street lights are installed via grid-tied and standalone models. The free-standing solar street lighting market will exceed $13 billion by 2024, largely due to rising acceptance of stand-alone products in areas without access to the grid.