Global Solar Street Lighting Market will grow more than 19% during the period 2016-2020
LONDON-The global solar street lighting market is expected to grow at a CAGR of more than 19% during the period 2016-2020, according to Technavio’s latest report.
In this report, Technavio covered the market outlook and growth prospects of the global solar street lighting market for 2016-2020. The market is further categorized into two product segments which are compact fluorescent lamp (CFL) and light-emitting diode (LED). The global solar street lighting market was dominated by the CFL-based product segment, which commanded approximately 62% of the total solar street lighting market.
The demand for solar street lighting is expected to grow at a rapid pace during the forecast period. This growth is mainly attributed to the growing need to reduce the power consumed by street lights, which are a necessity for ensuring the safety of residents as well as pedestrians,” says Thanikachalam Chandrasekaran, a lead power research expert from Technavio.
Technavio’s energy research analysts segment the global solar street lighting market into the following regions:
APAC EMEA Americas
In 2015, with a market share of over 46%, APAC dominated the global solar street lighting market, followed by EMEA with over 30% and the Americas with around 23%.
APAC: government incentives in India and China promote growth
APAC accounted for the largest share of the market and is expected to dominate throughout the forecast period. This growth can be attributed to government incentives in countries such as India and China to promote energy-efficient lights, and the presence of many LED chip and packaging factories in China, Japan, South Korea, and Taiwan.
The Indian government is focusing on developing smart cities in the country, with a target of creating at least 100 such cities by 2030. Unlike traditional street lights, solar LED is a cost-effective solution as it does not require trenching or grid connection, and is highly valuable in sun-rich countries, thus making it an ideal choice for off-grid usage. Lighting up the streets in remote areas enables businesses to remain operational even after dusk, which will also enhance the standard of living. These factors drove the implementation of the 1,000-Village Solar LED Initiative in 2010, leading to the installation of hundreds of solar LED street lights in villages across India, China, and Africa.
EMEA: Africa presents a huge potential for growth of the solar street lighting market
In 2015, Europe was the second largest revenue contributor to the global solar street lighting market. The market is mainly driven by the energy efficiency and renewable energy targets set by the government, which, in turn, is driving the installation of solar-powered street lights in Europe. In the UK, street lighting accounts for about 40% of energy consumption, therefore, government authorities are looking towards LED lights combined with solar power as a promising solution to this concern. These alternatives help in cutting down the CO₂ emissions, while saving on energy costs. Vendors such as Philips have introduced a separate line of solar street light products that help in the transitioning of traditional lighting to energy-efficient street lighting systems.
“Off-grid systems are quite popular in southern Europe and the Middle East, as these regions have an abundance of sunshine during the year and grid power availability is low,” says Thanikachalam.
In Egypt, the government is installing solar-powered street lights to reduce the load on the power network and prevent any outages that may occur during the peak hours of summer. Africa still has a vast section of population that lacks access to grid electricity and depends on traditional methods for lighting needs. However, several cities in this region have been illuminated by solar street lighting systems, thus improving the social and economic conditions of the rural and urban population.
Americas: Brazil and the US exhibit the highest demand for solar street lighting
The market is expected to see an increased demand for energy-efficient lighting solutions during the forecast period, owing to stringent government regulations with respect to energy use in the US. The declining cost of LEDs and solar panels along with their improving performance have driven the adoption of solar street lighting in the region. In 2016, the city of Las Vegas partnered with EnGoPLANET, a New York-based company, to install solar kinetic-based street lights across the city as it is making the shift from conventional energy to sustainable and renewable energy.
While the US dominated the market for solar street lights in North America, Brazil is the leading country in the solar street light market in South America. Brazil is heavily investing in LED-powered street lights since 2013. The R20 Hub in Brazil is a leading a large-scale LED street lighting program that aims at covering 13 cities with 1.5 million street lights across the country. Solar-powered street light installations in the country are driven by the need to reduce the overburdening of the power grid.
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.