Outdoor Solar LED Market

Market Overview

The global outdoor solar led market size was valued at USD 5.42 billion in 2021 and is projected to reach USD 40.09 billion by 2030, registering a CAGR of 24.9% from 2022 to 2030. Outdoor LED lights powered by photovoltaic systems are referred to as solar lights. These panels recharge a battery that provides enough power for outdoor LED lights. The popularity of solar outdoor LED lights is growing, and the global residential and commercial sectors are expanding quickly simultaneously. Extremes in temperature, weather, and UV rays are not a problem for solar LED lights' robustness.

Batteries charged with electricity from solar photovoltaic panels power solar lighting systems. This device comprises a battery, solar panel, LED lamp, and charge controller. The photovoltaic effect, used in solar and photovoltaic panels, is at the heart of the solar lighting system's operation. It collects solar energy and converts it into lighting. The captured energy is kept in a rechargeable gel cell battery that is later used to create night-time lighting. It is primarily used for streetlights and small spaces like porches and gardens. Photovoltaic panels power solar outdoor LED lights. LED outdoor lights are powered by a rechargeable battery charged by these panels. The demand for solar outdoor LED lights is steadily rising due to their rising popularity and rapid expansion worldwide in the residential and commercial sectors. Solar LED lights have a long lifespan and can withstand changes in temperature, elements, and UV rays.

Market Dynamics

Global Outdoor Solar LED Market Driver

Growing concerns regarding energy drain and cost

It is anticipated that increasing investments in this sector, growing worries regarding energy waste, and the cost-efficiency offered by solar LED products compared to traditional lighting products will all contribute to market growth over the next few years. Solar LEDs store solar energy in Photovoltaic Modules (PV) and provide a long-term, cost-effective solution for commercial and industrial properties. This contrasts with conventional lighting, which uses high-pressure sodium lights connected to an electric grid. End users have a more affordable option to consider with outdoor solar LEDs due to reduced dependencies on the off-grid process and the trenching procedure.

Awareness along with stringent regulatory reforms

Solar LED component prices are anticipated to fall due to several factors, including falling battery prices, falling prices for LED lighting, innovations in product design, and improvements in the lighting efficiency of landscape lighting products. It is anticipated that municipalities in underdeveloped and developing regions will be encouraged to adopt solar LEDs due to price reductions and other advantages such as a longer life expectancy, ease of installation, and low maintenance and operational costs. In addition, the growing awareness about renewable energy assets and stringent regulatory reforms focused on developing sustainable infrastructure across both developed and developing regions are anticipated to favour the market's growth.

Global Outdoor Solar LED Market Restraint

Whether dependency and high initial cost

Some restrictions, as well as difficulties, are hampering the development of the industry. The high initial costs, the lack of understanding regarding financing and payback, and the reliance on the weather are the issues that are hindering the growth of the market. The lack of LED institutionalization plans worldwide is one of the primary factors impeding the expansion of the solar road lighting industry. In some countries, the governments have established stringent regulations to encourage the use of significant inventions, but they have refrained from institutionalizing their decisions. After that, the LED solar road lighting gauges will move worldwide in different locations.

Regional Analysis

According to the region, the market is segmented into North America, Europe; Asia Pacific; Latin America and MEA.

The largest revenue share was contributed by the Asia Pacific region, which dominated the market. China has dominated regional market expansion, and the trend is anticipated to last throughout the forecast period. The regional market expansion can be attributed to the rise in smart cities, infrastructure, and city expansion projects across a number of the region's nations. Government programmes aimed at implementing street lighting solutions in China, India, and Southeast Asian nations' rural and urban markets have exploded in the region; this is expected to support market expansion. Europe has the highest demand for outdoor solar LEDs, followed by the Asia Pacific region. Over the forecast period, the regional market is likely to maintain its position. Throughout the forecast period, road and highway infrastructure development plans in the U.K., Germany, France, and other European nations are anticipated to propel the demand for solar LED streetlights.

Segmental Analysis

The Global Outdoor Solar LED Market is segmented into application, Wattage, end-use and region. By application, the market is divided into Solar LED Street Lights, Solar Garden LED Lights, Solar LED Floodlights, Solar LED Area Lights, and Solar LED Spot Lights. The solar LED street light segment dominated the market and had the highest revenue share. Throughout the forecast, the trend is anticipated to persist. It is anticipated that expanding innovative city initiatives and investing in activities to improve road infrastructure across a number of nations will spur segment growth. Furthermore, to encourage energy conservation, many local governments worldwide are looking for Public-Private Partnerships (PPP) to secure funding for installing solar street lights, thereby favouring segment growth.

Based on Wattage, the market is categorized into Less than 39W, 40W to 149W and More than 150W. The 40W to 149W segment dominated the market, which had the largest market share. Floodlights, street lights, and path lights are standard items with power ranging from 40W to 149W and are used in tunnels, highways, streets, and path lights. The segment is anticipated to grow over the forecast period due to the development of products that offer increased lighting intensity with reduced power consumption. The segment is expanding due to the growing demand to replace outdated street lighting systems with energy-efficient lighting options.

Based on End-use, the market is categorized into Residential, Commercial and Industrial. Most of the market's revenue came from the commercial end-use segment, which dominated the market. The demand for solar LEDs in the commercial sector is anticipated to rise as investments in infrastructure development initiatives for solar street lighting increase. Additionally, several utilities, the federal government, and local governments offer tax breaks and incentive programmes to commercial users to promote and encourage the adoption of solar LED lights. Therefore, the demand for solar LEDs is anticipated to increase in the commercial sector over the forecast period to facilitate the adoption of renewable energy systems and energy efficiency.

Recent Developments

• In June 2022: SBM-SolarTech launched 4th Generation solar road studs Model D-143 on sale. Solar road stud, also known as solar pavement levelled marker, is a kind of traffic warning and guidance equipment. Embedded solar-led road stud plays an essential role in traffic safety and fast. Practical application shows that using solar-led road studs can reduce the accident rate and the probability of driving route error.
• In May 2022: Signify completed the acquisition of Fluence, strengthening its Agriculture lighting growth platform. Signify (Euronext: LIGHT), the world leader in lighting, has completed the acquisition of Fluence from AMS OSRAM (SIX: AMS). The transaction strengthened the global Agriculture lighting growth platform and extended its position in the attractive North American horticultural lighting market.