Solar Shading Systems Market

Market Overview

The global solar shading systems market size was valued at USD 11.3 billion in 2022. It is estimated to reach USD 15.80 billion by 2031, growing at a CAGR of 3.8% during the forecast period (2023–2031). The need for beautification of the building and the expansion of living space and protection from the sun promotes market expansion.

Utilizing solar darkening equipment makes it possible to prevent solar radiation from entering buildings. This can be accomplished in a variety of ways. In addition, they want wider adoption to protect residential and business spaces from the negative impacts of extreme heat. These systems offer dependable architectural solutions and attributes that shade users from the sun's rays and protect them from harmful effects.

In addition, because they have such a significant impact on the architecture of the building, they can entirely transform the appearance of a structure, regardless of whether it has undergone recent refurbishment or is in the process of being built from the ground up. This is true whether the building has been recently restored or is being built from the ground up. Because of this, they can do so while minimizing the amount of solar heat gain, lowering the energy cost they use. Schools and other public and commercial buildings, such as offices and other places of employment, can reap the benefits of their installation regardless of whether or not the structures have been recently constructed or occupied.

Market Dynamics

Global Solar Shading Systems Market Drivers

Expansion of Living Space and Protection from the Sun

Sun protection and an increase in usable space are the two primary advantages that come with the installation of a solar shading system in a residential or commercial setting. Solar shading systems are available in a wide variety of forms and dimensions, and they can be used to cut down on the amount of heat that enters buildings like houses, workplaces, and restaurants.

In addition, there is a decrease in the need for air conditioning during the warm summer months, which results in financial savings and protection for furniture, drapes, and carpeting. In addition, pergolas enable the extension of a temporary space outside the house, which is aesthetically pleasing and practical. It offers space for people to study or engage in other activities and an outdoor seating area that is partially shaded.

Need for Beautification of the Building

A solar shading system gives a home or business more coverage and shade and boosts the building's overall visual appeal. Coverings for doors, windows, and patios are possible applications for these solar shading systems. Other possible uses include awnings. Regardless of whether the solar shade solutions you choose are fixed or retractable, you have various color, pattern, and design options.

It assists in providing a more personal touch to the building front, contributing to its widespread use in the business sector over the previous few decades. A terrific option for developing the firm and producing a facility that is more energy efficient as a result of this is to install commercial solar shading systems. This may be done in conjunction with installing commercial solar shading systems.

Global Solar Shading Systems Market Restraint

Expensive Pricing and Installation of Motorized Solar Shading System

The high cost of both the purchase and installation of motorized solar shading systems is one of the factors that has harmed the market for solar shading systems. Costs associated with labor, wiring, and components are included in the overall price to have a motorized solar shade system installed. The purchase price and the cost of installation are both variables depending on the component, the wiring, and the labor. For a home construction project, the normal price range for a motorized solar shading system of an average size, including installation, is between USD 320 and USD 650 for an average window.

In addition, the cost of a solar shading system, whether fixed or retractable, may increase if the blades are made of heavier metal and the sheathing material is thicker. This could impact the market in areas where consumers gravitate toward more affordable solutions.

Global Solar Shading Systems Market Opportunities

Technological Innovations in its Mechanism

In the upcoming years, continuous technological improvements in the worldwide Solar Shading Systems Market will create sufficient growth prospects for solar shade manufacturers and suppliers. The most important players in the market are already moving their attention toward innovation and technical improvements to preserve their position as front-runners in their industry and secure a sizable portion of the market share. Additionally, the advent of a motorized solar shading system that can be retracted with a switch, remote, or even a smartphone has received attention throughout the commercial and high-end residential sectors. This system can block the sun's rays from entering a building.

In addition, Lutron has designed individualized shade schedules, which, by combining data about the facade's orientation and the building's location, make it possible for more direct daylight to penetrate deeper into the workspace. These technical advancements and innovations that are being implemented by major players in the solar shading systems market would offer lucrative prospects to the market.

Regional Analysis

Based on region, the global solar shading systems market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant global solar shading systems market shareholder and is estimated to exhibit a CAGR of 3.5% over the forecast period. Regarding revenue, North America is the region with the greatest market for solar shading. The U.S. solar shading industry has been developing for a while, and the arrival of automated and motorized solar shading systems has given the business new life. The region's patio and outdoor solar shading systems expansion is anticipated to be significantly fuelled by increased demand in both the residential and commercial sectors. Due to the increase in end users' purchasing power, the market in the area also demands luxury solar shading solutions.

Additionally, increased consumer preference for energy conservation and solar protection impacts the North American solar shading sector. Major players like Hunter Douglas and Insolroll are concentrating on creating cutting-edge solar shading solutions to accelerate the market's growth. Furthermore, the business sector has seen a large increase in demand for solar shading solutions. Several benefits, including affordability, attractiveness, and solar protection, explain this. Therefore, all of these factors are anticipated to fuel market expansion.

Europe is anticipated to exhibit a CAGR of 3.7% over the forecast period. There are numerous market players in this area. Some players control the region or nation where they operate. As a result, it is challenging for new businesses to enter the market and gain clients. The regional players can launch new and enhanced solar shading systems to accommodate the increase in client demand. A prospective market for solar shading systems is also found in Europe because of its developed infrastructure, easy access to high-end goods and technology, and high discretionary income.

In addition, one of the main drivers of expanding the European market is a rise in investments made by nations like Germany, France, and the UK in high-end technology solar shading systems. Residential construction is predicted to help the German market grow even more. The region's trend and the moderate rise in residential and commercial development activity are anticipated to slow the market's growth.

In Asia-Pacific, China, Australia, and other nations are making significant investments in cutting-edge solar shading systems to fulfill the rising demand. Due to the abundance of solar shading systems in China, the industry is booming, although the Asia-Pacific region's residential sector struggles due to design influences. While India is implementing sun shading systems in restaurants and balconies, Japan is following a similar trend. Due to rising economies, particularly China and India, the Asia-Pacific solar shading systems market is anticipated to witness rapid growth.

Furthermore, the region's high population density drives the real estate and commercial markets, including China and India. Developing economies like China and India also boost market expansion because of rising commercial demand. The population of the area, its quick urbanization, and robust economic expansion are anticipated to boost the development of the undeveloped solar shading system market.

In LAMEA, particularly in nations with rapid economic growth, the solar shading market is expanding significantly. The industry is driven by an emphasis on renewable energy sources, with Latin America seeing significant adoption and expansion. Commercial solar shading systems are showing a favorable trend in the Middle East market, and retractable options are anticipated to accelerate adoption. Urbanization and infrastructure developments are important factors influencing the growth.

Moreover, the desire of consumers to install solar shading systems in residential and commercial areas will determine the overall growth of the Middle East. Solar shading is predicted to become more necessary in the building sector due to cost and energy savings. Except for Brazil and other developed regions, pricing considerations prevent many African nations from implementing sun shading systems.

Segmental Analysis

The global solar shading systems market is bifurcated into product type, geometry, application, and end-user.

Based on the product type, the global solar shading systems market is bifurcated into blinds, shades, louvers, and textiles. 

The blinds segment dominates the global market and is projected to exhibit a CAGR of 3.3% over the forecast period. Solar blinds are stiff, wooden window or door covers made of PVC, aluminum, and other hard materials. They have horizontal slats that may be angled and slanted for flexible daylight management. In comparison to solar blinds, they offer improved wear and tear resistance because they are composed of robust materials. Individual slats make up the components of these blinds. When lowered, the slats can be moved to let in more or less light or elevated for an unhindered view. Solar blinds' advantages over solar shades, such as durability and wear and tear resistance, drive the market expansion.

Additionally, well-known suppliers have released cutting-edge solar blinds on the market. For instance, Ukrainian company Solar Gaps has developed smart solar blinds, a hybrid of solar panels and blinds that can be used in indoor and outdoor residential or commercial spaces. These clever solar blinds contribute to an increase in electricity generation of about 100W per hour and a reduction in electricity costs of about 30%. Solar blind manufacturers exploit the industry by developing clever and sophisticated solutions.

Based on geometry, the global solar shading systems market is segmented into horizontal, vertical, and egg-crate. 

The horizontal segment dominates the global market and is predicted to exhibit a CAGR of 3.3% during the forecast period. The horizontal solar shadings block the sun from a window during the sweltering summer months, but in the winter, they allow the sun to stream through, keeping the building comfortable. To increase the amount of solar heat gain and visible light that enters a home or non-residential building, horizontal solar shading systems are installed at stores and showrooms. The market's best horizontal solar shading solutions are provided by businesses like Insolroll, EFCO Corporation, Hunter Douglas, and Unicel Architectural.

Major companies in the horizontal Solar Shading Systems Market also respond to the trend by showcasing eye-catching designs that meet the escalating client preferences. For instance, Unicell Architectural, based in Canada, provides a range of solar shading options that can be fixed or motorized and provide optimal daylight control.

Based on the mechanism, the global solar shading systems market is bifurcated into fixed, manual, and motorized. 

The motorized segment owns the highest market share and is predicted to exhibit a CAGR of 4.6% over the forecast period. Systems with motorized solar shading are powered by the motor and controlled by a wall switch or remote button. A motorized solar shading system can be opened and closed by merely pushing or flicking a button; as a result, the operation of a motorized system takes much less time than that of a manually operated solar shading system. Some of the leading companies offering cutting-edge automated sun shading systems include Lutron and Hunter Douglas. The need for motorized solar shading systems from the business sector is anticipated to increase in the upcoming years. Due to increased customer awareness of energy savings and automation, developed countries hold the largest market share in the motorized solar shading systems sector.

Additionally, the market is growing due to these solar shading systems in upscale residences, hotels, and dining establishments. The weather outside can also be detected by a sensor-based motorized solar shading system, which can then sound an alarm to retract the solar shading systems before any damage can happen. As a result, the availability of retractable solar shading systems that can be operated remotely and using sensors is anticipated to further the market's expansion.

Based on material, the global solar shading systems market is divided into metal, glass, wood, and others. 

The metal segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 4.3% over the forecast period. Solar shade made of metal can be purchased in a wide variety of materials, including aluminum, steel, copper, and others, all of which include a variety of surface finishes to cater to certain design specifications. You can purchase the solar shading system in either a fixed or moveable configuration, which may be set vertically or horizontally. The key factor contributing to the market's expansion is the rise in demand for metal solar shading products such as aluminum louvers. This demand directly results from expanding the global residential and commercial construction industries.

In addition, an increase in population, as well as fast urbanization, are anticipated to fuel demand in the residential sector, which will, in turn, accelerate the need for housing units that can be purchased at an affordable price, which will, in turn, propel the growth of the market.

Recent Developments

• August 2022- Talrus Limited, a U.K.-based associated company of Rcapital Partners LLP, a private investor, acquired Levolux Limited from Alumasc Group for an undisclosed amount. With this acquisition, Rcapital Partners added another portfolio to its business and will support the growth of Levolux. Levolux Limited is a UK-based firm offering solar shading systems, architectural solutions, and balconies.
• February 2021- Coulisse B.V. and Eve Systems partnered to launch smart window coverings that smartphones could operate. These smart solar sunlight control systems used HomeKit and Thread integration.