Solar Street Lighting Market Size & Share | Growth - 2034

The global solar street lighting market attained a value of nearly USD 6.73 billion in 2024. Aided by increasing government initiatives towards sustainable urban infrastructure and growing awareness regarding renewable energy, the market is projected to grow robustly at a CAGR of 16.40% between 2025 and 2034 to reach a value of USD 30.73 billion by 2034.

Solar street lighting refers to outdoor lighting systems that are powered by photovoltaic (PV) panels, which absorb sunlight during the day and convert it into electrical energy stored in batteries. This stored energy powers LED street lights at night. These systems are increasingly replacing traditional grid-powered street lighting due to their cost-effectiveness, environmental benefits, and low maintenance requirements.

The rising demand for energy-efficient, environmentally friendly lighting solutions across both urban and rural settings is significantly contributing to the growth of the solar street lighting market. From highways and municipal roads to residential societies and industrial zones, solar-powered lights are being adopted at a large scale due to their operational efficiency and sustainability.

Solar Street Lighting Market Size

The global solar street lighting market has expanded considerably in the past decade, backed by significant technological advancements, government subsidies, and infrastructure development programs. With a market valuation of USD 6.73 billion in 2024, the industry has already demonstrated strong momentum.

Over the forecast period, increasing installations in developing regions, growing smart city projects, and rising investments in renewable energy are expected to further boost the market. By 2034, the market is anticipated to surpass USD 30.73 billion, reflecting widespread adoption across both developed and emerging economies.

Solar Street Lighting Market Share

In terms of market segmentation, the standalone solar street lighting systems currently hold a dominant share due to their ease of installation and minimal dependency on the grid. These systems are particularly popular in off-grid and remote regions where access to electricity infrastructure is limited.

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Geographically, Asia Pacific leads the global market, driven by large-scale government initiatives in countries such as China, India, and Japan. North America and Europe follow, with rising urban sustainability goals and smart city developments contributing to market growth. Africa and Latin America are emerging as high-potential regions due to increasing electrification efforts and rural development programs.

Public sector infrastructure, including roads, parks, highways, and transportation hubs, continues to be the largest end-user segment, while the private sector is also increasingly deploying solar lighting in commercial and industrial estates.

Solar Street Lighting Market Trends

Several trends are currently shaping the global solar street lighting market:

• Smart Solar Lighting Systems: The integration of smart technologies such as motion sensors, dimming controls, remote monitoring, and IoT connectivity is transforming conventional solar street lights into intelligent lighting networks. These systems help optimise energy usage and improve operational efficiency.

• Use of LED Technology: The shift from traditional lighting to energy-efficient LED luminaires is a prominent trend. LEDs consume less power, have a longer life span, and offer better illumination, making them a preferred choice in solar lighting systems.

• Hybrid Solar Street Lighting: Hybrid systems that combine solar with wind or grid electricity are gaining traction, especially in areas with variable weather conditions. These systems provide greater reliability and energy security.

• Design Innovation: Manufacturers are focusing on sleek, compact, and modular designs to enhance the aesthetic appeal and ease of installation of solar lighting units. Customisable solutions tailored to specific applications are also on the rise.

Drivers of Growth

The solar street lighting market is being driven by multiple factors:

• Government Policies and Incentives: Many governments around the world are actively promoting solar energy through policies, financial incentives, tax credits, and subsidies. These initiatives encourage municipalities and private developers to adopt solar lighting systems.

• Rising Urbanisation and Infrastructure Development: With the rapid growth of urban centres, there is a corresponding increase in demand for sustainable public infrastructure, including energy-efficient lighting systems.

• Environmental Concerns: The need to reduce carbon emissions and combat climate change is pushing governments and businesses to transition from fossil fuel-based lighting systems to renewable alternatives like solar.

• Cost Efficiency: Though the initial cost of solar lighting systems may be higher, the long-term cost benefits in terms of energy savings, low maintenance, and independence from grid electricity make them an attractive investment.

• Improved Battery and Storage Technologies: Advancements in lithium-ion and other battery technologies have improved the reliability and lifespan of solar lighting systems, enhancing their market appeal.

Technology and Advancement

Technological innovation is a key driver of growth in the solar street lighting industry. Modern systems are now equipped with features such as:

• Automatic Dimming and Brightness Control: Enables lights to adjust brightness based on pedestrian or vehicular movement, enhancing energy efficiency.

• Remote Monitoring and Control: IoT-enabled street lights allow real-time monitoring, performance tracking, and fault detection.

• Advanced Battery Storage: High-capacity, long-life batteries ensure continuous lighting even during cloudy days or extended periods of low sunlight.

• Solar Tracking Systems: Some advanced systems are equipped with solar trackers that optimise the angle of PV panels for maximum energy absorption.

These advancements are not only improving system efficiency but also extending the range of applications for solar lighting across various terrains and climates.

Competitive Landscape

Some of the major players explored in the report by  Expert Market Research are as follows:

• Signify N.V.
• Leadsun
• Jiangsu Sokoyo Solar Lighting Co., Ltd.
• Nomo Group Co. Ltd
• Dragons Breath Solar Ltd.
• Sunna Design SA
• Others

Challenges and Opportunities

Despite its promising growth trajectory, the solar street lighting market faces several challenges:

• High Initial Costs: The upfront capital required for installation can be a barrier, particularly for small municipalities and rural communities.

• Weather Dependence: Solar lighting systems can be less effective in areas with limited sunlight or frequent cloud cover.

• Battery Disposal and Environmental Impact: Improper disposal of used batteries can pose environmental risks, necessitating the development of effective recycling systems.

• Lack of Technical Expertise: In some developing regions, the absence of skilled technicians for installation and maintenance can hinder market adoption.

Nevertheless, the market presents numerous opportunities:

• Rural Electrification: Solar street lighting is an ideal solution for remote areas with limited access to grid electricity, supporting both development and sustainability.

• Smart City Initiatives: Growing investment in smart cities globally is expected to drive demand for intelligent and integrated solar lighting networks.

• Disaster Relief and Emergency Response: Portable and autonomous solar lights can be rapidly deployed in disaster-hit or conflict zones, providing reliable lighting where grid infrastructure is unavailable.

• Innovations in Financing: Leasing models, green bonds, and international funding are creating new avenues for financing solar lighting projects.

Solar Street Lighting Market Forecast

The global solar street lighting market is expected to witness substantial growth over the next decade, driven by technological advancement, favourable government policies, and increasing awareness of environmental sustainability. With a projected CAGR of 16.40% during 2025–2034, the market is expected to reach USD 30.73 billion by the end of the forecast period.

In the coming years, solar street lighting systems will become an integral component of modern urban infrastructure, supporting the global transition towards clean and energy-efficient public services. As manufacturers continue to innovate and governments prioritise sustainable development, the solar street lighting industry is well-positioned for long-term growth and global impact.