Outdoor Solar LED Market Size, Share & Trends Analysis Report By Application, By Wattage (Less Than 39W, 40W To 149W, More Than 150W), By End-use (Residential, Commercial, Industrial), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global outdoor solar LED market size to be valued at USD 24.75 billion by 2028 and is expected to grow at a compound annual growth rate (CAGR) of 24.6% during the forecast period. The growing popularity of LEDs for outdoor light settings, specifically in street light applications owing to improved quality and efficiency, is one of the key factors contributing to market growth. The increasing adoption of solar as a source of renewable energy for lighting purposes across countries is also likely to act as a catalyst for market growth. The rise in implementation of several smart city development plans is also likely to drive the adoption of outdoor solar LED products, creating opportunities for vendors in this space.

Growing urbanization and soaring vehicular traffic have led to a rise in the number of road infrastructure and smart city projects being implemented across countries such as the U.S., the U.K., Germany, China, and India. As a part of these development plans, several investment initiatives are aligned with aging street lighting facilities and renewable solar lighting projects. For instance, in 2019, the Birmingham City Council offered a contract to McCann Ltd., a U.K.-based civil engineering construction company, to upgrade Birmingham's 3,000 existing lighting units with updated LED technology and associated street lighting infrastructure. Similarly, in 2016, the U.K. government provisioned around USD 2.03 billion (£1.5 billion) to upgrade the A-14 trunk road between Huntingdon and Cambridge. Under the project, a total of 24 solar LED lights were deployed by Prolectric Services Ltd. Such initiatives are expected to fuel the demand for solar LEDs in outdoor applications in near future.

In addition to the growing investments in this space, growing concerns regarding energy drain, together with the cost-efficiency offered by solar LED products compared to traditional lighting products, are also anticipated to support market growth over the next few years. Compared to traditional lighting where conventional lights use high-pressure sodium lights connected with an electric grid, solar LEDs store solar energy in the Photovoltaic Modules (PV) and offer a cost-effective long-term solution for commercial and industrial properties. Reduced dependencies on the off-grid and trenching process make outdoor solar LEDs a cost-effective option for end-users.

Factors such as declining battery costs, LED lighting costs, innovations in product design, and improvements in the lighting efficiency of landscape lighting products are expected to bring down solar LED component costs. The decline in prices, along with other benefits such as longer life expectancy, ease of installation, and low maintenance and operational costs, are expected to encourage municipalities of underdeveloped and developing regions to opt for solar LEDs. Moreover, the increasing awareness about renewable energy assets, along with stringent regulatory reforms focused on sustainable infrastructure development across developed and developing regions is anticipated to favor market growth.

Furthermore, a rise in promotional activities, including rebate programs, to create awareness about sustainable lighting products, is also expected to stimulate market growth over the forecast period. In combination with such initiatives, establishing Public-private Partnership (PPPs) can also help municipalities and local bodies to raise funds to implement solar LED-based street lighting. The rising number of PPPs in this field globally is expected to drive market growth.

The COVID-19 pandemic has had a substantial impact on the outdoor solar LED market, resulting in a decline in year-on-year demand. Commercial and industrial solar LED projects dwindled due to the shortage in supply of electronic components from China In light of the pandemic; several ongoing solar LED lighting projects also stalled but are expected to recover till the situation stabilizes. For instance, the U.K. government postponed all the solar project tenders and auctions until September 2021. However, regional government initiatives to ensure the continuance of existing projects during lockdowns positively impacted the market. For instance, the government of Germany scheduled several solar tenders in 2020 to protect the auction processes and to avoid delays in projects.

Outdoor Solar LED Market Trends

The increasing awareness to obtain efficiency in terms of cost-effective, and environment-friendly solutions for the outdoor lighting structure, used for different purposes are the major drivers of the market. The solar outdoor LED lighting utilizes a renewable source of energy, solar reducing the level of greenhouse gas emissions, and is extensively applied for commercial and residential projects. Significantly, advancements in solar technology, concerning the design system, such as solar tracking mounts, thin-film technology, floating panels, and bio-solar cells, have also sparked the demand for solar LED.

Growing investment initiatives in the construction of highways, buildings, street lights, and other industrial establishments, and strengthened living standards of the population have enhanced the sales revenue of this market. Furthermore, these LED lights provide certain benefits such as protection from the harmful UV rays, are temperature-resistant, and are long-lasting than other lights; which has boosted the market growth. It further encouraged the dependence and utilization of clean energy from the customers, which escalated the sales and revenue of this market. Besides, a reduction in the prices of LEDs, and penetration of LEDs for outdoor lighting applications have impacted the growth of the market.

However, the installation costs of the LED lighting in the initial phase are expected to restrain the market, by lowering demand from the customers. The accumulation of the snow and dust particles, on the horizontal surface of the panels, is expected to influence the production and functioning of the lights, further limiting the potential of the market.

The Governmental initiatives provided through the awareness about green and energy-saving products, in the commercial projects are anticipated to increase the adoption rates of the solar LED light products. For example, Pacific Gas and Electric Company (PG&E), has extended financial assistance by providing interest-free loans, to the customers for non-residential projects, ensuring use of the solar LED lighting. This represents massive opportunities for expansion in the forecast period.

Also, a lack of understanding about the weather dependency or conditions influencing the production or functioning is a major challenge impacting the market expansion. Inadequacy of the funds, and plans for the institutionalization of the solar LED lights, are expected to hamper the growth over the forecast period.

Application Insights

In terms of application, the solar LED street lights segment dominated the market in 2020, capturing a revenue share exceeding 50.0%. The trend is expected to continue over the forecast period. The rise in the number of smart city projects and investments in road infrastructure improvement activities in several countries is projected to stimulate segment growth. Additionally, to promote energy savings, several local municipalities across countries are seeking Public-Private Partnerships (PPP) to secure funds for installing solar street lights, thereby favoring segment growth.  

The demand for solar LEDs for gardening applications is estimated to witness a CAGR exceeding 25.0% over the forecast period. The availability of a wide range of solar garden LED products at an affordable price point has favored the growth of the segment so far, a trend that is expected to continue in the forthcoming years. In addition to cost and product range, the absence of complex wiring structures offers much-needed installation flexibility to homeowners compared to other sources of lighting. Furthermore, a growing preference for DIY gardening and landscaping is contributing to the segment growth.

Wattage Insights

The 40W to 149W segment dominated the market in 2020, accounting for more than 39.0% share of the overall market. Popular products having power between 40W to 149W are floodlights, street lights, and path lights that find applications across tunnels, highways, streets, and path lights. Continued innovations have led to the development of products offering higher lighting intensity with limited power consumption, which is expected to drive the growth of the segment over the forecast period. Additionally, the rising demand to upgrade traditional street lighting systems with power-efficient lighting solutions is driving the growth of the segment.

The less than 39W segment is expected to register the highest CAGR over the forecast period. The majority of the solar LEDs with a power of less than 39W find use in wall lighting and garden lighting applications. The increasing popularity of decorative lighting among residential users to illuminate outdoor environments is anticipated to drive the segment growth. Furthermore, the availability of a diverse range of power-efficient and DIY solar LEDs suitable for wall and garden lighting applications is driving the segment growth.

End-use Insights

The commercial end-use segment dominated the market in 2020, accounting for more than 50.0% share of the overall revenue. Increasing investments in solar street lighting infrastructure development initiatives are expected to drive the demand for solar LEDs in commercial space. Furthermore, to promote and encourage the adoption of solar LED lights, several utilities, government, and local bodies offer tax rebates and incentive schemes to commercial users. Thus, to facilitate the adoption of renewable energy systems and energy efficiency, the demand for solar LEDs is expected to grow in the commercial space over the forecast period.

The residential segment is anticipated to expand at a steady CAGR over the forecast period. The rise in spending on residential outdoor settings for organizing functions, parties, and a variety of events can be attributed to the growth of the segment. Moreover, the growing popularity of decorative exterior lighting for yards and garden pavements is expected to promote the adoption of outdoor solar LEDs in residential settings over the forecast period. Additionally, the increased adoption of solar PV modules that offer energy savings is also expected to work in favor of the segment over the forecast period.

Regional Insights

The Asia Pacific dominated the market accounting for more than 40.0% revenue share in 2020. China led the regional market growth and the trend is expected to continue over the forecast period. The increasing number of smart cities, infrastructure development, and city expansion projects in several countries in the region can be attributed to the growth of the regional market. The region has witnessed a surge in government initiatives aimed at deploying street lighting solutions in rural as well as the urban market in China, India, and Southeast Asian countries, which is expected to contribute to market growth.

Followed by the Asia Pacific, the demand for outdoor solar LEDs is the highest in Europe. The regional market is likely to retain its position over the forecast period, registering a CAGR of around 25.0%. Ongoing and future road and highway infrastructure development plans in the U.K., Germany, France, and other European countries are expected to drive the demand for solar LED streetlights over the forecast period. Additionally, growth in public-private partnership initiatives to raise funds for solar projects across these countries is anticipated to drive market growth. Moreover, the growing demand for decorative and outdoor architectural lighting across European countries is expected to drive the market over the next few years.

Key Companies & Market Share Insights

The market for outdoor solar LED features a fragmented competitive landscape with the presence of several solar LED lighting vendors. The rising demand for renewable energy sources is encouraging market vendors to focus on export opportunities for their solar LED products across countries. Key players such as SOKOYO, Signify Holding, LEADSUN, and Sunna Design SA participate in several exhibitions and trade shows across countries to expand their businesses. For instance, in May 2019, SOKOYO participated in the Philippine Electric Power and Solar Photovoltaic Exhibition. At the event, the company displayed its solar lighting portfolio and its intention to export its solar lighting products to the country.

Furthermore, key players are also focusing on establishing several strategic measures such as mergers and acquisitions and partnerships to expand their businesses across regions. For instance, in March 2020, Sunna Design SA, a French solar lighting company, acquired SOL Inc., a North American solar lighting company, intending to commercialize solar LED lighting solutions across developing countries. Other prominent market players and local players are participating in auctions of different renewable energy development projects to obtain long-term contracts.

Recent developments

• On Dec 30, 2021, the leading specialist in the design and production of the solar street lights, was introduced all in one solar street light, powered using efficient technology. These light lamps are provided with the best features and specifications, ensuring high performance for the highways, during the daytime, and night, using solar energy.  Additionally, these lights offer a microwave motion sensor, which is designed with an intelligent lighting mode, which is expected to best output and growth of the market during the forecast period

• As stated on Jan 26, 2021, Greenshine New Energy, announced the delivery of its two new solar pathway lighting projects for public use and caught the attention of the media companies. These projects are intended to increase the safety and security in the high-foot traffic area, which will increased the usage of energy-efficiency lighting

• On May 14, 2021, a premium solar lighting company, Greenshine New Energy, partnered with Balboa Solutions, to offer funding, for helping their clients in making payments for the solar lighting projects. It would, however, support the overall economy, along with ensuring a reduction in carbon emissions. Thus, this development has been evaluated to provide energy-efficient solutions, and lighting for various commercial, residential, and other industrial projects

Some of the prominent players operating in the global outdoor solar LED market are:

• Greenshine New Energy

• SBM-SolarTech

• Signify Holding

• Greenshine New Energy

• Jiawei

• LEADSUN

• OkSolar

• SEPCO Solar Electric Power Company

• SOKOYO

• Solar Street Lights USA

• Sunna Design SA

Outdoor Solar LED Market Report Scope

Global Outdoor Solar LED Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global outdoor solar LED market report based on application, wattage, end-use, and region:

• Application Outlook (Revenue, USD Million, 2016 - 2028)

  • Solar LED Street Lights

  • Solar Garden LED Lights

  • Solar LED Floodlights

  • Solar LED Area Lights

  • Solar LED Spot Lights

• Wattage Outlook (Revenue, USD Million, 2016 - 2028)

  • Less than 39W

  • 40W to 149W

  • More than 150W

• End-use Outlook (Revenue, USD Million, 2016 - 2028)

  • Residential

  • Commercial

  • Industrial

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Southeast Asia

    • South Asia

  • Latin America

    • Brazil

    • Mexico

  • MEA