Outdoor Solar LED Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Global Outdoor Solar LED market is expected to register a CAGR of 23.32% during the forecast period. One of the main factors influencing market growth is the rising popularity of LEDs for outdoor lighting settings, particularly in street light applications, due to improved quality and efficiency. The growing use of solar energy as a renewable source for lighting across nations is likely to spur market expansion.

Key Highlights

• The adoption of outdoor solar LED products is likely driven by the increased implementation of several smart city development plans, opening up opportunities for vendors in this market. Additionally, the government's expanding initiatives and investments to raise public awareness of the advantages of solar lights present a chance for the market to grow over the forecast period.
• Moreover, the market is anticipated to grow due to increasing awareness about the benefits of using renewable energy sources to reduce pollution and the effects of global warming. The market is expanding due to the falling price of LEDs and the growing use of solar-powered LEDs in developing nations.
• It also accelerates consumer adoption of solar lighting. For instance, Electric Company (PG&E) and Pacific Gas offer customers in non-residential projects who ensure to use Outdoor Solar LED lights extended financial assistance in the form of interest-free loans. Governments in numerous nations are also replacing outdated, conventional streetlights with solar LED lights due to their low maintenance requirements.
• The COVID-19 pandemic had a significant effect on the outdoor solar LED market, but a number of ongoing solar LED lighting initiatives also increased demand and helped the market bounce back after the pandemic. The market, however, benefited from regional government initiatives to guarantee the continuation of ongoing projects during lockdowns.
• Additionally, it is anticipated that factors like falling battery prices, LED lighting costs, product design innovations, and increases in the lighting efficacy of landscape lighting products will lower the price of solar LED components. Municipalities in underdeveloped and developing regions are anticipated to choose solar LEDs due to the price decline and additional advantages, including solar LEDs' increased lifespan, simplicity of installation, and low maintenance and operating costs.
• However, the problems impeding the market's expansion are the high initial costs, the lack of understanding regarding financing and payback, and the reliance on the weather. One of the leading obstacles to the growth of the outdoor solar LED industry is the absence of institutionalization plans for LEDs worldwide. To promote the use of significant inventions, governments in some nations have put in place strict regulations; however, they have refrained from institutionalizing their actions.

Outdoor Solar LED Market Trends

Solar LED Street Lights are Anticipated to Grow at the Robust Pace

• Solar LED streetlights are the market segment with the largest share. The market's growth is fueled by the government's installation of Solar LED street lights in various cities, particularly close to local municipalities worldwide.
• Additionally, expenditures in projects to upgrade the road infrastructure in various countries will stimulate segment growth. In order to finance the installation of solar street lights and promote segment expansion, several local governments from various countries also look at Public-Private Partnerships (PPP).
• 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 provide tax breaks and incentive programs to commercial users to encourage the use of solar LED lights. Thus, 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.
• For instance, in October 2022, the City of Princeton, Texas, installed 37 smart off-grid solar street lights in the Princeton Municipal Park, located around the Municipal Center. The city has improved its local infrastructure in an effort to increase energy resilience and promote sustainable alternatives. EnGoPlanet, a Houston-based manufacturer, makes solar-powered LED streetlights that don't need any wiring and are powered entirely by solar energy.
• Furthermore, products with increased lighting intensity and low power consumption have been developed as a result of ongoing innovation, and this is what is anticipated to fuel the segment's growth over the forecast period. The demand for replacing outdated street lighting systems with energy-efficient lighting solutions is also a major factor in the segment's growth.

Asia Pacific to Witness the Significant Growth

• The Asia Pacific market is proliferating and holds a significant share of the global solar outdoor LED lighting market. The increased efforts to reduce carbon emissions by increasing renewable technologies can be attributed to the market growth in the Asia Pacific region. Additionally, it is anticipated that technological advancement in LED lighting solution design will fuel the market in the Asia Pacific.
• China led the regional market's growth, and the trend is anticipated to last throughout the forecast period. The regional market expansion can be attributed to the rising number of smart cities, infrastructure, and city expansion projects in several regional nations. Government efforts to implement street lighting solutions in rural and urban markets in China, India, and Southeast Asian countries have accelerated; this is expected to support market expansion.
• For instance, India's solar LED street lighting market will expand significantly due to strict government rules regarding the use of renewable energy sources and the rising popularity of environmentally friendly technologies. According to a report by the India Brand Equity Foundation (IBEF), India intends to produce 175 GW of energy from renewable sources by 2022, of which 100 GW will come from solar energy. The solar LED lighting market will also grow due to reforms and policies, such as the Deendayal Upadhyaya Gram Jyoti Yojana for rural electrification.
• Due to the advantages of outdoor solar LED lights over traditional outdoor lights, the post-pandemic global market appears promising in Asia-Pacific and several other nations.
• Additionally, as the area's population is expanding quickly, investments are being made in infrastructure development, which raises demand for outdoor solar LEDs. Manufacturers and governments from many nations actively seeking cost-effective energy production are drawn to the recent innovations that revolve around integrating solar systems with greener energy sources.

Outdoor Solar LED Market Competitor Analysis

• The market for outdoor solar LED features is fragmented because there are many solar LED lighting vendors in this market. The increasing demand for renewable energy sources encourages market vendors to concentrate on opportunities for the international export of their solar LED products. Important players like SOKOYO, Signify Holding, and Sunna Design SA participate in numerous trade shows and exhibitions worldwide to grow their businesses.
• In November 2022, Signify added twelve new lamps and luminaires to its 'Ultra Efficient' line of LEDs that it claims are up to 50% more efficient than its standard LED offerings. The new products include two indoor diamond cut luminaires, two outdoor arbor luminaires, and two outdoor solar-powered Tyla luminaires.
• In June 2022, SBM-SolarTech made available for purchase the Model D-143, the fourth generation of solar road studs. Road construction companies use solar road studs flashing LED lighting to mark centerlines and edges of roads. Road studs with embedded solar lights significantly increase traffic safety and effectiveness. Through actual use, solar-powered road studs have been shown to reduce accident rates and the likelihood of route errors.

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