Solar Lights Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Solar Lights Market is projected to expand from USD 32.54 Billion in 2025 to USD 65.44 Billion by 2031, registering a CAGR of 12.35%. These autonomous systems utilize photovoltaic panels to capture sunlight and store energy in batteries, operating independently of central power grids. Growth is primarily driven by the urgent need to provide reliable electricity to rural, off-grid areas and the rising cost-effectiveness of renewable energy against fluctuating fossil fuel prices. Highlighting the demand for such solutions, GOGLA reported that global sales of solar energy kits hit 9.3 million units in 2024.

However, affordability remains a significant hurdle in emerging economies. Economic volatility, marked by high inflation and currency devaluation, diminishes the purchasing power of low-income consumers, hindering the adoption of quality solar lighting products. This instability disrupts the market's potential by restricting access for those who need off-grid solutions the most, impeding the widespread uptake of verified quality products in key regions.

Market Drivers

The reduction in manufacturing costs for solar panels and LED components is a major driver for market adoption. Enhanced production efficiencies and stable supply chains have lowered the price of photovoltaic modules, reducing upfront capital requirements for residential and commercial projects and making them competitive with grid-connected options. This is complemented by cheaper battery storage, which improves reliability without increasing ownership costs. As evidence, the International Energy Agency's 'Clean Energy Equipment Price Index' noted a 20% decline in solar PV prices during the first half of 2024, boosting the investment appeal of large-scale solar projects.

Furthermore, the push for environmental sustainability and carbon reduction is influencing procurement strategies among municipalities and corporations. Entities are adopting solar lighting to achieve decarbonization goals, reduce light pollution, and support green infrastructure, shifting away from fossil-fuel reliance. Signify's June 2024 'Climate Transition Plan' exemplifies this trend with a commitment to cut greenhouse gas emissions by 90% across its value chain by 2040. The World Bank estimates that off-grid solar solutions benefited over 560 million people globally in 2024, underscoring the sector's critical role in sustainable development.

Market Challenges

Economic instability poses a major obstacle to market growth by eroding consumer purchasing power in price-sensitive emerging economies. When local currencies devalue and inflation rises, the cost of imported solar components increases, forcing manufacturers to raise retail prices. This price escalation disproportionately affects low-income households, who are the primary demographic for off-grid lighting. Consequently, these consumers are compelled to prioritize immediate essentials, such as food and shelter, over durable energy assets, deferring the adoption of solar lighting despite its long-term economic benefits.

The severity of this impact is evident in recent regional performance metrics. According to GOGLA, in 2024, sales volumes of solar energy kits in West Africa decreased by 33% compared to the previous period, a downturn primarily driven by currency devaluation and high inflation in key markets like Nigeria. This statistical decline demonstrates how macroeconomic volatility directly impedes market penetration, effectively shrinking the addressable customer base and stalling growth momentum in regions critical for the industry's expansion.

Market Trends

The Widespread Adoption of All-in-One Integrated Design Architectures is transforming the market by simplifying installation logistics and enhancing system durability in harsh environments. Unlike traditional split systems that require complex cabling and extensive onsite assembly, these consolidated units integrate photovoltaic panels, lithium batteries, and LED modules into a single robust enclosure, significantly reducing labor requirements and potential technical failure points. According to Sunna Design, February 2025, in the announcement 'Sunna Achieves Major Milestone with 30,000 Solar Streetlight Installations in Togo', the company successfully completed the installation of 30,000 autonomous solar streetlights across rural communities under a €40 million public-private partnership, validating the scalability of integrated solar solutions.

Simultaneously, the Shift Towards Modular and Circular Economy Product Manufacturing is emerging as a critical trend, driven by the industry's need to minimize electronic waste and extend product lifecycles. Manufacturers are moving away from sealed, disposable units toward modular designs that allow for the individual replacement of critical components like batteries and drivers, alongside the increasing use of recovered materials in construction. According to Signify, September 2025, in the press release 'Signify strengthens professional lighting portfolio with new street and sports lighting products', the company introduced the SunStay Pro gen2 mini, which features a housing constructed from 80% recycled aluminum and a design explicitly engineered to support circularity through easy component serviceability.

Key Players Profiled in the Solar Lights Market

• Kon Lighting
• Fonroche Lighting America, Inc.
• Greenshine New Energy
• wipro lighting
• ENGOPLANET ENERGY SOLUTIONS LLC
• Solar Street Lights USA
• Koninklijke Philips N.V.
• SEPCO
• Engcotec GmbH
• Sunna Design SA

Report Scope

In this report, the Global Solar Lights Market has been segmented into the following categories:

Solar Lights Market, by Type:

• Outdoor Solar Lights
• Indoor Solar Lights

Solar Lights Market, by Panel Type:

• Polycrystalline
• Monocrystalline
• Amorphous

Solar Lights Market, by Solar Power Systems:

• Off-Grid
• On-Grid
• Hybrid

Solar Lights Market, by Application:

• Highways and Roadways
• Residential
• Commercial and Industrial
• Others

Solar Lights Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Solar Lights Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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