Solar Lights Market to Reach USD 14.2 Billion by 2031, Growing from USD 8.1 Billion: Report

The global solar lights market, valued at USD 8.1 billion in 2021, is projected to surge to USD 14.2 billion by 2031, marking a steady growth rate of 6.2 percent annually. This expansion is driven by the growing need for energy independence, ease of installation, and reliability of solar lighting solutions. With advancements in solar panel technology, bulb brightness, and battery life, the solar lights market is witnessing increased adoption.

This was revealed by Allied Market Research in its market report. It further said, "Inclination towards eco-friendly, cost-effective, and energy-efficient solutions is the upcoming trend of the solar lights market in the world.”

Further, the rising demand for energy amid dwindling traditional resources is compelling both developed and developing nations to explore alternative solutions. Solar lights, offering a clean and cost-effective alternative, are gaining traction for residential and commercial use. Awareness of clean energy solutions is particularly growing in developing countries, which is further propelling the market.

"Over the past six years, the price of solar lights has dropped by approximately 80 percent, with further reductions expected, making solar lighting an increasingly viable option," said the report.

Moreover, government incentives, including tax cuts and subsidies, are accelerating the adoption of solar lights. These favourable policies are boosting market growth, especially in infrastructure projects. In residential sectors, solar lights are helping offset and diversify electricity consumption. Meanwhile, in the commercial sphere, solar lights are replacing traditional outdoor and street lighting solutions, driven by their cost-effectiveness and environmental benefits.

Solar street lighting, in particular, is revolutionising urban infrastructure with its renewable energy source and zero ongoing electricity costs. Solar lights are designed to operate independently, even in adverse weather conditions, and are proving effective during power outages. The increasing demand for solar garden lights, street lights, and IoT-integrated solar solutions is contributing to market growth.

Despite these advantages, solar lights face challenges such as susceptibility to high temperatures and UV damage, which can affect performance and longevity. Accumulation of dust and dirt also hampers efficiency, presenting hurdles that need addressing.

The Asia-Pacific region leads in market share, with a projected CAGR of 6.4 percent due to developments in China’s solar industry. North America is also showing strong growth, with a CAGR of 6.3 percent.

Overall, the shift towards solar lighting reflects a broader commitment to sustainability, cost savings, and energy efficiency, positioning solar lights as a key player in future infrastructure and residential lighting solutions.