The global solar lights market, valued at $8.1 billion in 2021, is set to reach $14.2 billion by 2031, driven by clean energy adoption, smart infrastructure projects, off-grid systems, and growing demand for sustainable outdoor lighting solutions.

According to a new report published by Allied Market Research, the global solar lights market size was valued at $8.1 billion in 2021 and is projected to reach $14.2 billion by 2031, growing at a CAGR of 6.2% from 2022 to 2031. This steady expansion reflects rising adoption of renewable energy solutions, falling solar component costs, and strong government support for clean lighting infrastructure worldwide.

Evolution of Solar Lighting Technology

Modern solar technology has evolved significantly since the invention of the first practical solar cell at Bell Labs in 1954. Initially developed to power satellites, solar energy was once prohibitively expensive. Today, advances in photovoltaic efficiency, battery storage, and electronics have made solar lighting an affordable and widely deployed solution.

A typical solar lighting system consists of four main components: a solar photovoltaic (PV) panel, a rechargeable battery, control electronics, and a lighting fixture. During the daytime, solar panels absorb sunlight and convert it into electricity, which is stored in batteries. At night, the stored energy powers the lights automatically. Continuous improvements in battery storage capacity are expected to unlock new growth opportunities for the solar lights market in the coming years.

Regional Analysis of the Solar Lights Market

Region-wise, the Asia-Pacific region dominated the solar lights market with 34.5% revenue share in 2021 and is expected to grow at a CAGR of 6.4% through 2031. Rapid urbanization, government support for renewable energy, and strong manufacturing capabilities—particularly in China—are driving regional market expansion.

North America is also expected to witness steady growth, registering a CAGR of 6.3% during the forecast period. The region's growth is supported by increasing adoption of solar street lighting projects, rising energy efficiency regulations, and growing investment in smart infrastructure.

Rising Demand for Sustainable and Energy-Efficient Lighting

Growing environmental awareness and increasing acceptance of eco-friendly products are major factors driving the solar lights market growth. Solar lights operate entirely on renewable energy, reducing dependence on fossil fuels and lowering greenhouse gas emissions. As governments worldwide promote clean energy adoption, solar lighting has become a preferred choice for public infrastructure projects.

Solar lights are energy-saving, durable, cost-effective, and safe. These advantages are encouraging their deployment in residential, commercial, and industrial settings. In residential applications, solar lights enhance property aesthetics, improve outdoor security, and eliminate electricity bills associated with conventional lighting. In industrial and commercial projects, solar lighting solutions support sustainability goals while reducing operational costs.

Infrastructure Development and Smart Cities Fuel Market Growth

Government initiatives aimed at developing smart cities and modern infrastructure are significantly boosting the solar lights market. Solar street lights are increasingly installed at highways, intersections, parks, and pedestrian areas. These self-sustaining lighting systems improve visibility, reduce road accidents, and enhance public safety while minimizing grid dependency.

Solar street lights also play a crucial role in electrifying remote and rural regions with limited access to grid electricity. Their easy installation and low maintenance requirements make them an ideal alternative power solution for off-grid and underserved areas.

Solar Lights Market Segmentation Overview

The solar lights market is segmented based on type, panel type, solar power system, application, and region.

By type, the market is categorized into outdoor solar lights and indoor solar lights. Outdoor solar lights dominated the market in 2021, accounting for 90.7% of total revenue, and are expected to grow at the highest CAGR during the forecast period. Their low power consumption, affordability, and ease of installation drive strong demand in residential and public infrastructure projects.

By panel type, the market is divided into polycrystalline, monocrystalline, and amorphous panels. The polycrystalline segment held 50.5% of the market share in 2021 and is projected to grow at the fastest CAGR of 6.4% through 2031. Polycrystalline panels are widely used due to their lower cost, durability, and reliable performance under diverse weather conditions.

By solar power system, the solar lights market is classified into off-grid, on-grid, and hybrid systems. Off-grid systems dominated the market with 74.2% revenue share in 2021. Their ability to operate independently of the power grid, avoid outages, and reduce electricity costs makes them highly suitable for highways, gardens, and rural applications.

Application-Based Growth Trends

In terms of application, the market is segmented into highways and roadways, residential, commercial and industrial, and others. The highways and roadways segment accounted for 42.8% of market revenue in 2021 and is expected to grow at the highest CAGR of 6.6% during the forecast period. Increasing government investment in road infrastructure and growing emphasis on green energy solutions are fueling demand for solar lighting products in this segment.

Residential and commercial applications are also witnessing strong growth, driven by rising energy costs, increasing awareness of sustainability, and growing adoption of solar solutions in urban landscapes.

Competitive Landscape

The solar lights market is moderately fragmented, with several global and regional players competing through product innovation, strategic partnerships, and geographic expansion. Key companies operating in the market include Jinhua Sunmaster Lighting Co. Ltd., Solar Street Lights USA, Sunna Design SA, ENGOPLANET Energy Solutions LLC, Engcotec GmbH, SEPCO, Fonroche Lighting America, Greenshine New Energy, Koninklijke Philips N.V., and Wipro Lighting.

Future Outlook

The future of the solar lights market looks promising, supported by advancements in battery technology, declining solar panel costs, and increasing policy support for renewable energy adoption. As cities and communities worldwide focus on sustainable development, solar lighting solutions are expected to play a critical role in reducing carbon emissions while improving energy access and public safety.