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Solar Lighting System Market

The market for Solar Lighting System was estimated at $12.4 billion in 2025; it is anticipated to increase to $21.4 billion by 2030, with projections indicating growth to around $36.9 billion by 2035.

Report ID:DS2406004
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Renewable Energy
Solar Lighting System
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Report Summary
Market Data
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Table of Contents

Global Solar Lighting System Market Outlook

Revenue, 2025

$12.4B

Forecast, 2035

$36.9B

CAGR, 2026 - 2035

11.5%

The Solar Lighting System industry revenue is expected to be around $12.4 billion in 2026 and expected to showcase growth with 11.5% CAGR between 2026 and 2035. This growth outlook underscores the Solar Lighting System market’s rising strategic importance in the global energy transition, as policymakers and businesses prioritize low-carbon, grid-independent illumination solutions to cut operating costs and enhance resilience. Demand is being propelled by rapid urbanization, stricter energy-efficiency regulations, and large-scale infrastructure upgrades, where commercial solar lighting and solar street lighting projects deliver measurable savings versus conventional grid-based alternatives. Commercial and Highways and Roadways end-use segments together account for 60.8% of market revenues, reflecting the central role of Solar Lighting System deployments in commercial complexes, highways, and road corridors worldwide. Off Grid Type Solar Lighting System solutions led industry revenues with approximately $8.9 billion in sales in 2025, underscoring the appeal of decentralized systems for regions with unreliable grid access, disaster-prone areas, and remote industrial sites. Continued investment in smart solar lighting and supportive government incentives is expected to keep the market at the forefront of sustainable outdoor lighting strategies for municipalities and private operators alike.

The Solar Lighting System ecosystem typically integrates high-efficiency photovoltaic panels, advanced battery storage, LED solar luminaires, charge controllers, and intelligent monitoring to deliver autonomous, maintenance-optimized lighting performance. These systems are deployed across diverse applications, including highways and roadways, commercial campuses, industrial facilities, parking lots, public parks, and residential communities, where reliable and cost-effective outdoor illumination is critical. Key product configurations span standalone off grid Solar Lighting System units, hybrid installations linked to weak grids, and modular kits tailored for retrofits and new smart-city developments. Recent trends such as falling solar module and battery prices, improvements in energy management software, and the integration of remote monitoring and motion-based dimming are further improving total cost of ownership and accelerating adoption. As stakeholders pursue long-term decarbonization and climate-resilience goals, Solar Lighting System solutions are becoming a preferred choice for future-ready, sustainable lighting infrastructure.

Solar Lighting System market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Solar Lighting System Market Outlook

Market Key Insights

  • The Solar Lighting System market is projected to grow from $12.4 billion in 2025 to $36.9 billion in 2035. This represents a CAGR of 11.5%, reflecting rising demand across Residential, Commercial, and Industrial.

  • Signify Holding, Solar Electric Power Company, and Greenshine New Energy are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Solar Lighting System market and are expected to observe the growth CAGR of 13.2% to 17.6% between 2023 and 2030.

  • Emerging markets including Brazil, Vietnam and South Africa are expected to observe highest growth with CAGR ranging between 10.3% to 15.4%.

  • Transition like Shift Towards Smart Solar Lighting is expected to add $2 billion to the Solar Lighting System market growth by 2030.

  • The Solar Lighting System market is set to add $24.5 billion between 2025 and 2035, with manufacturer targeting Highways and Roadways & Commercial Application projected to gain a larger market share.

  • With

    demand for renewable energy, and

    Government Incentives, Solar Lighting System market to expand 294% between 2023 and 2033.

solar lighting system market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Solar Lighting System - Country Share Analysis

Opportunities in the Solar Lighting System

Rapid growth of Indian office parks, malls, and campuses is also unlocking retrofit demand for on-grid solar lighting tied to rooftop PV and building-management systems. Facility owners seek to cut lighting OPEX and meet green-building norms by replacing conventional fixtures with high-efficacy LEDs, wired to grid-tied inverters and smart controls. From a smaller global base of $3.53 billion in 2025, on-grid solar lighting is forecast to reach $5.53 billion by 2030, with commercial retrofits forming the fastest-growing application.

Growth Opportunities in Asia Pacific and North America

In Asia Pacific, the Solar Lighting System market is primarily driven by large-scale transportation and infrastructure programs, making Highways and Roadways the most influential end-use, especially for solar street lighting and smart solar street lights along expressways, logistics corridors, ports, and peri-urban roads. Rapid urbanization, government-led rural electrification, and aggressive decarbonization targets are accelerating adoption of off-grid solar lighting for secondary and feeder roads, while industrial parks and special economic zones increasingly deploy solar LED lighting for perimeter security and high-mast applications. Competition is intense between cost-optimized domestic suppliers and technology-focused international brands, pushing differentiation around battery life, high-lumen performance, remote monitoring, and integrated charge controllers tailored to hot, humid, and coastal climates. Strategic opportunities include positioning premium Solar Lighting System portfolios for high-spec highway concessions and smart-city corridors, localizing assembly to meet public procurement norms, and expanding service-based models for municipalities and toll-road operators, supported by robust O&M capabilities and region-specific lighting design for outdoor solar lighting in both monsoon and arid zones.
In North America, Commercial end-use applications dominate the Solar Lighting System landscape, as corporate campuses, retail chains, parking lots, logistics centers, and institutional facilities adopt solar LED lighting to meet ESG targets, lower operating expenses, and enhance resilience against grid outages. Regulatory incentives, green-building certifications, and corporate sustainability reporting are key drivers, encouraging the shift from conventional fixtures to smart solar street lights and networked outdoor solar lighting with adaptive controls, motion sensing, and cloud-based asset management. The competitive environment features established lighting OEMs, energy-service companies, and specialized solar lighting providers, with differentiation focused on system reliability in extreme weather, integration with energy-management platforms, and bankable long-term warranties. Strategic opportunities center on premium, specification-grade Solar Lighting System solutions for commercial and industrial customers, bundled with financing, monitoring, and performance guarantees, as well as targeted offerings for retrofits of parking lots and campus pathways where off-grid solar lighting can avoid trenching costs and support grid-resilience and carbon-reduction objectives.

Market Dynamics and Supply Chain

01

Driver: Growing Demand For Renewable Energy Adoption And Rising Urban Outdoor Lighting Projects

The solar lighting system market is also primarily driven by the increasing adoption of renewable energy solutions and the expansion of urban outdoor lighting infrastructure. Governments and municipalities are also investing in sustainable lighting to reduce carbon emissions and electricity costs, promoting solar-powered streetlights and public lighting solutions. Concurrently, rapid urbanization is also fueling large-scale outdoor lighting projects, including streets, parks, and commercial spaces. Advanced solar LED technologies, integrated battery storage, and smart controllers ensure high efficiency and low maintenance. Together, these factors accelerate the deployment of solar lighting systems across residential, commercial, and industrial sectors, supporting energy efficiency goals and sustainable urban development while enhancing operational reliability and public safety.
Innovations in solar LED modules and battery storage systems act as a key driver for market growth. High-efficiency photovoltaic panels and long-life lithium-ion batteries improve energy capture, storage, and output, enabling continuous illumination even during cloudy conditions or at night. Integrated smart controllers and motion sensors enhance operational efficiency by reducing energy consumption and maintenance needs. These technological improvements allow for scalable, cost-effective solar lighting solutions, increasing adoption in residential, commercial, and industrial projects, and supporting sustainability initiatives while optimizing energy performance in outdoor environments.
02

Restraint: High Initial Installation Costs And Perceived Long Payback Periods Limit Adoption

One major restraint for the solar lighting system market is the relatively high upfront cost of solar LED fixtures, integrated batteries, and installation compared with conventional grid‑connected lighting. Many residential and small commercial buyers delay investment due to perceived long payback periods, even though lifetime energy savings are significant. For example, a municipality may opt for traditional streetlights to meet budget constraints, postponing solar lighting projects. This limits near‑term demand and slows revenue growth for manufacturers and installers, especially in regions without strong incentives or financing options to offset initial capital expenses.
03

Opportunity: Off-grid rural street lighting in sub-Saharan African communities and Smart solar garden and pathway lighting for European homeowners

Rising rural electrification budgets, climate-finance grants, and telecom-powered mini-grids are creating white space for durable off-grid solar street and community lighting across sub-Saharan Africa. Products combining lithium iron phosphate batteries, theft-resistant poles, and remote monitoring address maintenance and security concerns for municipalities and aid agencies. Globally, off-grid solar lighting already leads with about $8.90 billion in 2025 revenue, projected to reach $15.89 billion by 2030 with 12.29% CAGR, with rural public-lighting applications expected to capture a disproportionate share of this growth.
High energy prices, sustainability-minded consumers, and strict outdoor-wiring rules in Europe are boosting demand for plug-and-play solar garden and pathway lights. New designs integrate motion sensors, app-based dimming, and higher-capacity batteries, enabling premium, maintenance-free off-grid systems for terraces, driveways, and shared residential pathways. This segment benefits from the strong 12.29% global CAGR in off-grid solar lighting, yet remains fragmented, leaving room for brands that pair stylish designs with smart features and partner with rooftop-solar installers and DIY chains.
04

Challenge: Intermittent Solar Radiation And Weather Dependence Affect Performance Reliability

Solar lighting systems are inherently dependent on adequate sunlight, and performance can suffer in regions with extended cloudy, rainy, or high‑latitude conditions. Limited solar radiation reduces energy capture and battery charging, leading to dimmer output or shorter lighting durations, which can discourage adoption for critical applications like highways or emergency lighting. For instance, industrial sites in northern climates may require supplementary power sources, increasing system complexity and cost. This weather sensitivity can weaken buyer confidence, reduce installed system performance, and slow overall market expansion in less sunny geographies.

Supply Chain Landscape

1

Solar LED Lighting

Signify HoldingJinhua Sunmaster Solar Lighting Co. Ltd
2

Solar Lighting System

Solar Electric Power CompanyGreenshine New Energy
3

Smart Solar Lighting

Clear Blue TechnologiesSignify Holding
4

Outdoor Solar Lighting

Municipal Street Lighting ProjectsCommercial Outdoor Area Lighting
Solar Lighting System - Supply Chain

Use Cases of Solar Lighting System in Residential & Commercial

Residential : Solar lighting systems are increasingly adopted in residential settings to provide cost-effective, eco-friendly illumination for homes, gardens, driveways, and outdoor spaces. Integrated solar garden lights, wall-mounted units, and motion-sensor pathway lights are most commonly used for residential applications. These systems are easy to install, require minimal maintenance, and operate independently of the electrical grid. Homeowners benefit from reduced electricity bills and enhanced safety with automated night-time lighting. Additionally, solar lighting adds aesthetic value to landscaping while promoting sustainability by harnessing renewable solar energy, making it a preferred choice for energy-conscious residential users.
Commercial : In commercial applications, solar lighting systems illuminate parking lots, office exteriors, shopping centers, and pedestrian walkways. High-output solar LED street lights and solar-powered floodlights are widely used to meet commercial lighting demands. These systems provide reliable illumination without increasing energy costs and are often equipped with smart controls for dimming and scheduling. Businesses gain improved safety, extended operational hours, and compliance with energy efficiency regulations. Solar lighting also supports corporate sustainability goals, enhancing brand image while reducing reliance on traditional electricity, making it a practical solution for commercial infrastructure projects.
Industrial : Industrial sites such as warehouses, factories, construction areas, and logistics yards increasingly adopt solar lighting systems to ensure safe and efficient operations. High-lumen solar floodlights and pole-mounted solar street lights are commonly deployed due to their durability and ability to operate in harsh environments. These systems minimize operational downtime by providing continuous illumination without dependence on the power grid. Industries benefit from lower energy expenses, reduced carbon footprint, and enhanced worker safety. Solar lighting also facilitates compliance with occupational health and safety standards, proving to be an effective, sustainable solution for industrial outdoor lighting requirements.

Impact of Industry Transitions on the Solar Lighting System Market

As a core segment of the Renewable Energy industry, the Solar Lighting System market develops in line with broader industry shifts. Over recent years, transitions such as Shift Towards Smart Solar Lighting and Focus on Hybrid Systems have redefined priorities across the Renewable Energy sector, influencing how the Solar Lighting System market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift Towards Smart Solar Lighting

The accelerating shift towards smart solar lighting is transforming the Solar Lighting System market from basic illumination to intelligent, data-driven infrastructure, and is projected to contribute an additional $2 billion in market growth by 2030. By embedding sensors, connectivity, and IoT-enabled controls into solar street lighting and other off-grid lighting solutions, suppliers can deliver superior energy-efficient lighting performance, remote monitoring, and predictive maintenance capabilities. This transition not only enhances reliability and adaptability in both urban and rural deployments but also strengthens value propositions for municipalities, commercial facilities, and industrial users seeking lower lifecycle costs and improved sustainability metrics. As smart solar lighting becomes the default specification, vendors that rapidly innovate and scale these advanced Solar Lighting System platforms will capture disproportionate share of the forecasted growth.
02

Focus on Hybrid Systems

The solar lighting system market is experiencing a notable shift with the adoption of hybrid systems that combine grid connectivity and solar power. These solutions enhance reliability by ensuring continuous illumination even during prolonged cloudy periods or battery depletion, addressing a key limitation of standalone solar lighting. Hybrid systems are increasingly deployed in municipal street lighting projects, commercial outdoor areas, and industrial sites, where uninterrupted power is critical for safety and operations. For example, urban municipalities integrating hybrid solar-grid streetlights have reduced blackout risks while optimizing energy costs, and commercial facilities benefit from consistent lighting without relying solely on solar conditions. This transition strengthens market confidence, drives broader adoption, and supports sustainable energy initiatives across diverse sectors.