Overview of the global solar home lighting market

Market research analysts at Technavio have predicted that the global solar home lighting market will grow impressively and post a CAGR of about 20% during the forecast period. Fossil fuels currently account for more than 80% of the world's energy demand. The demand for fossil fuels is expected to increase in the coming years and is mainly attributed to the increasing demand for energy across the globe, especially from the non-OECD (Organization for Economic Co-operation and Development) countries such as China and India. The impact of rapid industrialization on the environment is quite significant and has resulted in the rise in global temperatures of both the land surface and water bodies. The rise in demand for energy from residential and industrial consumers is quite imminent and so is the extensive use of fossil fuels that result in a significant cost to the environment in the form of greenhouse gas emissions. The implementation of renewable sources of energy, such as solar, wind, and hydro energy will significantly reduce the emission of greenhouse gasses and also help achieve the goal of creating a sustainable environment.

This market research analysis predicts that the increased collaboration between the local governments, international organizations, and regional NGOs will greatly contribute to the growth of the solar powered lights market over the next four years. Governments have started introducing several schemes for encouraging the development of the solar home lighting systems. It provides subsidies and discounts to projects that aim at the development and implementation of the lighting systems using renewable energy sources. This will result in an increased number of vendors focusing on providing solar home lighting systems to households that are isolated from the national grid.

Competitive landscape and key vendors

Characterized by the presence of numerous vendors operating at multiple layers, this market appears highly fragmented. It has been observed that customers in the grid-tied solar home lighting market segment mainly focus on having a backup for the conventional grid provided power supply. As a result, solar lighting system vendors in this segment mainly concentrate on the developed parts of the globe such as North America and Western Europe. The off-grid solar home lighting market segment pertains to the population in the remote corners of the world. Market research analysts predict that this segment will witness the major share of the innovations, which will lead to the introduction of numerous products that are in line with the dynamics of this particular market segment. This, in turn, will significantly intensify vendor competition in the market in the next four years.

The leading vendors in the market are -

• Panasonic
• Tata Power Solar Systems
• Sharp
• Shenzhen Yingli New Energy Resources

The other prominent vendors in the market are GE Renewable Energy, Su-Kam, Solarcentury, and Phillips.

Segmentation by product type and analysis of the solar home lighting market

• Off-grid solar
• Grid-tied solar

During 2015, the grid-tied solar segment accounted for more than 86% of the total market share and dominated the solar home lighting market. Though the growth of the off-grid solar segment is expected to decrease the share of this market segment during the predicted period, the continuous adoption of grid-tied solar system products in developed countries will fuel the demand for this segment. As a result, this market segment will continue to dominate the solar lights market throughout the forecast period.

Geographical segmentation and analysis of the solar home lighting market

• Americas
• APAC
• EMEA

In terms of geography, this market study estimates that APAC will account for about 40% of the share of the solar home lighting market and dominate this industry by 2020. Majority of countries covered in the APAC region lie in the tropical or sub-tropical regions and this plays a significant role in contributing to the growth of the solar products market. Additionally, recent government initiatives for the development of solar infrastructure in APAC countries will also propel the demand for solar home lighting products in the region.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the solar home lighting market?
• What are the key market trends impacting the growth of the solar home lighting market?
• What are the challenges to market growth?
• Who are the key vendors in the solar home lighting market?
• What are the market opportunities and threats faced by the vendors in the solar home lighting market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the solar home lighting market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Solar Battery Charger Market 2016-2020
• Global General Lighting Market 2016-2020
• Global Residential Solar Energy Storage Market 2015-2019