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The solar home systems market share is expected to increase to USD 1.39 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 21.4%.
This solar home systems market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers solar home systems market segmentation by type (PAYG products and cash products) and geography (Middle East and Africa, APAC, South America, North America, and Europe). The solar home systems market report also offers information on several market vendors, including Bboxx Ltd., Canadian Solar Inc., Cygni, First Solar Inc., Fosera Solarsystems GmbH and Co. KGaA, Hanwha Corp., JA Solar Technology Co. Ltd., Kyocera Corp., Lumos Global BV, M KOPA, NIWA Solar, Offgridsun srl, ovSolar Power Co. Ltd., Phocos AG, Renewit Solar Ltd., Schneider Electric SE, Sun King, SolarNow BV, Tata Sons Pvt. Ltd., and Yingli Green Energy Holding Co. Ltd. among others.
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The availability of favorable financing options is notably driving the solar home systems market growth, although factors such as competition from alternative sources of energy may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the solar home systems industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Solar Home Systems Market Driver
One of the key factors driving the global solar home systems market growth is the availability of favorable financing options such as fee-for-service or PAYG. For the PAYG products, companies rent out solar lighting systems, which constitute home products such as lights along with solar-based power supply mechanisms, to consumers. The customers then pay for the product in installments or for the use of the product as a service and companies minimize transaction costs, remotely activate services, and automate payments. Under this model, customers can opt to either take over the ownership of the systems or just purchase solar home systems as a service. For instance, in India, Greenlight Planet's EasyBuy solution leverages the PAYG model to promote the adoption of solar lamps and home lighting systems. Pollinate Energy Ltd., which is a social enterprise, uses a distribution network that employs the PAYG concept to make quality solar lighting products affordable and accessible to underprivileged consumers. Such factors will drive the market growth in the forecast period.
Key Solar Home Systems Market Trend
Rising support from NGOs in African and Asian countries is one of the key solar home systems market trends that is expected to impact the industry positively in the forecast period. Various NGOs are active in Tanzania, such as Solar Circle, a non-profit organization that promotes access to solar power in rural Tanzania, East Africa. Solar Circle also distributes solar cookers and lights in the Masasi district of Southern Tanzania to address the need for a clean and sustainable energy source as well as curb the high rates of deforestation. Similarly, as a part of the Lighting One Billion Lives initiative, which began in 2007, the NGO and India's energy research institute, TERI, have been coordinating the distribution of solar lamps in villages of India, working with vendors to lower the prices of solar lamps, training personnel and providing technical support, and working with several other organizations to help run the charging stations. Such factors will boost the growth of the market in focus.
Key Solar Home Systems Market Challenge
One of the key challenges to the global solar home systems market growth is the competition from alternative sources of energy. According to the IEA, power generation using fossil fuels, such as coal, oil, and natural gas, accounted for 64% of the global electricity mix, whereas renewable energy sources such as solar home, wind, and hydro accounted for just 26%. According to Technavio analysis, among the clean energy technologies employed worldwide in 2021, wind and hydro accounted for larger shares in power generation compared with solar. Moreover, efforts are being directed to boost the growth of hydro and wind power generation. For instance, the State Grid Corp. of China has been resolving the bottleneck issues in the transmission and grid connection of wind power in the country. Furthermore, offshore wind power plants result in the production of a higher amount of electricity compared with their onshore counterparts, which may hamper the adoption of solar home systems.
This solar home systems market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global solar home systems market as a part of the global renewable electricity market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the solar home systems market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the solar home systems market encompasses successful business strategies deployed by the key vendors. The solar home systems market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The solar home systems market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the solar home systems market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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47% of the market's growth will originate from Middle East and Africa during the forecast period. Kenya and Uganda are the key markets for solar home systems in Middle East and Africa. Market growth in this region will be faster than the growth of the market in South America and APAC.
The introduction of numerous initiatives by governments, such as USAID, in several countries will facilitate the solar home systems market growth in Middle East and Africa over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The impact of COVID-19 in 2021 was unprecedented and staggering for the solar energy market, with solar installations seeing a negative demand shock across regions amid the pandemic. However, the market gradually resumed business operations with a decrease in the number of active COVID-19 cases in the second half of 2021. Therefore, with the introduction of COVID-19 vaccines and the implementation of social distancing norms, the market is expected to flourish during the forecast period
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The solar home systems market share growth by the PAYG products segment will be significant during the forecast period. In the PAYG business model, companies rent out solar home systems, and the consumers use basic mobile phones to make payments on a daily, weekly, or monthly basis. Thus, PAYG solar home systems are being used as an effective solution to provide people, particularly in African countries, with access to electricity, which will drive the segment growth.
This report provides an accurate prediction of the contribution of all the segments to the growth of the solar home systems market size and actionable market insights on post COVID-19 impact on each segment.
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Solar Home Systems Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 21.4% |
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Market growth 2022-2026 |
$ 1.39 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
20.5 |
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Regional analysis |
Middle East and Africa, APAC, South America, North America, and Europe |
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Performing market contribution |
Middle East and Africa at 47% |
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Key consumer countries |
Kenya, Uganda, Tanzania, China, and India |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Bboxx Ltd., Canadian Solar Inc., Cygni, First Solar Inc., Fosera Solarsystems GmbH and Co. KGaA, Hanwha Corp., JA Solar Technology Co. Ltd., Kyocera Corp., Lumos Global BV, M KOPA, NIWA Solar, Offgridsun srl, ovSolar Power Co. Ltd., Phocos AG, Renewit Solar Ltd., Schneider Electric SE, Sun King, SolarNow BV, Tata Sons Pvt. Ltd., and Yingli Green Energy Holding Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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