Future of Global Solar Street Lighting Market: Growth Insights and Forecast 2025–2032
Global solar street lighting market is projected to witness a CAGR of 8.43% during the forecast period 2025–2032, growing from USD 4.87 billion in 2024 to USD 9.31 billion in 2032. Solar street lighting market has witnessed robust growth in recent years as a result of rising demand for clean, renewable energy solutions, and growing government encouragement towards the implementation of clean energy lighting solutions across various applications is likely to continue with a robust growth rate over the next few years. In addition, increasing global consciousness of environmental sustainability in developing nations is driving the market size for solar street lights during the forecast period. Rapid urbanization and infrastructure development lead to a rise in the cost and consumption of electricity in the regions. The government and municipalities seek to lower operational costs and are looking to invest in energy-efficient infrastructure, thus driving the demand for solar street lighting solutions in the market. The solar street lighting products use renewable energy which lowers the operational cost and reduces the dependency on grid electricity which driving its demand in the market.
Moreover, the future development is increasing the affordability and scalability of the solar street lighting, due to which the product is becoming viable for both urban and rural use. Further, the continuous innovation in solar panels and smart control functionality in the solar street lighting solution is creating new avenues in the market. In addition, governments and regulatory agencies in regions are adopting supportive policies, subsidies, and aggressive green energy targets, promoting the use of solar-powered street lighting in the market.
For instance, the federal government of the United States offers a 30% tax credit for the cost of purchasing and installing solar street lights. The tax credit is available for both residential and commercial installations. In addition, many states have decided to launch incentive programs, such as rebates and grants, aimed at promoting the use of solar streetlights in the country. This development highlights the rising government support for off-grid solutions, driving the demand for the solar street lighting market.
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Rise in Shift Toward Green Energy Sources Solutions Amplifying Market Size
Developed and developing countries are encouraging the adoption of green energy sources to lower the dependence on the power grids. Countries are emphasizing environmental sustainability and the need to reduce carbon emissions. Solar street lighting uses renewable solar energy, helping communities and governments lower their carbon footprints compared to traditional grid-powered lighting, thus driving its demand in the market. Solar streetlights eliminate greenhouse gas emissions by 100% compared to grid-powered alternatives. Solar streetlights are increasingly emerging as a viable option in regions where it is expensive to extend the power grid. Additionally, the product provides cost-saving for the long term in that it abates electricity expenses and saves on maintenance costs, which stimulates the use of solar street lights across various uses. The government sector is looking to adopt the off-grid power generation solution which drive the demand for solar street lighting solutions in the market.
For instance, in September 2024, ITI Limited received an order worth around USD 35 million from Bihar Renewable Energy Development Authority (BREDA) for the supply and installation of 1,00,000 numbers of solar street light systems to Bihar state government. This is in addition to 80,000 solar street light systems the company is currently executing in Bihar for BREDA. This development highlights the rising investment in solar lighting solutions which will drive the market growth in the coming years.
Dropping prices of solar panels and advancements in energy storage technologies have made solar streetlights economically competitive which drives its demand in the market. The product come with affordability and advance feature, coupled with zero operating expenses, makes solar lighting a cost-saving option that fuels its demand in the market. Furthermore, governments across various countries are giving the highest priority to the adoption of renewable energy to achieve climate targets, where policies like the United States Investment Tax Credit (ITC) and India’s Atal Jyoti Yojana (AJAY) subsidize solutions for renewable energy generation, hence speeding up its deployment in the market.
Countries around the world are prioritizing energy-efficient infrastructure to address the rising demand for electricity while pursuing sustainability goals. Significant government investments in renewable energy projects are making solar street lighting an increasingly attractive solution. Solar streetlights offer grid-independent illumination, reducing dependence on fossil fuels and cutting municipal electricity costs.
Urban areas, experiencing growing power demands and strained electricity grids, are adopting solar lighting to meet climate targets and enhance resilience. This trend opens substantial growth opportunities in the solar street lighting market for the forecast period.
The momentum behind smart city initiatives is amplifying this adoption further. By integrating solar streetlights with IoT-enabled technologies — such as motion sensors, adaptive brightness controls, and real-time monitoring — cities can optimize energy use. IoT connectivity also enables remote management and predictive maintenance, lowering operational expenses and boosting uptake, particularly in Europe and Asia-Pacific.
As urbanization accelerates and smart city programs expand, solar street lighting is moving beyond niche use to become a core element of modern urban infrastructure. Additionally, tax credits and financial incentives in developed economies bolster market growth.
For instance, under the U.S. Inflation Reduction Act (IRA 2022), solar street lighting systems qualify for a 30% investment tax credit (ITC), significantly reducing upfront costs. Moreover, the U.S. Department of Transportation and Department of Energy fund pilot projects featuring solar-based intelligent street lighting equipped with wireless controls and motion sensors.
Standalone Solar Street Lighting Solutions to Lead Market Share
Standalone solar street lighting systems are projected to dominate the market share through the forecast period. Their off-grid operation makes them ideal for locations with unreliable or limited electricity access, including rural and remote areas. Equipped with advanced features and durable components, standalone solutions provide reliable lighting while supporting renewable energy goals by lowering carbon emissions.
Decentralized, off-grid models are gaining popularity in developing countries, where governments promote rural electrification through subsidies and awareness campaigns. This rising demand ensures that standalone solar street lighting will continue to hold market leadership.
Asia-Pacific: The Powerhouse of Market Growth
The Asia-Pacific region is expected to remain the largest market for solar street lighting throughout the forecast period. Governments in emerging economies are rolling out strict policies and subsidies to accelerate renewable energy adoption, positioning solar lighting as a critical component of both urban and rural electrification strategies.
Favorable climate conditions in the region enable consistent solar energy generation year-round, supporting high efficiency and adoption rates. Additionally, strong manufacturing presence in China, India, Japan, and other countries ensures steady product availability at competitive prices, further boosting market growth.
For example, in November 2024, Shenzhen Clodesun Optoelectric Co., Ltd. introduced three-side illuminated integrated solar streetlights designed explicitly for rural courtyard and household use, showcasing Asia-Pacific’s leadership in solar lighting innovation.
The blend of urbanization, government incentives, robust manufacturing ecosystems, and optimal climatic conditions truly positions Asia-Pacific as the global leader in solar street lighting adoption.
The global solar street lighting market is surging, driven primarily by accelerating urbanization, the rise of smart city projects, increasing government incentives, and the widespread adoption of standalone lighting solutions. With Asia-Pacific spearheading market growth through innovation and manufacturing strength, the solar street lighting market is well-positioned for strong and sustained expansion through 2032.
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