Solar Home Lighting Market to be Driven by Top 3 Drivers During 2016-2020, Reports Technavio

LONDON--()--Technavio analysts forecast the global solar home lighting market to grow at a CAGR of about 20% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global solar home lighting market for 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the top vendors operating in the market.

The solar home lighting market has two distinct segments that are in absolute contrast with each other. The two segments are the grid-tied solar home lighting and the off-grid solar home lighting. They work on different business principles and cater to completely different customer segments. Despite the existing contrast between the two, both the market segments are expected to grow during the forecast period.

Technavio energy analysts highlight the following three factors that are contributing to the growth of the global solar home lighting market:

  • Increased focus on environmental protection
  • Higher price of kerosene and falling subsidies
  • Decreasing price of lighting units

Increased focus on environmental protection

Since the discovery of the commercial uses of oil and natural gas in the late eighteenth and early nineteenth centuries, the dominance of fossil fuels in satisfying the ever ballooning global energy demand has only grown. Fossil fuels currently account for more than 80% of the world's energy demand. The global energy demand is expected to increase by 35% by 2020, and fossil fuels are expected to meet 75% of this increased demand. The major growth in the demand for this fossil fuel is expected to shift to the non-OECD (Organization for Economic Co-operation and Development) countries such as China and India backed by their booming economies.

Sayani Roy, an industry expert at Technavio, specializing in power says, “The significant impacts that rapid industrialization has had on the environment over the past century are slowly getting more visible. The most significant impact is seen in the rising temperatures of both the land surface and water bodies globally. The primary reason attributed for this is the greenhouse effect, in which an increase in the concentration of greenhouses gases, such as carbon dioxide and methane, significantly causes an increasing amount of solar heat to be trapped.”

Higher price of kerosene and falling subsidies

While considering the scenario on residential lighting, the entire argument is highly contingent upon the accessibility of electricity. For a majority of the houses with access to electricity, the supply can be assumed to be unreliable at most, plagued with long hours of power cuts. In the absence of grid power, these rural and generally low-income households, have had to turn to kerosene for lighting up lamps that provide illumination in the night time.

One of the major concerns of any government is to provide better living conditions to the citizens. As such, significant amounts of subsidies have been provided by local and national organizations. The amount of subsidies is of gigantic proportions and costs a significant portion of the economic spending budget of these countries,” adds Sayani.

Decreasing price of lighting units

The main target customer segment of the solar home lighting products constitutes of the lower income strata of the rural households. Keeping this in mind, the pricing bracket of the products play a key role in deciding the sales volume, and thus, the associated revenues for the vendors. The historical market for the solar home lighting has seen a relatively higher price of the modules, and thus lesser extent of market penetration.

The price of the solar home lighting products can be gauged by the prices of the individual components of the modules. Solar home lighting product constitutes the following:

  • Solar photo-voltaic (PV) cells array
  • Battery box
  • LED lights

Top-vendor offerings:

Company   Products offered
Panasonic   HIT solar modules
Tata Power Solar Systems   Tata solar VENUS
Sharp   Lumos SHLC 3009

Lumos Solar Gen

NA-F128G5

ND-120T1

ND-130T1J

ND-T060M1

Shenzhen Yingli New Energy Resources   Solar Camping lights

Solar Lantern Series

Source: Technavio

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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

Technavio analysts forecast the global solar home lighting market to grow at a CAGR of about 20% during the forecast period, according to their latest report.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com