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

LONDON–(BUSINESS WIRE)–#Energy—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:

Source: Technavio

Browse Related Reports:

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

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About Technavio

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.

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value chain, including vendors, service providers, distributors,
re-sellers, and end-users.

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