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The solar home systems market size is forecast to increase by USD 2,975.58 million, at a CAGR of 21.58% between 2023 and 2028. The market research and growth report includes historic market data from 2018-2022. The market is witnessing a growing demand for rising support from NGOs, the rapid growth in the adoption of portable devices, and the increasing demand for clean energy technologies.
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Rapid growth in the adoption of portable devices, such as tablets, smartphones, and e-readers, is a primary trend driving market growth. These devices consume relatively small amounts of electrical power, contributing to increased demand for energy-efficient solutions. Additionally, the integration of IoT technology is expanding, with potential applications extending to various consumer items and electrical devices. This connectivity enables energy consumption for data collection, processing, storage, transmission, and reception. Off-grid solar power systems play a crucial role in meeting the energy needs of portable devices and IoT ecosystems. These systems provide sustainable energy solutions in remote locations or where grid access is limited, supporting uninterrupted operation of portable devices through solar energy conversion. As the market continues to evolve, Off-grid Solar Power Systems are poised to play a pivotal role in powering the expanding ecosystem of portable devices and IoT-enabled consumer products.
Additionally, aligning market trends and analysis of the number of small portable devices with integrated solar modules and rechargeable batteries built into the design has progressed considerably. Furthermore, certain devices use rechargeable batteries rather than disposable batteries for operations, thus allowing the devices to be recharged using solar home systems. Consequently, the increase in the use of portable devices is expected to boost the growth of the market during the forecast period.
Energy access in the solar home systems market is being revolutionized by the PAYG (Pay-As-You-Go) model, particularly in underserved areas. This innovative approach eliminates the need for upfront payments, allowing customers to acquire solar solutions through manageable installments. Solar panels and batteries are installed at the customer's location, and payments are made on a daily, weekly, or monthly basis, often facilitated through mobile money services and other convenient payment methods. Remote monitoring technology is integral to PAYG systems, enabling providers to monitor payment status and system usage remotely. Solar PV Balance Of Systems (BOS) components play a critical role in supporting the integration and operation of solar energy systems. BOS components include inverters, mounting structures, cables, connectors, and monitoring devices, ensuring efficient and reliable performance of solar PV installations. As the demand for solar home systems grows, the role of BOS components in optimizing system efficiency and reliability becomes increasingly vital.
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Furthermore, in the PAYG business model, companies rent out solar home systems, and 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. To do so, governments, as well as NGOs in several countries, are supporting the adoption of PAYG solar home systems. Thus, such factors will drive market growth through the PAYG segment during the forecast period.
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Middle East and Africa is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Off-grid solar power presents a rapid and cost-effective solution to enhance global energy access, notably in regions like Malawi aiming for a 30% grid access rate by 2030. Initiatives such as USAID's Power Africa SHS Kickstarter program stimulate demand for solar home systems through grants, financial support, consumer education, and policy reforms. Private firms leverage advancements in technology and mobile payment schemes, particularly through the PAYG model, to meet rural electrification needs in Africa. Hence, such factors are expected to drive market growth in this region during the forecast period.
The availability of favorable financing options is the key factor driving market growth. Fee-for-service or PAYG concepts for solar home systems have been gaining popularity in regions such as Africa and Asia. The companies that are actively involved in the PAYG solar home systems business are known as off-grid energy companies or distributed energy service companies. For PAYG products, companies rent out solar lighting systems, which constitute home products such as lights, TVs, and refrigerators, along with solar-based power supply mechanisms, to consumers.
Additionally, in the dynamic Indian solar power market, the PAYG (Pay-As-You-Go) model is revolutionizing energy access by allowing customers to pay for solar home systems in installments or as a service. This innovative approach provides immediate access to clean and ready-to-use solar solutions without the necessity of obtaining a loan. Customers have the flexibility to either take ownership of the systems or utilize solar home systems as a service, depending on their preferences and needs. These factors are expected to significantly drive market growth in the India solar power sector during the forecast period, catering to increasing demand for sustainable energy solutions and expanding access to reliable electricity across diverse consumer segments.
Low awareness about alternative sustainable technologies is a challenge that affects market growth. There is a dire need to increase awareness among the target market regarding clean and sustainable energy-generation technologies, the benefits of such technologies, as well as hazards involved in the use of carbon-intensive fuels for illuminating homes. The shortage of entrepreneurial capacity and skills in the energy sector has limited the marketing of solar products and other modern energy technologies among consumers.
Moreover, a challenge resulting from the lack of awareness, which is difficult to overcome, is market spoilage. Market spoilage occurs due to the incidence of sub-standard or fake products in the market. Poor-quality and cheap products hinder market penetration as end-users lose faith in the technology because of a bad experience with sub-standard products. Thus, such factors will impede market growth during the forecast period.
The market research report includes the adoption lifecycle of the market growth analysis, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 23 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018 to 2028.
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Solar Home Systems Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 21.58% |
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Market Growth 2024-2028 |
USD 2,975.58 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
19.61 |
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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 42% |
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Key countries |
Kenya, Uganda, Tanzania, China, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Array Technologies Inc., Canadian Solar Inc., Enphase Energy Inc., Fosera Solarsystems GmbH and Co. KGaA, Greenlight Planet, JinkoSolar Holding Co. Ltd., LG Electronics Inc., Lumos Global BV, ovSolar Power Co. Ltd., Panasonic Holdings Corp., Phocos AG, Powerband Green Energy Ltd., Reliance Industries Ltd., Schneider Electric SE, Shell plc, SMA Solar Technology AG, SolarEdge Technologies Inc., SunPower Corp., Tata Power Co. Ltd., Tesla Inc., Trina Solar Co. 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, and market condition analysis for the 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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