India has a large potential for solar energy growth, with the National Institute of Solar Energy (NISE) estimating its solar potential at 748 gigawatts peak (GWp). India's solar power capacity has grown significantly in recent years, and the country is expected to see continued growth in solar energy:
Market growth
The India solar power market is expected to grow at a CAGR of 52.07% between 2023 and 2028.
Some factors that are contributing to India's solar growth include: rising investments in renewable energy, supportive government regulations, and increased adoption of microgrid along with adoption of independently solar power products like solar street lights being installed across highways in states like Maharashtra, Gujarat and cities like Pune, Nagpur etc.
1. Solar Water Heaters
Market Size & Growth: The solar water heater market in India is growing steadily, with the market size expected to increase from INR 1,800 crore in 2020 to INR 4,500 crore by 2030, marking a compound annual growth rate (CAGR) of around 9-10%(6Wresearch).
Drivers: Rising demand in residential, commercial, and industrial sectors is being fueled by government incentives, sustainability goals, and increased consumer awareness(6Wresearch).
Technology: Evacuated tube collectors and flat plate collectors dominate the market(6Wresearch).
2. Solar Garden Lights
Market Size & Growth: The garden solar light segment is a rapidly growing sector, driven by consumer demand for eco-friendly and low-maintenance lighting solutions. Annual sales growth has been observed at 12-14%, with the increasing trend of smart home solutions contributing to this expansion(Mordor Intelligence)(6Wresearch).
Key Players: Brands like Hardoll and Homehop dominate the online sales channels with products listed on platforms like Amazon and Flipkart(Mordor Intelligence).
3. Solar Rooftop Installations
Market Size: The rooftop solar market in India is valued at INR 10,000 crore as of 2023, with a CAGR of around 15% expected over the next decade(Mordor Intelligence).
Growth Potential: Maharashtra's proposal to increase net-metering to 1 MW for solar rooftop projects will likely drive further growth, particularly for commercial and industrial segments(Mordor Intelligence).
4. Solar Street Lights
Market Size & Growth: Solar street lights are increasingly replacing traditional lighting in rural and urban areas. The market is estimated at INR 3,000 crore with an expected growth rate of 12% over the next five years. Government projects like the Smart Cities Mission contribute significantly to the expansion of this segment(6Wresearch).
5. Solar Cameras
Market Size: Solar cameras are an emerging market, estimated at INR 500 crore, with an annual growth rate of 18-20%. These are increasingly used for surveillance in areas where access to grid power is unreliable(6Wresearch).
Growth Potential: Companies like ActivPixel offer competitive pricing for solar-powered camera systems aimed at security-conscious consumers and businesses(6Wresearch).
6. Solar Bus Stops
Market Size & Growth: Although smaller in scale, the solar-powered bus stop market is expanding as part of urban smart infrastructure projects. Estimated at INR 200 crore, the sector is seeing 10% year-on-year growth, primarily driven by municipal contracts(Mordor Intelligence)(6Wresearch).
This analysis provides insights into the individual market caps and growth trajectories for key solar products in the Indian market. To build a comprehensive strategy, factors like government policies, consumer demand, and advancements in solar technology will play pivotal roles in driving future growth.
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