| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| Street and Roadway Lighting Market Size 2024 |
USD 9725 Million |
| Street and Roadway Lighting Market, CAGR |
5.8% |
| Street and Roadway Lighting Market Size 2032 |
USD 15267.74 Million |
Market Overview:
The Street and Roadway Lighting Market is projected to grow from USD 9725 million in 2024 to an estimated USD 15267.74 million by 2032, with a compound annual growth rate (CAGR) of 5.8% from 2024 to 2032.
Key drivers of the street and roadway lighting market include the rising demand for energy-efficient lighting solutions and the growing emphasis on smart city initiatives. Governments are increasingly adopting LED lighting due to its lower energy consumption, longer lifespan, and reduced maintenance costs compared to traditional lighting systems. Moreover, the integration of intelligent lighting solutions, such as IoT-enabled systems, enables dynamic control and monitoring of street lights, improving overall efficiency and reducing operational costs. The implementation of energy-saving policies and initiatives at the municipal level is also contributing to the growth of the market.
Regionally, the street and roadway lighting market are witnessing diverse trends. North America holds a significant share of the market due to substantial investments in infrastructure modernization and smart city projects, particularly in the United States and Canada. The Asia-Pacific region is expected to exhibit the highest growth rate during the forecast period, driven by rapid urbanization, industrialization, and government-led initiatives aimed at improving public infrastructure. Europe is also seeing considerable growth, especially with initiatives focused on sustainability and energy efficiency in urban planning. The ongoing development of smart cities, along with the growing use of connected devices, is expected to further propel the demand for intelligent street lighting solutions, optimizing energy use and promoting a safer, more sustainable urban experience. As governments and municipalities continue to prioritize sustainable urban development, the market for street and roadway lighting will continue to evolve, creating opportunities for new innovations in lighting technology.
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Market Drivers:
Energy-Efficiency Demands
One of the primary drivers of the street and roadway lighting market is the increasing demand for energy-efficient lighting solutions. Traditional lighting technologies, such as incandescent and fluorescent lamps, consume significantly more energy compared to newer solutions like LEDs. For instance, under India’s Street Lighting National Programme (SLNP), over 1.32 crore LED streetlights were installed across urban local bodies and gram panchayats by 2024, resulting in annual energy savings of 8.92 billion kWh and a reduction of 6.2 million tons of CO₂ emissions. As municipalities and governments focus on reducing energy consumption and curbing greenhouse gas emissions, the shift to energy-efficient lighting has become a top priority. LEDs offer a longer lifespan, require less maintenance, and consume less power, which translates into reduced energy costs for cities and local authorities. These benefits are encouraging widespread adoption across both developed and developing regions.
Government Initiatives and Regulations
Governments worldwide are implementing stricter energy-saving regulations and sustainability goals, which are further driving the demand for advanced street and roadway lighting solutions. For instance, In India, policies under the Energy Efficiency Services Limited (EESL) initiative aim to replace 3.5 crore conventional streetlights with LEDs, which is expected to save 900 crore units of electricity annually. Many countries have introduced policies that mandate the use of energy-efficient lighting technologies in public spaces. These initiatives are aimed at promoting green infrastructure and reducing the carbon footprint of cities. Additionally, various government incentives and subsidies for energy-efficient lighting projects are helping accelerate the market’s growth. Such policies are fostering the replacement of outdated, less-efficient lighting systems with modern, eco-friendly alternatives.
Smart City Development
The rise of smart city initiatives is another significant driver contributing to the growth of the street and roadway lighting market. As cities aim to become more connected and intelligent, the integration of smart lighting systems has become a key component. IoT-enabled street lights provide real-time data for better energy management and reduce maintenance costs. For instance, Chicago’s Smart Lighting Program replaced 270,000 streetlights with IoT-enabled LEDs by 2023, achieving over 50% energy savings and projected cost reductions of $100 million over 10 years. Smart lighting solutions offer features such as adaptive lighting levels, motion sensors, and remote control, allowing municipalities to optimize energy use and enhance public safety. This trend is particularly prominent in urban centers with increasing population densities.
Urbanization and Infrastructure Development
Urbanization and the subsequent need for infrastructure development are accelerating the demand for improved street lighting systems. As cities continue to expand, the requirement for efficient, reliable, and sustainable lighting solutions becomes more urgent. For example, Madrid retrofitted 225,000 streetlights with Philips LED luminaires as part of its smart city initiative, cutting annual energy costs by 44%. Rapid urbanization, particularly in emerging economies, is driving the need for modern infrastructure, including upgraded street and roadway lighting. Investment in smart and energy-efficient lighting solutions is therefore seen as a crucial step toward developing cities that can accommodate growing populations while maintaining sustainability and safety.
Market Trends:
Transition to LED Technology
One of the most prominent trends in the street and roadway lighting market is the widespread adoption of LED technology. LED lights offer significant advantages over traditional lighting systems, including higher energy efficiency, longer lifespans, and lower maintenance costs. For instance, Osram’s NAV LED, introduced in 2021, consumes 52% less energy than high-pressure sodium lamps and boasts a lifespan of up to 50,000 hours, offering municipalities substantial savings on operational costs. As governments and municipalities focus on sustainability and cost-effectiveness, the shift from incandescent and halogen lamps to LED lighting has gained substantial momentum. This trend is especially evident in urban centers and regions where energy conservation is a top priority. The declining cost of LED lights is also making them more accessible to a wider range of applications, further driving this transition.
Integration of Smart Lighting Solutions
Another key trend in the street and roadway lighting market is the increasing integration of smart lighting systems. IoT-enabled street lights, equipped with sensors and connectivity features, are revolutionizing the way cities manage street lighting. For instance, Los Angeles achieved a 63% reduction in energy costs by upgrading 80% of its roadways with smart streetlights featuring motion sensors and LTE connectivity. These systems allow for remote monitoring, control, and optimization, improving energy efficiency and reducing operational costs. Features like adaptive lighting based on traffic patterns and weather conditions, as well as automated dimming, are gaining popularity. Cities are increasingly investing in these technologies as part of their broader smart city initiatives, which aim to enhance urban living by improving sustainability and public safety.
Solar-Powered Street Lighting
The growing emphasis on sustainability has also led to the rise of solar-powered street lighting solutions. Solar-powered lights reduce dependence on the grid, lower energy costs, and contribute to greener cities by using renewable energy. For example, as of 2023, over 12 million standalone solar-powered streetlights had been deployed globally in rural areas, providing reliable illumination without complex grid infrastructure. These systems are particularly attractive for areas with abundant sunlight and regions where energy infrastructure is lacking or unreliable. The integration of solar panels into street lighting designs is gaining traction as cities and municipalities look for ways to reduce their carbon footprint while improving urban infrastructure.
Focus on Urban Revitalization
Urban revitalization projects are another key trend influencing the street and roadway lighting market. As cities invest in upgrading their infrastructure, there is a growing focus on improving street lighting to enhance safety, aesthetics, and energy efficiency. For instance, Ninove City in Belgium upgraded its Graanmarkt square with FLEXIA BRASO luminaires in 2023, achieving a 60% reduction in energy use while creating a warm nighttime ambiance. Modern lighting solutions are being incorporated into public spaces, walkways, and transportation corridors, not only to improve visibility but also to create visually appealing urban environments. These lighting upgrades are seen as an integral part of creating more vibrant, sustainable, and livable cities.
Market Challenges Analysis:
High Initial Installation Costs
One of the primary challenges facing the street and roadway lighting market is the high initial cost of upgrading to energy-efficient lighting systems, particularly LED technology. Although LEDs provide long-term savings due to their energy efficiency and reduced maintenance requirements, the upfront costs for purchasing and installing these systems can be prohibitive, especially for cities with limited budgets. The expense involved in replacing outdated lighting infrastructure with modern systems can create financial barriers for municipalities, particularly in developing regions. While government incentives and subsidies can mitigate some of these costs, many local authorities still struggle with securing the necessary funding for large-scale lighting projects. Despite the advantages of LED lighting, the technology is not without its maintenance challenges. Over time, LED fixtures may experience issues such as dimming, color shifts, or failures in smart lighting systems. Additionally, managing and maintaining large networks of streetlights, particularly in smart city environments, can be complex. Faulty sensors, software glitches, and connectivity issues in IoT-enabled systems can disrupt operations and require frequent troubleshooting. These maintenance hurdles increase operational costs and may undermine the expected benefits of smart lighting solutions, particularly in areas with insufficient technical expertise or resources to handle these issues.
Regulatory and Standardization Challenges
The street and roadway lighting market also faces challenges related to regulatory frameworks and the lack of standardization across regions. The absence of universal standards for smart lighting systems and energy efficiency can create confusion and inefficiencies for manufacturers, municipalities, and consumers. Moreover, different countries and regions have varying regulations and compliance requirements, which can complicate the adoption and implementation of advanced lighting solutions. These disparities in regulations can slow down the global expansion of innovative lighting technologies and increase the complexity of international projects. Environmental factors, such as extreme weather conditions, can also pose challenges for the street and roadway lighting market. Harsh climates, such as high humidity, temperature fluctuations, and heavy rainfall, can affect the durability and functionality of lighting systems. For instance, solar-powered lights may not perform optimally in regions with limited sunlight, while outdoor smart lighting systems can face issues related to moisture and temperature sensitivity. Such environmental conditions can increase the need for more frequent maintenance and repairs, thereby raising overall operational costs.
Market Segmentation Analysis:
By Lighting Type
The street and roadway lighting market can be segmented by lighting type into traditional and smart lighting systems. Traditional lighting primarily includes conventional street lamps such as sodium vapor and halogen lamps, while smart lighting incorporates advanced systems with features like adaptive brightness, motion sensors, and remote control capabilities. The growing adoption of smart lighting systems is driven by the increasing demand for energy efficiency and the development of smart cities, where connectivity and data-driven decision-making play a critical role in urban planning.
By Light Source
The market is also segmented by light source, including LED, fluorescent, halogen, and sodium vapor lights. LEDs dominate the market due to their high energy efficiency, long lifespan, and reduced maintenance costs. This segment is expected to grow significantly as cities continue to replace older lighting technologies with LED-based solutions to meet sustainability and cost-saving goals.
By Wattage Type
The wattage type segment categorizes street and roadway lighting based on power consumption. Low-wattage lights are gaining traction due to their ability to provide sufficient illumination while minimizing energy consumption. High-wattage lights, typically used in areas requiring bright illumination such as highways, remain a significant part of the market, but the shift toward more energy-efficient solutions is increasingly prominent.
By End User
End-user segments include municipal, commercial, and residential sectors. Municipal end users dominate the market, as government and local authorities are responsible for most street lighting projects. The increasing trend toward smart cities and urban modernization initiatives is driving demand in this sector, with municipalities seeking sustainable and advanced lighting solutions for public spaces.
Segmentations:
By Lighting Type
- Traditional Lighting
- Smart Lighting
By Light Source
- LED
- Fluorescent
- Halogen
- Sodium Vapor
By Wattage Type
By End User
- Municipal
- Commercial
- Residential
By Region
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Argentina
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of the Middle East and Africa
Regional Analysis:
North America
North America holds the largest market share, representing 35% of the global market. The growth in this region is primarily driven by significant investments in infrastructure upgrades, energy efficiency programs, and the growing adoption of smart lighting solutions. The United States leads this trend, with extensive adoption of LED street lighting and smart lighting technologies aimed at reducing energy consumption and enhancing public safety. Canada also contributes to this growth, focusing on sustainable urban development and green infrastructure projects.
Europe
Europe holds a 28% share of the market and is a key player due to stringent energy efficiency regulations and a strong focus on sustainable urban planning. European countries such as Germany, the UK, and France are major adopters of LED and solar-powered street lighting, with the European Union pushing for a greener future. The region’s commitment to reducing carbon emissions and advancing environmental sustainability continues to drive the demand for energy-efficient street lighting solutions across cities and public spaces.
Asia-Pacific
Asia-Pacific represents 24% of the market share, with rapid urbanization and industrialization being the key growth drivers. Countries like China, India, and Japan are witnessing a surge in demand for modern lighting systems as their urban areas expand. The region is increasingly adopting LED street lighting systems, supported by government-led initiatives aimed at enhancing energy efficiency and reducing operating costs. As the region’s population grows and cities continue to develop, the demand for advanced lighting technologies is expected to continue to rise.
Latin America
Latin America holds an 8% share of the market, with urbanization acting as the main factor driving growth. Countries such as Brazil, Mexico, and Argentina are investing in infrastructure to accommodate growing populations. While the adoption of energy-efficient lighting solutions like LEDs is increasing, challenges such as limited budgets and outdated infrastructure may slow down progress. However, continued investments in infrastructure projects are expected to sustain demand for modern street lighting systems in the region.
Middle East & Africa
The Middle East and Africa hold a 5% share, with growth driven by urban development and government investment in infrastructure projects. The UAE, Saudi Arabia, and South Africa are increasingly adopting smart, energy-efficient lighting solutions. The region’s harsh climate conditions highlight the need for durable technologies, such as solar-powered and LED lighting, which contribute to the demand for modern lighting systems.
Key Player Analysis:
- Signify (Philips Lighting)
- Osram Licht AG
- Cree Lighting
- Acuity Brands, Inc
- Cree, Inc
- General Electric Company (GE Lighting)
- Acuity Brands, Inc.
- Schreder Group
- Eaton Corporation PLC
- General Electric Company
- Hubbell, Inc
- Kingsun Optoelectronic Co., Ltd
Competitive Analysis:
The street and roadway lighting market are highly competitive, with key players focusing on technological innovations, product diversification, and strategic partnerships to maintain their market positions. Companies such as Signify (Philips Lighting), Osram Licht AG, and General Electric (GE Lighting) dominate the market, leveraging their expertise in LED technology and energy-efficient solutions. For instance, In November 2023, Signify introduced its UltraEfficient LED lamps, which consume at least 43% less power than standard alternatives while meeting the EU’s highest energy efficiency standards. The emphasis on smart lighting systems, driven by IoT integration, is a key competitive factor, with firms like Acuity Brands and Cree Lighting investing heavily in intelligent street lighting solutions to cater to the growing demand for smart city infrastructure. In addition, regional players like Schreder Group are strengthening their presence through local partnerships and customized solutions to meet the specific needs of various markets. As sustainability and energy efficiency continue to be central drivers, competition is expected to intensify, with companies increasingly focused on providing cost-effective and environmentally friendly solutions.
Recent Developments:
- In November 2023, Signify launched UltraEfficient lamps for roads, retail, and hospitality sectors. These lamps meet the EU’s highest energy efficiency standards, consuming at least 43% less power than standard alternatives.
- In Ongoing 2024, Osram’s AXIA 3 EVO luminaire, using OSLON® Square technology, was designed for residential streets and public spaces. It emphasizes safety and energy savings while ensuring durability in harsh conditions.
- In November 2023, Acuity Brands received twelve Product Innovation Awards from Architectural SSL Magazine for its advanced LED luminaires across various brands like Lithonia Lighting®, Gotham®, and Peerless®. These products focus on architectural design and energy efficiency.
Market Concentration & Characteristics:
The street and roadway lighting market exhibits moderate concentration, with a few dominant players such as Signify, Osram Licht AG, and General Electric holding significant market shares. These industry leaders capitalize on advanced technologies, particularly LED and smart lighting solutions, to maintain their competitive edge. The market is characterized by continuous innovation, with an increasing shift toward energy-efficient and sustainable lighting systems. There is also a growing trend of integrating Internet of Things (IoT) technology into lighting solutions to enhance functionality, such as adaptive lighting and real-time monitoring. The market is marked by a combination of global players and regional companies, offering diverse product portfolios to cater to varying regional needs. As smart city initiatives gain momentum, market participants are focusing on collaborations and partnerships to address evolving demands, positioning themselves for growth in the increasingly connected urban landscape.
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Report Coverage:
The research report offers an in-depth analysis based on lighting type, light source, wattage type, end-user and region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook:
- Increasing adoption of energy-efficient lighting solutions will continue to drive market growth as governments prioritize sustainability and energy savings.
- LED technology will remain the dominant light source due to its superior energy efficiency, long lifespan, and lower maintenance costs.
- The integration of smart lighting systems, driven by IoT advancements, will become more prevalent, enabling real-time control and enhanced energy management.
- Governments and municipalities will increasingly invest in modernizing infrastructure to meet sustainability targets and improve public safety.
- The shift to solar-powered street lighting solutions will gain traction, especially in regions with abundant sunlight and unreliable grid infrastructure.
- Market players will focus on developing cost-effective, innovative solutions to cater to the growing demand for energy-efficient and environmentally friendly lighting systems.
- Smart city projects worldwide will continue to fuel demand for connected, adaptive lighting systems that support urban sustainability initiatives.
- Investment in research and development will drive the evolution of lighting systems with enhanced features, such as automated dimming and motion sensing.
- The adoption of integrated lighting solutions that combine street lighting with security and surveillance systems will gain popularity in urban environments.
- As cities become more densely populated, the demand for efficient, reliable, and advanced lighting technologies will increase, supporting the continued growth of the street and roadway lighting market.
