LED Street Lighting Market Size, Share, Growth, and Industry Analysis, By Type (<100W, 100-150W & >150W), By Application (Highway, Arterials, and Subsidiary Road & Residential Streets), and Regional Insights and Forecast To 2033

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LED STREET LIGHTING MARKET OVERVIEW

The global LED Street Lighting market size is predicted to reach USD 40.9 billion by 2033 from USD 13 billion in 2025, registering a CAGR of 12.87% during the forecast period.

With urbanization, growing energy conservation needs, and various government acts on sustainable lighting, the LED street lighting market is on the fast track of growth. Compared with antiquated lighting systems, these lights promise durability aided by lesser energy consumption and maintenance. The need for more smart city projects and innovations in IoT-based lighting has encouraged the market to evolve. Asia Pacific is ahead of North America and Europe regarding this arena due to rapid infrastructure growth. With the trend growing all over the world for eco-benefit, LED street lighting will continue to flourish in terms of innovations and collections.

COVID-19 IMPACT

"LED Street Lighting Industry Had a Negative Effect Due to project delays, supply disruptions, and increased costs during COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The pandemic had an adverse effect on the LED street lighting market; demand was hit due to the interruption of infrastructure projects and disruption to supply chains. In addition, delays in manufacturing and transportation and installation due to lockdowns and movement restrictions impacted the market growth. Scaling down contracts and an economy at a downturn encouraged many municipalities to indefinitely postpone or outright cancel their lighting upgrade projects. This shortage of raw materials and semiconductor chips contributed to the increase in production costs, further hampering market growth. The end result-the pandemic-pushed several developments of smart city and energy-efficient programs for LED street lighting even further behind schedule in the world.

LATEST TREND

"Market growth is driven by smart, energy-efficient, and IoT-enabled LED solutions"

Some of the advanced developments in smart lighting solutions, solar-powered LED, and energy-efficient LED lighting constitute the recent trends in the LED street lighting market. An emerging trend that has gained momentum is the IoT and sensor-based technologies that manage the communication of adaptive lighting settings, monitoring, and predictive maintenance. Manipulation of energy consumption within brightening or dimming the smart lighting system is carried out through the control of traffic and ambient changes. Local municipalities and governments adopt smart solutions to enhance the environment, safety, and sustainability of urban spaces. IoT-enabled LED solutions are geared to disrupt and transform urban infrastructure with an effective and cost-saving algorithm as cities undertake their own digital transformation.

LED STREET LIGHTING MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into <100W, 100-150W & >150W

• <100W: The <100W LED street lights are intended for small residential streets, parks, and small roads. They consume very little power economically, making them suitable in low-traffic areas: The government municipality prefers such types for sustainability initiatives and the reduction in carbon footprints incurred by them. They provide an extra special advantage with low light levels and low power use to pedestrian areas.

• 100-150W: The 100-150W LED streetlighting segment has been adopted by many countries for urban roads, highways, and commercial areas. These kinds of lights provide a blend of energy efficiency with high illumination that scores for safety and visibility. The trend now in metropolitan cities and municipalities is in replacing traditional street lights with LED lights that fall in this power range for energy conservation. This sector witnesses a rejuvenating trend with intelligent lighting applications.

• >150W: The LED lights above 150W are typically earmarked for street lighting of heavy-duty highways, industrial zones, and large public community areas. These lights furnish a high luminance level with the advantage of brightening visibility and promoting peace of mind for transport corridors with heavy vehicles moving through these areas. So it primarily will consume a lot of watts. However, currently, there is a trend toward energy efficiency and long life products. Both government and infrastructure projects back high-watt LED lights for the betterment of road safety and long-term savings on maintenance.

By Application

Based on application, the global market can be categorized into Highway, Arterials, and Subsidiary Road & Residential Streets

• Highway: Highway LED street lighting is important because it provides good visibility over the road for fast-moving vehicles. The performance of these lights is to uniformly illuminate the road over long distances, thus reducing accidents and increasing driver perception. Energy efficiency and long life make LED highway lighting a preferred choice of governments and transportation authorities. Smart control features and adaptive brightness add to the efficiency of LED highway lighting, further lowering the overall operational cost.

• Arterials: There are heavy investments in high-performance LED street lights for use on arterial streets because of their ability to sustain heavy traffic flows while also providing navigation assistance to drivers and pedestrians during nighttime. These streets interconnect major highways and city streets, which are necessary for the alleviation of congestion and provision of safety. Within this space, LEDs' energy effectiveness and low maintenance requirements outperform their traditional counterparts. Smart lighting technology is gaining traction on arterials so as to manage brightness and reduce energy waste.

• Residential Roads & Residential Streets: The proposal for LED lighting along the secondary roads and residential areas seeks to attain a balance between providing sufficient illumination and energy efficiency. Soft illumination relieves the walking public, who will thus feel an increased level of safety, reducing crime while enhancing the aesthetic appeal of the neighbourhood. Currently, most urban authorities are busy upgrading conventional street lighting with LED systems so as to keep down electrical bills and promote green urbanisation. Increasingly, intelligent systems have features such as motion detection and dimming controls that allow for energy optimisation within the residential area.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Market growth accelerates as policies and incentives drive LED adoption globally"

Most countries in the world have enacted special laws for energy-efficient lighting so as to roadblock speedy adoption of LED street lights. Growing market initiatives range from policy incentives on sustainability and the decreasing carbon footprint to smart city concept advances. A number of local councils are switching from conventional lighting to LED sources with high regard for energy conservation and reducing operations costs. The large-scale adoption of LEDs has been spurred by offering incentive rebates and other financial support in the installation of LED measures.

"Market growth accelerates as smart cities adopt IoT-enabled LED solutions"

The increasing trend of smart city development is one of the major factors accelerating the LED street lighting market, with electricity consumed by IoT-enabled lighting being extremely emphasised recently. This modern lighting condition has features such as remote monitoring, brightness control, and predictive maintenance, hence providing energy efficiency and security. Cities are thus using intelligent street lights in order to save on their energy consumption costs and to renew their urban infrastructures. The integration of sensors and wireless communication into LED street lights is turning conventional lighting into a connected and efficient system.

Restraining Factor

"Market growth faces challenges due to high installation and retrofitting costs"

Installation and updating of infrastructure are cost-wise the most hindering factors in achieving LED street lighting. These systems prove a challenge to municipalities that can afford little but want long-lasting energy savings and low maintenance costs. Apart from this, the retrofitting of existing street-lighting networks, again with LED technology, adds to costs in terms of smart control and connectivity features. Hence, the financial burden on municipalities can stall the adoption, especially in developing regions, where funding for large-scale infrastructure projects is limited.

Opportunity

"Market growth is driven by smart cities adopting IoT-enabled LED lighting"

The rapid evolution towards smart cities is driving LED Street Lighting Market Growth, promising a bright future for the industry. Governments and urban planners are investing in smart lighting systems integrated with the IoT for real-time monitoring and energy optimisation. The smart LED streetlights, while reducing opex sustainably for the city, contribute to the overall safety of the environment within which they operate. Considering that all the cities worldwide are concentrating on digital transformation and energy-efficient infrastructure, demand for connected LED lighting solutions is expected to spike. The above are couple of things expected to give rise to market growth and technical advancement in the coming years.

Challenge

"Market growth slows due to high costs of upgrading outdated infrastructure"

Upgrading the existing infrastructures to cater to modern LED systems has become one of the major challenges for the LED street lighting market. With a large number of cities still running old, obsolete street lighting systems, switching such systems from conventional to LED becomes very expensive as well as technically very complicated and almost impossible. Things like IoT connectivity or adaptive controls are very smart features but make the need for additional investment in communication networks and power management systems more inevitable. Such a condition is bound to be counterproductive in a slow adoption rate in areas where old infrastructure needs to be upgraded but has limited budgets.

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LED STREET LIGHTING MARKET REGIONAL INSIGHTS

• North America

"Market growth in North America is driven by government support and innovation"

The LED street lighting market in North America is substantial owing to enhanced government support, smart-city development, and fast-tracking the adoption of energy-efficient technologies in the region. An aggressive agenda pursuing sustainability and advanced infrastructure development is ensuring a fertile ground for demanding LED street lights with smart controls and IoT integration. Among all countries in North America, the United States LED Street Lighting Market holds more significance in terms of growth transition, with large municipal investments on upgrading lighting systems. Further, the government schemes and tax incentives bring in tight energy regulation as synergies that accelerate the adoption of LEDs in the U.S. North America has always played the centre stage in innovations with smart lighting following cities upgrading their street lighting networks.

• Europe

"Market growth in Europe is driven by regulations and smart city initiatives"

Europe remains a key LED street lighting market owing to very stringent energy efficiency regulations and also tough carbon reduction targets. Initiatives like the Union's Green Deal and smart city programs create a strong upgrade for the LED Street Lighting Market Share. IoT and adaptive control investment for smart lighting is being implemented by many nations such as Germany, the U.K., and France, giving Europe a forefront position in the area of sustainable and advanced street lighting solutions.

• Asia

"Market growth in Asia is driven by urbanization, infrastructure, and government initiatives"

Asia also emerges as a prominent region in the LED street-lighting market that is bound to grow, thanks to urbanisation, infrastructure development, and government initiatives toward energy efficiency. China, India, and Japan are large spenders in what can be referred to as smart city projects, hence increasing the demand for LED street lighting. These countries are also the major producers and exporters of LEDs, reducing the prices of such devices on a global scale. Sustainability policies and hurried urban expansion continue to keep the momentum going in the region.

KEY INDUSTRY PLAYERS

"Market growth is driven by innovation, strategic alliances, and smart lighting solutions"

With unrelenting innovation, strategic alliances, and major infrastructure projects, key leading players drive the LED street lighting market. Key companies focus on energy-smart lighting solutions employing IoT that allow remote monitoring and adaptive control of brightness. Investments in R&D are facilitating new efficiencies, improvements in longevity, and reductions in cost, allowing easy adoption of LEDs by cities. The market presence is increasing further via M&A, besides collaborations with government bodies and utility companies. Furthermore, these players now expand global reach by providing customised lighting solutions addressing different urban necessities, thereby accelerating the global shift to sustainable and intelligent street lighting.

List of Top Led Street Lighting Companies

• Cree (U.S)
• LEOTEK (Taiwan)
• Hubbell (U.S)
• Acuity Brands (U.S)
• LSI Industries (U.S)

KEY INDUSTRY DEVELOPMENT

October 2023: Signify, a global leader in the market, launched UrbanSpark, an energy-efficient and cost-effective LED streetlight, introducing smart lighting solutions for cities to upgrade to sustainable forms of lighting. For this product line, smart lighting features, highly efficient lumen output with high levels and modular design for easy maintenance were prioritised.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.