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The global outdoor lighting market was valued at $10.7 billion in 2019 and is projected to witness a CAGR of 7.3% during the forecast period (2020–2030). The growing adoption of energy-efficient lighting solutions, increasing government initiatives toward energy efficiency, and rising infrastructure development are some key drivers of the outdoor lighting industry.
COVID-19 pandemic that started in late 2019 has become a major restraint for the growth of the outdoor lighting market across the globe. This is attributed to decrease in investments by governments in new infrastructure development and breakdown of the supply chain.
In 2019, the LED lights category on the basis of lighting type accounted for the largest outdoor lighting market share, and is expected to maintain its dominance over the forecast period. This is attributed to growing consumer awareness about energy-efficient and sustainable lighting solutions, high reliability, and long life span of LED lights when compared with HID and halogen lights.
The fixture category, based on component, led the outdoor lighting market in 2019, and is projected to maintain the trend during the forecast period. This is owing to the rising adoption of outdoor lighting fixtures, which are used to generate light through the use of various lighting sources, such as LED, fluorescent, and plasma lights. Strong demand for lighting fixtures from countries like China and India due to the rising replacement of conventional lighting system with advanced lighting fixtures is expected to further boost the market in the forecast period.
Application of outdoor lighting products in the street category grew at the fastest pace in historical period (2014–2019). The market in this category is further expected to grow fastest during the forecast period. This can be ascribed to the growth in smart city projects coupled with government initiatives around the world for high-class infrastructure developments. Also, eco-friendly features of smart street lights that help save energy, reduce maintenance costs, control the light intensity, and reduce carbon emissions further drive their demand.
In outdoor lighting market, the direct sale category held the largest share in 2019 in the distribution channel segmentation. This can be attributed to the growing demand for LED-based street lights in commercial application areas, such as highway roads, airports, parking lots, jogging tracks, village square streets, and bridges; and changing preference of end users like government, private builders, and contractors to buy outdoor lighting products directly from the manufacturing companies in large quantity.
During the historical period, APAC held the largest share in the outdoor lighting market. It is mainly due to the presence of a large number of manufacturers and distributors of LED lighting products in the region, such as Sichuan Huati Lighting Technology Co. Ltd. and Xiamen Holly Lite Co. Ltd. Government initiatives focused on the deployment of smart lighting products in infrastructure development and strict regulations for energy efficiency, especially in countries like China, India, Japan, Australia and South Korea, are pushing the demand for outdoor LED lighting products.
APAC is also the fastest-growing region and is expected to retain the pace throughout the forecast period in the outdoor lighting market. This can be attributed to the growing population and sustained growth in urbanization in the developing countries. Growing consumer awareness for energy-efficient lighting products and the environmental impact of conventional lighting systems have led to their replacement with LED lights.
Emergence of smart outdoor lights is a major trend witnessed in the market. This is due to rising consumer demand for energy and growing electricity prices. Smart lights have become the preferred choice among consumers since they can provide features like energy efficiency and low operational and maintenance costs. These smart lighting systems are gaining huge traction and are being deployed on roads and highways, city parks and public areas, sports parks, commercial sites, outdoor parking lots, and university and college campuses. These not only help save energy but also provide real-time monitoring and analytics to manage energy consumption, leading to their wider adoption.
Solar-powered lighting has emerged as a popular and reliable source of street lighting and is being widely deployed across the world. Stringent government regulations for sustainable infrastructure development, growing consumer awareness against climate change, and rising public and private investments toward electrification of off-grid areas are some key factors pushing the demand for solar-lighting systems. Low operational and maintenance costs and independence of solar street lights from utility grid has made it a favourable option for electricity transmission when compared to conventional lighting forms, especially in remote areas.
Growing concerns for energy efficiency and conservation are pushing governments across the globe to undertake various initiatives and address the issue. Governments are increasingly deploying LED lights, owing to low carbon emissions and thermal pollution, the requirement for lesser light fixtures, upto 80% more energy-efficiency than incandescent and fluorescent lights, production of zero toxic elements, and other benefits. For example, the Government in India is focusing heavily on replacing old lamps with LEDs to enhance energy saving and efficiency. Under its Unnat Jyoti by Affordable LEDs for All (UJALA), a National LED programme, the country has replaced nearly 77 billion traditional bulbs with LEDs.
With growing population, rising disposable income has led to adoption of vehicles and massive rise in global vehicular traffic. For instance, the global commercial vehicles sales increased by 2.2%, reaching 26.9 million units, in 2019. Growing traffic congestion is forcing governments, especially in countries like China, the U.S., Germany, and India, to invest heavily in infrastructure development, especially, roads and highways. For example, China spent around $328 billion on transport infrastructure development from January to September 2019, according to the Ministry of Transport of the People’s Republic of China. This steep rise in vehicle sales and the development of roads has been a major driver for the growth of the outdoor lighting market.
|Base Year (2019) Market Size||$10.7 billion|
|Forecast Period (2020-2030) CAGR||7.3%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategical Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||By Lighting Type; By Component; By Application; By Distribution Channel; By Region|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, U.K., Spain, Japan, China, India, Australia, South Korea, Brazil, Mexico, Saudi Arabia, South Africa, Turkey, U.A.E.|
|Market Players||By Lighting Type; By Component; By Application; By Distribution Channel; By Region|
|Secondary Sources and References (Partial List)||American Lighting Associations, Association of Outdoor Lighting Professionals, European Lighting Designers Association, Global Lighting Association, Institution of Lighting Engineers, International Association of Lighting Designers, Lighting Urban Community International, Association, Middle East Lighting Association, National Lighting Bureau Organisation for Economic Co-operation and Development (OECD)|
The outdoor lighting market is highly fragmented in nature with the presence of numerous key players, such as Signify N.V., General Electric Company, OSRAM Licht AG, Hubbell Incorporated, and Cree Inc. These players are actively engaged in launching new products in the market. For instance:
The outdoor lighting market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Lighting Type
Based on Component
Based on Application
Based on Distribution Channel