The growing adoption of energy-efficient lighting solutions and rising infrastructure development positively impact the growth of the global outdoor lighting market. Due to these factors, the market is expected to generate $23.8 billion revenue by 2030, advancing at a CAGR of 7.3% during the forecast period.
COVID-19 pandemic that started in the late 2019 has become a major restraint for the growth of outdoor lighting market across the globe. This is attributed to the limited investments by governments in new infrastructure development and breakdown of supply chain of components, such as fixtures, relays, photocells, occupancy sensors, and light control switches.
LED Lights Holds the Largest Share in the Market due to Energy-Saving Capablities
The outdoor lighting market based on lighting type is classified into high-intensity discharge (HID) lights, light-emitting diode (LED) lights, fluorescent lights, and plasma lights categories. Of these, the LED category held the largest market share in 2019, by revenue, and is expected to lead the industry in the coming years. This can be attributed to the energy-saving potential and deep penetration of LEDs as a light source in outdoor lighting applications, such as streets, parking lots, and stadiums.
The outdoor lighting market in terms of application is categorized into streets, highways, parking lots, stadiums, tunnels, others. The highways category is expected to hold the largest revenue share during the forecast period. This can be due to increasing investments in highway-related infrastructure projects and the development of smart cities, leading to the deployment of smart lights.
Geographically, the Asia-Pacific (APAC) region generated the largest revenue in 2019 in the outdoor lighting market and is expected to witness the fastest growth during the forecast period. It is mainly due to the presence of major manufacturers, distributors, and exporters of energy-efficient lighting solutions in the region. Also, a surge in urbanization and increasing demand for intelligent solutions for energy management are leading to a rise in smart city initiatives, which, in turn, drive the market for outdoor lighting.
Mergers and Acquisitions Is the Strongest Strategic Measure Taken by the Players to Stay ahead in Industry
Players in the outdoor lighting market are focusing heavily on mergers and acquisitions to enhance their industry presence. For instance, in March 2020, Signify N.V. acquired Cooper Lighting Solutions from Eaton Corporation plc in $1.4 billion cash. With this acquisition, the company aims to strengthen its position in the North American lighting market. Signify is projected to generate over 50% of its sales in the professional segment, increasing the revenue base from $5.5 billion to $7.2 billion and proportion of sales generated in the Americas will rise to 40% in 2019 from 28% in 2018.
Browse report overview with detailed TOC on "Outdoor Lighting Market Research Report: By Lighting Type (HID Lights, LED Lights, Fluorescent Lights, Plasma Lights), Component (Fixture, Control), Application (Streets, Highways, Parking Lots, Stadiums, Tunnels), Distribution Channel (Direct Sale, Retail)- Industry Trends and Demand Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/outdoor-lighting-market
Similarly, in July 2019, Signify N.V. acquired 51% stake in Zhejiang Klite Lighting Holdings Co. Ltd., a provider of LED lamps and luminaires. With this acquisition, the company aims to enhance its product development of connected lights. It will help Klite strengthen its position in the lighting industry by serving customers with cost-efficient and innovative products.
Some of the major players operating in the global outdoor lighting market are Signify N.V., General Electric Company, OSRAM Licht AG, Hubbell Incorporated, Cree Inc., Eaton Corporation plc, Samsung Electronics Co. Ltd., Acuity Brands Inc., Syska Led Lights Private Limited, Virtual Extension Ltd., and Dialight plc.