The global outdoor lighting market is expected to reach $14.2 billion by 2023, registering a CAGR of 8.0% during the forecast period (2018–2023). Major factors supporting the market growth include increasing government initiatives toward energy conservation and growing adoption of energy-saving and economical lighting solutions.
Insights into market segments
Based on lighting type, the outdoor lighting market is categorized into high-intensity discharge (HID) lamps, light-emitting diode (LED) lights, fluorescent lights, and plasma lamps. Among these, the LED lights category is projected to register the highest CAGR over the forecast period. This can be attributed to the growing government initiatives toward replacement of incandescent lamps with energy-efficient LED lights in countries such as the U.S., India, China, and Brazil.
On the basis of component, the outdoor lighting market is classified into control and fixture. Of these, the fixture category contributed larger revenue share to the market in 2017. This is attributed to the mass installation and legacy acceptance of this technology to generate artificial light through the use of various lighting sources, such as LED, fluorescent, and plasma. Whereas, the control category is projected to witness the fastest growth over the forecast period, owing to the increasing demand for daylight sensors in street lights, growth in camera-based lighting control technology, and development of hybrid lighting control systems in regions like North America and Asia-Pacific (APAC).
Based on application, the outdoor lighting market is categorized into street lighting, highways, parking lots, stadiums, tunnel lights, and others; wherein, others include gardens, parks, business parks, and agriculture. Among these, the street lighting category is projected to witness the fastest growth during the forecast period. This can majorly be attributed to the increasing adoption of LEDs and solar lights across the world. For instance, India recorded the highest deployment of LED street lights, with around 1.5 million street lights were replaced with LEDs in the country, in 2017.
On the basis of distribution channel, the outdoor lighting market is bifurcated into commercial and retail. Of these, the commercial category held larger share in 2017. This is attributed to the growing number of smart cities and highway projects. Hence, governments, private builders, and contractors of such projects prefer to purchase outdoor lights directly from manufacturing companies for these projects.
APAC market is expected to witness the fastest growth in the forecast period
Geographically, the APAC outdoor lighting market is expected to register the highest CAGR over the forecast period. This can majorly be attributed to the declining LED prices, development of smart cities in the region, and increasing government initiatives toward energy conservation. Moreover, governments are focusing on energy saving in street lighting application by the adopting LED- and solar-based lighting products, owing to their high efficiency and low-power consumption features.
Strong government support and initiatives toward energy efficiency is a key growth driver for the market
Increasing government support and initiatives toward energy efficiency are driving the outdoor lighting market. Governments are banning inefficient technologies by forming more stringent legislation on energy efficiency. For instance, China amended proclamation to ban incandescent light bulbs, which was supported by the country’s energy conservation law. Similarly, Europe is also stepping up the switchover to more ecological lighting sources by spreading its regulations to ban low-voltage halogen lamps.
Changing the paradigm of the outdoor lighting industry, along with falling LEDs’ prices, is offering lucrative opportunities to the industry players
With the arrival and integration of smart technologies, such as control systems, daylight sensors, software-based solutions, and dimming modules, in the lighting industry, the scenario of the industry has been completely transformed. Benefiting from the advancements in technologies, the price of LED products has gradually decreased and come closer to that of conventional outdoor lighting products. Thus, LEDs are economical for businesses in the long term. In addition, LED lights have longer life span and are less fragile. As a result, adoption of LED lights in outdoor lighting is increasing, which is supporting the growth of the outdoor lighting market across the globe.
Browse report overview with detailed TOC on "Outdoor Lighting Market by Lighting Type (HID Lamps, LED Lights, Fluorescent Lights, Plasma Lamps), by Component (Fixture, Control), by Application (Streets, Highways, Parking Lots, Stadiums, Tunnels), by Distribution Channel (Commercial, Retail), by Geography (China, India, Japan, South Korea, Russia, Germany, France, U.K., U.S., Canada, Brazil, Saudi Arabia) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023" at:https://www.psmarketresearch.com/market-analysis/outdoor-lighting-market
Outdoor Lighting Market Competitive Landscape
The global outdoor lighting market is highly competitive in nature, with the presence of numerous players. Some of the key players operating in the market are General Electric, Osram Light AG, Hubbell Incorporated, Cree Inc., Eaton Corporation plc, Philips Lighting Holding B.V., Syska LED, Virtual Extension, Dialight plc, and Zumtobel Group AG.
OUTDOOR LIGHTING MARKET SEGMENTATION
By Lighting Type
By Distribution Channel