Connected (Smart) Street Lighting Market By Component, By Connectivity, By Light Type, By Sales Channel, By End-use Industry - Growth, Share, Opportunities & Competitive Analysis, 2023 – 2031

09 Mar 2023 Format PDF icon PPT icon XLS icon Request Sample

Increased emphasis on energy conservation drives the global market for connected smart street lighting. Public lighting accounts for sixty percent of a municipality's or other governing body's electricity budget, making energy-efficient street lighting a viable option for conserving electricity. The incorporation of Internet of Things-connected public lighting can reduce carbon emissions. According to Trilliant, 75% of the world's population will likely reside in cities within the next ten years, and the number of connected streetlights may increase from less than 3% to more than 40%. As governments around the world face public and regulatory pressure to become more energy-efficient, many find that street lighting is an area in which the Internet of Things (IoT) can provide immediate benefits. With the increasing global penetration of connected devices (which is projected to surpass 50 billion units by 2020) and the high budgets allocated to smart infrastructure (IEEE estimates that 13.1% of smart city expenditures may be consumed by smart infrastructure), the adoption of connected streetlights is anticipated to increase rapidly.

Increased Demand for Energy-Efficient Solutions Will Propel Market Expansion

Demand for IoT-connected public lighting is increasing due to a rise in energy conservation awareness. As the price of electricity continues to rise, government agencies are increasingly switching to connected (smart) street lights to reduce operational costs while improving safety and efficiency. Mature markets, such as Europe and North America, are focusing on the implementation of numerous regulations to promote the adoption of connected street lighting infrastructure for smart cities and to regulate energy consumption. In 2018, the European Union (EU) prohibited the sale of inefficient and energy-intensive halogen light bulbs. The Kyoto Protocol was signed by 83 signatories and 192 member countries, including the United States, Australia, Canada, Brazil, the European Union, and Japan, in order to reduce harmful emissions and promote energy-efficient solutions. This has led to an increase in the use of LEDs, which has fuelled the growth of the market for connected (smart) street lighting. Smart streetlights consume less energy and emit less carbon dioxide because they turn on automatically when needed. Using integrated photo sensors, these lights adjust the brightness of the illumination based on the time of day.

Increasing Smart City Investments to Drive the Market

An increase in the number of people living in urban areas, including the overall growth of the urban population (81 percent of the world's population resides in cities), is one of the major drivers for the adoption of smart and intelligent solutions as the global population grows. The primary reason for the expansion of modern cities is the need for an efficient method of managing city resources in smart cities. Governments in numerous nations are collaborating and forming partnerships to transition from the traditional silo model of service delivery to one that is collaborative and integrated. As the market for connected street lights is directly proportional to the number of smart city projects, an increase in the number of smart cities would increase the demand for connected street lights.

NEMA identifies 5G as a key technology driver for lighting systems, and suggests that the integration of sensors, networks, and LED infrastructure in 5G Smart Grid applications will increase demand for connected lighting controls, light sources, and emergency lighting. Catastrophic events have increased a short-term but robust demand. Recently, FEMA allocated $5,46,000,000 for Irma Recovery in Florida. The county of Indian River received $1,885,273 for emergency sheriff patrols, sheltering, emergency operations center staffing, utility operations, and emergency lighting.

In Darwin, Australia, for instance, Telensa Ltd has partnered with the Australian government to implement its PLANet intelligent street lighting system. Telensa inked a deal to provide smart controls for 15,000 LED streetlights in Dunedin, New Zealand. Such instances are widespread, particularly in regions with a large number of smart city initiatives. Itron Inc. has retrofitted IPv6-based LED streetlights throughout Paris, France, where some of the world's most advanced smart city initiatives have been implemented. Wi-SUN Alliance-supported IEEE 802.15.4 g wireless RF mesh architecture is utilized by the solutions. The city could reduce its CAPEX and OPEX on public infrastructure by utilizing Network-as-a-service (NaaS) deployments to connect streetlight devices and applications.

Expanding Urbanization Boosting the Market Growth

According to Trilliant, 75% of the world's population will likely reside in cities within the next ten years, and the number of connected streetlights may increase from less than 3% to more than 40%. As governments around the world face public and regulatory pressure to become more energy-efficient, many find that street lighting is an area in which the Internet of Things (IoT) can provide immediate benefits. With the increasing global penetration of connected devices (which is projected to surpass 50 billion units by 2020) and the high budgets allocated to smart infrastructure (IEEE estimates that 13.1% of smart city expenditures may be consumed by smart infrastructure), the adoption of connected streetlights is anticipated to increase rapidly.

Increased Operation and Maintenance Costs of Incandescent Bulbs Will Drive Market Growth

In the residential, commercial, and industrial sectors, the use of incandescent light bulbs has increased the operational and maintenance costs of lighting controls. For instance, in Los Angeles, over 200,000 lights are monitored and maintained annually at a cost of $42.0 million. This results in each light requiring $200 to continue functioning. The cost of upkeep varies based on the type of street light installed. Compared to other outdoor lighting options like HPS lamps, LEDs have the lowest maintenance costs.

Smart poles with remote lighting control enable more precise adjusting, modification, and monitoring of how long and to what extent the lights are on. In addition, data transmitted by interconnected systems indicate abnormal lamp behavior and individual lamp failure. This reduces the frequency of lighting control maintenance inspections and reduces operational and maintenance expenses. These advantages encourage the adoption of smart lighting solutions, thereby driving the expansion of the global connected (smart) street lighting market.

Increase in Energy-Efficient Lighting System Integration

Increasing numbers of cities around the world are deploying connected streetlights integrated with wireless technologies such as Li-Fi. Industry vendors are integrating these technologies into their systems due to their rapid and efficient data transfer. The integration of street lighting systems with traffic signals, parking-lot lights, pollution sensors, energy meters, and traffic sensors presents significant opportunities for market growth, particularly in developing economies.

Inadequate Infrastructure in Developing Nations

In the coming years, poor infrastructure in developing economies is anticipated to hinder the demand for connected street lights. This is attributable to underdeveloped network infrastructure and low internet penetration, which contributes to a lack of available bandwidth. The majority of developing nations continue to use traditional lamps. Therefore, the transition to connected (smart) street lighting is unlikely to be cost-effective due to the high costs of acquiring and retrofitting existing street lamps. Cost is anticipated to have a significant impact on the development of the connected (smart) street lighting market in the short term, but to have a diminishing effect in the long term. This is largely due to an increase in government spending on city infrastructure improvement.

The LED Subsegment Dominates the Market and Is Projected to Have the Highest Growth Rate

During the period of analysis, the LED subsegment of the type category of the global smart street lighting market is projected to expand at a robust CAGR of 21% during the forecast period of 2023 to 2031. The CFL subsegment is expected to grow at a CAGR of 12.3% during the assessment period, ranking second in terms of revenue in the type category.

NB-IoT Remains the Dominant Wireless Connectivity Technology

Narrow-Band IoT (NB-IoT) technology was the dominant technology used in 2022. This technology connects devices more quickly and effectively over established mobile networks and manages secure and dependable two-way communication. Users of NB-IoT-based street lighting control the luminaires via computer, smartphone, or tablet. Controllable or manageable features include the ability to turn lights on and off, adjust brightness, set schedules, obtain operational data, measure electricity consumption, and collect energy-saving statistics. These benefits are anticipated to significantly increase the demand for NB-IoT wireless connectivity over the forecast period.

Europe To Emerge as the Global Leader

During the forecast period, Europe is anticipated to dominate the global connected smart street lighting market. Increased emphasis on achieving sustainable energy goals is driving the region's market share. Increased investment in smart city infrastructure, rising per capita income, and ongoing large-scale industrialization and urbanization are propelling the growth of the Asia-Pacific market for connected street lights. In addition, the availability of low-cost electronic products is likely to bolster the Asia-Pacific market for connected (smart) street lighting. As these regions integrate smart city infrastructure, North America and the Middle East and Africa present significant opportunities for the connected street lighting industry.

Competition to Intensify During the Forecast Period

The market for connected street lighting is highly competitive due to the presence of numerous national and international market participants. The market is moderately concentrated, and the major players' key strategies for expanding their reach and staying ahead of the competition are product innovation, mergers, and acquisitions. Numerous street light manufacturers, suppliers, exporters, and software developers are involved in the global connected smart street lighting market. To increase their connected (smart) street lighting market share, the majority of manufacturers invest significantly in R&D for new products. Dimonoff Inc., Echelon, EYE Lighting International, FagerhultsBelysning AB, Flashnet S.A. (InteliLIGHT), GE Current (Current Lighting Solutions, LLC), GMR Enlightss.r.l., gridComm, Hubbell, Intermatic Incorporated, Itron Inc., LSI Industries Inc., PLC Multipoint, Quantela, Inc., Schréder, Sensus, Sign Telensa Holdings Ltd.

  • U.K. expert in wireless monitoring and control systems for smart cities, launched its new 'hybrid' network architecture to support its connected street light solutions in 2022.
  • In July 2021, Signify acquired Telensa Holdings Ltd. to add a TALQ-compliant narrow-band solution to its feature-rich, open and secured systems.
  • Itron, Inc. announced in July 2021 that Grid4C's Grid Edge AI application is a component of its growing ecosystem of distributed intelligence (DI) applications. Grid4C's Grid Edge AI application has been successfully installed in Itron's Raleigh DI Lab.

Historical & Forecast Period

This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2031.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Connected (Smart) Street Lighting market are as follows:

  • Research and development budgets of manufacturers and government spending
  • Revenues of key companies in the market segment
  • Number of end users and consumption volume, price and value.
  • Geographical revenues generate by countries considered in the report
  • Micro and macro environment factors that are currently influencing the Connected (Smart) Street Lighting market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Research Period  2021-2031
Base Year 2022
Forecast Period  2023-2031
Historical Year  2021
Unit  USD Million
  • Hardware
    • Light Sources
    • Nodes
    • Power Drivers
    • Ballast
    • Sensors and Detectors
    • Lighting Controllers
    • Communication Modules
    • Gateways
    • Others (Concentrators, Switches, etc.)
  • Software
  • Services

  • Wired
  • Wireless
    • GSM (2G, 3G, 4G)
    • NB-IoT
    • LTE-M
    • LoRaWAN
    • Sigfox
    • ZigBee
    • Digi
    • Wi-SUN
    • Others

Light Type
  • LED Market Size and Forecast, 2012-2026
  • CFL Market Size and Forecast, 2012-2026
  • Incandescent Market Size and Forecast, 2012-2026
  • Others Market Size and Forecast, 2012-2026

Sales Channel
  • Direct
  • Indirect

End-use Industry
  • Government
  • Commercial
  • Industrial
  • Residential

 Region Segment (2021–2031; US$ Million)

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • UK and European Union
    • UK
    • Germany
    • Spain
    • Italy
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC
    • Africa
    • Rest of Middle East and Africa

Key questions answered in this report

  • What are the key micro and macro environmental factors that are impacting the growth of Connected (Smart) Street Lighting market?
  • What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
  • Estimated forecast and market projections up to 2031.
  • Which segment accounts for the fastest CAGR during the forecast period?
  • Which market segment holds a larger market share and why?
  • Are low and middle-income economies investing in the Connected (Smart) Street Lighting market?
  • Which is the largest regional market for Connected (Smart) Street Lighting market?
  • What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
  • Which are the key trends driving Connected (Smart) Street Lighting market growth?
  • Who are the key competitors and what are their key strategies to enhance their market presence in the Connected (Smart) Street Lighting market worldwide?
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