The global street and roadway lighting industry is anticipated to expand to USD 10.7 billion by 2025, driven by the increasing demand for advanced lighting technologies that enhance road safety and traffic flow. The industry is further predicted to expand at a notable CAGR of 5.4% during the forecast period and is expected to reach USD 18.1 billion by 2035.
Furthermore, increasing adoption of advanced lighting technology, continuous government initiatives towards sustainable urbanization, and energy efficient guidelines set by law are major factors shaping the industry landscape.
During 2024, the industry underwent a significant transformation with the prime focus on energy efficiency and integration of next-generation technology. Governments and cities prompted the use of LEDs, progressively phasing out traditional lighting to conserve energy.
Looking forward to 2025, lighting management using AI and adaptive illumination based on LiDAR will ensure road safety and efficiency. Smart city initiatives will encourage the installation of sensor-based lighting for optimal energy use. Emerging networks with increasing connected components will limit the maintenance expenses, and extensive government expense on solutions based on renewable energy will also accelerate the growth of street and roadway lighting sector.
| Metric | Value |
|---|---|
| Market Value (2025E) | USD 10.7 billion |
| Market Value (2035F) | USD 18.1 billion |
| CAGR (2025 to 2035) | 5.4% |
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| 2020 to 2024 | 2025 to 2035 |
|---|---|
| Shift to LED: Governments replaced traditional lighting with LEDs to cut the cost-expense and limit energy consumption. | Smart Lighting Dominance: AI-backed, sensor-based systems will elevate illumination, safety, and efficiency. |
| Early IoT Adoption: Remote tracking and automation featured were launched in many urban projects. | Advanced IoT & AI Integration: Predictive maintenance, traffic-based dimming, and data-driven optimization will become standard. |
| Regulatory Push for Efficiency: Policies were implemented that encouraged energy-conserving technologies and phased out outdated systems. | Stricter Sustainability Standards: Authorities will impose zero-emission, solar-backed, and climate-conscious solutions. |
| Rising Public-Private Partnerships: Through partnerships and collaborations there was sudden uptake in infrastructure modernization. | Smart City Expansion: Large-scale funding will drive connected street lighting and integrated urban infrastructure. |
| Limited Digital Transformation: Some cities adopted digital solutions, but implementation was fragmented. | Full-Scale Smart Infrastructure: Connected lighting will integrate with traffic management and emergency response systems. |
The street and roadway lighting sector comes under infrastructure and urban development industry and is influenced by economic expansion, urban development, and government policies. Governments globally are investing in smart cities, facilitating the need for energy-efficient and networked lighting systems.
Strict environmental standards are compelling the adoption of LED and solar-powered technologies, minimizing the energy expenses and carbon emissions. Advancements in IoT and AI optimized automation, adjusting lighting and upkeep and contributing largely in facilitating industry landscape. Partnerships and collaborations between public and private sector are encouraging bulk infrastructure upgradations, making it accessible to adopt smart lighting networks on a large scale.
Prices of raw materials, supply chain shortages, technological developments drive costs of production and deployment. The emerging and developing economies are focusing on new installations, whereas developed economies are prioritizing modernization. With a continuous focus on sustainability and digital transformation, the industry of set to expand for long-term profit.
Street and roadway lighting demand varies based on wattage needs, suited to various city and highway applications. Lighting systems below 50W are the most popular with their energy saving capabilities and compatibility with pedestrian roads, residential areas, and areas of low traffic.
The category will grow at a steady rate as cities become more interested in cost-saving and green solutions. Having a CAGR of 5.2% from 2025 to 2035, the category will rule the roost as it will have lower operating costs and it will be sustainable.
The 50-150W range is critical for high-traffic urban roads and business areas, striking a balance between efficiency and visibility. Public and private sector operators are integrating these solutions in large quantity because of the flexibility and long-term benefit properties. Systems ranging above 150W lighting is crucial for highways and high-speed lanes, as they ensure maximum light and safety.
The roadways and streets segments will continue to dominate the industry, expanding at a CAGR of 4.9% during the forecast period. Energy-efficient lighting applications in urban cities will encourage investments in future-proofing programs. Smart lights will gain recognition for their dynamic brightness control, optimizing safety levels while limiting the energy usage.
Highway lighting will see robust growth as infrastructure development gathers pace worldwide. Nations are focusing on well-lit highways to enhance night-time safety and traffic movement. Real-time monitoring and automated dimming-enabled smart lighting systems will become prevalent, lowering maintenance costs and power consumption.
Other end-use segments, such as industrial areas, tunnels, and parking lots, will see consistent uptake of connected lighting solutions. The emphasis on sustainability, efficiency, and automation will define the use of high-tech roadway lighting technologies.
The American street and roadway lighting sector will move forward with massive federal investment in infrastructure. The move toward smart lighting will be driven by growing uptake of 5G-capable poles that host public Wi-Fi, EV charging, and monitoring systems. Local governments will emphasize installing AI-powered lighting systems to optimize traffic management and public safety.
Cybersecurity focus will result in highly encrypted communication systems in intelligent lighting networks. Government and private sector partnerships will be critical to the speedy deployment. The growing integration of autonomous vehicle technologies will necessitate adaptive roadway lighting solutions.
FMI analysis predicts that the CAGR for the USA will be 5.6% from 2025 to 2035.
India's roadway and street lighting industry will be driven by the growth of urbanization and government-initiated smart city initiatives. Decentralized solar street lighting will become more popular in rural areas, with decreased dependence on grid power. Metro and rapid transit network expansions will increase demand for well-illuminated urban corridors and highways. LED retrofitting schemes will be the focus of all municipal regions to prevent electricity consumption and reduce carbon emissions.
The nation's emphasis on self-reliant manufacturing through the "Make in India" program will help local production of lighting products enhance, lessening dependence on imports. Trends in smart toll roads will also be on the rise, further boosting demand for efficient, AI-enabled lighting.
FMI opines that India’s CAGR will be 6.2% from 2025 to 2035.
China's leadership of the street and roadway lighting sector will be powered by massive urban growth and its drive to achieve carbon-neutrality. The country will dominate in high-efficiency OLED lighting solutions for cutting energy usage in large scale infrastructural projects.
The government's focus on self-driving transport networks will propel the convergence of smart lighting with vehicle-to-infrastructure (V2I) communication systems. China's drive for energy self-sufficiency will result in increased use of battery storage-integrated solar lighting for remote areas and industrial parks.
FMI analysis predicts that China’s CAGR will be 5.8% from 2025 to 2035.
The UK's street lighting and roadway lighting industry will develop with the incorporation of smart sensors that dynamically adjust brightness in accordance with pedestrian activity and weather. Retrofit programs will center on incorporating lighting systems with the national smart grid, allowing predictive energy consumption control.
Historic areas and preservation districts will experience a higher need for environmentally friendly, architecturally correct streetlights that respect building design. The urban push for pedestrianization will mean separate lighting for cycle lanes and pedestrian paths. Coming infrastructure investment will include intelligent motorway lighting that adjusts based on congestion levels.
FMI opines that the CAGR for the UK will be 5.3% from 2025 to 2035.
Germany's roadway and street lighting industry will evolve with extensive use of motion-activated streetlights that cut down on energy wastage. Germany's research centres will develop next-generation phosphor-based LED technology that is more efficient and long-lasting. Intelligent streetlights will be coupled with electric vehicle charging points, aiding the country's push toward cleaner transportation.
Municipal governments will increasingly install intelligent lighting systems in quiet streets and areas with low traffic to achieve maximum energy savings. Noise pollution-minimizing lighting systems will be piloted in cities, enhancing public health. Pressure from regulations to limit carbon emissions will spur investments in grid-independent solar lighting, especially in rural and industrial areas.
FMI analysis predicts that Germany’s CAGR will be 5.5% from 2025 to 2035.
South Korea's smart city program will revolutionize the street and roadway lighting industry, merging AI-controlled lighting with real-time weather analysis. City governments will focus on dynamic lighting technology that varies intensity according to traffic congestions.
The use of 6G-capable street lighting infrastructure will open up avenues for ultra-high-speed data transfer and increased connectivity. Holographic pedestrian crossing lighting will be adopted in high-tech urban areas for greater security.
Renewable energy integration will increase with floating solar-powered streetlights on coastal highways and riverbanks. Private sector investments will drive the installation of microgrid-supported lighting systems, providing energy security in urban and rural areas.
FMI opines that South Korea’s CAGR will be 5.7% from 2025 to 2035.
Japan will transform its street and road lighting with AI-powered infrastructure that anticipates maintenance requirements, minimizing operational downtime. Intelligent lighting will be integrated with earthquake and disaster response systems, adjusting light levels automatically for emergency routes.
The government's carbon neutrality pledge will increase investments in algae-based bioluminescent streetlights, minimizing energy dependence. Next-generation light diffusion technology will improve visibility without a rise in energy usage. The use of streetlights in crowded areas will enhance public safety and atmosphere. Highway constructions will include vehicle-speed-adaptive lighting, which will maximize light according to real-time traffic speed.
FMI analysis predicts that Japan’s CAGR will be 5.4% from 2025 to 2035.
France will upgrade its street and road lighting infrastructure by integrating light-sensitive charging pads for electric scooters and bicycles into city road networks. AI-powered lighting control systems will become routine in municipal planning, with the aim of maximizing energy consumption. Floating solar-powered streetlights will be utilized in flood-risk zones to provide uninterrupted lighting during intense weather conditions.
Investments in zero-maintenance, self-cleaning LED streetlights will save municipalities long-term operation costs. The nation will lead the way to the use of intelligent lighting in heritage buildings, maintaining historical visual appeal while being energy efficient. Urban areas will have growing demand for green, human-oriented lighting as pedestrianized urban spaces become 24/7.
FMI opines that the CAGR for France will be 5.3% from 2025 to 2035.
Italy will upgrade its street and road lighting infrastructure with decentralized, community-owned smart lighting initiatives, providing local energy independence. The use of heat-resistant LED technology will increase in areas with high temperature variations. The tourism industry will fuel investments in dynamic, color-changeable lighting that beautifies historic sites.
Rural areas will install off-grid solar streetlights with energy storage for around-the-clock operation. The nation's emphasis on sustainable mobility will result in specialized lighting for electric car-sharing stations and bike lanes. Measures to safeguard dark skies in rural environments will encourage the adoption of wildlife-friendly, low-glare lighting solutions.
FMI analysis predicts that Italy’s CAGR will be 5.2% from 2025 to 2035.
Australia and New Zealand will take the lead in deploying self-contained street lighting with kinetic energy drawn from pedestrian and vehicle traffic. Off-grid and cyclone-resistant solar streetlights will be deployed in cyclone-prone areas, increasing resilience to climate risks. Municipalities will incorporate AI-driven lighting analytics to track and optimize urban energy use.
Remote-controlled drone-facilitated maintenance of streetlights will cut down on operation costs in remote areas. Biodegradable street lighting poles using green materials will be a major innovation, in line with national sustainability objectives. Public areas will feature interactive lighting structures that respond to crowd levels and city activities, enhancing safety and beauty.
FMI opines that the CAGR for Australia & New Zealand will be 5.4% from 2025 to 2035.
(Surveyed Q4 2024, n=500 stakeholder participants, including lighting manufacturers, municipal authorities, smart city developers, energy regulators, and urban infrastructure planners across North America, Europe, and Asia-Pacific.)
Regional Difference
High Variance
Regional Variance
Regional Variations
Manufacturers
Municipal Authorities & End-Users
Divergence
Key Variances
| Countries | Government Policies & Regulations |
|---|---|
| United States | Federal and state incentives drive the adoption of energy-efficient LEDs. The Buy American Act requires local procurement for government initiatives. Smart city grants fuel connected lighting deployment. |
| India | The Street Lighting National Programme (SLNP) accelerated the adoption of LED lighting solutions. Bureau of Energy Efficiency (BEE) requires energy efficiency ratings. BIS certification is required for street lighting products. |
| China | Government subsidies drive smart and solar streetlight deployment. China Compulsory Certification (CCC) guarantees safety conformity. Strict carbon neutrality rules drive sustainable lighting uptake. |
| United Kingdom | UK's Energy Efficiency Standards necessitate public lighting renovation. The Net Zero Strategy by the government mandates reduced urban infrastructure carbon emissions. |
| Germany | The EnEV regulation demands energy efficiency for street lighting. Smart city policies focus on adaptive lighting systems. TÜV certification is crucial for conformity. |
| South Korea | Government-sponsored LED replacement schemes aim at energy-saving. Korean Industrial Standards (KS) certification is required for quality. |
| Japan | Top Runner Program promotes energy-efficient lighting. City projects include AI-based lighting to enhance disaster preparedness. JIS certification is needed for business deployment. |
| France | Harsh environmental regulations prefer low-emission lighting systems. The French government requires lifecycle analysis for lighting products. |
| Italy | National energy efficiency plans facilitate smart lighting integration. The CE marking guarantees adherence to EU safety standards. |
| Australia-New Zealand | LED lighting is enforced under energy efficiency programs. The Australian Green Building Council facilitates sustainable street lighting. Standards Australia applies compliance regulations. |
IoT-integrated smart lighting offers a significant opportunity for infrastructure developers and municipalities. Dynamic systems that modulate brightness according to traffic density and weather conditions maximize energy consumption and city safety. Extending intelligent emergency lighting networks in smart cities can minimize expenses while enhancing public monitoring and traffic control.
Solar-LED hybrid and solar-powered streetlights are increasingly popular, especially in areas with unstable grids. Solar-LED hybrid models that accumulate excess energy to be used at night should be the priority for companies. Incentives by governments in emerging sectors further facilitate large-scale implementation, and off-grid lighting becomes an economical solution.
Energy-efficient lighting financing models such as build-operate-transfer (BOT) minimize costs for municipalities, making quicker uptake of energy-saving lighting possible without massive initial investment.
Compliance with regulations is necessary to obtain large-scale projects. Manufacturers need to comply with standards like CCC (China), BIS (India), and CE (Europe) to gain access to the industry. AI sensor-based lighting and graphene-based materials further increase efficiency, longevity, and cost-effectiveness.
The industry for roadway and street lighting is fragmented with many players operating in different technological and geographic segments. Firms are emphasizing competitive positioning, product innovation, and strategic alliances in order to reinforce their positions in the industry.
Market leaders are using competitive pricing, innovative products, and strategic partnerships to tap into the growth opportunities. Most players are diversifying their portfolios with energy-efficient lighting solutions such as LED and solar systems due to increased environmental regulations. Strategic alliances with government agencies and municipalities play a major role in their growth plans especially for large-scale smart city projects.
In 2024, Signify collaborated with Siemens to improve smart lighting systems in cities by combining AI and data analytics for enhanced energy efficiency. Acuity Brands introduced a new line of connected lighting solutions aimed at maximizing energy usage in public spaces. Philips Lighting (now Signify) increased its footprint in the Asia-Pacific region, winning large contracts in India for the upgrade of street lighting systems with energy-efficient solutions.
In the area of mergers and acquisitions, Signify acquired Uptake Technologies in 2024, which offers AI-based predictive maintenance for lighting infrastructure. The acquisition complements Signify's portfolio of smart lighting as it allows cities to increase lighting system efficiency and lifespan.
Acuity Brands also acquired Distech Controls, a control and energy management company specializing in building automation, increasing its connected lighting capabilities with sophisticated energy management features. These acquisitions show the commitment of the industry to innovation and combined technologies for enhancing energy efficiency and sustainability.
Signify (formerly Philips Lighting): ~20-25%
A global leader in LED lighting solutions for streets and roadways.
Acuity Brands, Inc.: ~15-20%
A major player in North America, offering advanced lighting systems for urban infrastructure.
Eaton Corporation: ~10-15%
Provides smart lighting solutions and controls for street and roadway applications.
Osram Licht AG: ~8-12%
Known for its high-efficiency LED lighting systems for public spaces.
General Electric (GE Lighting): ~7-10%
A key player in the lighting industry, though its industry share has shifted after recent divestments.
Cree Lighting: ~5-8%
Specializes in energy-efficient LED lighting for streets and roadways.
Zumtobel Group: ~5-7%
Provides innovative lighting solutions for urban and public spaces.
Hubbell Incorporated: ~4-6%
Offers a wide range of outdoor and roadway lighting products.
The shift towards energy-saving solutions, like LED and solar-powered lights, and the increased adoption of IoT and smart city technologies are leading the industry.
Growing energy efficiency requirements are accelerating the demand for sustainable light solutions, and governments are providing incentives for environmentally friendly innovations.
Artificial intelligence lighting, intelligent sensors, and predictive maintenance are transforming energy management and optimizing operational efficiency in urban lighting networks.
Asia-Pacific, led by India, is witnessing growth driven by urbanization and policy efforts to upgrade infrastructure.
Mergers and acquisitions are driving innovation, as firms expand their product and service offerings through the combination of intelligent technologies and energy management features.
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Street and Roadway Lighting Market
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