The Global Street And Roadway Lighting Market is valued at USD 9.7 billion in 2023, reflecting its robust growth trajectory.Projections suggest that the market is poised to maintain a steady pace of expansion, with an estimated CAGR of 5.4% from 2023 to 2033.
Such consistent growth is expected to propel the market to remarkable heights, culminating in an impressive value of USD 16.4 billion by the end of 2033.
The increasing complexities of transportation infrastructure have heightened the demand for enhanced street and roadway lighting. This is essential to guarantee the safety and security of individuals using these thoroughfares and to facilitate seamless traffic flow, all while maintaining cost efficiency.
| Street and Roadway Lighting Market Size Value in 2023 | USD 9.7 billion |
|---|---|
| Anticipated Market Value for 2033 | USD 16.4 billion |
| Value-based CAGR for 2023 to 2033 | 5.4% |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
In the years spanning from 2018 to 2022, the street and roadway lighting market witnessed substantial growth, driven by a discernible shift toward energy-efficient and intelligent lighting solutions. The market was valued at USD 9.1 billion in 2022 and recorded a CAGR of 6.8% during the historical period.
| Historical CAGR (2018 to 2022) | 6.8% |
|---|---|
| Projected CAGR (2023 to 2033) | 5.4% |
This period marked a transition from traditional lighting systems to smart and adaptive technologies, as urbanization continued to accelerate, placing greater demands on lighting infrastructure.
Advancements in the Internet of Things (IoT) technology, sustainability imperatives, and the ever-expanding urban environment are converging to shape the forthcoming decade.
The projected period is expected to usher in a new era of street and roadway lighting, characterized by heightened efficiency, automation, and a profound commitment to environmentally conscious solutions. This transformation is driven by the imperative of meeting the complex lighting needs of smart cities while aligning with global sustainability goals.
The industry is expected to reach a value of USD 16.4 billion by 2033, advancing at 5.4% from 2023 to 2033.
Market Expansion: The adoption of energy-efficient LED lighting is expanding the market by increasing the demand for LED fixtures, driving growth in production and sales.
Competitive Advantage: Companies specializing in LED lighting solutions gain a competitive edge in the market, as municipalities and businesses prioritize energy-efficient options to reduce operational costs.
Government Regulations: Government regulations and incentives promoting energy-efficient lighting solutions further stimulate market growth by encouraging the adoption of LED technology.
Innovation and Research: The market is witnessing increased research and innovation in LED technology, leading to the development of more efficient and cost-effective lighting solutions, which in turn fuels market expansion.
Smart Lighting Solutions Market: The integration of smart lighting solutions is creating a parallel market segment within the street and roadway lighting industry, catering to the demand for advanced, data-driven lighting systems.
Market Segmentation: Smart lighting solutions offer diverse options for market segmentation, including residential, commercial, industrial, and municipal sectors, each with unique needs and growth opportunities.
Data Monetization: Data collected from smart lighting systems is becoming a valuable asset, and companies are exploring opportunities to monetize this data, contributing to market growth and revenue diversification.
Sustainable Urban Development: The market is benefiting from the global trend toward sustainable urban development, where energy-efficient and smart lighting is a critical component of creating eco-friendly and livable cities.
Investment Opportunities: The street and roadway lighting industry is attracting investments from venture capitalists and private equity firms, leading to increased research and development activities, further innovation, and market expansion.
Public Awareness: Growing public awareness of the environmental impact of lighting choices is driving the demand for energy-efficient and eco-friendly lighting solutions, bolstering market growth.
Principal Consultant
High Initial Costs: The upfront cost of implementing energy-efficient LED lighting technology and smart lighting solutions can be significant, posing a financial barrier for some municipalities and organizations.
Retrofitting Challenges: Replacing existing lighting infrastructure with LED fixtures or implementing smart lighting solutions may require retrofitting efforts, which can be complex and costly.
Regulatory Compliance: Adhering to local and national regulations and standards for lighting can be challenging and may limit design and technology choices.
Limited Funding: Budget constraints in public sectors or economic downturns can lead to reduced funding for street and roadway lighting projects, hindering market growth.
Resistance to Change: Resistance to new lighting technologies and the preference for traditional lighting sources can slow down the adoption of energy-efficient solutions.
Maintenance Costs: Although LED lighting has a longer lifespan, maintenance and replacement costs can still be a concern for organizations with tight budgets.
Data Privacy Concerns: The integration of smart lighting solutions raises data privacy and security concerns, which may deter some stakeholders from embracing these technologies.
Lack of Technical Expertise: Implementing and managing smart lighting systems require technical expertise, which may not be readily available to all municipalities and organizations.
Infrastructure Limitations: Outdated or inadequate infrastructure for connectivity such as the lack of robust communication networks can limit the effectiveness of smart lighting solutions.
Environmental Impact: Environmental concerns related to the manufacturing and disposal of LED lighting components can be a constraint for organizations with strong sustainability goals.
Market Competition: Intense competition in the street and roadway lighting market can lead to price pressure and reduced profit margins for manufacturers and suppliers.
Project Approval Processes: Bureaucratic and lengthy project approval processes in some regions can delay the implementation of lighting upgrades and innovations.
Geographical Challenges: Harsh weather conditions or geographical factors can pose challenges for street and roadway lighting, impacting the durability and performance of lighting systems.
Public Perception: Negative public perception or resistance to lighting changes, especially in historical or culturally significant areas, can be a restraint in upgrading lighting infrastructure.
Interoperability Issues: Compatibility issues between different smart lighting systems and components can complicate integration efforts and limit the scalability of solutions.
The section below highlights the revenue potential of the major countries in the street and roadway lighting market. The market in China is expected lead other markets with a revenue potential of 3.1 billion by 2033.
| Countries | Market Valuation (2033) |
|---|---|
| China | USD 3.1 billion |
| United Kingdom | USD 555.3 million |
| Japan | USD 2.3 billion |
| United States | USD 2.8 billion |
| South Korea | USD 774.6 million |
China is poised to experience robust growth, primarily attributable to the burgeoning smart city initiatives and the country is anticipated to amass revenue of around USD 3.1 billion by 2033, with 5.2% CAGR from 2023 to 2033.
Leveraging LED technology, smart street lighting, assumes a central role in these initiatives due to its myriad benefits, in turn facilitating the street and roadway lighting market’s growth in the country.
The government in China is actively endorsing LED adoption for roadway and highway applications, driven by the desire to achieve energy savings and reduced maintenance costs. China, with the ambitious goal of establishing 100 new smart cities between 2016 and 2021, leads the global landscape in smart city development. The country boasts over 1,000 smart city pilot projects, with approximately 500 of them situated within its borders, encompassing cities of varying sizes.
The United States is experiencing market growth due to government initiatives promoting energy-efficient lighting. Rebates, tax incentives, and regulations encouraging the use of LED and smart lighting solutions are driving adoption. This alignment with sustainability goals reinforces the street and roadway lighting market's expansion, contributing to the country’s share of USD 2.8 billion by 2033.
The increasing deployment of smart lighting solutions, driven by the need for improved urban infrastructure, public safety, and energy savings, is a significant factor fostering market growth. Cities across the country are investing in advanced lighting systems, including IoT-enabled solutions, to create more efficient and responsive urban environments.
The United States benefits from a thriving LED technology industry with a strong focus on research and development. This innovation, coupled with a robust manufacturing ecosystem, supports domestic production and drives market growth. Ongoing infrastructure modernization projects further contribute to the demand for advanced lighting solutions, propelling the market forward.
The street and roadway lighting market in Japan is expected to reach USD 2.3 billion by 2033. Japan has been a leader in adopting energy-efficient and advanced lighting technologies, including LED street and roadway lighting. LED lighting has gained widespread acceptance in Japan due to its energy efficiency and long lifespan.
The Japanese government has promoted energy-saving initiatives and subsidies to encourage the adoption of LED lighting in municipalities. There's a strong focus on sustainability and environmental considerations in Japan, driving the adoption of eco-friendly lighting solutions.
South Korea has a well-developed infrastructure and places a strong emphasis on technology and innovation. The street and roadway lighting market in South Korea is projected to be valued at USD 774.6 million by 2033.
LED street lighting has been widely adopted in South Korea to improve energy efficiency and reduce maintenance costs. The government has supported LED lighting projects and encouraged municipalities to upgrade their street lighting systems.
South Korea has a competitive landscape with several domestic and international lighting manufacturers participating in the market.
The United Kingdom has been actively transitioning to LED street lighting to reduce energy consumption and lower carbon emissions. The market in the United Kingdom is expected to reach USD 555.3 million by the end of the forecast period.
The United Kingdom’s government has set ambitious goals for reducing carbon emissions, which has led to increased investments in energy-efficient lighting technologies. Initiatives like the LED Road Lighting Toolkit have been implemented to assist local authorities in making informed decisions regarding LED adoption.
Smart street lighting solutions have also gained traction in the United Kingdom, allowing for remote monitoring and adaptive lighting control.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
| Top Wattage Type | Below 50 W |
|---|---|
| Value-based CAGR (2023 to 2033) | 5.2% |
The top wattage type for the street and roadway lighting market, especially for energy-efficient and sustainable lighting solutions, is typically below 50 watts. The sub-segment is expected to grow at a CAGR of 5.2% over the forecast period.
LED (Light Emitting Diode) technology has become the dominant choice for street and roadway lighting due to its energy efficiency, long lifespan, and superior performance compared to traditional lighting technologies like high-pressure sodium (HPS) or metal halide lamps.
| Top End Use | Streets & Roadways |
|---|---|
| Value-based CAGR (2023 to 2033) | 4.9% |
Based on end use, the market is bifurcated into highways, streets and roadways, others. The street and roadways segment holds a substantial market share and is estimated to witness a 4.9% CAGR during the forecast period.
The factors that can be attributed to the rapid urbanization and expansion of cities around the globe coupled with modernization and development of road infrastructure enhance the demand for street and roadways segments.
The street and roadway lighting market exhibits fragmentation and intense competition due to the participation of numerous regional and global players worldwide. Governments prioritize road lighting as an indispensable service to enhance nighttime safety and security for their populations.
The ongoing development of critical infrastructure, like the construction of intercity highways, stands as a compelling factor enticing companies to venture into this market. These dynamics have spurred both established and emerging players to invest in the street and roadway lighting market, creating a diverse and competitive landscape that continues to evolve.
Recent Developments in the Street and Roadway Lighting Market
The street and roadway lighting market is projected to reach a value of US$ 16.4 billion by 2033.
The street and roadway lighting market is poised to expand at a CAGR of 5.4% through 2033.
From 2018 to 2022, the street and roadway lighting market witnessed a growth rate of 6.8%.
The United States street and roadway lighting market for street and roadway lighting is expected to hold a revenue share of US$ 2.8 billion by 2033.
The streets and roadways sub-segment is projected to lead the market based on end use with a 4.9% CAGR through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Wattage Type 5.1. Below 50 W 5.2. 50 - 150 W 5.3. Above 150 W 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-Use 6.1. Streets & Roadways 6.2. Highways 6.3. Other End-Uses 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Eaton Corporation PLC 17.2. General Electric Company 17.3. Hubbell 17.4. Kingsun Optoelectronic Co. 17.5. Koninklijke Philips NV 17.6. LED Roadway Lighting Ltd. 17.7. Osram Licht AG 17.8. Syska Led Lights Pvt. Ltd 17.9. Thorn Lighting 17.10. Virtual Extension Ltd. 18. Assumptions & Acronyms Used 19. Research Methodology
Explore Industrial Automation Insights
View Reports
Street and Roadway Lighting Market
