According to the Market Statsville Group (MSG), the Global LED Street Light Market size was valued at USD 6,314 million in 2024 and is expected to grow from USD 7,135 million by 2025 to USD 18,967 million by 2033, at a CAGR of 13% during the forecast period (2025 – 2033).
The LED street light market is growing rapidly across the world due to growth in urbanization, energy conservation and finally the implementation of government investiture on the environmentally friendly products. LED street lights are increasingly being adopted worldwide because they have a long life span, they consume less energy and require minimal maintenance as compared to other lighting technologies. Furthermore, smart city solutions and IoT-based lighting control systems are the other aspects that are also contributing for the market growth. The interest in LED street lights is particularly manifested in such regions as North America, Europe, and Asia-Pacific since the governments of these regions increasingly focus on infrastructure upgrades and energy saving. Several factors are inclusive of; adaptive lighting, solar-powered LEDs, improved luminous efficacy, technological advancement, and globalization. However, there is a high initial cost accompanying the installation and retrofitting of a system is also relatively difficult due to the existing structures. Companies want to continue creating and building partnerships and ramp up efforts to grab bigger projects in the market. Thus, the market is expected to continue its growth in the years to come.
An LED street light is defined as a lighting fixture that uses Light Emitting Diodes also known as LEDs to light up roads, highways, and other public spaces. Being energy-saving, long-lasting, and low maintenance, LED street lights offer better lighting than the conventional street lighting installation. They are applied in different aspects of cities’ infrastructures to improve security and energy efficiency for smart cities.
High-intensity area and pedestrian lighting, especially LED street lamps, have been endorsed by different governments across the globe through policies and measures such as policies and subsidies. Due to the increment on energy consumption, many countries have adopted energy efficiency standards that require that street bulbs be replaced by LEDs. Governments and utility companies are offering subsidies, tax relief, and cheap credit to municipalities and businesses to boost LED take-up. Moreover, few governments have recently introduced smart city programs where LED street lights/ luminaries are connected with smart control methods for energy management in infrastructures. The authorities are also removing all ineffective lighting sources and thus stimulating the use of LEDs as well. For instance, there is the European Union’s Eco-design Directive that has led to adoption of green lighting solution, and the United States’ Department of Energy’s lighting standards. Besides contributing to efficiency these initiatives also aid in reduction of the running cost for various cities making LED street lighting popular the world over.
A main challenge that prevents effective implementation of LED street lighting system is the high initial costs involved irrespective of the area size thus excludes most of the developing regions or the financially constrained councils and municipalities. LEDs are much higher initially in cost compared to other street lights not only the lighting fixtures and installation but also the smart systems for adaptive lighting and remote control. While perusing long-term costs through energy efficiency and few replacement needs, the cost of acquiring LEDs at the initial instance may financially constraint some cities. However, integrating LED technology to existing structures requires extra expenses especially poles, wiring, and including smart sensors, thus increasing on the total costs. Some cities use government grants while others use public-private partnerships as the source of financing for large-scale lighting projects of LED. However, the current statistics reveal that in areas where funding is not available the use of the system is not widespread. The cost of manufacturing reduces over time and financing option also become better hence expanding the economic viability of LED street lighting.
The study categorizes the LED Street Light market based on Wattage, Application, Distribution Channel, End-Use Industry, at the regional and global levels.
By Distribution Channel Outlook (Sales, USD Million, 2019-2033)
Based on the Application, the market is divided Highways & Roadways, Smart Street Lighting, Public Parks & Parking Lots, Bridges & Tunnels. Highways & Roadways are the dominant segment of the LED Street Light Market. This is well encouraged by the fact that most of the roads including the highways, express ways and streets are flooded with LED type of lighting systems. Such regions’ governments and transportation authorities therefore favor the use of LED street lights as these help in increasing safety on the roads, additional illumination during the night and also decreasing the rate of traffic accidents. In addition, savings in electricity consumption and lower expenses on repair and maintenance is perhaps one of the benefits that allow the employment of LEDs in highway illumination. A large number of countries are transitioning from HPS and other designs of equipment to LEDs in the frameworks of the large-scale upgrades of the existing infrastructure and smart cities initiatives. For instance, the U.S. Federal Highway Administration and the European agencies are budgeting for the purchase of LED roadway lighting due to energy efficiency objectives. In addition, developing countries in Asia-Pacific and Middle East & Africa are expanding roads, thus the use of LED street lights. Being one that benefits from the government regulations on energy usage and compliance with energy-efficient lighting, this segment is expected to continue holding the lead on the market.
Based on the regions, the global market of LED Street Light has been segmented across North America, Europe, the Middle East & Africa, South America, and Asia-Pacific. The Asia Pacific a dominates the LED Street Light market. This is as a result of high rate of urbanization, large scale constructions, and government encouragement for energy efficient lighting. Some of the aspirational programs to shift toward using LED street lights are being driven at the national level in countries such as China, India, and Japan, with policies and subsidies, as well as smart city projects. For instance, China holds a strong manufacturing base and offers support through governmental initiatives for sustainable development of LED street lights. Further, India’s smart city mission and energy efficiency policies for the replacement of conventional street lights with LEDs are also catalyzing the street light market. Rising population and escalating demand for electricity more so in the region calls for energy efficient products therefore LED lighting is ideal. Also, since production costs are relatively low in APAC, the organization can offer these services on a large scale at affordable prices. Due to continued investments in upgrades and implementation of improved systems, specially renewable energy, the APAC region is anticipated to lead in the LED street light market in both growth and consumption than other regions.
The competition in the global LED street light market is quite intense, and the firms in the industry are mostly targeting on innovation, partnership, and large scale projects. Some of the prominent vendors in the market are Signify (Philips), Cree Lighting, Acuity Brands, Eaton, OSRAM, and GE Current. There is strong competition in smart lighting, energy efficient and contract opportunities that the government offers in large scale urban lightings.
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