Intelligent/Smart Street Lighting Market Size Projection (2024 – 2030)

As of 2023, the market size for Intelligent/Smart Street Lighting was assessed at USD 7.83 billion, with a forecasted expansion to reach USD 28.88 billion by 2030, indicating a compound annual growth rate (CAGR) of approximately 20.5% over the forecast period.

Intelligent/Smart Street Lighting Market Dynamics

The market's growth is propelled by several factors including heightened demand for energy-efficient lighting solutions, increased integration of Internet of Things (IoT) technologies within the lighting sector, and a rising emphasis on the development of smart cities. The Intelligent/Smart Street Lighting market encompasses activities related to the manufacturing, distribution, and utilization of smart street lighting systems, designed to optimize energy usage, decrease operational costs, and bolster public safety through the integration of sensors, controllers, and software enabling automated adjustments and centralized management.

Market Drivers

Energy efficiency stands as a primary driver for the Intelligent/Smart Street Lighting Market:

Utilization of advanced technologies in smart street lighting facilitates optimized energy consumption, aligning with the objectives of cities and municipalities striving to reduce carbon footprints and achieve sustainability targets.

Government initiatives also fuel market growth:

Global governments are actively investing in smart city initiatives, including the implementation of intelligent street lighting systems, aimed at enhancing public safety, lowering crime rates, and fostering energy efficiency.

Public safety and security considerations contribute significantly:

Integration of surveillance cameras, sensors, and security features into smart street lighting systems enhances public safety measures, addressing the escalating concerns amid urbanization and increasing crime rates.

Technological advancements propel market expansion:

Continuous innovations in LED lighting, IoT, and AI technologies are driving the adoption of smart street lighting solutions, offering remote monitoring, control, and maintenance capabilities that translate into substantial cost savings for urban centers.

Rising awareness further stimulates market demand:

Growing recognition of the benefits associated with smart city infrastructure drives the uptake of smart street lighting systems, encompassing advantages such as energy conservation, cost efficiencies, enhanced public safety, and crime reduction.

Market Challenges

High installation costs pose a significant challenge:

The initial investment required for deploying intelligent street lighting systems may serve as a deterrent, particularly for smaller municipalities lacking sufficient financial resources.

Complexity in system integration presents obstacles:

Integrating diverse technologies and systems can complicate the installation, operation, and maintenance of intelligent street lighting systems, posing challenges for jurisdictions lacking requisite technical expertise.

Market Opportunities

Emerging markets offer avenues for growth:

Developing nations are increasingly investing in smart city infrastructure, creating opportunities for market players to expand their presence across new geographical regions.

Public-private partnerships present a viable solution:

Collaborative ventures between public entities and private sector stakeholders offer a feasible approach for financing and implementing intelligent street lighting projects, leveraging expertise and funding from private investors.

Retrofitting existing infrastructure offers prospects:

Upgrading existing street lighting infrastructure with intelligent technologies presents opportunities for market players to modernize infrastructure and reduce operational costs.

Impact of COVID-19 on the Market

The COVID-19 pandemic has exerted notable repercussions on the intelligent/smart street lighting market, inducing economic downturns that have curbed demand and disrupted supply chains. Budget constraints and logistical challenges stemming from the pandemic have delayed numerous smart street lighting projects. However, the shift towards remote work has contributed to reduced energy consumption in street lighting, albeit offset by increased focus on public safety, driving interest in surveillance-equipped smart lighting solutions.

Recent Developments in the Intelligent/Smart Street Lighting Market

• In 2021, Honeywell International Inc. finalized its acquisition of Elster Solutions, bolstering its presence in the smart street lighting market.
• In 2020, GE Lighting merged with Savant Systems, enhancing its offerings in the smart street lighting sector through the integration of Savant's technolog.
• Also in 2020, Acuity Brands Inc. acquired Distech Controls, augmenting its capabilities in the smart street lighting domain by integrating Distech's technology into its lighting systems.

Intelligent/Smart Street Lighting Market By End-user:

• Government
• Commercial
• Residential and others

Within these categories, the Commercial sector emerges as the most substantial. Businesses and commercial entities utilize Intelligent/Smart Street Lighting to augment visibility, enhance security, and cultivate welcoming and secure environments for both clientele and staff. The prevalence of the Commercial segment is driven by the imperative for well-illuminated and hospitable surroundings in shopping centers, parking facilities, industrial zones, and business districts. The proliferation of energy-efficient and intelligent lighting solutions within commercial settings propels the expansion of this sector.

Looking forward, the Residential segment is anticipated to experience the most rapid growth throughout the forecast period. With the burgeoning prevalence of smart residences and the heightened consciousness surrounding energy preservation, residential areas are increasingly embracing Intelligent/Smart Street Lighting. Homeowners are seeking out intelligent lighting systems that offer automation, remote management capabilities, and energy efficiency. As more municipalities integrate Intelligent/Smart Street Lighting into residential communities, the Residential segment is poised for substantial growth, mirroring the escalating demand for intelligent and interconnected living spaces.

By Region:

• North America
• Europe
• Asia Pacific
• Middle East
• Latin America

North America is poised to command the largest market share, attributed to the presence of key industry players within the region, alongside the increasing adoption of cutting-edge technologies such as IoT, AI, and 5G. Europe is also expected to claim a significant market share due to escalating governmental initiatives aimed at adopting smart city infrastructure and the growing awareness of the benefits associated with energy-efficient lighting systems. The Asia Pacific region is projected to witness a notable growth rate driven by rapid urbanization and the increasing uptake of smart city infrastructure initiatives. South America, alongside the Middle East and Africa, are forecasted to experience moderate growth, owing to governmental efforts aimed at adopting smart city infrastructure and the growing recognition of the advantages of energy-efficient lighting systems within these regions.

Intelligent/Smart Street Lighting Market Key Players:

1. Sensus
2. Silver Spring Networks
3. Telensa
4. Legrand S.A
5. Zumtobel Group AG
6. Schneider Electric
7. Honeywell International Inc.
8. Wipro Limited
9. Philips Lighting
10. GE Lighting
11. Osram