LED Street Light Market

Market Overview:

The global LED street light market size reached in US$ 10.1 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 22.1 Billion by 2028, exhibiting a growth rate (CAGR) of 14.01% during 2023-2028. The enhanced energy efficiency associated with the utilization of LED street lights, extended lifespan of LED street lights, improved safety, increasing smart city integration, cost-effectiveness, technological innovations, and various federal and local government programs are some of the major factors propelling the market.

LED street lights are rapidly transforming urban landscapes, owing to their superior energy efficiency and extended lifespan compared to traditional lighting solutions. These modern luminaires often last up to 50,000 hours or more, significantly reducing maintenance and replacement costs. LED street lights offer better illumination, providing a brighter, more uniform light distribution that enhances visibility and safety for both pedestrians and drivers. They are compatible with smart city technologies, including IoT sensors and advanced control systems, allowing for intelligent management of urban lighting. Moreover, they align with environmental sustainability goals, as they are free from hazardous materials like mercury and emit fewer greenhouse gases. These numerous advantages make LED street lights an increasingly popular choice for municipalities.

The rising concern for energy efficiency and reduced carbon emissions represents one of the key factors driving the market growth. In addition to this, innovations like smart grids and IoT are contributing to the LED street light market growth. Moreover, the rising demand for safer, well-lit public spaces and the limited availability of cost-effective, long-lasting lighting solutions are highlighting the indispensability of LED street lights in urban planning. In this vein, these lights are crucial for improving night-time visibility and security, matching growing municipal needs for reliable and sustainable lighting options. Furthermore, the proliferation of online retail for electrical components and government incentives to replace traditional lighting are fueling market expansion. Additional dynamics such as the integration with smart city frameworks, the preference for programmable, adaptive lighting solutions, and an intensified focus on products compliant with international quality standards are propelling the uptake of LED street lights worldwide.

LED Street Light Market Trends/Drivers:

Enhanced Road Safety Measures

The focus on enhanced road safety is actively propelling the LED street light market growth. These lights are becoming essential in ensuring better visibility for both drivers and pedestrians during night-time and in adverse weather conditions. As the incidents of road accidents heighten, municipalities and city planners are increasingly adopting LED street lighting systems for their superior luminosity and directional lighting capabilities. This ongoing transition is not only improving overall road safety but is also supporting governmental initiatives aimed at reducing traffic-related casualties.

Integration of Smart Technology

The advent of smart cities is encouraging the incorporation of intelligent LED street lighting solutions. These lights come with features like adaptive brightness levels, real-time monitoring, and remote management. Governments are implementing these technologies to optimize energy use, enhance public safety, and facilitate urban planning. This integration aligns well with the broader objective of converting urban areas into smart cities, equipped with advanced, interconnected technologies for improved quality of life.

Sustainability Goals and Cost-Effectiveness

The need for cost-effective and sustainable solutions in public infrastructure is another key driver for the adoption of LED street lights. These lights have a longer lifespan and lower operational costs compared to traditional lighting options, offering long-term economic benefits. Municipalities are acknowledging these advantages and are progressively replacing older lighting systems with LED alternatives. This is not only proving cost-effective but is also resonating with the global shift towards environmentally sustainable practices by reducing energy consumption and waste.

LED Street Light Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global LED street light market report along with forecasts at the global, and country levels for 2023-2028 Our report has categorized the market based on application.

Breakup by Application:

• Retrofit
• Retail & Hospitality
• Outdoor
• Offices
• Architectural
• Residential
• Industrial
   

Retrofit dominates the market

The report has provided a detailed breakup and analysis of the market based on the type. This includes retrofit, retail & hospitality, outdoor, offices, architectural, residential and industrial. According to the report, retrofit represented the largest segment.

Retrofitting solutions are actively transforming existing infrastructures, offering enhanced efficiency and environmental benefits. These solutions are commonly implemented in HVAC systems, lighting, and insulation, providing avenues for considerable energy savings and improved building functionality. In the realm of lighting, retrofit kits enable easy upgrades from traditional bulbs to LEDs, offering immediate improvements in energy efficiency and lighting quality. Additionally, smart retrofit solutions are integrating seamlessly with existing home automation systems, allowing homeowners to modernize without complete overhauls. These smart systems facilitate remote monitoring and control, providing residents with enhanced convenience and operational ease. Incorporating retrofit solutions into existing structures is proving to be a cost-effective way to modernize and align with sustainable practices. This widespread application establishes retrofitting as an essential component in contemporary building management, mirroring the market research company's expertise in identifying and explaining emerging trends.

Breakup by Region:

• China
• Europe
• United States
• Japan
• Brazil
• Russia
• Other Regions
   

China holds the largest share in the market

A detailed breakup and analysis of the market based on the country has also been provided in the report. This includes India, China, Europe, United States, Japan, Brazil, Russia and other regions. According to the report, China accounted for the largest market share.

The rising commitment to sustainable urban development in China is serving as a major propellant for the LED street light market. Moreover, continuous breakthroughs in optoelectronic engineering are producing LED street lights with advanced features such as adaptive brightness and motion sensing, thereby elevating their market appeal. In addition, the rapid pace of urbanization and infrastructure overhaul is driving the demand for reliable, long-lasting public lighting solutions, positioning LED street lights as a preferred choice. E-commerce giants and B2B platforms are also becoming instrumental in making a diverse range of LED street lighting products accessible to municipalities and contractors, thus energizing the market growth. The government's focus on reducing electricity consumption and lowering greenhouse gas emissions is facilitating the adoption of energy-efficient LED street lights, aligning with national energy conservation goals and thereby fostering a favorable market environment. Furthermore, initiatives like smart city exhibitions, as well as digital workshops on urban planning and sustainability, are collectively shaping an optimistic growth scenario for the LED street light market in China.

Competitive Landscape:

In the LED street light sector, key stakeholders are adeptly employing multiple strategies to fortify their market presence and cater to dynamic consumer needs. These entities are doubling down on R&D initiatives to develop LED street lights with smart controls, enhanced lumens per watt, and better heat dissipation characteristics. To extend their reach, these firms are entering into strategic alliances with local municipalities and contractors to facilitate the widespread adoption of LED street lights in urban and rural areas. Furthermore, these stakeholders are executing comprehensive educational initiatives that inform both government bodies and the general public about the advantages of LED street lights, including their role in enhancing public safety and contributing to smart city solutions. Several of these companies are even setting up localized assembly lines, thus supporting domestic economies and generating employment opportunities. Alongside, collaborations with regulatory agencies and involvement in public-private partnerships underline their commitment to adhering to quality standards and complying with public policies. These key players are also rapidly integrating IoT technology into their LED street light offerings, tapping into the expanding ecosystem of smart urban infrastructure. By astutely amalgamating technological advances, consumer awareness, strategic collaborations, and responsible practices, these entities are continually strengthening their role in the evolution of the LED street light market.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include: 

• Philips Lighting
• Eaton Corporation PLC
• OSRAM GmbH, Pkk Lighting Inc.
• Pemco Lighting Products LLC
• Hubbell Inc.
• Cree Inc.
• GE Lighting
• XtraLight LED Lighting Solutions
• Niland Company
• NIPSCO Inc.
• Wendel, Acuity Brands
• Nichia Corporation
• Havells India Limited

Recent Developments:

• On August 30, 2023, Atrius, a part of Acuity Brands, won the sustainability leadership award.
• On August 28, 2023, Eaton Corporation allocated over half a billion dollars toward manufacturing endeavors in North America. The investment aims to advance electrification, facilitate the shift to sustainable energy, and promote digitalization across various sectors.
• On March 28, 2023, GE Lighting, now a part of Savant, received the 2023 ENERGY STAR Partner of the Year – Sustained Excellence Award.

LED Street Light Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the global LED street light market from 2017-2028.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global LED street light market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the global LED street light industry and its attractiveness. 
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.