Smart Outdoor Lighting Market Size, Forecast [2031]

Report Description

Smart Outdoor Lighting Market Outlook 2031

The global smart outdoor lighting market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX% during 2023–2031. The market growth is attributed to the increasing development of smart cities and rising pedestrian accidents.

Rising number of pedestrian accidents is anticipated to boost the global smart outdoor lighting market. Smart outdoor lighting is placed on highways, streets, and pedestrians to offer needed illumination during the evening or night,which increases the visibility of pedestrians to drivers, thereby reducing the likelihood of pedestrian accidents. For instance,

• According to a report published by the Road Safety Toolkit, street lighting enhances safety for pedestrians, specifically at crossing points, and reduces pedestrian crashes by approximately 50%.

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The need for smart outdoor lighting on highways, streets, and parks has increased, as these lights enhance the ambiance of the surroundings. Smart outdoor lights are controlled remotely through a mobile app and offer color adjustment and timers & scheduling features, which enhance their adoption on highways and streets.

Increasing development of smart cities is expected to drive the market. Smart cities are widely adopting smart outdoor lighting, as it helps to achieve energy savings goals, which leads to a reduction in operational costs and improves service reliability. Thus, the growing number of smart cities across the globe is propelling the market.For instance,

• The Indian government launched a mission to develop 100 smart cities across the country, of which 22 smart city projects have been completed by April 2023.

The COVID-19 pandemic hampered the global smart outdoor lighting market. The closure of international trade and shortage of raw materials during the pandemic halted construction activities across the globe, which impeded the demand for smart outdoor lighting, as these lights are installed on highways, roads, gardens, and pedestrians to allow people to move around safely in the dark. Furthermore, the pandemic disrupted the global supply chain, which significantly hampered the market. For instance,

• According to a report published by the Associated General Contractors of America on June 18, 2020,around 61% of firms reported the halt of at least one construction project in 2020 and one in four firms reported that there was a shortage of construction material during the lockdown.

Impact of Artificial Intelligence on the Smart Outdoor Lighting Market

The integration of artificial intelligence in smart outdoor lighting creates growth potential for the market. AI-powered smart outdoor lighting system creates sustainable urban environments and reduces energy consumption by optimizing energy usage at highways, gardens, parks, and pedestrians.

AI-enabled smart outdoor lighting systems improve public safety by detecting motion and altering police and other emergency services when necessary. AI in smart outdoor lighting systems detects system anomalies at an early stage and addresses the issues in real-time before they become a major problem.

Smart Outdoor Lighting Market Dynamics

Major Drivers

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Growing urbanization around the world is expected to drive the market. The smart outdoor lighting system is widely adopted in the development of urban areas,as these lights are widely installed on pathways, highways, gardens, parks, streets, and industries. Therefore, increasing urban areas is propelling the market. For instance,

• According to the World Bank, 56% population of the world,which means approx. 4.4 billion people live in cities, and this number is projected to double by 2050.

Rising adoption of energy-efficient lighting systems is expected to boost the global smart outdoor lighting market. Smart outdoor lighting reduces energy consumption by automatically turning lights off when they are not needed. It decreases light levels when full brightness is not necessary,as it incorporates advanced technologies,such as motion sensors and timers.

Existing Restraints

Highcost associated with smart outdoor lighting is expected to hinder the market. Smart outdoor lighting systems include hardware components, such as lights & luminaries and lighting controls, and software, including cloud-based software, which makes this lighting more expensive than the traditional lighting system. Moreover, smart lighting requires an internet connection to utilize the smart features linked to it, making it susceptible to hackers, resulting in hampering the market. 

Emerging Opportunities

Increasing investment in R&D by key players competing in the market creates an immense opportunity in the market.Key players are developing and introducing cost-effective and efficient products for smart outdoor lighting, there by propelling the market. For instance,

• On April 12, 2023, Luminaire LED, a subsidiary of ACUITY BRANDS, launched the Smart Vandal Resistant Downlight (VRDL) series. VRDL combines a clean, sleek aesthetic feature and has the ability to with standharsh environments.

Scope of the Smart Outdoor Lighting Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Lamp Type Segment Analysis

Based on lamp type, the smart outdoor lighting market is divided into fluorescent, incandescent, and LED. The light emitting diode (LED) segment held a large share of the market in 2022,due to its excellent durability. LED is the most energy-efficient lighting, offering better light quality compared to fluorescent and incandescent lamps. This increases the demand for LED in smart outdoor lighting. For instance,

• According to the Department of Energy, LED lamps consume 75% less energy and last up to 25 times longer than incandescent lamps.

Component Segment Analysis

In terms of components, the global market is categorized into hardware, software, and services. The hardware segment accounted for a major share of the market in 2022 and is projected to grow at a rapid pace in the coming years, due to the increasing adoption of connected lighting, bulbs, and fixtures. These connected lighting and bulbs dim lights, change hues, and switch off or on the light by using motion sensors. Additionally, the increasing need to reduce energy consumption and minimize energy bills requires efficient sensors, thereby propelling the segment.

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The software segment is anticipated to expand at a considerable CAGR during the projected period, due to its potential to increase the efficiency of energy consumption by automating lighting systems. Additionally, the growing development of mobile apps to control lighting systems remotely is anticipated to boost the segment.

Connectivity Segment Analysis

In terms of connectivity, the smart outdoor lighting market is bifurcated into wired and wireless. The wireless segment dominated the market in 2022, owing to its ability to offer convenience in installing and operating. Wireless technology controls the lighting system remotely through smart assistant devices or IoT-connected devices, which influence their adoption. Moreover, key players in the market are developing and launching wireless processors for controlling lighting systems. This increases the demand for wireless technology. For instance,

• On March 8, 2023, Lutron, a global supplier of lighting control devices and systems, announced the launch of Athena wireless processor for the Athena lighting control system. Athena wireless processors do not require panels and work with a wide range of both wireless and wired devices.

The wired segment is anticipated to grow at a significant pace in the coming years, due to its excellent reliability and low risk of interference. Wired technology is required for installing smart lighting beyond a specific range, enhancing its adoption in commercial and industrial spaces. Additionally, increasing installation of smart outdoor lighting at highways, gardens, parks, and streets is projected to propel the segment.

End-user Segment Analysis

Based on end-users, the global market is segregated into highways, streets, pedestrians, gardens, and parks. The highway segment registered significant growth in 2022, owing to the increasing infrastructural development in emerging nations. Smart outdoor lighting is widely placed on highways, which further helps to reduce the number of accidents on highways. These smart lights detect vehicle-to-vehicle collisions and instantly turn to red color to give a signal to incoming vehicles on highways to slow down their speed. This increases the demand for smart outdoor lighting on highways.

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The garden segment is expected to grow at a robust pace during the forecast period, due to the growing adoption of energy-efficient lighting solutions in gardens. Smart outdoor lighting system uses motion or occupancy sensors to automatically dim lights in gardens when unoccupied and illuminate in the presence ofmotion, providing a new degree of control over electricity usage.This enhances the adoption of smart outdoor lighting in gardens.

Regional Outlook

In terms of region, the smart outdoor lighting market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe dominated the market in 2022, owing to the growing environmental concerns. Authorities in the region are deploying smart street lights to reduce carbon footprints, which is propelling the market. For instance,

• On October 6, 2020, Medway Council, a UK-based local authority, announced the replacement of 24,000 streetlights with smart LEDs to reduce carbon footprint and improve the environment's surroundings. These smart LEDs automatically notify Medway Council about any faults in the lighting.

The market in Asia Pacific is anticipated to expand at a high CAGR in the coming years,due to the increasing construction activities and favorable government initiatives. Governments in India, China, Japan, and South Korea are heavily investing in installing smart street lights to strengthen security, which significantly increases the demand for smart outdoor lighting. Furthermore, the rapid development of smart cities propels the market in the region. For instance,

• On JUNE 13, 2023, the Delhi Government in India announced the installation of more than 90,000 smart street lights to strengthen security for women by eliminating dark spots.

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