Smart Street Lighting Market Size, Share, and Growth Forecast for 2024 - 2031

Smart Street Lighting Market Size and Share Analysis

The global smart street lighting market is set to increase from US$ 3.33 Bn in 2024 to US$ 5.61 Bn by 2031. The market is estimated to secure a CAGR of 5.2% during the forecast period from 2024 to 2031. Increasing investments by government bodies across emerging economies are anticipated to augment demand.

According to recent studies, around 28% of rural homes in India still do not have access to adequate street lighting. Due to variations in local government, infrastructural development, and rapid urbanization, this number differs by state. Particularly in rural locations, easy access to street lighting is essential for enhancing general quality of life, productivity, and safety.

The Unnat Jyoti by Affordable LEDs for All (UJALA) Scheme, for instance, aims to replace inefficient light bulbs with energy-efficient LED lights in both urban and rural areas. This program encourages street lighting initiatives in addition to household lights in an effort to save energy costs and increase affordability.

The goal of the Street Lighting National Program (SLNP), on the other hand, is to switch out traditional streetlights with LED ones across India. The program was started by the Ministry of Power and is being carried out by Energy Efficiency Services Limited (EESL). By 2024, more than 13 million streetlights have been replaced, resulting in significant energy savings. The initiative provided lighting in places that lacked basic infrastructure by focusing on both rural and urban areas.

Key Highlights of the Market

• By connectivity, the wireless segment will likely lead by holding a share of 16.4% in 2024 amid their ability to reduce energy consumption and maintenance cost.
• Based on type, the LED category is projected to dominate with a share of 18.2% in 2024 due to increasing installation across developing countries.
• A CAGR of 8.4% is estimated for North America as government bodies are spending huge sums on smart city projects.
• Subsidies and incentives for adopting energy-efficient technologies like smart streetlights are augmenting market growth.
• Public-private partnership models are being adopted to share the financial burden of smart street lighting projects.
• In South Asia, market leaders are emphasizing affordable solutions for emerging economies, where infrastructure investments are booming.
• Key players are working on reducing costs through developments in LED technology, which offers lower power consumption and longer lifespans.

Attributes	Key Insights
Smart Street Lighting Market Size (2024E)	US$ 3.33 Bn
Projected Market Value (2031F)	US$ 5.61 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	5.2%
Historical Market Growth Rate (CAGR 2019 to 2023)	4.8%

Wireless Lights Gain Traction Amid Ability to Offer Remote Monitoring

Category	Market Share in 2024
Connectivity- Wireless	16.4%

Smart street lighting systems use sensors and wireless connectivity to monitor and control lighting levels, which can result in significant energy savings and cost reductions. These systems allow municipalities to remotely monitor and adjust lighting levels in real-time. It further helps to reduce energy waste and provide better visibility for pedestrians and drivers. The wireless connectivity segment is estimated to hold a significant market share of 16.4% in 2024.

Increasing adoption of the Internet of Things (IoT) and rapid growth of 5G are contributing to the surging demand for Wi-Fi streetlights. These systems can be integrated into other smart city technologies such as traffic monitoring, environmental sensors, and public safety systems. They are hence capable of providing a comprehensive and efficient approach to urban management.

The ability to remotely monitor and control wireless street lighting systems is likely to drive demand. It is also attributed to the rising demand for novel ways to reduce energy consumption, lower costs, and improve public safety across various cities.

LED Street Lights to be Highly Preferred for Cost-effectiveness

Category	Market Share in 2024
Type- LED	18.2%

LED smart lights have revolutionized the way cities light up their streets. These offer a more energy-efficient, cost-effective, and reliable lighting solution than traditional streetlights.

LED smart lights can be controlled remotely, and their brightness can be adjusted based on ambient light levels, traffic flow, and similar other factors. This makes them an ideal choice for smart city initiatives. The LED segment is hence anticipated to dominate by holding 18.2% of the smart street lighting market share in 2024.

The cost-effectiveness of LED smart lights stems from their long lifespan and low energy consumption. LED bulbs last much longer than traditional bulbs, which means less frequent replacements are required, resulting in lower maintenance costs. These bulbs also use less electricity, which can result in significant energy savings and reduced electricity bills over time.

In addition to their cost-effectiveness, LED smart lights also offer high reliability compared to conventional streetlights. They are less prone to failure and require less maintenance. Hence, they can remain operational for longer periods of time. LED smart lights can also be remotely monitored, allowing for faster response times and easier maintenance.

Market Introduction and Trend Analysis

Smart street lighting is a modern approach to street lighting that uses unique technologies to provide better lighting services in an efficient, cost-effective, and environmentally friendly way. These systems typically use a network of sensors, wireless communication, and data analytics to manage and control streetlights.

Smart street lighting systems can also offer additional services, such as real-time traffic monitoring, environmental evaluation, and public safety alerts. Smart street lighting is a technology-driven solution that can help cities improve their lighting services, reduce their environmental impact, and provide better safety and comfort for their residents. For instance,

• Even though there are fewer cars on the road at night, poor vision causes over 40% of accidents, according to the World Health Organization (WHO), which records over 1.35 million road deaths yearly.

Smart streetlights can help improve visibility and save up to 50% on energy consumption by adjusting brightness based on current traffic conditions. Adaptive lighting is used in Copenhagen to enhance road safety and lessen traffic during rush hours.

LED lighting improves visibility, which lowers nighttime accidents by 30 to 50%, especially in high-risk areas. There has been a 40% decrease in nighttime fatalities in India because of smart street lighting initiatives in rural roadways.

Historic Growth and Course Ahead

Various cities embarked on large-scale implementations of smart street lighting systems in the historical period. They successfully transformed entire urban areas into smart lighting zones. These projects showcased the scalability of smart street lighting solutions and their impact on urban management.

The smart street lighting market experienced average growth at a CAGR of 4.8% from 2019 to 2023. It was driven by a combination of technological developments, increased urbanization, and a global push for energy efficiency and sustainability. This period also witnessed significant investments and developments that set the stage for future market expansion.

Smart street lighting will likely be seamlessly integrated with other smart city systems, including traffic management, environmental monitoring, and public transportation. This holistic approach is anticipated to enhance urban efficiency and sustainability.

Real-time data from smart lighting systems is set to be used to make city planning and policy decisions, contributing to more livable and responsive urban environments. The development of autonomous lighting systems capable of self-diagnosis, self-repair, and autonomous decision-making will likely revolutionize the global market. These systems are projected to operate with minimal human intervention, further reducing operational costs and improving reliability.

Market Growth Drivers

Global Emphasis on Energy Conservation to Augment Demand

The global emphasis on energy conservation is significantly propelling growth in the connected street lighting industry. High focus on energy efficiency is mainly driven by the urgent need to reduce energy consumption, lower carbon emissions, and create sustainable urban environments.

Several key factors illustrate how the rise in energy conservation efforts is accelerating the adoption of connected street lighting systems. These are designed to optimize energy use, providing substantial energy savings compared to traditional lighting systems. These also utilize novel technologies such as LEDs, IoT sensors, and adaptive lighting controls.

LED lights consume significantly less energy than traditional incandescent or fluorescent lights. Their high efficiency and long lifespan make them an ideal choice for street lighting, contributing to energy conservation efforts.  

Smart street lighting systems further use adaptive lighting controls to adjust brightness levels according to traffic flow, pedestrian activity, and environmental conditions. For example, lights can be dimmed during low-traffic hours and brightened during high-traffic periods or adverse weather conditions.

Integration of IoT and AI Technologies to Spur Growth

The integration of Internet of Things (IoT) and AI technologies has been a game-changer for the smart street lighting market. These technologies enhance the functionality, efficiency, and intelligence of lighting systems.

IoT-enabled smart streetlights are equipped with sensors and are connected to a central management system, allowing for real-time monitoring and control. These systems can adjust lighting levels based on traffic flow, weather conditions, and time of day, leading to significant energy savings.

AI algorithms analyze data collected from these sensors to optimize lighting patterns, predict maintenance needs, and detect faults. This proactive approach reduces downtime and maintenance costs while ensuring optimal lighting conditions.

Smart street lighting systems can adapt to changing environmental conditions and urban dynamics. For instance, they can dim lights in low-traffic areas to save energy and increase brightness in high-traffic or high-crime areas to enhance safety and security.

Market Restraining Factors

System Failures due to Harsh Weather Conditions May Limit Adoption

Smart street lighting systems rely on various technologies such as sensors, wireless communication, and data analytics. Technical issues like system failures, sensor malfunctions, or data security breaches can pose a risk to the system's reliability and security. Technical issues can also cause delays and maintenance costs, which can affect the cost-effectiveness of the system.

Street lighting systems are also exposed to harsh weather conditions such as heavy rain, snow, and extreme temperatures. These conditions can damage the lighting equipment and affect its performance. Harsh weather conditions can further affect the reliability of the wireless communication systems and data transmission, which can cause the system to malfunction.

Key Market Opportunities

Integration with Smart City Infrastructures to Create Fresh Opportunities

There is a significant opportunity for smart street lighting market participants to integrate novel systems into unique smart city infrastructures. Cities around the world are continuing to evolve into smart urban environments. This integration is set to create cohesive and efficient urban management systems, offering multiple benefits and opportunities for growth.

Industry participants are likely to focus on developing street lighting systems that seamlessly connect with other smart city technologies. These include traffic management, public safety, environmental monitoring, and public transportation systems.

By ensuring interoperability, these systems can share data and insights, enhancing the efficiency and responsiveness of urban management. This holistic approach is likely to improve urban planning, reduce operational costs, and enhance the quality of life for residents.

Companies are projected to develop comprehensive smart city platforms that integrate various urban management systems, including connected street lighting. These platforms can provide a unified interface for city administrators to monitor and control all aspects of urban infrastructure.

Market participants are set to leverage partnerships with technology providers, municipalities, and other stakeholders to create robust smart city ecosystems. These collaborations are projected to drive innovation, facilitate large-scale deployments, and open new revenue streams.

Competitive Landscape for the Smart Street Lighting Market

Key companies in the smart street lighting market are collaborating with different municipal corporations and governments to upgrade and replace their lighting systems. A few firms are focusing on incorporating AI-driven sensors and the Internet of Things (IoT) into their products. Differentiators in the market include sophisticated control systems, dimming functions, and predictive maintenance capabilities.

Renowned companies are using renewable energy sources, such as solar-powered street lighting, as carbon neutrality becomes more important. Adherence to green energy regulations and certifications has emerged as a key element in the competition.

Recent Industry Developments

• In November 2024, in Jeddah, Saudi Arabia, Texas-based Flashnet and Saudi Delta Group started a new smart street lighting project. To increase energy efficiency, cut down on maintenance costs, and guarantee continuous operation with solar-powered backup systems, 3,700 InteliLIGHT® controllers were deployed. These are equipped with LoRaWAN communication technology.
• In May 2024, E-REDES, a prominent distribution system operator based in Portugal, announced its latest automation project. It joined hands with the Instituto Superior de Engenharia de Coimbra to introduce the Luxifer project using the FlexIP system. The project would enable the company to offer varying intensities of streetlights.

Smart Street Lighting Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Latin America Europe South Asia and Oceania East Asia Middle East and Africa
Key Countries Covered	The United States Canada Germany The United Kingdom France Italy Spain Russia China Japan South Korea India Thailand Malaysia Indonesia Australia and New Zealand GCC Countries Türkiye Israel Northern Africa South Africa
Key Market Segments Covered	Connectivity Energy Source Type Region
Key Companies Profiled	Hubbell Lighting, Inc. GE Lighting, LLC OSRAM Light AG Royal Philips NV Acuity Brands Lighting, Inc. Eaton Corporation Schneider Electric S.E Honeywell International Lutron Electronics Cree, Inc. Others
Report Coverage	Market Forecast Company Share Analysis Competition Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Smart Street Lighting Market Segmentation

By Type

• LED
• CFL
• Incandescent
• Others

By Connectivity

• Wired
• Wireless

By Energy Source

• Traditional and Other Renewable Energy
• Solar

By Region

• North America
• Latin America
• Europe
• East Asia
• South Asia Pacific
• The Middle East and Africa

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