The outdoor lighting market is anticipated to grow from US$ 16.18 billion in 2022 to US$ 30.17 billion by 2030, estimated at a CAGR of 8.1% from 2022 to 2030.
Analyst Perspective:
The outdoor lighting market has witnessed significant growth in recent years. Outdoor lighting is becoming increasingly popular due to smart outdoor lighting's uses in various outdoor lighting areas, including highways, public spaces, business sites, outdoor parking areas, gardens, and universities and colleges. Due to the rising cost of electricity, many local governments worldwide are discovering smart lighting to be a workable way to reduce operational expenses while boosting system efficiency. Due to its high application, the outdoor lighting market is growing steadily.
The global increase in the use of renewable energy sources, such as solar energy, as a source of illumination also encourages the growth of the outdoor lighting market. Similar to indoor lighting, it is projected that the outdoor lighting market will develop due to decreasing raw material costs, ease of installation, minimal maintenance requirements, and cheap operating costs. Additionally, it is anticipated that growing consumer awareness of renewable energy and strict legislative changes concentrating on creating sustainable infrastructure in both developed and emerging nations would support the growth of the outdoor lighting market.
Additionally, numerous governments worldwide are encouraging the use of energy-efficient lighting, which will probably promote the expansion of the outdoor lighting market. The US federal government, for instance, introduced the Climate Smart Building program in August 2022. This program aims to improve the government's cooperation with the business sector to modernize federal buildings. The measures will boost the growth of the global outdoor lighting market by enhancing on-site renewable electricity generation, providing effective illumination, and putting in place infrastructure for the supply of electric vehicles.
Market Overview:
Each business may have a different idea about outdoor lighting. Outdoor lighting refers to the artificial illumination used to illuminate exterior spaces. By illuminating the area, outdoor lighting aims to preserve or improve individuals participating in human activity's visual performance. Energy-efficient lighting, which replaces incandescent and other traditional bulbs with CFL, fluorescent, and energy-efficient LED lights, is one of the outdoor lighting market trends currently in vogue.
Along with other applicable lighting controls, products in the outdoor lighting market also include PIR, timers, and ultrasonic sensor-based lighting controls. During the forecast period, the key factor, such as energy efficiency, is anticipated to drive the global outdoor lighting market's growth for energy efficiency. The acceptability of energy-efficient lighting is also growing due to its advantages, such as higher energy savings and a long product life. The outdoor lighting market is expanding as more governments worldwide embrace light-emitting diodes (LEDs) to boost efficiency. Additionally, the outdoor lighting market is anticipated to have tremendous growth potential due to increased customer interest in smart LED lighting solutions. Consequently, the outdoor lighting business market will expand due to the expanding LED lighting. Therefore, the outdoor lighting market will grow due to the growing trend of using energy-efficient lighting solutions.
The light's orientation is simple to adjust with outdoor LED systems. This measure makes them safer by eliminating the need for fire risks like reflectors or shades. Additionally, because of this, LEDs are a more effective choice for recessed lighting. Installing sufficient outside lighting offers security and safety, creating a pleasing atmosphere and reducing crime. The price of LEDs has decreased due to rising usage and technological advancements, which creates opportunities for the outdoor lighting market for advancements.
Strategic Insights
Market Driver:
High Demand for Outdoor Lightening Drives Growth of Outdoor Lightening Market
A sizeable portion of the total energy consumption is attributable to commercial buildings, including malls, shops, restaurants, hospitals, and schools. A sizeable portion of this energy consumption is also related to lighting. Additionally, malls and showrooms believe lighting is essential to make things appealing, draw clients, and pique their interest in purchasing.
Airport perimeters typically cover large areas, and LED lighting offers superior illumination and cost savings. By a direction from the Bureau of Civil Aviation Security (BCAS), the Airport Authority of India published a tender in January 2019 for updating the existing perimeter lighting system at Chennai Airport. Lighting fixtures with LEDs had to be provided for this. The price is anticipated to be INR 1.9 million. Such instances propelled the growth of the outdoor lighting market.
Additionally, governments worldwide are encouraging the use of energy-efficient lighting, which will probably help the outdoor lighting business grow. The US federal government, for instance, introduced the Climate Smart Building Initiative in August 2022, which will improve the government's cooperation with the private sector to renovate federal buildings. This plan includes enhancing on-site renewable electricity generation, supplying effective lighting, and setting up infrastructure for the supply of electric vehicles. Additionally, increased traffic is one of the main drivers for creating distinctive highways and streets.
Global traffic congestion is mostly caused by increased passenger vehicles, propelled by urbanization and rising disposable income. Governments in several nations, including the US, China, and India, greatly emphasize investing in road infrastructure construction to reduce traffic jams on the roads. For instance, the LIS's $33 billion Hampton Roads Bridge Tunnel expansion project will be finished by 2024. It will include the construction of a four-lane tunnel and widening routes on 1-64 from four to eight. This trend will increase the demand of the outdoor lighting market for and use of highway, street, and tunnel lighting.
Segmental Analysis:
The outdoor lighting market is segmented based on type into LED, HID, and Others. The LED segment held the largest share of the outdoor lighting market in 2020. In contrast, the HID segment is anticipated to register the highest CAGR in the outdoor lighting market during the forecast period. LEDs have various advantages outdoors because of their extended running hours and minimal maintenance needs. Numerous government organizations worldwide are implementing LED lights for outdoor applications due to their long lifespan and superior directed light sources.
Regional Analysis:
The North American outdoor lighting market was valued at US$ XXX billion in 2022 and is projected to reach US$ XXX billion by 2028; it is expected to grow at a CAGR of XXX % during the forecast period. North America has established itself as a dominant outdoor lighting market, leading market share and driving the growth of the outdoor lighting market. Multiple functions are served by outdoor lighting. It improves vehicles' and pedestrians' visibility so they can avoid dangers. The main advantages of installing outside streetlights are promoting quality of life, providing safety and security, and artificially lengthening the dawn hours so that routine activity can occur. Particularly at crossroads and crossings, outdoor street lighting increases the safety of motorists, cyclists, and pedestrians. It facilitates navigation, assists vehicle turning, and allows drivers to assess the route's safety. The University of Hawaii at Manoa updated the lighting poles along the major roads on the upper campus in October 2022 with brand-new, energy-efficient LED lights.
The East-West Road and MAjJg Way lighting poles, fixtures, and foundations on UH Manoa's campus were replaced 150 times beginning in October. An estimated 18 months will be needed to complete this project. Over the past few years, UH Manoa has similarly upgraded its outside lighting, resulting in greater lighting and yearly energy savings of millions of kilowatt hours. The Pacific Biosciences Research Center, Center for Korean Studies, Kennedy Theatre, Spalding Hall, and other buildings' parking lots were among the projects mentioned, as well as the courtyard of the law school library. Due to its distinct qualities, LED lights are becoming increasingly common for commercial and industrial uses, particularly outdoor illumination. LEDs are more dependable, maintenance-free, and long-lasting. According to energy.gov, the single biggest impact on national energy savings might be made if the United States moved to the widespread usage of LED lighting. By 2027, widespread use of LED lighting might prevent the need for 44 big power plants' worth of electrical production, saving USD 30 billion at current electricity rates. Due to the focus on smart cities and the requirement for energy efficiency, there is an increased demand for LED lighting.
The market for outdoor LED lighting is driven by the huge infrastructure investments due to increasing vehicle traffic, particularly in the construction of roads and highways. Lower operating temperatures improve LED performance. LEDs are ideal for outdoor applications like parking lots and wall packs because of this feature. The Canadian government announced joint funding of USD 4.2 million for two infrastructure projects in Kensington in November 2022. The rink upgrade project also involves parking lot resurfacing and the installation of LED lighting.
Key Player Analysis:
The outdoor lighting market analysis consists of players such as Cree, Inc., Eaton Corporation, General Electric Company, Hubbell Incorporated, Kichler Lighting LLC, Legrand, Osram Licht AG, Signify Holding, Wipro Lighting, and Zumtobel Group. Among the players in outdoor lighting, Eaton Corporation and General Electric Company are the top two players owing to their diversified product portfolio.
Recent Developments:
Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the outdoor lighting market. A few recent key market developments are listed below:
- In March 2021, The Cree LED product line was purchased by Smart Global Holding Inc. from Cree Inc. Through this acquisition, the company hopes to broaden its selection of products and increase its geographic reach.
- In December 2021, The White Teak Company introduced Garden Lights among the collection's many designs and patterns. Each product has a metal body and basic LED lights that are surface-mountable.
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
The List of Companies
1. Cree, Inc.
2. Eaton Corporation
3. General Electric Company
4. Hubbell Incorporated
5. Kichler Lighting LLC
6. Legrand
7. OsRam Licht AG
8. Signify Holding
9. Wipro Lighting
10. Zumtobel Group
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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