Outdoor Lighting Market Size Report and Growth Analysis by 2030

Coverage: Outdoor Lighting Market covers analysis by Type (LED, HID, Others); Application (Highways, Parking Lots, Stadiums, Tunnels, Building Exteriors, Others) , and Geography (North America, Europe, Asia Pacific, and South and Central America)

  • Report Code : TIPRE00012048
  • Category : Electronics and Semiconductor
  • No. of Pages : 150
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Outdoor Lighting Market Size Report and Growth Analysis by 2030

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[Research Report] 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.
REGIONAL FRAMEWORK

Outdoor Lighting Market Report Analysis

Outdoor Lighting Market

  • CAGR (2023 - 2031)
    8.10%
  • Market Size 2023
    US$ 17.49 Billion
  • Market Size 2031
    US$ 32.61 Billion

Report Coverage

  • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Key future trends
  • Detailed PEST/Porter’s Five Forces and SWOT analysis
  • Industry landscape and competition analysis & recent developments
  • Detailed company profiles
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments

Key Players

  • Cree, Inc.
  • Eaton Corporation
  • General Electric Company
  • Hubbell Incorporated
  • Kichler Lighting LLC
  • Legrand
  • OsRam Licht AG
  • Signify Holding
  • Wipro Lighting

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

By Type
  • LED
  • HID
  • Others
By Application
  • Highways
  • Parking Lots
  • Stadiums
  • Tunnels
  • Building Exteriors
  • Others
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
MARKET PLAYERS

Outdoor Lighting Market Report Scope

Report Attribute Details
Market size in 2023 US$ 17.49 Billion
Market Size by 2031 US$ 32.61 Billion
Global CAGR (2023 - 2031) 8.10%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Type
  • LED
  • HID
  • Others
By Application
  • Highways
  • Parking Lots
  • Stadiums
  • Tunnels
  • Building Exteriors
  • Others
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Cree, Inc.
  • Eaton Corporation
  • General Electric Company
  • Hubbell Incorporated
  • Kichler Lighting LLC
  • Legrand
  • OsRam Licht AG
  • Signify Holding
  • Wipro Lighting
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    This text is related
    to segments covered.

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    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

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