Outdoor Lighting Market Analysis

Global Outdoor Lighting Market Overview:

Outdoor Lighting Market Size was valued at USD 27.48 Billion in 2023. The Outdoor Lighting industry is projected to grow from USD 29.73 Billion in 2024 to USD 51.62 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.14% during the forecast period (2024 - 2032). The growing adoption of energy-efficient lighting systems, increasing government initiatives toward energy efficiency, and rising infrastructure development are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Outdoor Lighting Market Trends

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  High demand for Outdoor LED lighting is driving the market growth

  
  

Market CAGR for outdoor lighting is driven by the rising demand for outdoor LED lighting. In addition to warehouses and other locations, LED lighting is also used in homes, businesses, and governmental structures. Throughout the world, electricity is mostly utilised to illuminate streets and other public areas in cities, towns, and villages. All lighting applications must make the paradigm change from conventional lighting systems to linked LED technology to be energy and financially viable. The extended lifespan of LED lights, in addition to their well-known energy efficiency, lowers maintenance and replacement expenses. Government representatives in US communities pay close attention to the most recent advancements in lighting because they view it as more than just a source of illumination. Traditional light bulbs cannot reach the same results as smart lights, which may wirelessly interface with different networks to gather various forms of data such as surrounding foot traffic and even contribute to lowering crime rates. Emerging nations are becoming more interested in the LED lighting system as it fits into their plans for economic modernisation.

Moreover, governments across the globe are promoting the adoption of energy-efficient lighting is likely to favor the growth of the outdoor lighting market. For instance, in August 2022, The US federal government unveiled the Climate Smart Building Initiative, which will enhance the government's collaboration with the private sector to modernize federal buildings. This initiative includes improving on-site renewable electricity generation, providing efficient lighting, and installing electric vehicle supply infrastructure.

Further, the growing traffic has been one of the primary reasons for the development of unique highways and streets. The growing number of passenger vehicles is the primary factor for global traffic congestion, fueled by growing urbanization and rising disposable income. To decrease traffic jams on the road, governments in various countries, including the US, China, and India, strongly focus on investing in road infrastructural development. For instance, in the US, the $3.3 billion Hampton Roads Bridge-Tunnel expansion project, such as the building of a four-lane tunnel and a widening from four to eight routes on I-64 in an area between Norfolk and Hampton, is expected to complete by 2024, which, in turn, drive the demand and utilization of highways, streets, and tunnel lightings.

The rising adoption of energy-efficient lighting solutions is driving the market growth owing to the growing government focus on promoting energy saving using energy-efficient lighting sources, predominantly LEDs. LEDs are particularly advantageous in outdoor lighting applications, as they work efficiently for long-operating hours at low- maintenance costs driving the outdoor lighting market revenue.

Outdoor Lighting Market Segment Insights:

Outdoor Lighting Type Insights

The Outdoor Lighting Market segmentation, based on Lighting Type, includes LED lights, plasma lamps, high-intensity discharge lamps, and fluorescent lights. The LED lights segment dominated the market, accounting for 35% of market revenue (9.62 Billion). In developing economies, category growth is driven due to their long operating hours and low maintenance requirements, LEDs provide several benefits when used outdoors. However, fluorescent lights are the fastest-growing category, as fluorescent lights have a lifespan that is normally six times longer than a standard incandescent bulb. These lights generate less heat, making them ideal for regions with less heat-generating lighting, as heat could damage equipment.

Outdoor Lighting Distribution Channel Insights

The Outdoor Lighting Market segmentation, based on distribution channel, includes retail and commercial. The retail category generated the most income (70.4%). Key manufacturers are opening exclusive stores across different regions to offer customers genuine products, hassle-free purchases, and after-sales services. However, the commercial is the fastest-growing category owing to the rise in commercial construction activities, especially in the hospitality sector.

Figure 1: Outdoor Lighting Market, by Distribution Channel, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Outdoor Lighting Application Insights

The Outdoor Lighting Market segmentation, based on application, includes street lighting, highways, stadiums, parking lots, tunnel lights, parks, and others. The street lighting category generated the most income due to the growing number of municipalities throughout the world adopting smart lighting to cut operational costs while enhancing system efficiency and assuring safety. However, highways are the fastest-growing category due to improved speed, greater safety, comfort, and convenience for drivers and passengers, and cheaper vehicle operating expenses.

Outdoor Lighting Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American outdoor lighting market area will dominate this market, owing to the increasing trend of family conferences and dinners in outdoor spaces at residences. The growing interest in designing and supporting the backyard and front yard gardens not only expands the aesthetics of the homes but also acts as a pleasant avenue to entertain guests outdoors, driving the market in this region. Further, the US outdoor lighting market held the largest market share, and the Canada outdoor lighting market was the fastest-growing market in the European region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Outdoor Lighting Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe outdoor lighting market accounts for the second-largest market share due to the deployment of smart LED lighting systems in the region and increasing government initiatives regarding outdoor lighting. Further, the German outdoor lighting market held the largest market share, and the UK outdoor lighting market was the fastest-growing market in the European region.

The Asia-Pacific outdoor lighting market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to increasing infrastructural activities, including smart cities in developing countries, including China, Japan, South Korea, and India. Moreover, China outdoor lighting market held the largest market share, and the India outdoor lighting market was the fastest-growing market in the Asia-Pacific region.

Outdoor Lighting Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the outdoor lighting market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the outdoor lighting industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global outdoor lighting industry to benefit clients and increase the market sector. Major players in the outdoor lighting market, including Signify Holding, General Electric, OSRAM GmbH, Hubbell, ACUITY BRANDS, INC., Zumtobel Group, and others, are attempting to increase market demand by investing in research and development operations.

SMART Global Holdings Inc is a designer, developer, and developer of electronic subsystems for original equipment manufacturers confronted in the industrial, computer, networking, telecommunications, aerospace and defense markets. SGH manufactures mobile memory products for memory components, smartphones, and modules for desktops, notebooks, and servers. The company offers its customers DRAMs, flash drives, enterprise memory, and hybrid volatile and non-volatile memory solutions. It also provides customized, integrated supply chain services to OEM customers. In March 2021, SMART Global Holdings Inc. declared that it had completed its investment in Cree Inc.'s Cree LED products business unit. Cree LED works as the Cree LED business unit of the firm for up to $300.0 million, such as fixed upfront and deferred payments and contingent consideration. The firm would leverage its track record of integrating companies, unlocking margin and revenue growth, and offering best-in-class specialty lighting solutions.

IWASAKI ELECTRIC CO., LTD. manufactures illumination lamps, including high-intensity discharge, mercury, halogen, and fluorescent lamps. The Company also produces non-illumination products such as UV sterilization Systems and water purification systems. In July 2021, Iwasaki Electric Co. Ltd. installed LEDioc LED lightbulbs in Kumamoto City, Japan parks. With a strategy to curb power consumption all over the parks under its management, in 2020, Kumamoto City carried out a city-wide blanket advancement of all luminaires to LEDs across the 550 parks where public lighting was installed, focusing on creating a lighting environment with a relaxing and encouraging ambiance, while also effectively managing the appropriate environmental considerations.

Key Companies in the Outdoor Lighting market include

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  Philips Lighting Holding BV (The Netherlands)

  
  


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  General Electric Company (US)

  
  


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  Osram Licht AG (Germany)

  
  


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  Cree, Inc. (US)

  
  


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  Eaton Corporation PLC (Ireland)

  
  


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  Hubbell Incorporated (US)

  
  


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  Dialight PLC (US)

  
  


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  Zumtobel Group AG (Austria)

  
  


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  Syska (India)

  
  


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  Virtual Extension (Israel)

  
  


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  Evluma (US)

  
  


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  Halco Lighting Technologies (US)

  
  


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  Masco Corporation (US)

  
  

Outdoor Lighting Industry Developments

April 2024: A smart outdoor lighting sale is now being held by Philips Hue in a number of countries, including the United States of America, Canada, the Netherlands, and France. When a customer purchases two or more things from the selection, they are eligible for a discount of fifteen percent. When you purchase a Hue Bridge in conjunction with one or more goods from the sale range, you will get a discount of twenty-five percent.

In addition to the well-known Lily Outdoor spot lights, the Philips Hue sale has a broad variety of other available goods. The smart light is available in two different sizes and offers directed white and colorful lights. The price for a single device begins at $99.99/CA$99.99/€109.99. You can also take advantage of the discount by purchasing the Discover Outdoor Floodlight, which is a device that may assist brighten your driveway or front entrance. There is a standard retail price of $179.99, CA$199.99, or €199.99 for this lamp. There are a number of PAR38 E26 Smart Bulb devices available in the United States, one of which is a single white and color ambiance unit that has a retail purchase price of $79.99. In addition, consumers in the United States and Canada have the opportunity to get the 95W power supply Hue, which is capable of connecting several smart lights with an extension connection that is up to 115 feet (about 35 meters) in length. This product is normally priced at $89.99/CA$79.99.

As a result of the sale discount of 25%, the total value of the basket would be decreased from $509.95 to $382.46 if a buyer from the United States bought all four of these goods with the Hue Bridge. This implies that the consumer would save $127.49. According to the firm, the deals are immediately applied after the customer completes the checkout process, and the promotion cannot be utilized in conjunction with any other offer. 

December 2021: The White Teak Company launched Garden Lights in various designs and patterns included in the collection. Each item features a metal body and simple LED bulbs to mount on any surface.

January 2021: Signify Holding expanded its Philips Hue portfolio with two outdoor lights to personalize gardens and porches, a new wall switch module, and a redesigned Philips Hue dimmer switch. The two new outdoor LEDs include the Philips Hue Amarant linear spotlight and the Philips Hue Appear outdoor wall light. The Amarant can be climbed on the floor or upside down on an overhanging top.

Outdoor Lighting Market Segmentation:

Outdoor Lighting Type Outlook

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  LED Lights

  
  


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  Plasma Lamps

  
  


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  High-Intensity Discharge Lamps

  
  


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  Fluorescent Lights

  
  

Outdoor Lighting Distribution Channel Outlook

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  Retail

  
  


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  Commercial

  
  

Outdoor Lighting Application Outlook

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  Street Lighting

  
  


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  Highways

  
  


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  Stadiums

  
  


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  Parking Lots

  
  


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  Tunnel Lights

  
  


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  Parks

  
  


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  Others

  
  

Outdoor Lighting Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America