Street Lighting Market Research Report By Technology (LED, Solar, Traditional), By Product Type (Smart Street Lights, Conventional Street Lights, Hybrid Street Lights), By Installation Type (New Installation, Retrofit), By End Use (Residential, Commercial, Industrial, Municipal) and By Regional (North America, Europe, South America, Asia-Pacific, Middle East and Africa) - Forecast to 2035

Street Lighting Market Overview

Street Lighting Market Size was estimated at 12.76 (USD Billion) in 2023. The Street Lighting Market Industry is expected to grow from 13.5(USD Billion) in 2024 to 25.0 (USD Billion) by 2035. The Street Lighting Market CAGR (growth rate) is expected to be around 5.76% during the forecast period (2025 - 2035).

Key Street Lighting Market Trends Highlighted

The Street Lighting Market is undergoing notable transformations owing to the growing adoption of energy-efficient and sustainable systems. One of the major drivers for the market is the increasing necessity to decrease energy use and carbon emissions, which forces many cities to switch to better lighting systems. Improvements in LED technology have significantly accelerated the transition since LEDs last longer and operate at lower power levels than conventional lights. Also, the development of smart cities is increasing the need for lighting that not only improves the safety of the area but also records valuable information for the city planners. New market opportunities are emerging, especially regarding the integration of smart street lighting systems.This includes the use of sensors and Internet of Things (IoT) devices to create adaptive lighting that responds to real-time conditions. 

The increasing adoption of renewable energy sources further presents a chance to enhance the sustainability of street lighting, allowing for the use of solar-powered lights in areas with abundant sunlight. Additionally, governments are recognizing the importance of modern infrastructure investments and are likely to allocate more funds toward upgrading existing lighting systems, thereby broadening the market landscape. Recent trends indicate a shift towards more sustainable and technologically advanced street lighting solutions.Municipalities are prioritizing installations that enhance public safety and reduce operational costs. The concept of light pollution is also gaining attention, pushing cities to adopt designs that minimize glare and protect the night sky. Furthermore, community engagement in the street lighting design process is on the rise as cities seek input from residents to create inclusive and well-lit public spaces that meet diverse needs. Overall, the market is evolving rapidly, emphasizing energy efficiency, safety, and community involvement.

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

Street Lighting Market Drivers

Rising Urbanization and Population Growth

The Street Lighting Market Industry is experiencing significant growth driven by rapid urbanization and increasing population levels across major urban centers. As cities expand to accommodate their growing populations, there is a rising need for efficient and effective street lighting solutions. Urban areas are not only expanding in size but also the complexity of infrastructure requirements. The demand for reliable and sustainable street lighting becomes paramount in ensuring public safety, accessibility, and aesthetics within these densely populated regions. Additionally, governments are focusing on enhancing the quality of life in urban settings, which includes improved street lighting systems. New projects are being initiated that take into account energy-efficient lighting technologies, leading to a more sustainable approach. Emerging economies are particularly witnessing a surge in urban development, thereby creating vast opportunities for the Street Lighting Market Industry to innovate and grow. This urban growth supports the need for lighting that meets a variety of requirements, from enhancing visibility at night to providing security and creating a sense of community in public spaces. In essence, as more people move into cities, the streets must be illuminated efficiently, marking urbanization as a pivotal driver for market evolution.

Technological Advancements in Lighting Solutions

Technological innovation stands out as a key driver for the Street Lighting Market Industry. The integration of smart lighting solutions, including LED technology and IoT capabilities, is revolutionizing how street lighting is approached and managed. LED lights offer significant advantages over traditional lighting options such as incandescent or fluorescent bulbs, including higher energy efficiency, longer lifespans, and reduced maintenance costs. Smart street lighting systems can be equipped with sensors that adjust light intensity based on pedestrian and vehicular traffic, thereby conserving energy and further contributing to sustainability goals. Moreover, cities are increasingly implementing smart city concepts that incorporate connected lighting systems, allowing for real-time monitoring, data collection, and management of street lights through centralized platforms. This not only optimizes operational efficiency but also enhances public safety and environmental sustainability. As technology continues to evolve, the market is expected to witness further advancements that will drive its growth.

Government Initiatives and Regulations

Government initiatives aimed at promoting energy efficiency and sustainability are playing a crucial role in propelling the Street Lighting Market Industry. Many countries are implementing regulations that mandate the adoption of energy-efficient lighting solutions, particularly in public infrastructure, to reduce carbon footprints and lower energy consumption. These government policies may include grants or financial incentives for municipalities to upgrade their street lighting systems to more sustainable options like LED or solar-powered lights. As governments face increasing pressures to address climate change, the push towards greener technologies in street lighting is creating a conducive environment for market growth. Such initiatives not only support environmental goals but also contribute to long-term cost savings for local authorities by reducing electricity bills and maintenance costs associated with outdated lighting systems.

Street Lighting Market Segment Insights 

Street Lighting Market Technology Insights

The Street Lighting Market is experiencing steady growth within the Technology segment, with a market valuation of 13.5 USD Billion in 2024, projected to increase to 25.0 USD Billion by 2035. The expected market growth is largely driven by the rising demand for energy-efficient and sustainable lighting solutions, particularly in urban areas. The market segmentation reveals distinct dynamics across various technologies. The LED segment holds a significant position, valued at 6.5 USD Billion in 2024 and expected to rise to 12.0 USD Billion by 2035, highlighting its dominance in the market due to its energy efficiency, long lifespan, and decreasing manufacturing costs. LEDs' majority holding reflects a shift toward modern lighting solutions, as municipalities and governments are increasingly investing in this technology to reduce energy consumption and greenhouse gas emissions.

The Solar segment, valued at 3.0 USD Billion in 2024, is anticipated to grow to 7.0 USD Billion by 2035, showcasing the importance of renewable energy sources in street lighting applications. Solar streetlights are gaining traction, especially in areas lacking reliable electricity infrastructure, as they provide an efficient and sustainable option that leverages natural resources. This segment's growth is propelled by increasing environmental concerns and the necessity to create smart city solutions, making solar technology a vital contributor to the Street Lighting Market revenue.

In contrast, the Traditional segment, though still significant, is expected to see a slower growth trajectory, with valuations of 4.0 USD Billion in 2024 and rising to 6.0 USD Billion by 2035. This indicates a declining interest in conventional lighting technologies like High-Intensity Discharge (HID) lamps as cities transition to more efficient options. The reliance on traditional lighting poses challenges in terms of energy consumption and operational costs, thus making it less favorable in comparison to emerging technologies.

The interplay of these segments within the Street Lighting Market reflects broader trends in urban development and energy use, where innovation and sustainability are paramount. As cities evolve into smart environments, the preference for LED and Solar technologies is likely to continue influencing market dynamics, driven by their respective capabilities to reduce costs and environmental impacts. Challenges such as high initial investments, technological integration, and maintenance issues need to be addressed to leverage the opportunities presented in this segment fully. With advancements in technology and increasing governmental focus on energy-efficient solutions, the future of the Street Lighting Market will be shaped by how these segments adapt to meet the demands of sustainable urban infrastructure.

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

Street Lighting Market Product Type Insights

The Street Lighting Market revenue is poised for growth, with a valuation reaching 13.5 billion USD by 2024. Driving this expansion are innovative product types, primarily Smart Street Lights, which are rapidly gaining importance for their energy efficiency and advanced technology features. Conventional Street Lights continue to hold a significant share in the market due to their widespread usage and cost-effectiveness, catering to traditional lighting needs. Hybrid Street Lights are emerging as a notable player, combining elements of both smart and conventional lighting, appealing to municipalities seeking flexibility and sustainability. The market segmentation reveals that while Smart Street Lights dominate new installations, Conventional Street Lights maintain their relevance in areas with budget constraints. Market challenges include the high initial investment for smart solutions, yet opportunities abound in urban development and smart city initiatives that propel the demand for more efficient lighting solutions. Overall, the Street Lighting Market statistics highlight a trend toward modernization and innovation, indicating a transformative phase within the industry that embraces technological advancements.

Street Lighting Market Installation Type Insights

The Street Lighting Market has been experiencing steady growth, with a significant focus on the Installation Type segment, which encompasses both new installations and retrofit options. In 2024, the overall market reached a valuation of 13.5 billion USD, reflecting the increasing demand for efficient and sustainable street lighting solutions. The rising preference for energy-efficient lighting technologies and smart city initiatives has driven the importance of the new installation category, which accounts for a significant portion of the market. Meanwhile, retrofit solutions enable municipalities to upgrade their existing lighting systems to more energy-efficient alternatives, enhancing performance while reducing costs. Market trends indicate a strong shift towards the integration of LED technology, which has been widely adopted due to its long lifespan and lower energy consumption. Additionally, growing urbanization and the need for improved public safety are key growth drivers within this segment. However, challenges such as budget constraints and the complexity of existing infrastructure can hinder adoption. Opportunities abound as governments and organizations increasingly invest in sustainable infrastructure, which could further propel the Street Lighting Market revenue in the coming years, establishing a more advanced and energy-efficient street lighting system. The Street Lighting Market statistics reflect that as cities evolve, the transformation in installation types will play a critical role in meeting urban lighting needs.

Street Lighting Market End - Use Insights

The Street Lighting Market was valued at 13.5 USD Billion by 2024, with robust growth anticipated in the following years. This market is segmented into various end uses, which include Residential, Commercial, Industrial, and Municipal applications. The Residential segment plays a critical role in enhancing community safety and energy efficiency, often integrating smart technologies for improved performance and reduced energy consumption. The Commercial end-use segment is significant as well, with businesses increasingly investing in street lighting to create secure environments that attract customers. Industrial applications also contribute, especially in areas requiring robust and efficient lighting for operational safety and productivity. Meanwhile, Municipal lighting is vital for urban development, promoting public safety and functionality. Across these segments, the market is driven by trends towards energy-efficient solutions, sustainable technologies, and smart city initiatives, while challenges such as high initial costs and infrastructure limitations need to be addressed. Overall, the Street Lighting Market data reflects a growing demand fueled by the necessity for improved public infrastructure and safety measures, positioning the industry for steady growth.

Street Lighting Market Regional Insights

The Street Lighting Market revenue experienced notable growth across various regions, with North America leading the charge, valued at 4.5 USD Billion in 2024 and expanding to 8.5 USD Billion by 2035. This region dominates due to significant investments in smart city initiatives and the modernization of existing infrastructure. Europe follows, valued at 3.5 USD Billion in 2024 and expected to reach 6.5 USD Billion by 2035, driven by stringent energy efficiency regulations and a push for sustainable lighting solutions. The APAC region stands at 3.0 USD Billion in 2024, with a growth potential of 6.0 USD Billion by 2035, reflecting rapid urbanization and governmental efforts towards the adoption of smart lighting systems.South America and MEA, valued at 1.0 USD Billion and 1.5 USD Billion, respectively, in 2024, show slower growth rates to 2.0 USD Billion for South America and 2.0 USD Billion for MEA by 2035, as these regions face challenges in infrastructure investment and deployment. Overall, the Street Lighting Market segmentation showcases a shift towards efficient and innovative lighting solutions, with varying growth dynamics dependent on regional needs and development stages.

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

Street Lighting Market Key Players and Competitive Insights

The Street Lighting Market is characterized by significant competition among key players offering innovative and energy-efficient lighting solutions. With the increasing focus on smart city development and environmental sustainability, numerous companies are leveraging advanced technologies like LED and smart controls to enhance their product offerings. Factors such as government regulations promoting energy efficiency and the growing demand for sustainable urban infrastructure are shaping the competitive landscape. Market players are focusing on strategies such as mergers, acquisitions, and partnerships to strengthen their market presence, enhance product portfolios, and expand into emerging markets. Moreover, the trend towards outdoor lighting automation and the integration of IoT technology is pushing companies to continuously innovate and adapt to changing consumer needs.Sylvania holds a prominent position in the Street Lighting Market, known for its vast range of lighting solutions that prioritize quality and energy efficiency. The company has established a strong reputation for its commitment to innovation, consistently introducing advanced products that meet the demands of modern urban lighting needs. 

With an extensive portfolio featuring LED street lights, Sylvania has gained a competitive edge by focusing on sustainability and the reduction of lifecycle costs. Its significant investment in research and development has enabled Sylvania to remain at the forefront of technological advancements in lighting. The company's ability to offer tailored solutions to municipalities and urban planners plays a critical role in enhancing its market presence and improving community safety and aesthetics through efficient street lighting systems.LSIS is another key player in the Street Lighting Market, recognized for its technological advancements and state-of-the-art lighting systems. The company focuses on delivering comprehensive solutions that integrate smart technologies to optimize energy consumption and support efficient urban management. LSIS's product range includes energy-efficient LED street lights and intelligent lighting control systems that cater to the needs of modern urban environments. The firm emphasizes robust product performance and reliability, which has earned it a faithful customer base. LSIS benefits from strong research capabilities that foster continuous improvements and innovations in its offerings, enabling the company to maintain a forward-thinking approach in the competitive landscape. Its commitment to enhancing urban infrastructure and promoting smart solutions positions LSIS as a prominent contender in the street lighting market globally.

Key Companies in the Street Lighting Market Include

• Sylvania


• LSIS


• Schneider Electric


• Philips


• Acuity Brands


• Osram


• Eaton


• Legrand


• Havells


• Honeywell


• Zumtobel Group


• Signify


• Toshiba


• Cree


• GE Lighting

Street Lighting Market Industry Developments

The Street Lighting Market has recently seen significant developments, particularly with the increasing adoption of smart lighting solutions and sustainable technologies. Companies like Philips and Signify are pioneering advancements in energy-efficient LED lighting systems, enhancing both urban aesthetics and operational efficiencies. Schneider Electric and Acuity Brands are also making strides in integrating IoT technology, enabling municipalities to manage street lighting proactively, saving costs and energy. The market is notable for its expanding valuation, driven by rising urbanization and governmental mandates for green initiatives, prompting investments in infrastructure. Furthermore, the ongoing trend of mergers and acquisitions has been evident; for instance, Legrand has recently strengthened its market position through strategic acquisitions in the intelligent lighting space. Similarly, Eaton and Honeywell are exploring collaborative opportunities to enhance their street lighting portfolios. Additionally, companies such as Osram and Cree are focused on R&D to further innovate in LED technology, thus supporting the industry's transition towards smarter, more sustainable lighting solutions. The overall growth is expected to reshape factors like energy consumption and urban planning, fostering a more sustainable environment.

Street Lighting Market Segmentation Insights

Street Lighting Market Technology Outlook

• LED


• Solar


• Traditional

Street Lighting Market Product Type Outlook

• Smart Street Lights


• Conventional Street Lights


• Hybrid Street Lights

Street Lighting Market Installation Type Outlook

• New Installation


• Retrofit

Street Lighting Market End - Use Outlook

• Residential


• Commercial


• Industrial


• Municipal

Street Lighting Market Regional Outlook

• North America


• Europe


• South America


• Asia - Pacific


• Middle East and Africa