Street Lighting Market Size, Share, Growth, and Industry Analysis, By Types (Traditional Lighting, LED Lighting), By Applications Covered (Highways, Roadways), Regional Insights and Forecast to 2033

Street Lighting Market Size

The Street Lighting Market was valued at USD 9,725.7 million in 2024 and is projected to reach USD 10,066.1 million in 2025, growing to USD 13,255.2 million by 2033, with a CAGR of 3.5% from 2025 to 2033.

In the U.S., the street lighting market is driven by the shift to energy-efficient LED technology, growing demand for smart city infrastructure, and government initiatives promoting sustainability, enhancing both safety and cost savings in urban areas.

The street lighting market is experiencing rapid growth as cities and municipalities seek to enhance safety, improve energy efficiency, and adopt smart technologies. A major factor driving this growth is the widespread shift toward LED lighting, which is more energy-efficient and cost-effective compared to traditional street lighting options. Additionally, the market is being influenced by the growing trend of smart cities, where street lighting is integrated with sensors and communication technologies to monitor and adjust lighting conditions. Governments and local authorities are investing heavily in upgrading infrastructure, contributing to the market’s expansion.

Street Lighting Market Trends

The street lighting market is experiencing several key trends that are shaping its growth. Over 60% of street lighting installations globally now use LED technology, thanks to its energy efficiency and long lifespan. This shift is reducing energy consumption by up to 40%, making it a preferred choice for municipalities looking to reduce operational costs. Another emerging trend is the rise of smart street lighting, with around 30% of street lighting installations incorporating sensors and connected technologies. This smart lighting is often part of broader smart city initiatives and offers features such as motion sensors and adaptive lighting systems, which adjust based on real-time data.

Moreover, there has been a significant push toward solar-powered street lighting, especially in regions with abundant sunlight. Around 25% of new street lighting installations are now solar-powered, contributing to the reduction of reliance on the grid and enhancing sustainability. In urban areas, around 45% of cities have adopted or are planning to implement energy-efficient street lighting systems as part of their commitment to achieving sustainability goals. The market is also seeing innovation in design, with more aesthetically pleasing and durable street lights being developed to meet the demands of modern urban landscapes. These trends are transforming street lighting from a functional infrastructure component to a key part of sustainable urban development.

Street Lighting Market Dynamics

DRIVER

"Government investments in energy-efficient infrastructure"

The rising demand for energy-efficient infrastructure is one of the primary drivers in the street lighting market. Around 50% of municipalities worldwide are upgrading their street lighting systems to more energy-efficient alternatives such as LED and solar-powered lights. This shift is part of broader government efforts to reduce carbon footprints and energy costs. Furthermore, nearly 40% of cities have set sustainability goals that include the transition to energy-efficient lighting, as these technologies offer energy savings of up to 60%. Governments are increasingly providing incentives, including grants and tax benefits, to promote the adoption of advanced lighting technologies.

RESTRAINTS

"High initial investment costs for smart lighting systems"

The high initial investment for smart street lighting systems is a key restraint in the market. Around 30% of cities and municipalities report concerns over the upfront costs of implementing connected or smart lighting solutions. While smart street lighting can lead to long-term savings by optimizing energy use, the initial cost of installation, including sensors, infrastructure, and network connections, can be prohibitive. This challenge is particularly significant in regions with limited budgets, where local governments may prioritize other projects over upgrading street lighting systems.

OPPORTUNITY

"Rising adoption of solar-powered street lighting"

The adoption of solar-powered street lighting presents a significant opportunity in the market. Solar-powered systems account for approximately 25% of new street light installations globally, particularly in regions with abundant sunlight, such as parts of Africa and Southeast Asia. These systems reduce reliance on the grid and offer long-term cost savings, especially in remote or off-grid areas. The global push for renewable energy sources is expected to further accelerate the adoption of solar street lighting, with a projected increase of 15-20% in the coming years, as municipalities look for environmentally sustainable alternatives.

CHALLENGE

"Complexity in maintenance and repair of advanced lighting systems"

The increasing complexity of advanced street lighting systems presents a challenge for municipalities and service providers. Nearly 20% of cities report difficulties in maintaining and repairing smart lighting systems due to the advanced technologies involved. The need for specialized knowledge and skilled labor to troubleshoot, repair, and maintain smart street lights is growing, adding to the operational challenges. Additionally, the costs associated with maintaining these systems can be up to 30% higher than traditional lighting systems, creating budgetary concerns for cities with tight financial constraints.

Segmentation analysis

The street lighting market is segmented based on types and applications. By type, the market is primarily divided into traditional lighting and LED lighting. LED lighting is growing rapidly due to its energy efficiency and longer lifespan compared to traditional street lighting options. The traditional lighting segment, which includes technologies such as incandescent and fluorescent lamps, is slowly being replaced by more advanced options like LEDs, though it still accounts for a significant share in developing regions. In terms of application, the market is primarily divided into highways and roadways. Each of these applications has specific requirements for illumination, energy consumption, and maintenance. Highways demand high-intensity lighting for safety and visibility, while roadways require more balanced and cost-efficient lighting solutions for urban areas. Both segments are evolving with the increasing adoption of energy-efficient solutions, and municipalities are exploring ways to make these systems more sustainable.

By Type

• Traditional Lighting: Traditional street lighting, including incandescent, halogen, and sodium vapor lamps, continues to hold around 30% of the market share globally. These lighting solutions are still commonly used in regions with limited access to advanced technologies or where budget constraints prevent the shift to more energy-efficient solutions. Despite being less efficient, traditional lighting remains a viable option due to lower upfront costs, especially in developing countries.

• LED Lighting: LED street lighting is the dominant type in the market, accounting for more than 60% of global installations. This technology offers significant energy savings, with cities reporting reductions in energy consumption by up to 60% after switching to LED lighting. Additionally, LEDs have a longer lifespan, reducing the frequency of replacement and maintenance. Their growing adoption is driven by government incentives and global sustainability trends, especially in urban areas where energy efficiency is prioritized.

By Application

• Highways: The highways segment makes up approximately 40% of the market share for street lighting. Highways require high-intensity lighting to ensure visibility for drivers and pedestrians, especially during nighttime or adverse weather conditions. As road traffic increases, municipalities are focusing on upgrading highway lighting to LED and solar-powered solutions to reduce energy consumption and enhance safety features. This segment is expected to continue growing as more regions focus on improving highway infrastructure.

• Roadways: Roadways account for around 50% of the street lighting market. This segment covers urban streets and local roads, where street lighting needs to be both functional and cost-effective. LED lighting is increasingly being used in roadway applications to reduce energy costs and maintenance efforts. As cities embrace smart lighting systems, the use of motion sensors and adaptive lighting technologies is also growing, ensuring that roadways have adequate lighting when needed while minimizing energy waste.

Regional Outlook

The street lighting market exhibits diverse growth trends across various regions due to differences in urbanization, energy needs, and technological adoption. North America and Europe are at the forefront of adopting energy-efficient street lighting solutions, such as LED and solar-powered systems, driven by sustainability initiatives and smart city projects. Asia-Pacific is experiencing rapid growth, fueled by increasing infrastructure development and urbanization, with a growing shift toward smart lighting and energy-saving technologies. Meanwhile, the Middle East and Africa are witnessing steady advancements, with a focus on solar-powered lighting due to high solar energy potential. Each region's market is shaped by local government policies, technological advancements, and consumer demands for energy-efficient solutions. Municipalities worldwide are increasingly integrating advanced lighting technologies to reduce energy consumption and enhance public safety.

North America

The North American street lighting market is witnessing a transition to smart lighting systems, with approximately 45% of installations now equipped with LED technology. Cities in the U.S. and Canada are increasingly adopting smart street lighting systems that incorporate sensors and connectivity to improve energy efficiency and maintenance management. Around 30% of municipalities in North America are focusing on upgrading their infrastructure to reduce operational costs and carbon emissions. The adoption of solar-powered street lighting is also on the rise, with more than 20% of new installations incorporating solar energy solutions. These trends reflect North America's commitment to sustainability and technological innovation in urban infrastructure.

Europe

In Europe, street lighting is undergoing a major transformation with a strong emphasis on sustainability. Over 50% of street lighting in European cities has already switched to LED technology, and this number is expected to grow as governments push for energy-efficient solutions. The European Union’s green energy initiatives are driving the adoption of eco-friendly lighting solutions, including solar-powered street lights, which now represent approximately 15% of new installations. Additionally, many European cities are incorporating smart city technologies, with around 25% of urban areas adopting sensor-based, adaptive lighting systems to optimize energy use and improve public safety.

Asia-Pacific

Asia-Pacific is the fastest-growing region in the street lighting market, driven by rapid urbanization and infrastructure development. Over 40% of new street lighting installations in this region are LED-based, as countries like China, India, and Japan focus on energy-efficient solutions. The rise of smart city projects in major metropolitan areas is fueling the demand for intelligent street lighting systems. In developing countries, solar-powered street lighting is gaining popularity, particularly in regions with abundant sunlight, accounting for roughly 20% of new street light installations. As urban populations increase, the demand for energy-efficient and cost-effective lighting solutions continues to rise.

Middle East & Africa

The Middle East and Africa (MEA) street lighting market is characterized by a growing shift toward solar-powered lighting systems. In regions with high solar energy potential, such as parts of the Middle East and North Africa (MENA), approximately 30% of new installations are solar-powered. Additionally, many African nations are adopting energy-efficient LED lighting solutions to reduce grid dependence and enhance urban development. The demand for smart street lighting systems is increasing, with several cities in the region focusing on integrating connected technologies for better monitoring and energy management. These trends indicate a move toward sustainable and smart solutions in the MEA street lighting market.

LIST OF KEY Street Lighting Market COMPANIES PROFILED

• GE Lighting

• OSRAM

• Panasonic

• Acuity Brands

• Cree

Top companies having highest share

• GE Lighting: 25% Market Share

• OSRAM: 20% Market Share

Technological Advancements

Technological advancements are significantly shaping the street lighting market, with a strong focus on enhancing energy efficiency, reducing operational costs, and improving public safety. Smart street lighting systems are gaining traction, with over 30% of new installations globally incorporating sensors and IoT technology. These systems allow for remote monitoring, adaptive lighting control, and data analytics to optimize energy consumption. In addition, the use of LED lighting has risen dramatically, now accounting for over 60% of street lighting worldwide due to its 60% reduction in energy consumption compared to traditional lighting. Solar-powered street lights are also experiencing growth, making up approximately 25% of new installations, particularly in regions with abundant sunlight. These systems offer a sustainable and cost-effective solution for remote areas. Additionally, innovations in wireless communication and integration with smart city infrastructure are enhancing the capabilities of street lighting, making it an integral part of broader urban management systems. As municipalities and governments aim to achieve sustainability goals, the adoption of these advanced technologies is expected to grow significantly in the coming years.

NEW PRODUCTS Development

New product development is playing a crucial role in the evolution of the street lighting market, with manufacturers focusing on innovations that improve energy efficiency and performance. A major development is the introduction of smart LED street lighting systems, now present in over 20% of new urban lighting projects globally. These systems offer features such as adaptive brightness control, motion sensing, and the ability to connect to city-wide networks for real-time monitoring. Furthermore, advancements in solar-powered street lighting solutions have seen a 15% increase in their adoption, driven by improvements in solar panel efficiency and battery storage technology. Manufacturers are also focusing on developing more durable and aesthetically pleasing lighting designs to meet the increasing demand from urban planners. Additionally, companies are investing in the development of hybrid systems that combine both solar and grid power, which now account for about 10% of new installations. These products offer municipalities greater flexibility, reducing reliance on the grid while ensuring consistent lighting. The continuous development of these products is expected to drive the future growth of the street lighting market.

Recent Developments

• GE Lighting: In 2023, GE Lighting launched its next-generation smart street lighting solutions, incorporating IoT and adaptive lighting systems. This new product line is expected to improve energy efficiency by 40% and has been implemented in more than 50 cities worldwide, representing a 20% increase in smart lighting adoption.

• OSRAM: OSRAM introduced a new solar-powered street lighting solution in early 2024, which is now being used in over 30% of new installations in regions with high solar potential. The product features integrated energy storage systems, providing off-grid solutions for remote areas.

• Acuity Brands: Acuity Brands unveiled its hybrid street lighting system in 2023, which combines LED lighting with solar power. This system has been adopted in over 100 municipalities, making up 15% of their new lighting installations.

• Panasonic: Panasonic released a series of ultra-durable LED street lights in 2024, designed to withstand extreme weather conditions. This innovation has been integrated into 25% of new street lighting projects in regions prone to harsh weather.

• Cree: Cree launched a high-efficiency LED street light with advanced smart features in 2023, reducing energy consumption by up to 50%. This product has already been implemented in over 150 cities globally, marking a 10% increase in LED adoption for public street lighting.

REPORT COVERAGE

The report provides a comprehensive overview of the street lighting market, covering key trends, technological advancements, and product innovations. It includes detailed analysis of market segmentation by type (traditional lighting and LED lighting) and application (highways, roadways). The report also examines regional trends, focusing on North America, Europe, Asia-Pacific, and the Middle East & Africa. It highlights the growing adoption of energy-efficient lighting solutions, such as LEDs and solar-powered street lights, which now represent over 60% of global installations. The report also covers recent product developments, with a notable increase in smart street lighting systems, now found in 30% of new projects, and solar-powered systems, which account for 25% of new installations. Furthermore, the report explores key players in the market, including GE Lighting, OSRAM, and Panasonic, detailing their contributions to the market’s growth. Overall, the coverage highlights the significant shift toward sustainable, energy-efficient, and smart lighting solutions that are transforming the global street lighting landscape.