Smart Street Lighting Market Size, Share & COVID-19 Impact Analysis, By Communication Technology (NB-IoT, Powerline Communication, Radio Frequency, Others (Ultra-narrowband, LoRa)), By Application (Environmental Monitoring, Traffic Optimization, Smart Parking, Others), By End-user (Commercial, Residential, Industrial), and Regional Forecasts, 2022-2029

The global smart street lighting market size was valued at USD 2.04 billion in 2021. The market is projected to grow from USD 2.41 billion in 2022 to USD 8.23 billion by 2029, exhibiting a CAGR of 19.2% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with smart street lighting experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -0.1% in 2020 as compared to 2019.

In the scope, we have considered smart street lights provided by key players such as Signify N.V., Telensa Limited, Dimonoff Inc., gridComm, and Flashnet SA, among others.

With LEDs recognized as the preferred technology for street lighting advancements, the next aspect for connected street lighting systems involves rapidly growing demand for smart city technology innovations and rising deployments of control technology. For instance, as per Trilliant Networks, Inc., nearly 75% of the world’s population is likely to live in cities over the next ten years, and the number of connected smart street lights may also grow from 3% to 40% connected.

COVID-19 IMPACT

Slowdown of Smart City Projects Worldwide amid COVID-19 Pandemic has Hindered Market Growth

The market continued to register a healthy growth rate till 2019, though the market may witness a minor hick-up in its growth during 2020 due to some temporary delays in the issuance of tenders for new projects in the midst of the crisis. The pandemic may have halted some existing smart city programs, but it has also made the cities plan out projects with long-term benefits.

With large-scale projects going on in the Middle East, South Asia, and Latin America, in addition to established markets, connected street lighting is following the path of LED luminaires to increasingly become the norm in new street lighting projects. There are numerous vendors from diverse industries engaging in smart street lighting, ranging from smart grid vendors and telecommunications operators to smart city-focused vendors and lighting manufacturers. Moreover, Energy Service Companies (ESCOs), urban management companies, and infrastructure investment funding agencies are playing a major role in financing and carrying out connected street lighting projects.

Thus, the aforementioned factors are estimated to surge the demand for smart street lighting during the post COVID-19 period. The global market size declined slightly by -0.1% during the COVID-19 pandemic.

LATEST TRENDS

Increasing Deployment of 5G Enabled Smart Street Lights to Pave Way for Significant Market Growth

As mobile operators intensify their radio access networks to fully optimize their 5G’s capabilities, smart street light infrastructure is expected to play an important role in enabling that, along with offering other smart city/IoT capabilities. For instance, in July 2021, Telefónica Deutschland collaborated with Mainova, an energy services company, to deploy a 5G-based streetlight in Frankfurt am Main. It reliably provides light during the hours of darkness and supplies its surroundings with 5G throughout the day using highly efficient LED technology.

An optimized 5G network is the basis of many 5G innovative applications; smart street lights equipped with a variety of devices can provide energy-saving and efficient applications in transportation, municipalities, environmental protection, and security. Moreover, new public infrastructure for smart city construction, wide distribution, and excellent locations make connected street lighting a good carrier for 5G base stations.

Major players in this market are actively investing in advanced technologies such as IoT, 5G, and others. For instance, in August 2021, Ericsson partnered with Ubicquia to develop the Ericsson Street Radio 4402, a small cell that can be plugged into existing streetlights with a NEMA socket. The radio supports low or mid-band 5G, with a fully integrated 4x4 MIMO antenna system.

The above factors are considered some of the global smart street lighting market trends.

DRIVING FACTORS

Growing Need for Energy Optimization to Boost Market Growth

Smart street lighting offers intelligent maintenance schedules to report and monitor defective lights to reduce maintenance and repair costs. On average, a connected street lighting system saves 25% of energy as the connected LED could be turned dim, on or off remotely, along with its lower power requirement, enabling increased energy efficiency with effective management.

Local governments and utility providers have been looking for new ways to reduce costs and decrease energy usage, as street lighting accounts for nearly 40% of many cities’ total energy costs. Moving from halogen to LED luminaires could help achieve that goal by delivering significant energy savings of 50% to 80%.

According to the International Energy Agency (IEA), almost 70% of the projected rise in global energy demand is in developing economies and emerging markets, where demand is set to rise to 3.4% above pre-COVID-19 levels. At the same time, energy usage in advanced economies is on course to be 3% below 2019 levels.

Therefore, to compensate for such energy demands, government and public authorities are increasingly adopting smart street lighting, which is, in turn, thereby driving the market growth.

RESTRAINING FACTORS

Cybersecurity Concerns to Limit Demand for Smart Street Lighting

With the growth of connected lighting systems with Wi-Fi, Li-Fi, and sensor features, concerns for security and privacy in lighting systems are growing as well. Cyberattacks could generate substantial damage, including the shutdown or conceding of major services such as water or electricity. In addition, cyberattacks could also lead to the capture and misuse of citizens’ video footage of their activities or sensitive personal information. In various cases, ransomware attacks have even kept city staff from accessing municipal networks and computers, leading to a pause in operations until large payments are made.  

Such factors are estimated to limit the smart street lighting market growth over the projected period.

SEGMENTATION

By Communication Technology Analysis

Increased Demand for NB-IoT with Advanced Technologies will Drive Market Growth

Based on communication technology, the market is segmented into NB-IoT, powerline communication, radio frequency, and others (ultra-narrowband, LoRa).

The radio frequency segment accounted for the largest market share during the forecast period. In the case of hardwired control systems, control signals are transmitted through communication cables while radio waves are used to communicate with control devices in RF-based solutions. Thus, wireless communication systems are majorly preferred as reliable lighting control solutions. Radio frequency-based connected lighting solutions exclude the need for deploying any control wiring, and the resulting advanced control system provides savings in labor costs along with enabling greater installation flexibility.

Moreover, the NB-IoT technology is expected to rise with the highest CAGR during the forecast period. The integration of different IoT networking technologies in street lighting solutions further enhances smart cities' impact and potential scope. In addition, remote systems of street lighting, wired and wireless communication systems, and nowadays, cloud-based systems are majorly being used to provide remote management of smart street lighting systems, which is further propelling the market growth.

By Application Analysis

Traffic Optimization through Smart Street Lighting Creates Huge Demand

Based on application, the market is segmented into environmental monitoring, traffic optimization, smart parking, and others.

Traffic optimization accounted for the maximum market share. Most of the light poles are placed by the roadside and offer a natural place to mount sensors to monitor traffic. Smart street lights are equipped with a vast array of cameras and sensors to collect significant data, improve city usability for residents, and enable authorities to make informed decisions. Along with the Internet of Things (IoT), smart street lights enable wireless communication while tracking maintenance updates, monitoring traffic situations, and alerting officials of probable security risks.

Further, the smart parking application is expected to rise with the highest CAGR during the forecast period. Connected street lighting incorporates movement sensors to increase energy efficiency as well as the safety of citizens. Moreover, connected street lighting can help monitor traffic flow, pedestrian crossings, parking, atmospheric changes, and seismic activity. They can be equipped with cameras to help police solve crimes, speakers to alert people of critical situations or verify trash collection, among other activities.

By End-user Analysis

Adoption of Smart Street Lighting for Commercial Purposes to Fuel Market Growth 

Based on end-user, the market is segmented into commercial, residential, and industrial.

The commercial sector captured maximum market share and is expected to maintain its dominance over the forecast period. Supermarkets, shopping malls, retail stores, and associated parking lots majorly deploy smart street light solutions. Whether they be underground, multi-story, or outdoors, supermarket and shopping mall car parks are often large areas in which connected lighting supports parking management, coupled with safety & security. A smart lighting system can also be used to light commercial buildings, outdoor eating areas, passageways, and fountains, in a customer-friendly and cost-effective way.

The industrial segment is expected to grow at the highest CAGR over the forecast period. Industrial parks and Industrial zones require lighting that is continuously available, reliable, and able to meet the specific requirements of on-site industrial activities. In addition, roads and tracks along the industrial zones also require to be well lit to ensure safety when heavy vans and trucks are coming and going throughout the day. These factors are expected to significantly contribute toward the adoption of connected street lighting for industrial use.

REGIONAL INSIGHTS 

Geographically, the market is studied across North America, Latin America, Europe, the Middle East & Africa, and Asia Pacific.

Europe leads the global market for connected street lighting system technology. Currently, various lighting associations in Europe are rigorously working toward the deployment of smart lighting controls in the private and public sectors. For instance, in February 2022, a European technology provider Wellness TechGroup signed a contract with National Narrowband Network Company, operator of the Australian national LoRaWAN network powered by Actility, to integrate IoT network coverage to nearly 70,000 smart street lights in Montevideo, Uruguay’s capital. The project provides connected street lighting to over 1.3 million people while covering 200 square kilometers in area along with decreasing carbon emissions by 80% and improving community and road safety. This is expected to further drive the connected street lights market growth in Europe.

North America is expected to grow with a remarkable CAGR during the forecast period. Energy policies and regulations to limit the consumption of energy are being implemented in North America, supporting the adoption and development of smart lighting solutions in the region. Moreover, smart lighting provides an efficient and cost-effective solution as the operating cost of lighting in commercial buildings is estimated to be significantly high in North America. Thus, North America is among the major potential markets in the lighting industry for smart lighting solutions.

The market growth in Asia Pacific is mainly driven by rising technological advancements and increasing government initiatives for the development of smart cities. Stringent regulations discouraging incandescent lamps' usage coupled with various policies encouraging energy conservation and environment protection, and the requirement of energy-efficient connected lighting controls and ongoing and upcoming smart city projects in developing economies will further augment the market value. The rising demand for automated and connected street lighting systems by commercial enterprises is thus expected to further accelerate the market’s growth.

Due to various factors, such as the penetration of new industries and the development of the economy, the Middle East & Africa and Latin America regions are also estimated to showcase healthy growth.

KEY INDUSTRY PLAYERS

New Product Launches to Augment Market Expansion of Major Players

The key players are offering smart street lights to all end-users. Major market players extend the scope to create novel solutions, upgrade their tools and technology, and strengthen their technology capabilities.

Also, through collaboration, the companies are gaining expertise and expanding their business by reaching a mass customer base. The key players focus on market share expansion and customer reach through strategic acquisitions. For Instance,

In July 2021: U.K. based Telensa was acquired by Signify, adding narrowband systems to its smart street lighting offerings. This enabled Signify to target a broad range of end users, by using the unlicensed radio space to make smart city infrastructure affordable to cities. With Telensa, Signify adds Talq-compliant technology to its secured and open systems.

List of Key Companies Profiled:

• Signify Holding (Netherlands)


• Telensa Limited (U.K.)


• Itron Inc. (U.S.)


• Rongwen (China)


• DimOnOff (Canada)


• Current Powered by GE (U.S.)


• gridComm (Singapore)


• Sensus (U.S.)


• FLASHNET SA (Romania)


• Ubicquia, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In February 2022, Signavio GmbH, a process management space and business process intelligence provider, was acquired by SAP SE. The integration of the business process intelligence unit of SAP with Signavio will help transform and improve the organization's business process at scale.


• In February 2022: Hubbell Incorporated’s Commercial & Industrial (C&I) lighting business was acquired by GE Current, building an overall lighting solutions business, branded as Current. The shared business now offers a wide-ranging portfolio of fixtures and controls, lamps, roadway, signage, transportation and horticulture markets.


• In January 2022, CITiLIGHT, the smart-lighting solution provider in India, partnered with Kerlink, a provider of solutions dedicated to the Internet of Things (IoT), to deploy large LoRaWAN smart street-lighting projects in India and internationally. CITiLIGHT’s growth strategy is to develop intelligent streetlight and IoT solutions.


• In December 2021, EQUANS announced its collaboration with Itron, Inc. to bring smart city capabilities to cities in Belgium. A distribution network operator in Brussels, Sibelga, deployed Itron’s intelligent street lighting solution as a service to improve citizen safety and meet their energy savings goals.


• In October 2019, Telensa launched Urban IQ, an open solution that connects sensors with smart streetlight infrastructure and visualizes the collected data. Urban IQ is connected using the best-fit lighting and cellular networks, and uses the light poles’ perfect position to host multiple sensors.

REPORT COVERAGE

The market research report includes prominent areas across the globe to get a better knowledge of the market. Furthermore, it provides insights into the most recent industry and market trends as well as an analysis of technologies that are being adopted quickly on a global scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.

REPORT SCOPE & SEGMENTATION