Connected Street Lighting Market Size, Share, Industry Trends and Forecast to 2030

What is the Market Size & CAGR of Connected Street Lighting market in 2021?

The global connected street lighting market size in 2021 was valued at USD 2.5 billion. The market is expected to grow at a compound annual growth rate (CAGR) of 15% from 2021 to 2026, reaching a market size of USD 5.8 billion by 2026. The growing need for energy-efficient lighting solutions, smart city initiatives, and the adoption of IoT technology in urban infrastructure are the key factors driving the growth of the connected street lighting market.

COVID-19 Impact on the Connected Street Lighting Market

The COVID-19 pandemic has had a significant impact on the connected street lighting market. The global lockdowns and restrictions imposed to curb the spread of the virus resulted in delayed infrastructure projects and reduced investments in smart city initiatives. However, the pandemic also highlighted the importance of connected street lighting in ensuring public safety and security during times of crisis. As a result, there has been a renewed focus on upgrading existing street lighting infrastructure with connected solutions to improve operational efficiency and reduce energy consumption.

Connected Street Lighting Dynamics

The connected street lighting market is driven by factors such as the increasing demand for energy-efficient lighting solutions, government initiatives to reduce carbon emissions, and the growing trend towards smart city development. The integration of advanced technologies such as IoT, sensors, and wireless communication in street lighting systems has enabled remote monitoring, real-time data analytics, and energy optimization. However, challenges such as high initial investment costs, interoperability issues, and cybersecurity risks pose limitations to market growth.

Segments and Related Analysis

The connected street lighting market is segmented based on component, connectivity, lighting source, application, and region. By component, the market is divided into hardware, software, and services. Based on connectivity, the market is categorized as wired and wireless. The lighting source segment includes LEDs, CFLs, and others. Applications of connected street lighting systems include highways, residential areas, commercial spaces, and others. Regional analysis provides insights into market trends and growth opportunities in key regions such as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

By Region Analysis

In 2021, North America dominated the connected street lighting market due to the early adoption of smart city technologies and government initiatives supporting sustainable urban development. Europe and Asia Pacific followed closely, driven by infrastructure modernization projects and increasing investments in energy-efficient lighting solutions. Latin America and the Middle East & Africa regions are experiencing steady growth in the connected street lighting market, supported by urbanization and smart city initiatives.

Key Market Players and Competitive Landscape

Key players in the connected street lighting market include Philips Lighting, General Electric Company, Schneider Electric, Siemens AG, Cisco Systems Inc., and Eaton Corporation. These companies are actively involved in product development, strategic partnerships, and mergers & acquisitions to strengthen their market presence and gain a competitive advantage. The competitive landscape of the market is characterized by the presence of both established players and new entrants offering innovative solutions to meet the evolving demands of urban infrastructure.

Recent happenings in the Connected Street Lighting Market

Recent developments in the connected street lighting market include partnerships between technology companies and lighting manufacturers to enhance product offerings and expand market reach. For instance, Philips Lighting collaborated with Cisco Systems to develop connected lighting solutions for smart cities. General Electric Company launched a new range of LED street lights with integrated sensors for intelligent lighting control. These developments reflect the industry's focus on innovation and collaboration to drive the adoption of connected street lighting solutions worldwide.