Global LED & Smart Street Lighting Market (2015-2025)

LONDON, May 31, 2016 /PRNewswire/ -- A study covering the global market for LED and smart street lighting over the period 2015-2025 (157 pages + PowerPoint + optional 125-country Excel dataset).
Currently, there are 304m streetlights in the world, growing to 352m by 2025. LED and smart street lighting will cumulatively represent a $63.5bn market opportunity.

There are currently 304 million total streetlights in the world. This number will grow to 352 million total streetlights by 2025. The public outdoor lighting market is currently undergoing a period of change where legacy streetlights are being replaced with new and more efficient LED, or solid-state lighting technology. Taking this new technology a step further, these LED streetlights are also being networked together with communications to become "smart" streetlights. This study analyzes and forecasts the global market for both LED and smart street lighting through 2025. LED streetlights will transform cities and municipalities across the globe over the next decade.

LEDs offer longer lifetimes, lower energy consumption, and reduced maintenance costs when compared with legacy streetlight technologies. In most developed countries, LEDs are already an economically beneficial alternative to existing streetlights over the lifetime of the light when energy savings are considered, despite their higher upfront cost. But within a few years, LED streetlights are expected to reach cost parity with legacy technologies, making their benefits to costs immediately positive. At this point, they will make economic sense as replacements in almost all countries. Furthermore, with many emerging market countries rapidly urbanizing and in need of improved urban infrastructure, this creates an enormous market opportunity. From 2015 to 2025, countries are expected to invest $53.7 billion in LED street lighting.

But LED luminaires are not the sole element in modernized public outdoor lighting. Networked "smart" streetlights help cities further reduce costs through off-peak dimming and reduced maintenance expenditures. As the costs for networked streetlights also rapidly decline, these smart streetlights will find a growing role in cities and municipalities across the globe. In many developed countries, they will serve as part of larger "smart city" concepts, where communications networks can be used to link items such as power and water meters, traffic lights, and parking meters. Smart streetlights also greatly improve safety conditions in a city by reducing the "down time"
of streetlights. As soon as lamps expire, officials are notified, so streets rarely go without lighting. In many emerging market metropolises that are managing rising
street crime, this will be a particularly strong benefit.

Overall, the LED and smart street lighting market remains young, and some challenges must be overcome. Most importantly, costs must continue to fall for financing to be
feasible in many countries – so far costs have fallen even faster than expected. Even so, vendor-led financing (i.e. performance contracting) must continue to develop to
enable projects in many emerging market countries. In some of these countries, multilateral financing can help overcome these challenges, and in 2014 the World Bank announced a $1 billion fund exclusively for LED street lighting. Another challenge is a lack of standardization. Particularly for networked streetlights, undeveloped standards could limit vendors' ability to meet rising demand across the globe. Finally, a general preference towards conservatism could lead some cities to stick with legacy technologies even in the face of clear savings from LED and smart streetlights.

Back in 2012, Northeast Group conducted a survey of over 100 US cities, towns, and municipalities that were on the vanguard of LED streetlight deployments. The response was overwhelmingly positive—residents complimented the better light, law enforcement officials praised safety improvement, and cities overall showed significant cost savings. Today in 2015, the business case for LED and smart street lighting has only grown stronger. Improvements in technology have driven costs down while improving the quality of the lights. Northeast Group's most recent 2015 assessment of over 800 LED projects in 90 countries shows that these benefits are shared by cities and municipalities across the globe. Given these clear advantages, LED and smart streetlights are projected to reach 84% and 37% of the total streetlight market, respectively, by 2025. This will total a $63.5 billion market.


Key questions answered in this study:
- How large will the market for LED and smart streetlights be across 125 countries?
- How will falling costs impact LED and smart streetlight deployments?
- What is the streetlight ownership structure in the leading markets?
- Who are the key vendors throughout the smart streetlight value chain?
- What hurdles to smart street lighting have been overcome and which ones remain?
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