Product Code: 65041
The street and roadway lighting market is expected to register a CAGR of over 7.12% during the forecast period 2019 - 2024. According to CED Engineering, proper lighting can be expected to reduce night crashes by approximately 30% thereby improving safety for drivers, riders, and pedestrians.
- According to the UN, 68% of the total world population will live in urban areas by 2050. It will put tremendous pressure on limited city resources and lightning streetlights costs for 30% to 50% of a typical city's energy bill. For instance, the European Commission stated that they pay more than EUR 10 billion annually to power their streetlights. Therefore, with smart street lights, cities can conserve energy, decrease CO2 emissions, limit light pollution, and lower operations and maintenance costs.
- Moreover, nowadays, to conserve energy, LED lights with the Photodiodes and IR sensors are used to sense vehicle moments. It is implemented to control lights based on vehicles and pedestrian moments with the bright and dim mode of operation and to switch off lights during no vehicles and pedestrian. All these factors have a positive impact on the street and roadway lighting market.
- However, high installation costs of smart lighting and cost of raw materials are few of the factors which are restraining the growth of the street and roadway lighting market, during the forecast period.
Scope of the Report
Street and road lighting plays a crucial role in the safety and security of the streets and public places. The developers are making huge investments in smart cities, and government incentives are given for outdoor lighting applications such as freeways, bridges, roadways, tunnels, and in-city street lights. With the purpose to reduce light pollution and energy consumption, cities have started to replace their sodium streetlights with energy Light Emitting Diodes (LEDs) based lights.
Key Market Trends
LED Lights Segment to Exhibit Significant Growth
- LED lights produce light approximately 90% more efficiently than any other light bulbs, such as fluorescent and incandescent lights. 95% of the energy in LEDs is converted into light, and only 5% is wasted as heat, which is pushing users to opt for a more economical form of lighting.
- LED lights provide a consistent light by improving the overall visibility and provides added security for street and highway locations. They can also be paired with motion sensors, photocells, and timers to offer a lighting control system for efficient usage.
- The International Energy Agency (IEA) estimated that road lighting accounts for 4% of total global light and a switch to LED lights can save an average of 50% in energy costs, which results in global savings of USD 160 billion energy costs, and 555 million tons of CO2.
- Moreover, government initiatives are also fueling the market growth, as many governments across the world are structuring regulations for encouraging LED adoption. For instance, in India, the government's initiative such as SLNP (Street Light National Program), which is an initiative to replace 21 million streetlights with LED, further contributes to the market growth.
- Additionally, LED lighting applications provides colors across the full spectrum, and thus help in improving the aesthetics of outdoor spaces, bridges, roads, and buildings. For example, the Empire State Building in New York, USA, and the Baron Palace in Cairo, Egypt.
- These are substantial benefits which are going to drive the LED street and roadway lighting market.
Asia-Pacific to Witness the Fastest Growth Rate
- Asia-Pacific is expected to witness the fastest growth because of the increasing smart city initiatives in this region. Smart street lights are the backbone of the smart city project due to the benefits associated with LED lighting.
- Additionally, in countries, like China and India, the governments are encouraging the adoption of LED technology for roadway and highway applications, in order to save energy and maintenance cost.
- Further, in order to promote investments in the market, the Indian government has only imposed a free tariff (basic tariff) on LED component imports, facilitating the LED products to enter the market as semi-finished products.
- Moreover, the Japanese government's long-term goals incorporate lighting projects and infrastructures related to the 2020 Olympics. These trends signify the growth of the street and roadway lighting market in the region.
The street and roadway lighting market is highly fragmented and competitive due to the presence of a large number of regional and international players across the globe. Some of the major players are Koninklijke Philips NV, OSRAM GmbH amongst others. Road lighting is an essential service provided by governments to ensure safety and security at night for its citizens and significant infrastructure developments, such as the construction of highways for connecting cities, are few factors because of which companies are entering into this market. Some of the recent developments are:
- October 2018 - Dubai's Roads and Transport Authority (RTA), in conjunction with Philips Lighting, launched a pilot project at Jumeirah Corniche. The Project aimed to identify the benefits of implementing the Intelligent Pedestrian and Cycling Track Lighting System at Jumeirah Corniche. This implementation would save around 70 % to 80 % when compared to the power consumed by the conventional lighting system.
- March 2018 - Samsung Electronics Co. Ltd. launched H inFlux, a linear module that uses the company's LED chip package LM301B. H inFlux was designed for lighting applications in parking lots, and factories. The product comes with different luminous flux levels, offering a variety of footprints and color temperatures (such as 3000K, 3500K, 4000K, and 5000K).
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Increased Demand for Intelligent Solutions in Street Lighting Systems
- 4.4 Market Restraints
- 4.4.1 High Installation Cost of Smart Lighting
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Lighting Type
- 5.1.1 Conventional Lighting
- 5.1.2 Smart Lighting
- 5.2 By Light Source
- 5.2.1 LEDs
- 5.2.2 Fluorescent Lamps
- 5.2.3 High-intensity Discharge Lamps
- 5.3 By Offering
- 5.3.1 Hardware
- 18.104.22.168 Lights and Bulbs
- 22.214.171.124 Luminaires
- 126.96.36.199 Control Systems
- 5.3.2 Software
- 5.4 By Power
- 5.4.1 Below 50W
- 5.4.2 Between 50W - 150W
- 5.4.3 More Than 150W
- 5.5 By End User
- 5.5.1 Highways
- 5.5.2 Street and Roadways
- 5.6 Geography
- 5.6.1 North America
- 5.6.2 Europe
- 5.6.3 Asia-Pacific
- 5.6.4 Latin America
- 5.6.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 General Electric Company
- 6.1.2 Cree Inc.
- 6.1.3 Koninklijke Philips NV
- 6.1.4 OSRAM GmbH
- 6.1.5 Eaton Corporation PLC
- 6.1.6 Hubbell Inc
- 6.1.7 Thorn Lighting ( Zumtobel Group)
- 6.1.8 LED roadway lighting Ltd
- 6.1.9 Acuity Brands, Inc.
- 6.1.10 Syska LED
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS