Authors:
Avinash Singh, Amit Patil
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Outdoor Lighting Market Size & Share 2026-2035
Report ID: GMI8670
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Published Date: October 2026
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Outdoor Lighting Market Size
The outdoor lighting market was valued at USD 17.5 billion in 2025, is expected to reach USD 18.73 billion in 2026, expand at a 7.3% CAGR (2026–2035), and reach USD 35.27 billion by 2035.
Outdoor Lighting Market Key Takeaways
Market Leader: Acuity Brands led with over 6.2% market share in 2025.
Leading Players: Top 5 players in this market include Acuity Brands, NVC Lighting, MLS Co., Signify, Eaton/Cooper, which collectively held a market share of 19.9% in 2025.
The market's evolution is anchored in the conversion of legacy public, commercial, and residential installations toward LED-based systems with lower operating requirements and greater control capability. Demand is also moving beyond fixture replacement as municipalities and property owners incorporate remote monitoring, adaptive operation, and service-based procurement into infrastructure upgrade decisions.
GMI Analyst View
Based on our discussions with industry experts, the outdoor lighting market generated USD 16.50 billion in revenue in 2024, reflecting resilient procurement activity across municipal infrastructure programs and commercial retrofit cycles in the year immediately preceding the base period. This indicates that the market entered the current forecast horizon with replacement demand and smart-control adoption strengthening in parallel.
Outdoor Lighting Market Trends, Growth Drivers & GMI Forecast Outlook
The market's outlook depends on whether energy-cost pressure, policy mandates, and urban infrastructure investment can translate into funded projects at a faster pace than municipal budget constraints and interoperability concerns delay procurement. LED replacement provides the volume base, while connected systems expand project scope and recurring service potential.
Key Drivers
Evidence anchors use cited external data; demand implications and forecast conditions represent GMI analysis.
LED conversion is attractive to public buyers because it addresses electricity exposure and maintenance workload at the same time. The resulting project economics support broader replacement programs, particularly where performance contracting allows savings to support project funding rather than requiring the full capital outlay upfront.
The connected-lighting opportunity adds a control layer to the replacement cycle. Networked assets can support monitoring, fault detection, adaptive output, and integration with wider city infrastructure, giving municipal buyers a reason to evaluate lighting procurement as a managed infrastructure platform rather than as an isolated equipment purchase.
Key Restraints
Evidence anchors use cited external data; demand implications and forecast conditions represent GMI analysis.
The principal constraint is not the technical readiness of LED equipment, but the mismatch between long-run savings and the upfront funding capacity of many public buyers. Where external financing, energy-service agreements, or pooled procurement are unavailable, replacement decisions can remain deferred despite an increasingly clear operating-cost rationale.
Smart deployments introduce a second friction point. Authorities must weigh interoperability, cybersecurity, lifecycle support, and the risk of becoming dependent on a single system architecture. These issues can lengthen specification and tender cycles even when the operational case for connected lighting is strong.
GMI Analyst View
We view financing design and procurement maturity as the decisive variables separating faster-converting markets from those where replacement remains episodic. Technology capability is already established; the differentiator is whether buyers can commit capital, coordinate stakeholders, and specify connected systems without creating unacceptable long-term operating risk.
Outdoor Lighting Market Segment Analysis
By Product Type
The outdoor lighting market's street & roadway lights segment generated USD 6.13 billion in 2025 and is projected to reach USD 11.64 billion by 2035. This category remains central to municipal upgrade programs because roadway assets are visible, energy-intensive, and commonly managed through formal public procurement cycles.
Garden & landscape lights are projected to reach USD 5.29 billion by 2035 and grow at an 8.1% CAGR (2026–2035). Product selection increasingly reflects aesthetic design, pathway safety, and flexible low-voltage or solar-powered installation options across residential, hospitality, and public-space settings.
Wall & security lights generated USD 2.10 billion in 2025 and are forecast to account for a 12.0% share by 2035. Motion sensing, photocells, and integrated controls are increasing the relevance of this category for commercial and industrial perimeter security as well as residential access points.
Architectural lights are expected to hold a 10.0% share by 2035 and grow at an 8.5% CAGR (2026–2035). The segment benefits from specification-led demand for facade, bridge, monument, and public-realm projects where optical precision and visual identity influence purchasing decisions.
Tunnel lights held a 6.0% share in 2025 and are projected to advance at a 7.4% CAGR (2026–2035). Safety-critical requirements for glare management, uniformity, and reliable operation make tunnel projects comparatively resistant to discretionary budget deferral.
Deck & patio lights are projected to reach USD 1.76 billion by 2035 and grow at a 9.9% CAGR (2026–2035). Outdoor-living investment and smart-home compatibility are shifting this category toward integrated accent, step, strip, and low-voltage systems rather than purely functional fixtures.
By Light Source
LED luminaires generated USD 11.90 billion in 2025 and are projected to command an 81.0% share by 2035. LED technology has become the preferred platform across outdoor applications because it combines efficiency, durability, controllability, and design flexibility.
High-intensity discharge/HID luminaires held a 14.0% share in 2025 and are forecast to decline to a 5.0% share by 2035. Replacement pressure is strongest in legacy high-output installations where improved LED performance now meets more demanding photometric requirements.
Solar luminaires held a 12.0% share in 2025 and are expected to expand at a 5.7% CAGR (2026–2035). Their role is particularly relevant where grid extension is costly, site access is difficult, or buyers prioritize autonomous operation for rural and peri-urban deployments.
Fluorescent luminaires held a 3.0% share in 2025 and are expected to contract at a -4.2% CAGR (2026–2035). Regulatory pressure and declining supplier support are progressively narrowing their relevance to residual legacy applications.
By Application
Public infrastructure generated USD 6.65 billion in 2025 and is projected to hold a 39.0% share by 2035. Government-led street, transport-node, park, and public-space projects provide a structured demand base, particularly where efficiency mandates are embedded in urban modernization programs.
Commercial outdoor lighting is projected to reach USD 9.52 billion by 2035 and grow at a 6.9% CAGR (2026–2035). Commercial buyers value lighting as a combination of safety provision, operational efficiency, asset presentation, and site-management capability.
Residential lighting held a 19.0% share in 2025 and is forecast to grow at a 7.3% CAGR (2026–2035). Growth reflects property improvement activity and increasing buyer interest in connected, solar-integrated, and security-oriented exterior solutions.
Industrial lighting is projected to reach USD 5.29 billion by 2035 and held a 15.0% share in 2025. Harsh operating conditions, continuous use, and maintenance-access constraints favor robust fixtures and controls that support fault identification and reduced service disruption.
By Installation Type
Retrofit installations generated USD 9.63 billion in 2025 and are expected to grow at a 6.7% CAGR (2026–2035). Retaining existing poles, cabling, and civil works often reduces project complexity, making retrofit the practical route for replacing a large installed base of inefficient assets.
New installations are projected to reach USD 16.93 billion by 2035 and expand at an 8.0% CAGR (2026–2035). Greenfield urban development and infrastructure construction enable buyers to specify connected fixtures and smart-pole capabilities from the outset.
By Distribution Channel
Indirect sales held a 62.0% share in 2025 and are projected to generate USD 20.46 billion by 2035. Distributors, wholesalers, and system integrators remain essential where buyer demand is fragmented and local inventory, technical support, and contractor relationships determine access.
Direct sales are expected to hold a 42.0% share by 2035 and grow at an 8.4% CAGR (2026–2035). Larger municipal, national-account, and developer projects favor direct engagement when buyers require coordinated design, supply, service, and project accountability.
By Wattage
The 50W–150W segment generated USD 6.65 billion in 2025 and is forecast to grow at a 7.3% CAGR (2026–2035). Its broad applicability across local roads, pathways, parking areas, and smaller commercial sites supports its role as a core specification range.
Below 50W luminaires are projected to account for a 30.0% share by 2035 and grow at an 8.2% CAGR (2026–2035). Efficiency improvements are expanding the applications served by lower-wattage systems, particularly in landscape, residential, solar, and localized public-space lighting.
The 150W–400W band held a 24.0% share in 2025 and is forecast to grow at a 6.3% CAGR (2026–2035). It remains relevant to arterial roads, commercial parking, and medium-output floodlighting, although higher LED efficacy is gradually shifting some specifications downward.
Above 400W luminaires are projected to reach USD 3.53 billion by 2035 and held a 10.0% share in 2025. High-output applications such as airports, ports, highway interchanges, and major sports venues retain specialized lighting requirements that sustain demand for this range.
By Connectivity
Non-connected/traditional systems generated USD 12.60 billion in 2025 and are forecast to hold a 55.0% share by 2035. They will remain important where budgets, technical capacity, or administrative requirements make connected infrastructure difficult to deploy.
Wireless connected/smart systems are projected to reach USD 12.70 billion by 2035 and grow at a 15.3% CAGR (2026–2035). Remote management, adaptive dimming, and asset intelligence are making wireless platforms increasingly relevant to cities and large campuses pursuing operational integration.
Wired connected systems held a 10.0% share in 2025 and are expected to expand at a 6.1% CAGR (2026–2035). Critical facilities, tunnels, and institutional sites continue to value deterministic communication performance where reliable physical-network infrastructure is already available.
GMI Analyst View
We see the segment structure separating into volume-led LED replacement and higher-specification solutions that combine controls, specialized optics, service capability, or design integration. Suppliers that can address both procurement models will be better positioned than those relying solely on broad fixture availability or low-cost manufacturing.
Outdoor Lighting Market Regional Analysis
Asia Pacific Outdoor Lighting Market Analysis
The outdoor lighting market in Asia Pacific generated USD 6.13 billion in 2025 and is forecast to grow at an 8.0% CAGR (2026–2035). Urban expansion, infrastructure investment, manufacturing depth, and large-scale public modernization programs create a broad demand base spanning conventional LED replacement, solar deployment, and increasingly connected city infrastructure.
China
China is projected to reach USD 8.09 billion by 2035 and held a 62.8% Asia Pacific share in 2025. Its scale reflects the combination of domestic infrastructure demand and an integrated manufacturing ecosystem that supports competitive supply across street, commercial, residential, and smart-lighting categories.
North America Outdoor Lighting Market Analysis
North America is projected to reach USD 9.22 billion by 2035 and grow at a 6.5% CAGR (2026–2035). The region's demand profile is shaped by an established LED installed base, a mature retrofit market, and rising adoption of controls in municipal, commercial, and industrial settings.
United States
The United States generated USD 4.03 billion in 2025 and is projected to account for an 83.7% North America share by 2035. Public-sector modernization, commercial retrofit activity, and demand for integrated lighting controls support its position as the region's central market.
Canada
Canada is projected to reach USD 1.50 billion by 2035 and grow at a 5.6% CAGR (2026–2035). Smaller municipal buyers and dispersed geographies reinforce the value of collaborative purchasing, distributor support, and phased replacement programs.
Europe Outdoor Lighting Market Analysis
Europe generated USD 4.20 billion in 2025 and is expected to hold a 21.8% share by 2035. Regulation-led efficiency upgrades and decarbonization objectives sustain replacement demand, while mature markets increasingly emphasize smart-city integration and quality-driven specifications.
Germany
Germany held a 20.9% Europe share in 2025 and is forecast to grow at a 5.8% CAGR (2026–2035). Its substantial installed base, strong technical standards, and established lighting-manufacturing presence support demand for performance-led modernization projects.
Latin America Outdoor Lighting Market Analysis
Latin America is projected to reach USD 2.54 billion by 2035 and grow at a 7.5% CAGR (2026–2035). Urbanization, financing-supported municipal retrofit programs, and demand for grid-independent solar solutions create multiple pathways for market expansion.
Brazil
Brazil is projected to reach USD 1.32 billion by 2035 and expand at an 8.0% CAGR (2026–2035). Its market is supported by city infrastructure requirements, growing commercial development, and the need for solutions ranging from basic public lighting to higher-specification connected systems.
Middle East & Africa Outdoor Lighting Market Analysis
The Middle East & Africa held a 6.0% share in 2025 and is forecast to grow at a 9.0% CAGR (2026–2035). Gulf infrastructure and planned-city investment support premium, connected, and architectural specifications, while African demand centers more heavily on practical LED and solar deployment.
Saudi Arabia
Saudi Arabia held a 41.9% Middle East & Africa share in 2025 and is projected to grow at a 10.5% CAGR (2026–2035). Large infrastructure programs, accelerated construction activity, and smart-city priorities create concentrated demand for high-specification outdoor lighting solutions.
GMI Analyst View
We expect regional performance to remain defined by differing procurement architectures rather than by a uniform technology cycle. Asia Pacific offers scale and manufacturing reach; North America favors managed retrofit and connected solutions; Europe prioritizes regulation and specification quality; and the Middle East & Africa combines premium development projects with basic-access lighting needs.
Outdoor Lighting Market Share & Competitive Landscape
The outdoor lighting market share structure remains fragmented, with the top five competitors collectively holding a 19.9% share in 2025. This concentration profile reflects varied local standards, fragmented purchasing channels, and application-specific requirements that allow regional specialists and niche suppliers to compete alongside multinational lighting groups.
Acuity Brands held a 6.2% share in 2025. Its North American position is reinforced by broad outdoor portfolios, established commercial and municipal relationships, and integration of lighting hardware with controls and analytics.
NVC Lighting held a 4.0% share in 2025. Its manufacturing scale and distribution depth support cost-competitive participation across street, commercial, and residential outdoor applications, particularly in Asia Pacific and export-oriented infrastructure markets.
MLS Co. held a 3.5% share in 2025. Vertical integration across LED components and finished luminaires supports its ability to serve volume-oriented projects while extending its presence in domestic and international outdoor-lighting supply chains.
Signify competes through connected-lighting platforms, specification-grade outdoor products, global distribution, and long-standing municipal relationships. Its positioning is directed toward buyers that seek lighting performance alongside operational data, remote management, and sustainability-aligned system design.
Eaton/Cooper serves North American commercial, industrial, and roadway applications through specification-focused products and energy-management integration. Its competitive relevance rests on performance requirements, project support, and relationships with developers, utilities, and infrastructure contractors.
Other competitors include outdoor specialists, regional manufacturers, and channel-focused suppliers addressing road, tunnel, architectural, sports, residential, and retrofit demand. Competitive intensity is highest where projects are standardized and price-sensitive, while solution providers can defend differentiation where buyers require connected controls, complex optics, compliance assurance, or long-term service support.
Recent Industry Developments
In November 2024, Itron, Inc. and Cielis announced a 10-year agreement for continued management of the City of Paris smart-streetlight network using Itron's CityEdge IoT portfolio. The program illustrates how remote programming, adaptive operation, and traffic-system coordination are becoming integral to large municipal lighting contracts [5]Signify. "Signify strengthens professional lighting portfolio with new street and sports lighting products." signify.com.
In September 2025, Signify introduced new professional outdoor products, including the GreenVision Xceed Pro road and street luminaire and SunStay Pro gen2 integrated solar streetlights. The launch reflects supplier efforts to address both mainstream roadway upgrades and solar-enabled deployment requirements across multiple regions .
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