Street Lighting Market Size - Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2025 – 2034

Street Lighting Market Size

The global street lighting market is expected to grow strongly from 2025 to 2034 on account of increasing global efforts towards road safety improvement, urban infrastructure upgradation, and energy efficiency. Governments and local municipalities are giving more importance to efficient and sustainable lighting systems to improve road conditions during night and inclement weather. Street lights increase visibility for both drivers and pedestrians, reducing the potential for road accidents.
 

A range of public-private partnerships and infrastructure investments has spurred the market over the past few years. An increasing number of countries are launching sustainable street light projects as part of attaining net-zero carbon emissions and decreased dependence on lights powered by traditional technologies. As urbanization progresses and smart cities emerge, there will likely be an increase in demand for effective and digitally connected lighting infrastructure. On the other hand, the upfront investment and modernization costs, as well as the regulatory challenges surrounding the energy efficiency mandates, could impose restrictions on the market.
 

Street Lighting Market Trends

One of the most significant trends driving the street lighting industry is the growing use of solar and energy-efficient lighting. As the world feels pressure to decarbonize, there is a growing demand for green options, particularly ones that use energy wisely and require little or no maintenance. Solar streetlights have also emerged as an appealing green option for Boomers to Millennials, as long as there is ample sun, with the potential for off-grid operations and avoiding a significant reduction in electrical outlays.
 

The growing love of these options represents a level of comfort and a move towards spending on trusted, sustainable, and high-performance lighting technologies.
 

The other major trend is in the integration of smart and connected features such as motion sensors, dimming, and connected lighting to lighting systems. Smart solutions not only enable better operational performance but also remote monitoring and predictive maintenance, optimization of energy consumption, and overall spending by municipalities. A growing number of cities around the world are implementing smart streetlight systems as part of their digital infrastructure programs in hopes of achieving more resilient and sustainable urban spaces.
 

Street Lighting Market Analysis

LED technology will continue to dominate the street lighting industry until 2034 based on its many benefits, such as energy efficiency, long life, low maintenance needs, and reduced carbon footprint. LEDs also provide improved color rendering and brightness levels compared to conventional lighting solutions. This renders them ideal for use in municipal, industrial, and highway lighting, where good and consistent lighting is very important.
 

Reduced prices of LED components and higher government subsidies for green energy projects are becoming more affordable to make LED lighting options accessible. China, India, the United States, and Germany are all advocating the use of LED with incentive packages, rebates, and mandated regulations. With such a tremendous amount of government support, we can expect a supportive market environment that leads to increased LED penetration.
 

In contrast, the controller segment of the street lighting market is expected to grow exponentially from 2025 to 2034. Smart Controllers will be the key to optimizing energy consumption and minimizing the time between service faults and timely maintenance of lighting. Smart controllers can also be combined with timers, sensors, and remote monitoring applications to utilize their adaptable light settings based on environmental conditions as well as human movement in real time. All of this will allow organizations to maximize energy efficiency and reduce operational costs.
 

Furthermore, the use of data analytics and AI in smart control lighting systems is becoming more common. These features enable predictive maintenance, real-time monitoring of performance, and automatic fault detection. By reducing wastage of energy and facilitating rapid response to interruptions, controllers help achieve the broader objective of designing intelligent network lighting that is economical and sustainable.
 

Regionally, the Asia-Pacific (APAC) market is expected to have the largest growth rate during 2034. This is due to the industrialization rate of the region, increased population, and high urbanization level. China and India are leading countries, propelled by supportive government policies in the adoption of energy-efficient lighting systems. For example, India's Smart Cities Mission continues to heavily invest in upgrading city infrastructure, such as the replacement of traditional streetlights with LED and smart lights. In addition, the low cost of manufacturing and an existing strong supply chain make APAC a world base for the production and export of LEDs. All these factors, in tandem with growing environmental consciousness and urbanization, are likely to propel high growth in the regional market.
 

Street Lighting Market Share

The street lighting industry globally is moderately consolidated, with dominant players in a few major companies in the industry. Using a combination of innovation (R&D), strategic alliance, and geographic expansion, these players have been able to become leaders in the industry. These players are investing R&D resources into developing new LED technologies and IoT capabilities and minimizing environmental impact by using recyclable materials and producing by environmentally advanced methods.
 

The increasing share of high-margin smart product sales continues to drive demand by leading companies looking to increase profitability. Signify (Philips Lighting N.V), OSRAM GmbH, and Panasonic focus on the development of next-generation products for the smart lighting ecosystem.
 

Niche products from small and medium-size vendors are also penetrating the market with specific applications like hazardous location lighting, solar streetlights, and motion sensing. Larger players, in turn, continue to form partnerships and acquire businesses to enhance their global presence and access emerging economies with high growth rates.
 

Major players in the market for street lighting are:

• Philips Lighting N.V (Signify)
• K-LITE
• OSRAM GmbH
• Panasonic Corporation
• Toshiba Lighting
• Schneider Electric
• Dimonoff Inc.
• Legrand
• Cree Inc. (Wolfspeed)
• General Electric Co.
   

Street Lighting Industry News

In March 2025, in a big step toward campus sustainability and independence, Odisha University of Technology and Research (OUTR) came up with an affordable, homegrown street lighting system—manufactured at barely one-seventh the cost of traditional market options.