The market share of LEDs in street lighting worldwide will grow from 53.3% in 2014 to 93.8% in 2023, as falling prices for LED street lights are spurring a global transition from older lamp technologies to newer, more efficient, and more controllable LEDs, according to Navigant Research’s report ‘Smart Street Lighting: LEDs, Communications Equipment, and Network Management Software for Roadway and Highway Lighting: Global Market Analysis and Forecasts’. The whiter light of LED street lights offers city residents improved nighttime visibility, while the greater energy efficiency and longevity offer city managers cost savings from reductions in both energy consumption and maintenance costs.
However, as LED prices continue to erode and the long lifespan of LED lamps results in fewer replacements, overall revenue from street lighting will begin to fall. Navigant forecasts that global street lighting revenue will decline from $2.5bn in 2014 to $2.3bn in 2023.
“The increase in sales of LED street lights has been surprisingly swift, with some companies reporting that more than half their sales are LEDs and others already planning to discontinue their non-LED product lines,” says senior research analyst Jesse Foote. “At the same time, a rising number of cities are deploying networked control systems along with their new LED street lights, and the range of features available from those systems is expanding.”
Although LED street lights appear to be on track for a nearly complete takeover of the market, the adoption of networked control systems for street lights has followed a somewhat slower path. One critical challenge for the networked control industry is a lack of standardization and the large number of diverse players competing in this space, says the report. Questions remain over the best networking technology for street light control – power line or radio frequency, and mesh or point-to-multipoint.
The report analyzes the global market for roadway and highway lighting. It provides an analysis of the market issues, including drivers and trends, barriers, and ownership models, associated with lamps, luminaires, and lighting controls in these street lighting applications. Global market forecasts for unit sales and revenue, segmented by region, application, and equipment and construction type, extend through 2023. The report also examines the key codes, standards, and technologies related to street lighting, as well as the competitive landscape.
