Street Lighting Market Expected to Grow Steadily, Reaching USD 11.9 Billion by 2032

The global street lighting market is poised for steady expansion as urbanization and sustainability initiatives drive demand for efficient lighting infrastructure. Valued at US$ 9.2 billion in 2025, the market is projected to reach US$ 11.9 billion by 2032, registering a CAGR of 3.7% during the forecast period. The industry is at the center of global urban development strategies, serving as a foundation for safer mobility, smart city integration, and energy conservation.

The adoption of LED-based street lighting and IoT-enabled smart lighting systems is accelerating growth, especially as governments implement stricter energy efficiency regulations. Among product categories, LED lights account for over 78% of market revenue, highlighting their dominance due to energy savings and long service life. Geographically, Asia Pacific leads the market with a 37% share in 2025, supported by rapid urbanization, government-backed smart city initiatives, and large-scale deployment of solar-powered street lighting.

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Key Highlights from the Report

• Asia Pacific dominates the global market with a 37% share in 2025, led by rapid urban growth.
• LED street lights account for over 78% of total market revenue.
• The market is projected to grow from US$ 9.2 billion in 2025 to US$ 11.9 billion by 2032.
• Historical growth between 2019 and 2024 was steady, at a CAGR of 3.2%.
• North America is the fastest-growing region, fueled by smart lighting adoption.
• Conventional street lights retain a 26% market share due to affordability.

Market Segmentation

Street lighting solutions are broadly segmented by product type, technology, and application. On the product front, the market includes LED lights, solar-powered lights, and conventional lighting systems. Conventional lights, despite their declining adoption, still account for nearly 26% market share in 2025 due to cost-effectiveness in developing markets. However, LED lighting dominates with 78% revenue share, driven by its superior lifespan, energy efficiency, and compatibility with intelligent control systems.

From an application perspective, the market is divided into residential, commercial, and municipal infrastructure. Municipal applications dominate the landscape as cities prioritize public safety and energy-efficient infrastructure upgrades. Commercial spaces, including industrial parks and campuses, are also increasing adoption of smart lighting systems to reduce operational expenses while supporting sustainable energy goals.

Regional Insights

The Asia Pacific region leads the global market, fueled by government investment in urban infrastructure, widespread deployment of solar-powered streetlights, and rapid adoption of smart city solutions. China and India play a central role in driving demand through large-scale urbanization and stringent energy efficiency mandates.

North America emerges as the fastest-growing region, attributed to infrastructure modernization and increasing use of IoT-based smart lighting. Meanwhile, Europe maintains a strong presence, with regulatory frameworks encouraging renewable-powered lighting and ongoing investment in connected urban infrastructure.

Market Drivers

One of the primary drivers of the street lighting market is the growing global push toward energy efficiency. Governments worldwide are introducing mandates to phase out inefficient lighting technologies and replace them with LEDs. Smart city projects have further fueled demand, with lighting systems being integrated into intelligent networks that enable remote monitoring, adaptive brightness, and real-time energy consumption tracking. The expansion of solar-powered lighting also supports market growth, especially in developing economies with high energy costs.

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Market Restraints

Despite strong growth prospects, the market faces several challenges. The high upfront cost of LED and smart street lighting systems remains a restraint for many municipalities, particularly in low-income regions. Additionally, technical complexities in integrating IoT-enabled platforms and maintaining large-scale smart lighting networks can delay adoption. In rural regions, limited awareness and infrastructure funding gaps hinder the replacement of conventional systems with modern alternatives.

Market Opportunities

Opportunities in the street lighting market lie in the expansion of smart and connected lighting ecosystems. The rise of AI-powered predictive maintenance and integration with smart grids will open new revenue streams for manufacturers and solution providers. Developing countries in Africa, Latin America, and Southeast Asia represent untapped growth potential due to urban expansion and electrification initiatives. Furthermore, the growing emphasis on sustainable and solar-powered solutions positions the market for long-term adoption in line with global climate goals.

Reasons to Buy the Report

✔ Gain insights into the projected US$ 11.9 billion market by 2032.
✔ Understand the dominance of LED lighting, which accounts for 78% of market revenue.
✔ Access regional growth insights, with Asia Pacific leading and North America emerging fastest.
✔ Explore detailed analysis of drivers, restraints, and opportunities shaping the industry.
✔ Identify key players and recent developments driving competitive strategies.

Frequently Asked Questions (FAQs)

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Company Insights

The global street lighting market features a competitive landscape with both multinational corporations and regional manufacturers driving innovation. Key players operating in the market include:

• Signify Holding (formerly Philips Lighting)
• Hubbell Incorporated
• Acuity Brands Lighting, Inc.
• Cree Lighting
• General Electric Company
• Eaton Corporation plc
• Osram Licht AG
• Zumtobel Group
• Syska LED Lights Pvt. Ltd.
• Bridgelux, Inc.

Recent Developments:

1. In 2023, Signify launched a new portfolio of IoT-connected LED streetlights, enabling cities to remotely manage lighting infrastructure through cloud-based platforms.

2. In 2024, Acuity Brands partnered with multiple municipalities in North America to deploy smart adaptive lighting systems, reducing energy consumption by up to 60%.

Conclusion

The global street lighting market is undergoing a transformative shift from conventional systems to advanced, connected, and sustainable solutions. With a forecasted growth to US$ 11.9 billion by 2032, the industry is supported by megatrends like smart city development, IoT integration, and renewable energy adoption. While challenges such as high installation costs persist, opportunities in solar-powered solutions and predictive maintenance technologies ensure a promising outlook. Regions like Asia Pacific lead adoption today, but North America's rapid modernization positions it as the fastest-growing hub for smart street lighting.

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