Outdoor LED Lighting Market Size and Share Analysis - Growth Trends and Forecast Report 2025–2033

Outdoor LED Lighting Market Overview

Outdoor LED lighting is an illumination system utilizing light-emitting diode technology for light use in outdoor settings. LEDs are energy-efficient, long-lasting, and eco-friendly, which makes them the perfect outdoor lighting solutions. Some of the common applications include street lighting, architectural lighting, landscape illumination, sports field lighting, and security lighting.

Street lighting is the major application of outdoor LED lighting because they provide evenly bright lighting to improve safety and visibility, thereby significantly decreasing the energy consumed from traditional sources of lighting. LEDs are widely applied in public areas such as parks and gardens for aesthetic beauty without causing a high level of disturbance to the environment. Moreover, LEDs are largely applied in outdoor security lighting as they can assure visibility while being a preventive measure against any illegal activities. In addition to this, outdoor LED lights are widely used in commercial and industrial applications such as parking areas, signages, and building fronts that provide suitable, affordable, and energy-saving illumination solutions.

Growth Drivers of Outdoor LED Lighting Market

Increased Energy Efficiency Demand

The rise in demand for energy-efficient solutions is among the fundamental growth drivers for the market of outdoor LED lighting. LEDs consume much less power than conventional lighting technologies, such as incandescent or halogen bulbs, and provide up to 80% energy savings. The governments of various countries promote energy-efficient solutions through regulations and incentives, which motivates the adoption of LEDs for outdoor lighting in streets, parks, and public spaces. Demand is expected to continue to grow as sustainability efforts increase globally. In 2024, New South Wales, Australia-based lighting company Planet Lighting designed an 800-light high-tech and sustainable LED installation for the Paris Olympic Village. Every light has a QR code; after the Olympics, the medal winners will have their details uploaded so fans can scan the code and be taken to their biography.

Technological Advancements

The advancement in LED lighting such as smart lighting systems and integration with IoT, or Internet of Things, is leading the way to growing the outdoor LED lighting market. Smart outdoor lighting systems have these advantages based on distant control, energy monitoring, and automatic adjustment within changing environmental conditions. These innovations make LED lighting efficient, user-friendly, and adaptable to various applications, and therefore are adopted in public and private sectors. May 2024, This spring, ATP Lighting is launching its new luminaire, Metrópoli Color. The product possesses innovative features adding dynamism to ornamental lighting, particularly the RGBW backlit cover can be controlled by Bluetooth or DMX and can display more than 250 million colors and conduct diverse light shows with detailed patterns.

Urbanization and Infrastructure Development

Rapid urbanization and increased infrastructure development in the emerging economies drive up the demand for outdoor LED lighting. This rising demand for reliable street lighting during city expansion creates the need to maintain public safety and accessibility. Furthermore, newer urban developments and infrastructure projects utilize LED technology in view of its strength, low cost, and longer lifespan. Therefore, outdoor LED lighting grows in popularity and use. By 2050, urbanization will add 1.2 billion people to cities in Asia and the Pacific, straining infrastructure and services amid climate change impacts.

Outdoor LED Lighting Market Challenges

High Initial Investment Costs

While outdoor LED lighting saves money in the long run, the installation cost is a challenge. LED lights, smart systems, and supporting infrastructure are usually more expensive than traditional lighting solutions. This may discourage municipalities, organizations, or businesses with limited budgets from switching to LED technology, slowing market adoption in some areas. However, lower energy bills and longer operational lifespans mitigate this challenge.

Compatibility and Retrofit Issues

Upgrading existing outdoor lighting systems to LED technology is often fraught with compatibility and retrofitting issues. Many legacy systems may not be compatible with modern LED fixtures, and thus infrastructure modifications are required. Integrating LED lights with older street poles, wiring systems, or control mechanisms can be more expensive to install and might even delay the process. This is especially relevant in regions where the infrastructure is older, as upgrades to support LED systems might be very expensive.

Public Places Outdoor LED Lighting Market

The outdoor LED lighting market for public places is very rapidly growing, led by the demand for energy-efficient illumination solutions for parks, plazas, and recreational spaces. LEDs provide even, bright light for enhanced safety and aesthetic purposes, thereby being excellent for public space use. Moreover, outdoor LEDs are more durable and require lower maintenance than traditional lighting solutions; as such, long-term costs are much lower for municipalities. As more cities now promote sustainability and revamp public spaces, the use of LED lighting in public areas such as park goers, streets, and other venues across the globe increases.

New Outdoor LED Lighting Market

The market for new outdoor LED lightings keeps growing as both the commercial and city sectors more and more embrace modern, energy-saving outdoor lighting solutions. New installations replace old lighting systems with the most advanced LED technology, offering energy savings and superior durability compared to such previous forms of lighting. The market is also increasing with the combination of smart lighting systems, which provides dynamic control and maintenance. The need for sustainable and long-term cost-effective lighting solutions will continue driving the growth in this market, especially in urban development projects and new infrastructure development.

Hardware Outdoor LED Lighting

Hardware outdoor LED lighting is focused on physical components in an outdoor lighting system as packaged to include LED bulbs, fixtures, poles, and controllers. As demand for energy-efficient lighting grows, hardware manufacturers develop rugged, water-resistant outdoor LED solutions for streets, parks, and public spaces. This sort of lighting often has adjustable brightness, color temperature, and smart capabilities. Continued urbanization and drive for greener infrastructure are likely to propel the outdoor LED hardware market to greater heights.

Software Outdoor LED Lighting Market

Software outdoor LED lighting includes systems that offer controls, automations, and monitoring of outdoor LED lighting networks. The integration of IoT within smart lighting solutions provides remote management, dimming, and motion sensors. They are used to optimize power consumption and improve the performance of lighting. Software-based platforms for outdoor LED lighting seem to be gaining popularity as cities as a whole work towards setting up a "smarter" environment with better energy management. Integration of such systems provides efficiency in operation and saves cost; therefore, growth in the software segment.

Street and Roadways Outdoor LED Lighting Market

Street and roadway outdoor LED lighting is increasing due to the demand for energy-efficient street lighting solutions for urban and suburban regions. With advantages like brightness, long-life span, and reduced maintenance cost, the street and roadway will be most beneficial for the LEDs. The increasing number of municipalities using LEDs improves road safety, reduces energy consumption, and reduces maintenance costs. Additionally, the use of smart lighting technology promotes improved traffic monitoring and adaptive lighting that further improves the safety and efficiency of urban road systems.

Outdoor LED Lighting Market in the United States

The United States outdoor LED lighting market is growing at a fast pace, driven by the rising demand for energy-efficient solutions, government regulations for sustainability, and investments in smart city infrastructure. LED lighting for street lighting, security, and lighting of public space is highly adopted in commercial, residential, and municipal sectors. With more developed and up-graded cities for outdoor LED lighting in the United States, with more attention toward the need for reduced energy and carbon emission consumption, it will help boost growth in this area. Dec 2024- U.S. Department of Energy Awarded $11.5 million in grant money to pay for installing new LED lighting systems at city buildings, baseball fields, a park, a police station, and an airport runway for greater efficiency.

Germany Outdoor LED Lighting Market

Germany's outdoor LED lighting market is growing because of the country's commitment to energy efficiency and sustainability. The government has focused significantly on reducing carbon emissions, which has led to the widespread adoption of LED technology in public lighting systems, including streetlights, park lighting, and outdoor security lights. Germany's robust industrial sector and infrastructure development projects also contribute to the demand for outdoor LED lighting. As smart cities and green building initiatives gain momentum, Germany’s market for outdoor LED lighting is expected to grow steadily. September 2022: FW Thorpe buys 80% shares of SchahlLED Lighting in Germany, an intelligent LED services for the industrial and logistics sectors company. FW Thorpe has purchased 80% of the share capital in the business, with the initial £12.8m consideration funded from its existing cash reserves.

India Outdoor LED Lighting Market

The outdoor LED lighting market in India is booming, mainly because of the energy-efficient solutions in demand and the government's initiative to improve public infrastructure. "Smart Cities" and "Make in India" programs by the Indian government have led to an increased adoption of LED street lighting and outdoor illumination. India's outdoor LED lighting market is expected to grow substantially, especially in urban areas and new infrastructure projects, with a focus on energy consumption reduction and improvement of urban living standards. June  2024 Hikvision's LED Displays Launch Event 2024 Major Upgrades in R&D and Product Lineup 5th Generation LED Cabinets and New Outdoor Displays, Creative Displays, Modules, and Controllers.

Saudi Arabia Outdoor LED Lighting Market

Saudi Arabia’s outdoor LED lighting market is expanding, supported by the country’s Vision 2030 initiative, which promotes sustainability and energy efficiency across various sectors. The growing focus on modernizing infrastructure and enhancing public spaces in cities like Riyadh and Jeddah drives demand for energy-efficient LED lighting solutions. Since LEDs present long-run savings and provide excellent performance in the use cases, it remains to be popular among streetlight, public parks, and even for security services. As economic diversification keeps ongoing, one of the important increases in demand would be related to outdoor LEDs in the near future. Unilumin-Leading LED solution providers, as always, welcome new service centres- Riyadh, Kingdom of Saudi Arabia, -Opens its First Center in this Year September, 2024. This strategic move underscores Unilumin’s commitment to its customers by providing a local hub for innovative LED solutions, enhancing service for its Middle Eastern clientele with more personalized and efficient support.

Outdoor LED Lighting Market Segments

Application

• Public Places
• Streets and Roadways
• Others

Installation

• New
• Retrofit

Offering

• Hardware
• Software
• Services

Countries

• United States
• Canada
• France
• Germany
• Italy
• Spain
• United Kingdom
• Belgium
• Netherlands
• Turkey
• China
• Japan
• India
• Australia
• South Korea
• Thailand
• Malaysia
• Indonesia
• New Zealand
• Brazil
• Mexico
• Argentina
• South Africa
• Saudi Arabia
• UAE

All the Key players have been covered from 4 Viewpoints:

• Overview
• Key Person
• Recent Development & Strategies
• Financial Insights

Key Players Analysis

• Panasonic Corporation
• Signify
• Hubbell Incorporated
• Eaton Corporation plc
• Wipro Lighting Ltd.
• Samsung Electronics Co. Ltd.
• Bajaj Electricals Limited

Report Details: