North America Street Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North America Street Lighting market is expected to register a CAGR of 9.4% during the period 2022-2027. The primary factor driving North America's street lighting market growth is the growing adoption of LED lighting for energy-efficient lighting systems, increasing awareness regarding low power consumption, and rising adoption of smart cities in North America.

• Over the past few years, the North America Street market has rapidly moved from conventional to smart lighting. The main drivers for this shift are various benefits of smart lighting over conventional lighting. Smart street lighting can help cities monitor the environment, increase public and traffic safety, upgrade connectivity as WiFi hotspots, and deliver location-based services like smart parking and smart navigation.
• Furthermore, the demand for street lighting is governed by the rapid urbanization and development of infrastructure such as smart cities, the need for energy-efficient street lighting systems, increasing penetration of LED lights and luminaires in street lighting applications.
• The government takes various initiatives to implement innovative street light solutions in smart cities, growing the demand for street lighting in the region. For instance, Barcelona, Los Angeles, and San Jose have recently stepped into evolving the connected smart city by implementing Philips SmartPole pilots. The SmartPole initiative provides the City of San Jose with more energy conservation, reduced expenditures on energy and maintenance, implementation of LED lighting on dark city streets, and an enhanced broadband experience for the residents in the city.
• Moreover, major street lighting market players focus on issues such as low energy consumption, long predictable lifetime, and light pollution. Further, the major players are collaborating with the government to implement energy-efficient street lights across the region by replacing conventional lights with energy-efficient ones. Such initiative further boosts the growth of the North American street lighting market.
• However, the high installation cost of implementing smart lighting is a significant restraint for the market. Smart street lighting comprises pre-installation and post-installation services such as installation, design, maintenance, support, and monitoring services.
• The COVID-19 pandemic led to strict lockdowns across several nations in the North American region resulting in a temporary halt in numerous street lighting projects, supply chain disruptions, and challenges regarding raw material availability, thereby hampering the demand for street lighting in the region.

Key Market Trends

LED Segment is Expected to Hold the Largest Share

• The LED light technology has evolved significantly over time in the region, which has led to various government initiatives to replace conventional lighting with energy-efficient lights in the region. Multiple cities across North America have adopted LED streetlights because of the longer lifespan and lower energy consumption of LED lights.
• Furthermore, the development of smart cities across the region propels the demand for LED streetlights. The installation of connected LED street lighting in various smart city projects by multiple governments contributes to the broader innovation of aging city infrastructure. Further, the addition of LED sources in smart and connected systems has resulted in a steep reduction in energy consumption, thus increasing the demand for LED lights in street lighting.
• Furthermore, the Canadian government has implemented a rule that mandates the registration of products with energy labeling. The government has introduced various initiatives for reducing light energy consumption, such as ENERGY STAR in Canada. Moreover, many regional governments are looking to implement energy-efficient street lights to save costs.
• For instance, in March 2021, the City of Laval in Canada gave the green light for a project to convert approximately 37,000 fixtures to LED luminaires with smart controls. This conversion to LED lights is expected to result in annual savings of USD 2.75 million, primarily in energy consumption and maintenance costs. The move toward adopting LEDs is also in line with the strategic vision of “Urban by Nature,” which aims to make the City a model city in sustainable urban redevelopment.
• Additionally, as per data reported by the US Department of Energy, the adoption rate of LED lights in the United States was 39% in 2017, which is expected to increase to 99% in 2035. All of the factors mentioned above are further expected to propel the demand for LED lights in the street lighting market in North America.

The United States Holds the Largest Share in North America Street Lighting Market

• The United States market is expected to hold the dominant share and continue its lead over the forecast period. The presence of major street light market players such as Cree Lighting, Acuity Brands Inc., and GE Lighting has contributed to widespread product adoption for the street lights in the region.
• Many cities across the United States are heavily investing in massive streetlight modernization projects for cost savings and energy-efficient street lighting, thus growing the demand for street lighting in the United States.
• For instance, in February 2022, the City of Chicago completed the Chicago Smart Lighting Program, a streetlight modernization project to replace more than 280,000 outdated streetlights with high-efficiency LED lights that have improved the quality of night-time visibility across the city and are projected to save Chicago taxpayers USD 100 million in electricity costs over the next ten years.
• Furthermore, smart street lights are the platform of a smart city as they can have many features to support a smart city. Intelligently designed streetlights can reduce electricity usage in the city and enhance public safety and well-being. Smart Cities development is primarily driven by technologies such as the Internet of Things (IoT); this Internet of Things (IoT) has been implemented in various smart cities in the United States. The demand for street lighting coupled with IoT across the region is expected to grow.
• Moreover, the increasing number of highways and streets across the United States is also growing the demand for street lighting. As data reported by US Census Bureau, the average monthly value of public highway and street construction in the United States was USD 89.4 billion in 2017, which increased to USD 99.9 billion in 2021. The abovementioned factors are expected to propel the demand for street lighting in the United States.

Competitive Landscape

The competition in the North American street lighting market appears to be high, and the market seems fragmented due to the presence of many market players in the region. These major players offer innovative street lighting technologies and indulge in mergers and acquisitions to gain market share. Major players in the Europe street lighting market include Acuity Brands, Inc., Cree Lighting, and General Electric Company., among others.

• May 2022 - Ubicquia, a company dedicated to making intelligent street infrastructure that is easy to deploy and monitor, and RealTerm Energy, one of the leaders in providing energy-efficient turnkey LED street-lighting conversions for municipalities, announced that they have completed 25 smart street lighting projects and are in the final stages of completing tasks in 5 other cities across the United States and Canada. RealTerm Energy has deployed other Ubicquia streetlight platforms for air quality monitoring, public WIFI, and video analytics to enhance public safety.
• July 2021 - Cree Lighting announced that it had completed an extensive project in the City of Sandy, Oregon. The company converted all of the city’s street lights from inefficient high-pressure sodium lamps to long-lasting, highly efficient LED lamps. With the conversion complete, the city expects a 58% reduction in street light energy consumption and an annual savings of approximately USD 68,000.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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