Outdoor Lighting Market Report 2025

The outdoor lighting market size has grown strongly in recent years. It will grow from $14.32 billion in 2024 to $15.38 billion in 2025 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to innovation in smart lighting, aesthetic and architectural trends, environmental awareness, rising demand for safety and security, shift to energy-efficient solutions.

The outdoor lighting market size is expected to see strong growth in the next few years. It will grow to $20.79 billion in 2029 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to led penetration, demand for customization and aesthetics, security and safety requirements, smart lighting expansion, sustainable and eco-friendly solutions. Major trends in the forecast period include energy efficiency, smart lighting integration, urbanization and infrastructure development, focus on safety and security, environmental concern.

The growing adoption of energy-efficient lighting systems is propelling the outdoor lighting market. Energy-efficient lighting involves the use of environmentally friendly solutions like LEDs and CFL bulbs, as well as alternative energy sources such as solar power, since LEDs consume less energy and are well-suited for outdoor lighting that solar panels can support. For example, in June 2023, Energy Efficiency Services Limited (EESL), an India-based government agency, announced that it had distributed around 368 million LED bulbs and tube lights, resulting in a reduction of approximately 38 million tons of CO2 emissions annually and saving consumers INR 192 billion ($2.28 billion) in electricity costs. Furthermore, in 2022, the US government implemented the Inflation Reduction Acts of 2022, which introduced tax deductions for homeowners, builders, and businesses that choose energy-efficient lighting options. Therefore, the increasing adoption of energy-efficient lighting systems is driving the outdoor lighting market forward.

The outdoor lighting market is expected to experience growth with the increasing demand for solar lighting. Solar lighting harnesses solar energy for illumination, offering energy-efficient, cost-effective, and environmentally sustainable solutions. The versatility of solar lighting is reshaping outdoor illumination preferences. According to a report by the International Energy Agency in July 2023, solar photovoltaic (PV) generation witnessed a significant increase, reaching almost 1,300 terawatt-hours in 2022. Projections indicate that solar PV's installed power capacity is poised to surpass coal by 2027, becoming the world's largest power capacity source. The rising demand for solar lighting is, therefore, a key driver for the growth of the outdoor lighting market.

Innovative product development, such as roadway luminaires, is a trend gaining popularity in the outdoor lighting market. Roadway luminaires are lighting fixtures specifically designed for illuminating roads, streets, or highways. For instance, in June 2022, Evluma introduced the RoadMax series, offering versatility with three sizes accommodating various wattages. This luminaire, designed to align with RP-8-18 roadway specifications, stands out for its sleek aesthetic and exceptional optical design, providing excellent roadway performance and glare control.

Major companies in the outdoor lighting market are also focusing on LED outdoor lights. LED outdoor lights are energy-efficient fixtures utilizing light-emitting diodes for exterior applications. In August 2023, ETi Solid State Lighting Inc. launched an Outdoor Collection featuring a range of LED luminaires. The Slim Canopy luminaire, VersaArea LED Area Light, VersaFloods Flood Lights, and VersaPak Adjustable Wall Pack are part of this collection, offering versatility and efficiency in various outdoor lighting applications.

In September 2023, Advanced Lighting Technologies, LLC (ADLT), a US-based lighting solutions provider, acquired Cree Lighting Inc. for an undisclosed amount. This acquisition is intended to broaden ADLT's portfolio in the advanced lighting market and bolster its position in delivering innovative lighting solutions across various industries. By capitalizing on Cree Lighting’s expertise, ADLT plans to enhance its offerings in the energy-efficient and sustainable lighting sectors. Cree Lighting Inc. is a US-based company that specializes in LED lighting technology.

Major companies operating in the outdoor lighting market include Syska LED Lights Company, Hubbell Incorporated, Eaton Corporation plc, Acuity Brands Inc., Dialight plc, General Electric Company, Zumtobel Group AG, Osram Licht AG, Signify Holdings BV, Stanley Electric Co. Ltd., Iwasaki Electric Co. Ltd., Evluma, Halco Lighting Technologies LLC, Philips Lighting Holdings, Cree Inc., KLARUS Lighting Technology Co. Ltd., Deco Lighting Inc., L.D. Kichler Co. Inc., Guangzhou Vorlane Optoelectronics Technology Co. Ltd., Minka Lighting Inc., Hinkley Lighting Inc.

North America was the largest region in the outdoor lighting market in 2024. Asia-Pacific is expected to be the fastest-growing region in the outdoor lighting market report during the forecast period. The regions covered in the outdoor lighting market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the outdoor lighting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Outdoor lighting refers to the illumination installed in outdoor areas, such as streets, highways, and alleys, to brighten dark spaces and enhance the aesthetic appeal of outdoor environments.

The primary types of outdoor lighting include LED lights, high-intensity discharge (HID) lamps, fluorescent lights, and plasma lamps. LED lights utilize a microchip to produce illumination when an electrical current passes through. Components involved in outdoor lighting systems include fixtures and controls, catering to applications such as street lighting, tunnel lights, highways, parking lots, parks, stadiums, building exteriors, and more. These products are distributed through both offline and online channels.

The outdoor lighting market research report is one of a series of new reports that provides outdoor lighting market statistics, including outdoor lighting industry global market size, regional shares, competitors with a outdoor lighting market share, detailed outdoor lighting market segments, market trends and opportunities, and any further data you may need to thrive in the outdoor lighting industry. This outdoor lighting market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The outdoor lighting market consists of sales of spotlights, flood lights, garden lights, and bollard lights. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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