Outdoor Lighting Market Size, Share & Trends Analysis Report By Source (LED Lights, Plasma Lamps), By Application, By Distribution Channel, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global outdoor lighting market size was valued at USD 15.34 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 8.0% from 2023 to 2030. The increasing adoption of energy-efficient lighting systems, growing government initiatives toward energy efficiency, and rising infrastructure development are the key factors driving the industry's growth. However, the COVID-19 pandemic impacted the growth of the market. The spread of the COVID-19 epidemic caused the temporary closure of stadiums, parks, and travel restrictions, lowering the adoption of outdoor illumination. Furthermore, China remains a major raw material origin destination and a significant producer of lighting products. However, it is also the country where the coronavirus originated, and has affected raw material exports to other countries across the world, affecting the market growth.

Moreover, governments across the world are promoting the adoption of energy-efficient lighting is likely to favor the growth of the outdoor landscape lighting market. For instance, in August 2022, The US federal government unveiled the Climate Smart Building Initiative, which will enhance the government's collaboration with the private sector to modernize federal buildings. This initiative includes improving on-site renewable electricity generation, provision for efficient lighting, and installation of electric vehicle supply infrastructure.

Additionally, with the advent of smart and connected technology, companies are also offering smart outdoor lighting. This trend continues to gain traction among consumers. For instance, in February 2022, a subsidiary company of Signify, Philips Hue, launched smart outdoor lighting namely Inara, and Edison bulb. These outdoor lighting’s brightness can be adjusted by an app and they also have a voice control feature that can be controlled via voice assistant technology.

Smart outdoor lighting is gaining popularity as it finds promising applications in a variety of outdoor lighting settings such as streets, highways, public places such as gardens, commercial sites, outdoor parking lots, and university and college campuses. As electricity prices rise, a growing number of municipalities throughout the world are adopting smart lighting to cut operational costs while enhancing system efficiency and assuring safety.

Furthermore, the growing use of solar energy as a source of renewable energy for lighting across nations is probably going to promote outdoor landscape lighting market expansion. Also, the market growth is anticipated to be fueled by the falling prices of raw materials as well as advantages like easy installation, increased lifespan, minimal maintenance, and operating expenses. Moreover, the increasing awareness about renewable energy assets, along with stringent regulatory reforms focused on sustainable infrastructure development across developed and developing regions is anticipated to favor market growth.

Source Insights

In terms of revenue, LED lights dominated the market with a share of 46.4% in 2022. Due to their long operating hours and low maintenance requirements, LEDs provide a number of benefits when used in outdoor settings. Additionally, LEDs have a long lifespan and make great directed light sources, owing to which numerous government entities across the globe are adopting LED lights for outdoor applications.

The fluorescent light source segment is expected to register a CAGR of 8.2% from 2023 to 2030. While delivering the same brightness, fluorescent lighting is less expensive than conventional lighting. Additionally, fluorescent lights have a lifespan that is generally six times longer than that of a standard incandescent bulb. These lights generate less heat which makes them ideal for regions where there is a need for less heat-generating lighting as heat could damage equipment. Moreover, the increasing adoption of fluorescent as a substitute for incandescent lighting drives the growth of the segment.

Application Insights

In terms of revenue, commercial application dominated the market with a share of 67% in 2022. The rapid rise in commercial construction activities, especially in the hospitality sector, is also driving the demand for outdoor landscape and street lighting. The thriving real estate industry, followed by numerous infrastructure improvements in the hospitality sector, will continue to drive market growth. According to Lodging Econometrics (LE), Global Construction Pipeline Trend Report compiles the construction pipeline counts for every country and market around the world. In the Q2 2022 report, the total global construction pipeline stands at 14,117 projects/2,293,131 rooms, up 5% by projects and 2% by rooms year-over-year (YOY).

The residential application segment is expected to register a CAGR of 8.6% from 2023 to 2030. Consumer attitudes toward convenience, appearance, entertainment, and technology have shifted in recent years as a result of a desire to spend more on luxurious products. As a result, consumers increasingly spent on home renovation by making their balconies or outdoor spaces more usable, thereby contributing to the increased demand for outdoor landscape lighting.

Distribution Channel Insights

In terms of revenue, the offline segment dominated with a share of 67% in 2022. Offline stores offer customers the look and feel of the furniture and help them select outdoor lighting according to their requirements. As a result, key manufacturers are opening exclusive stores across different regions to offer customers genuine products, hassle-free purchases, and after-sales services. For instance, in October 2022, TRILUX launched its showroom in Stockholm, Sweden. Moreover, the company aims to launch seven more showrooms to expand its offline presence and improve brand awareness.

The online distribution channel segment is estimated to grow at the fastest CAGR of 9.7% over the forecast period. The rising popularity of e-commerce remains a primary contributor to the growth of the online distribution segment. The online distribution segment has enabled manufacturers to gain potential customers, improve their communication, track finances, and boost brand awareness in a cost-effective manner. Digitalization has offered the outdoor lighting industry several growth avenues and an active consumer base that prefers shopping online.

Regional Insights

North America dominated the market with a share of 35.8% in 2022. The demand for outdoor lighting in North America has risen, owing to the growing trend of family gatherings and dinners in outdoor spaces at home. This trend is further supported by the rising interest in creating and maintaining the front yard and backyard gardens, which not only enhance the aesthetics of the homes but also act as a pleasant avenue to entertain guests outdoors. This is likely to boost the demand for outdoor landscape lighting in the region.

Asia Pacific is expected to witness a CAGR of 9.8% from 2023 to 2030. Increasing infrastructural activities such as smart cities in developing countries such as China, Japan, South Korea, and India have propelled the hospitality sector, particularly hotels and resorts, likely favoring the growth of the market.

Key Companies & Market Share Insights

The market is characterized by the presence of a few established players and new entrants. Many big players are increasing their focus on the growing trend of outdoor lighting. Players in the market are diversifying their service offering to maintain market share.

• For instance, in March 2021, Smart Global Holding Inc., acquired Cree Inc’s Cree LED product business. Through this acquisition, the company aims to expand its product offering and improve its geographical reach.

• For instance, in December 2021, The White Teak Company launched Garden Lights in a variety of designs and patterns included in the collection. Each item features a metal body and LED bulbs that are simple to mount on any surface.

Some prominent players in the global outdoor lighting market include: -

• Signify Holding

• General Electric

• OSRAM GmbH

• Hubbell

• ACUITY BRANDS, INC.

• Zumtobel Group

• Eaton

• Cree LED

• SYSKA,

• Virtual Extension

Outdoor Lighting Market Report Scope

Global Outdoor Lighting Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global outdoor lighting market report based on source, application, distribution channel, and region:

• Source Outlook (Revenue, USD Million, 2017 - 2030)

  • LED Lights

  • Plasma Lamps

  • High-Intensity Discharge Lamps

  • Fluorescent Lights

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Residential

  • Commercial

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa