The outdoor lighting market worldwide is expected to experience substantial growth in the coming ten years, owing to swiftly ongoing urbanization, infrastructure development and an increasing focus on energy-efficient lighting solutions. From the United States to China, governments are pouring resources into smart city initiatives prioritizing high-tech lighting for streets, parks and public places aimed at improving safety, saving energy and providing an attractive public face.
An example of this is highlighted through India’s Smart Cities Mission and the EU’s Green Cities Program that further focus on the potential of energy-efficient LED and solar lighting technologies in urban infrastructure.
The market is anticipated to expand at a CAGR of 7.2%, from USD 14,499 Million in 2025 to USD 29,059.7 Million by 2035. The factors driving its growth include the blooming image of the real estate industry, increasing commercial construction activities and technological advancements like IoT-enabled lighting system and motion-sensor integration. Also, the advancements in technology also meet the consumers requirements giving them more smart, automatic and green solutions, boosting the market growth.
North America generates a considerable share of the outdoor lighting market comprehensively attributed to its well-established infrastructure sector, along with the rising adoption of innovative lighting technologies. The United States has the strongest foothold in the region through investments in energy-efficient LED lighting from municipalities and businesses as a means of lowering operational costs and carbon footprints.
The burgeoning real estate sector and increasing commercial construction activities would drive the demand for outdoor lighting in North America.
Outdoor Lighting Market in Europe is steadily growing due to high sustainable goals and environmental regulations. Germany, France, and the UK are leading the charge with government motives to put policies in place to reduce energy usage and adopt green tech.
The area's commitment to environmentally friendly initiatives promotes the utilization of recyclable materials, making outdoor lighting a widely used option in diverse applications. Moreover, the strong automotive sector in Europe also accounts for outdoor lighting component demands.
The Asia-pacific market is expected to be the fastest-growing during the forecast period owing to rapid urbanization, infrastructural growth, and increasing disposable income. High demand for effective LED-based outdoor lighting solutions is driven by the growing number of smart city ventures and investments targeting the renovation of public infrastructure in, primarily, China and India.
A large middle class population demands high quality outdoor lighting products. Moreover, availability of several channels to shop online has attributed for consumers convenience to shop for a variety of outdoor lighting products which is expected to continue fueling the positive growth of outdoor lighting market.
Challenges
High Initial Investment, Energy Consumption Concerns, and Regulatory Compliance
The outdoor lighting industry is fragmented due to high upfront installation costs, especially with smart and solar-based outdoor lighting systems. This is primarily due to concerns related to energy consumption and efficiency, particularly in areas where electricity costs are high; therefore, this creates a need for sustainable and low-power lighting solutions.
That is, there are stringent regulatory standards, including energy efficiency specifications and light pollution control regulations, that require such manufacturers to build compliant and eco-friendly outdoor lighting systems.
Opportunities
Growth in Smart City Infrastructure, LED Adoption, and Solar-Powered Lighting
The market is growing despite challenges due to increasing urbanization, government investment in smart city projects, and demand for energy-efficient outdoor lighting solutions The use of LED technology has been taken up widely with significantly lower energy consumption and maintenance costs, compared to traditional technologies, and the gradual replacement of traditional factories with LEDs to street lighting, landscape lighting, commercial outdoor applications.
Another significant opportunity comes from the increase of solar-powered outdoor lighting, fueled by sustainability initiatives, off-grid energy solutions, and rural electrification programs. Additionally, the adoption of IoT and AI-powered lighting control rollouts are disrupting the industry with real-time observation, luminosity modification, and anticipatory upkeep.
All of this is enhancing safety, security, and cost-efficiency for everyone from municipalities to businesses to residential users. The increasing demand for decorative and architectural outdoor lighting in commercial spaces, stadiums, and event venues is further fueling the market growth.
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Regulatory Landscape | Compliance with energy efficiency standards and LED adoption policies. |
| Consumer Trends | Demand for LED-based street and landscape lighting. |
| Industry Adoption | Used primarily in public infrastructure, commercial, and industrial applications. |
| Supply Chain and Sourcing | Dependence on conventional lighting materials, such as halogen and fluorescent bulbs. |
| Market Competition | Dominated by traditional lighting manufacturers and government contracts. |
| Market Growth Drivers | Increased urban development, government-funded streetlight projects, and LED conversion initiatives. |
| Sustainability and Environmental Impact | Early adoption of low-energy LED solutions and motion-sensor-based lighting. |
| Integration of Smart Technologies | Introduction of sensor-based automatic outdoor lighting. |
| Advancements in Outdoor Lighting | Development of high-efficiency LED modules and motion-activated security lights. |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Regulatory Landscape | Stricter light pollution regulations, smart lighting mandates, and sustainability-focused policies. |
| Consumer Trends | Growth in solar-powered lighting, AI-integrated lighting controls, and adaptive smart streetlights. |
| Industry Adoption | Expansion into residential smart lighting, IoT-connected outdoor lighting, and intelligent security lighting. |
| Supply Chain and Sourcing | Shift toward sustainable LED components, energy-efficient circuits, and recycled materials. |
| Market Competition | Entry of IoT-driven lighting firms, solar-powered lighting startups, and AI-based energy optimization providers. |
| Market Growth Drivers | Accelerated by smart city investments, 5G-enabled lighting networks, and automated outdoor illumination solutions. |
| Sustainability and Environmental Impact | Large-scale shift toward solar-powered and off-grid lighting solutions, recyclable lighting components, and carbon-neutral outdoor illumination. |
| Integration of Smart Technologies | Expansion into AI-powered lighting controls, self-learning streetlights, and real-time fault detection systems. |
| Advancements in Outdoor Lighting | Evolution toward wireless energy transfer lighting, ultra-efficient OLED streetlights, and cloud-connected adaptive lighting systems. |
The surging outdoor lighting market in the USA is attributed to the increasing government investments for smart street lighting, energy-saving municipal infrastructure and rapid urbanization. Rising Demand for Solar Powered Streetlights and Motion-Sensing Security Lighting, IoT-Enabled Lighting Solutions, and AI-Driven Energy Optimization to Enhance Efficiency of Public and Private Outdoor Lights are Driving Market Expansion
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 7.3% |
All these factors contribute towards the steady growth of the UK market, driven by sustainability-focused government initiatives, increasing consumer demand for smart lighting solutions, and the advent of LED technology. waste water and waste water to energy plants to be used as a fuel source. This is why 5G-connected outdoor lighting systems are being rolled out to drive real-time energy optimization.
| Country | CAGR (2025 to 2035) |
|---|---|
| UK | 7.1% |
The outdoor lighting market in Europe is influenced by strict energy-efficiency regulations, expansion of smart cities, and high demand for sustainable lighting solutions. Germany, France, and the Netherlands are some of the leaders in solar-powered and AI-controlled streetlights. Moreover, the escalation of green building initiatives and zero-energy lighting requirements are driving demand for low-carbon, high-performance fixture outdoors lighting solutions.
| Country | CAGR (2025 to 2035) |
|---|---|
| EU | 7.2% |
Japan has a growing outdoor lighting market owing to increased urban redevelopments projects and rising adoption of smart city Infrastructure. Earthquake resistant self-sustaining street lighting systems is the main driving factor for the demand of solar powered or smart-grid connected lighting solutions in the country. The growth of AI-powered lighting automation is breaking new ground in this area as well.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 7.2% |
It is ideal for outdoor lighting and would be truly a great market in outdoor lighting. South Korea is emerging as a key market for outdoor lighting due to the strong government support for smart city development, rising adoption of solar-powered lighting, and increasing integration of 5G and IoT-enabled lighting systems. The growth of AI-based outdoor security lighting and adaptive streetlight networks is making its mark in the industry growth.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 7.3% |
Outdoor lighting is designed to achieve a balance between safety, efficiency, and aesthetics, the control outdoor lighting and fixture outdoor lighting segments holds leading position in outdoor lighting market. These recesses are a essential component to improve diseases reservoirs in urban fabrics, slope I explore a vertical way as the pseudo tree to decrease as much as possible the energy consumption to integrate smart lighting systems to be able to automate them.
Further growth can be contributed to Control outdoor lighting being the widely adopted segment in the market. Contrary to conventional lighting solutions, control-based lighting enables real-time adjustments, which increases energy efficiency and operational convenience.Increasing demand for smart & adaptive lighting solutions with wireless controls, IoT-enabled dimming systems, and AI-based brightness adjustments has been a key factor in driving market adoption. Research reveals that 60% of homes and commercial properties install control outdoor lighting to reduce energy expenses and save money on upkeep.
Emerging smart city projects, including AI-integrated street lights, real-time traffic-responsive lights, and centralized lighting management platforms, have bolstered market growth by providing better urban planning and improved power consumption.Adoption has also been enhanced through the incorporation of AI-powered lighting analytics, predictive maintenance tracking, automated fault detection and cloud-based lighting schedules, which collectively promise improved operational efficiency and reliability.
The emergence of sustainable control outdoor lighting systems, including solar-powered solar controllers, low-energy consumption wear resistances lights, and adaptive shine modulation, has contributed to optimized markets growth, putting cut-aligned strategy with green energy policies and carbon footprint reduction targets.
While control outdoor lighting segment has advantages such as energy efficiency, remote management, and automation, but is being hindered by high installation costs, vulnerability to cyber threats, and interoperability concerns with legacy lighting infrastructure. Nonetheless, advancements in AI-driven lighting security, distributed smart grid integration, and responsive lighting algorithms are enhancing reliability, ensuring further growth for smart outdoor lighting systems.
The factor that is making fixture outdoor lighting quite dominant in the market is the growing investment in durable and weatherproof lighting systems by businesses and municipalities. Fixture outdoor lighting is different from control-based lighting, as it involves utilizing robust installation fixtures that can withstand the test of time while enhancing the overall space with advanced illumination features.
Market adoption has been driven by strong demand for high-performance outdoor lighting fixtures, such as corrosion-resistant materials; vandal-proof design; and multi-year life span LED modules. Studies have shown that maximum urban projects utilize fixture based outdoor lighting for sustainable illumination with least maintenance, forming more than 55% of total outdoor lighting projects done.
The growing range of decorative and security-oriented outdoor lighting solutions, including architectural-integrated luminaires, motion-sensing floodlights, and high-lumen pathway lighting, has reinforced the growth of the market as these technologies develop wider applications in commercial and residential environments.
Adoption has also been driven by the ability to add smart fixture lighting offering AI-powered color-temperature adjustments, sensor-based light distribution and app-controlled light customization.Energetic outdoor fixtures' designs, in terms of high-output LED bulbs, solar-integrated housings and modular lighting structures will further optimize the market growth opportunity as they are better compatible with sustainable urban lighting initiatives.
Although fixture outdoor lighting has advantages such as durability, aesthetic flexibility, and low-maintenance operation, it faces the challenge of high upfront costs, potential overheating challenges in compact designs, and complex installation requirements for large-scale lighting projects. Nevertheless, innovations in heat-resistant LED technologies, modular fixture assembly, and AI (artificial intelligence)-driven adaptive-lighting systems are improving efficiency and contributing to the ongoing expansion of the global outdoor lighting fixture market.
Market drivers of LED lights and plasma lamps segments are the increasing adoption of sustainable, high-performance lighting solutions in outdoor niches by residential and business end use sectors, as well as municipalities.
The outdoor lighting segment that has seen the most adoption is LED lights, as they provide the best features such as energy efficiency, longevity, and low maintenance. Unlike incandescent or fluorescent lights, LED technology requires very little power and can emit constant brightness across differing color temperatures.
Government agencies, commercial markets, and consumers are increasingly adopting energy-efficient outdoor lighting solutions, such as LED streetlights, pathway luminaires, and architectural spotlights, thereby fueling the demand of energy-efficient outdoor lighting in the market. LEDs are cost-effective and environmentally friendly; studies show LEDs are used in more than 70 percent of new outdoor lighting installations.
Continuing technological advancements in smart LED lighting highlights the growth of these systems, allowing bright/full-scale-app-based dimming, color-tunable illumination systems (controlled through smart devices), space/particular area brightness modulation based on AI, and other capabilities that enrich functionality, expand use-case, or make the system personalized and upgradable.
Along with the adoption and integration of solar-based LED lighting solutions (i.e., motion-activated security lights, off-grid solar street lamps, autonomous LED-based park illumination) has contributed to adoption of these grid-independent lighting solution and enhanced sustainability.Advanced LED lights manufacturers have developed heat-resistant durable enclosures, ultra-high-lumen output diodes, and glare-reducing optical lenses, which are highly optimized for the urban and commercial outdoor lighting projects, driving their market growth.
Although the LED lights segment has benefits such as energy savings, long operational lifespan, and smart technology compatibility, it experiences challenges like price barriers due to the high initial setup costs as compared to incandescent lights, concern over potential blue-light exposure, and the requirement of advanced heat dissipation mechanisms in high-output applications.
The expansion of the LED-based outdoor lighting solutions is ensured with technology innovations in AI-aided LED efficiency optimization, organic LED (OLED) outdoor applications, and self-cooling LED housing designs for improved performance.
A significant market demand of plasma lamps has been found across lighting applications in various industry segments, particularly in industrial, municipal, and stadium lighting where high intensity and durability of the light source is a prerequisite of the lighting solutions being utilized by industrial players. In contrast to LED lights, plasma lamps produce energetic light via gas excitation, making them superior for larger scale lighting projects where consistent luminosity and wide area coverage are required.
Market adoption has been fueled by the increasing need for high-lumen outdoor lighting, such as plasma based floodlights, stadium lighting, and industrial area lighting. Janus Star plasma is becoming mainstream technology used by over 50% of all high-intensity outdoor lighting installations as it remains bright for the long haul.
Specialized applications for lighting including large-area coverage, Polychromatic-fields and ultra-durable plasma bulbs, high-CRI technology are growing the plasma lighting market even more as it offers better growth in higher demand environmental applications.The availability of AI-powered plasma lighting controls, including adaptive brightness modulation, real-time power consumption monitoring, and automated fault diagnostics, has additionally increased adoption, enhancing reliability and efficiency.
These advancements paved the way for low-energy plasma lighting solutions with low operating temperature plasma lamps, environmentally-friendly gas compositions, and refractive materials to enhance optical reflectors, optimizing market growth for improved efficiency in outdoor lighting as well as environmental sustainability.
Although plasma lamps are kind of more intense, lasts longer, and distribute better all its light than LED, the plasma lamps segment does suffer from disadvantages, like more energy consumption than LED, complex manufacturing processes, and less compatibility with smart lighting systems.
Nonetheless, advancements in AI-oriented technology for plasma lighting regulation, hybrid LED-plasma lighting systems, and low-power plasma arc development are enhancing the technology's viability, which will facilitate the ongoing growth of plasma-driven outdoor lighting applications.
Some drivers for the outdoor lighting market include higher urbanization, increasing infrastructure development, and increasing demand for energy-efficient lighting solutions. AI-Driven Growth in Smart Lighting, Integration of IoT Based Lighting Control Systems, and Adoption of Solar-Powered Solutions Are Shaping the Industry. Further government initiatives for smart cities and sustainable lighting are propelling the market growth.
Leading brands focus on features like AI-assisted lighting automation, adaptive brightness control, and rugged, weather-resistant construction. Key players in the market include lighting manufacturers, smart technology companies, and energy solution providers bringing cost-effective, high-efficiency, and long-lasting solutions for outdoor lighting.
Market Share Analysis by Key Players & Outdoor Lighting Manufacturers
| Company Name | Estimated Market Share (%) |
|---|---|
| Signify N.V. (Philips Lighting) | 18-22% |
| General Electric Company | 14-18% |
| Acuity Brands, Inc. | 12-16% |
| Eaton Corporation | 8-12% |
| Hubbell Incorporated | 6-10% |
| Other Outdoor Lighting Providers (combined) | 30-40% |
| Company Name | Key Offerings/Activities |
|---|---|
| Signify N.V. (Philips Lighting) | Develops AI-powered smart outdoor lighting, adaptive streetlights, and energy-efficient LED lighting solutions. |
| General Electric Company | Specializes in IoT-integrated outdoor lighting, AI-driven energy optimization, and weather-resistant smart lighting. |
| Acuity Brands, Inc. | Focuses on AI-enhanced outdoor illumination, motion-sensing security lighting, and solar-powered lighting innovations. |
| Eaton Corporation | Provides AI-assisted roadway lighting, LED floodlights, and smart city lighting integration with automated dimming. |
| Hubbell Incorporated | Offers AI-driven exterior lighting solutions, commercial-grade outdoor fixtures, and IoT-based lighting control systems. |
Key Market Insights
SignifyN.V. (Philips Lighting) (18-22%)
Signify is the world leader in connected outdoor lighting solutions and is pioneering the future of smart streetlights, offering energy-efficient LED lighting technology and integrated lighting control systems.
General Electric Company (14-18%)
GE: General Electric is focused on IoT-enabled outdoor lighting, applying AI-powered energy efficiency, real-time diagnostics, and adaptive luminosity for smart city uses.
Acuity Brands, Inc. (12-16%)
Acuity Brands focuses on AI-enhanced illumination solutions, developing advanced security lighting, motion-sensing streetlights, and energy-optimized LED fixtures.
Eaton Corporation (8-12%)
Eaton provides AI-driven roadway lighting, solar-powered outdoor fixtures, and automated dimming solutions for urban and commercial outdoor applications.
Hubbell Incorporated (6-10%)
Hubbell offers high-performance, AI-assisted outdoor lighting, including weather-resistant commercial LED systems and remote-controlled lighting solutions.
Other Key Players (30-40% Combined)
Several lighting manufacturers, smart technology firms, and urban infrastructure providers contribute to next-generation outdoor lighting innovations, AI-powered automation, and energy-efficient lighting solutions. Key contributors include:
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Figure 1: Global Market Value (US$ Million) by Source, 2023 to 2033
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Figure 5: Global Market Value (US$ Million) Analysis by Region, 2018 to 2033
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Figure 7: Global Market Value Share (%) and BPS Analysis by Region, 2023 to 2033
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Figure 9: Global Market Value (US$ Million) Analysis by Source, 2018 to 2033
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Figure 41: North America Market Value (US$ Million) Analysis by Distribution Channel, 2018 to 2033
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Figure 43: North America Market Value Share (%) and BPS Analysis by Distribution Channel, 2023 to 2033
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Figure 73: Europe Market Value (US$ Million) by Source, 2023 to 2033
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Figure 77: Europe Market Value (US$ Million) Analysis by Country, 2018 to 2033
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Figure 79: Europe Market Value Share (%) and BPS Analysis by Country, 2023 to 2033
Figure 80: Europe Market Y-o-Y Growth (%) Projections by Country, 2023 to 2033
Figure 81: Europe Market Value (US$ Million) Analysis by Source, 2018 to 2033
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Figure 89: Europe Market Value (US$ Million) Analysis by Distribution Channel, 2018 to 2033
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Figure 93: Europe Market Attractiveness by Source, 2023 to 2033
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Figure 113: Asia Pacific Market Value (US$ Million) Analysis by Distribution Channel, 2018 to 2033
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Figure 115: Asia Pacific Market Value Share (%) and BPS Analysis by Distribution Channel, 2023 to 2033
Figure 116: Asia Pacific Market Y-o-Y Growth (%) Projections by Distribution Channel, 2023 to 2033
Figure 117: Asia Pacific Market Attractiveness by Source, 2023 to 2033
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Figure 120: Asia Pacific Market Attractiveness by Country, 2023 to 2033
Figure 121: MEA Market Value (US$ Million) by Source, 2023 to 2033
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Figure 125: MEA Market Value (US$ Million) Analysis by Country, 2018 to 2033
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Figure 127: MEA Market Value Share (%) and BPS Analysis by Country, 2023 to 2033
Figure 128: MEA Market Y-o-Y Growth (%) Projections by Country, 2023 to 2033
Figure 129: MEA Market Value (US$ Million) Analysis by Source, 2018 to 2033
Figure 130: MEA Market Volume (Units) Analysis by Source, 2018 to 2033
Figure 131: MEA Market Value Share (%) and BPS Analysis by Source, 2023 to 2033
Figure 132: MEA Market Y-o-Y Growth (%) Projections by Source, 2023 to 2033
Figure 133: MEA Market Value (US$ Million) Analysis by Application, 2018 to 2033
Figure 134: MEA Market Volume (Units) Analysis by Application, 2018 to 2033
Figure 135: MEA Market Value Share (%) and BPS Analysis by Application, 2023 to 2033
Figure 136: MEA Market Y-o-Y Growth (%) Projections by Application, 2023 to 2033
Figure 137: MEA Market Value (US$ Million) Analysis by Distribution Channel, 2018 to 2033
Figure 138: MEA Market Volume (Units) Analysis by Distribution Channel, 2018 to 2033
Figure 139: MEA Market Value Share (%) and BPS Analysis by Distribution Channel, 2023 to 2033
Figure 140: MEA Market Y-o-Y Growth (%) Projections by Distribution Channel, 2023 to 2033
Figure 141: MEA Market Attractiveness by Source, 2023 to 2033
Figure 142: MEA Market Attractiveness by Application, 2023 to 2033
Figure 143: MEA Market Attractiveness by Distribution Channel, 2023 to 2033
Figure 144: MEA Market Attractiveness by Country, 2023 to 2033
The overall market size for the outdoor lighting market was USD 14,499 Million in 2025.
The outdoor lighting market is expected to reach USD 29,059.7 Million in 2035.
The demand for outdoor lighting is rising due to increasing urbanization, infrastructure development, and advancements in energy-efficient LED technology. The growing focus on smart city initiatives and enhanced security solutions is further driving market growth.
The top 5 countries driving the development of the outdoor lighting market are the USA, China, Germany, Japan, and India.
Control and Fixture Outdoor Lighting are expected to command a significant share over the assessment period.
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Outdoor Lighting Market
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