Outdoor LED Lighting Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source (LED Lights, Plasma Lamps, High-Intensity Discharge Lamps, Fluorescent Lights), By Distribution Channel (Offline, Online), By Application (Residential, Commercial), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 18.72 Billion
CAGR (2026-2031)	8.79%
Fastest Growing Segment	Fluorescent Lights
Largest Market	North America
Market Size (2031)	USD 31.03 Billion

Market Overview

The Global Outdoor LED Lighting Market will grow from USD 18.72 Billion in 2025 to USD 31.03 Billion by 2031 at a 8.79% CAGR. The Global Outdoor LED Lighting Market encompasses the manufacturing and distribution of Light Emitting Diode fixtures engineered for exterior environments, including roadways, parking facilities, public spaces, and building perimeters. This market is primarily supported by rigorous government mandates aiming for carbon footprint reduction and the simultaneous expansion of smart city infrastructures that utilize connected lighting systems for operational efficiency. According to Energy Efficiency Services Limited, in 2025, the Street Lighting National Programme successfully achieved a cumulative installation of over 13.2 million LED streetlights to drive national energy conservation efforts.

Despite these favorable growth factors, the market faces a significant challenge regarding the high initial capital expenditure required for large-scale infrastructure upgrades. While the long-term return on investment is evident through reduced energy and maintenance costs, the substantial upfront funding needed for retrofitting projects often strains the limited budgets of municipalities and commercial entities, potentially delaying widespread implementation. This financial barrier continues to slow the universal adoption of efficient outdoor lighting solutions in cost-sensitive regions.

Key Market Drivers

Implementation of Supportive Government Initiatives and Energy Efficiency Mandates acts as a critical engine for growth, compelling municipalities to replace outdated high-pressure sodium fixtures with sustainable alternatives to meet rigorous environmental targets. Regulatory bodies are accelerating this shift through direct financial grants aimed at lowering public sector carbon emissions and modernizing grid infrastructure. According to Forbes, in December 2024, the U.S. Department of Energy awarded $11.5 million to local and state governments specifically for the installation of energy-efficient LED lighting in public facilities and spaces. These mandated upgrades yield rapid resource conservation and operational savings for utility providers; according to Nashville Electric Service, in February 2025, its citywide retrofit program conserved approximately 900,000 kilowatt-hours of energy during the single month of December 2024.

The Integration of IoT and Intelligent Systems in Smart City Projects further propels the market by transforming passive lighting hardware into active, data-driven networks. Advanced outdoor fixtures now frequently incorporate smart controllers and sensors that facilitate remote management, adaptive dimming, and automated maintenance alerts, thereby reducing operational downtimes and labor costs. This connectivity supports broader urban modernization goals, allowing utilities to monitor vast lighting assets from a central interface rather than relying on manual inspections. Illustrating this technological shift, according to PhillyVoice, in October 2025, the City of Philadelphia completed a comprehensive infrastructure project that successfully networked 130,000 streetlights into a centralized management system to optimize citywide service delivery and response times.

Download Free Sample Report

Key Market Challenges

The primary challenge hampering the growth of the Global Outdoor LED Lighting Market is the high initial capital expenditure required for infrastructure modernization. Although LED technology offers documented long-term savings through improved energy efficiency and lower maintenance requirements, the substantial upfront costs for procuring advanced luminaires, poles, and integrated smart control systems place a heavy burden on municipal and commercial budgets. This financial hurdle is particularly prohibitive for local governments and private entities operating with constrained capital resources, often forcing them to defer or significantly scale back retrofitting projects. Consequently, the pace of market penetration is slowed, as decision-makers prioritize immediate operational expenses over capital-intensive upgrades that yield returns only over an extended period.

The impact of these financial barriers is most pronounced in developing economies and cost-sensitive regions where economic instability further limits purchasing power. According to the Global Off-Grid Lighting Association, in May 2025, the market for lighting solutions in West Africa experienced a severe contraction, with sales volumes declining by 33% throughout 2024 due to high inflation and currency devaluation that made the initial acquisition costs unsustainable. This data illustrates how economic volatility and high entry costs directly impede the universal adoption of efficient outdoor lighting technologies, creating a fragmented market landscape where growth is concentrated only in regions with robust public funding or flexible financing mechanisms.

Key Market Trends

Adoption of Dark Sky compliant and wildlife-friendly spectral configurations is altering fixture design as municipalities prioritize ecological preservation alongside visibility. Manufacturers are engineering full cut-off luminaires with warmer color temperatures to minimize blue light emission, which disrupts nocturnal ecosystems and human circadian rhythms. This shift is enforced by ordinances requiring precise optical control to eliminate skyglow and prevent light trespass into residential zones. Illustrating this regulatory momentum, according to Times of Malta, December 2025, the Ministry for the Environment announced a €13 million project to replace over 34,000 streetlights with fully shielded, dark-sky compliant LED fixtures aimed at eliminating light pollution while protecting biodiversity.

Emergence of multifunctional smart poles with integrated EV charging is transforming passive vertical assets into critical hubs for urban mobility. Cities are utilizing existing streetlight columns to deploy electric vehicle supply equipment without extensive groundworks, effectively resolving curbside charging shortages for residents without private driveways. These modular units frequently combine power delivery with connectivity, maximizing infrastructure utility beyond simple illumination. Underscoring this shift, according to Ubitricity, October 2025, the company completed the rollout of 2,000 public electric vehicle charge points integrated into streetlights across the London Borough of Tower Hamlets to accelerate zero-emission transport adoption.

Segmental Insights

Based on trusted industry analysis, the Fluorescent Lights segment is currently identified as the fastest-growing category within the competitive landscape of the Global Outdoor LED Lighting Market. This rapid expansion is primarily driven by the technology's cost-effectiveness, which offers a lower initial investment compared to many advanced alternatives. Furthermore, fluorescent fixtures provide a significantly longer operational lifespan than traditional incandescent bulbs and emit less heat, making them highly suitable for temperature-sensitive outdoor applications. These functional advantages, combined with their increasing adoption as an energy-efficient substitute for conventional lighting in infrastructure projects, are fueling the segment's robust growth.

Regional Insights

North America commands the largest share of the global outdoor LED lighting market, driven by widespread infrastructure modernization and rigorous energy efficiency regulations. Regional governments actively prioritize retrofitting conventional streetlights with LED technology to lower public utility costs and enhance visibility. The U.S. Department of Energy plays a central role in this transition by establishing standards that encourage the adoption of durable lighting solutions for highways and urban areas. Furthermore, the rising integration of intelligent control systems in municipal planning supports continuous demand for connected outdoor lighting across the region.

Recent Developments

• In November 2025, Schréder announced a strategic partnership with EdgeMachines to enhance smart city infrastructure through real-time data solutions. The collaboration involved the launch of the Schréder SENSE ONE, a compact sensor designed to transform existing outdoor lighting networks into intelligent platforms. This device enables the collection and processing of data to improve urban efficiency and responsiveness. The partnership aimed to leverage the lighting company's expertise in outdoor luminaires and the technology partner's capabilities in edge computing to deliver advanced connected lighting services for municipalities and utility providers.
• In September 2025, Signify strengthened its professional outdoor lighting portfolio with the launch of the ActiStar and GreenVision Xceed Pro luminaires. The ActiStar was introduced as an advanced LED floodlight tailored for outdoor areas and sports facilities, offering precise light distribution to reduce light pollution. Simultaneously, the company released the GreenVision Xceed Pro, a modular road and street lighting solution designed for high energy efficiency and ease of maintenance in both rural and urban settings. These products were strategically rolled out to markets in Asia, Australia, Africa, and South America to support infrastructure development.
• In June 2025, Dialight unveiled the Battery Backup ProSite LED Floodlight, a new addition to its industrial outdoor lighting range designed for hazardous and non-hazardous applications. The fixture featured an integrated nickel-metal hydride battery capable of operating in extreme temperatures and providing up to 1,700 lumens of illumination during power outages. This product was engineered to ensure safety in critical outdoor areas such as egress pathways, building perimeters, and muster zones. The launch addressed the industry need for durable, self-sufficient lighting solutions that maintain visibility and compliance with safety codes during electrical failures.
• In April 2025, Cree Lighting announced the expansion of its outdoor LED lighting portfolio by introducing a new 1900K correlated color temperature option with a 50 color rendering index. This specification, designated as the 19K5 option, was made available across a broad range of the company’s outdoor roadway and area lighting solutions. The development was intended to support applications that require minimized blue light emission to protect nocturnal wildlife and reduce skyglow, while ensuring sufficient visual comfort. This launch highlighted the company's focus on delivering environmentally responsible illumination technologies for municipalities and commercial entities.

Key Market Players

• Signify Holding
• General Electric
• OSRAM GmbH
• Hubbell
• ACUITY BRANDS, INC.
• Zumtobel Group
• Eaton
• Cree LED
• SYSKA
• Virtual Extension

By Source	By Distribution Channel	By Application	By Region
LED Lights Plasma Lamps High-Intensity Discharge Lamps Fluorescent Lights	Offline Online	Residential Commercial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Outdoor LED Lighting Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Outdoor LED Lighting Market, By Source:

• LED Lights
• Plasma Lamps
• High-Intensity Discharge Lamps
• Fluorescent Lights

• Outdoor LED Lighting Market, By Distribution Channel:

• Offline
• Online

• Outdoor LED Lighting Market, By Application:

• Residential
• Commercial

• Outdoor LED Lighting Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE