Outdoor Led Smart Lighting Solution Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Installation Type (New Installations, Retrofit Installations), By Component (LED Luminaires, Control and Communication Systems, Software and Services), By End-user (Government and Municipalities, Commercial and Industrial, Residential, Others), By Region, By Competition, 2020-2030F

Market Overview

The Global Outdoor Led Smart Lighting Solution Market, valued at USD 179.10 Million in 2024, is projected to experience a CAGR of 24.00% to reach USD 651.07 Million by 2030. Outdoor LED Smart Lighting Solutions are intelligent, connected light-emitting diode luminaires designed for exterior environments, integrating advanced controls, connectivity, and sensing capabilities for remote operation, automated adjustments, and optimized energy usage. The market is primarily driven by accelerating urbanization and extensive smart city initiatives globally, which emphasize enhanced public safety and energy efficiency. The inherent energy savings and extended lifespan of LED technology, combined with reduced operational costs and carbon emissions, also significantly contribute to market growth.

According to NEMA, the global NEMA Adaptive Lighting Controllers market size stood at USD 2.14 billion in 2024. A notable challenge impeding further market expansion involves the considerable initial investment costs associated with implementing comprehensive smart lighting infrastructure.

Key Market Drivers

The accelerated implementation of smart city initiatives and ongoing urban development significantly propels the Global Outdoor LED Smart Lighting Solution Market. Cities worldwide are increasingly recognizing the necessity of integrated, data-driven infrastructure to manage urban challenges efficiently, with outdoor lighting serving as a foundational element for broader smart city ecosystems. This trend is demonstrated by robust growth in urban areas adopting intelligent technologies, for instance, according to the International Institute for Management Development, a business school based in Switzerland, in April 2023, the global number of smart cities grew from 118 in 2021 to 141 in 2023. Such initiatives leverage connected lighting systems to enhance public services, improve traffic management, and collect environmental data, transforming streetlights into critical nodes for urban intelligence.

Concurrently, enhanced energy efficiency and substantial operational cost reduction offered by LED smart lighting solutions are primary motivators for market expansion. Traditional lighting systems incur high energy consumption and frequent maintenance expenses, presenting a significant financial burden for municipalities. The shift to outdoor LED smart lighting directly addresses these issues by drastically lowering power consumption and extending product lifespans. As an illustrative case, according to Schréder, a leading lighting solutions provider, its smart lighting system implemented in Valencia, Spain, resulted in a 74% reduction in lighting energy consumption, leading to €6 million in savings. This substantial reduction in both energy usage and maintenance efforts generates compelling return on investment for cities. Furthermore, this broad adoption is underscored by the projection that, according to Power Over Energy, in May 2024, approximately 90% of streetlights globally are expected to be upgraded to LEDs by 2030.

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Key Market Challenges

The considerable initial investment costs associated with implementing comprehensive smart lighting infrastructure significantly impede the growth of the Global Outdoor LED Smart Lighting Solution Market. Municipalities and property developers often face substantial upfront capital expenditures for hardware, software, installation, and integration. This financial burden frequently delays or entirely prevents the adoption of these advanced systems, particularly for entities operating with constrained budgets. While the long-term operational savings and environmental benefits are well-recognized, the immediate capital outlay creates a critical barrier to widespread deployment.

This financial hurdle directly slows market penetration. The scale of individual smart lighting projects, for example, represents a substantial capital investment. According to the DALI Alliance, a single DALI-based lighting system implemented for a clinical facility in the UK comprised over 20,000 assets in 2024. Such large-scale deployments, even for advanced control systems, highlight the significant initial financial commitment required. This directly impacts market expansion, as potential adopters are often deterred by the substantial upfront cost, leading to slower upgrades from traditional lighting systems despite the clear advantages offered by smart lighting technologies.

Key Market Trends

Advanced IoT and 5G network integration for control represents a significant trend in the Global Outdoor LED Smart Lighting Solution Market, enabling more robust and responsive urban infrastructure. The incorporation of these advanced communication technologies allows for real-time monitoring, granular control of individual light points, and efficient data exchange between smart lighting systems and broader smart city platforms. This connectivity facilitates functions such as adaptive lighting based on traffic flow or pedestrian presence, remote diagnostics, and predictive maintenance. For instance, Signify, a global leader in lighting, partnered with Cornerstone and Dense Air to transform street lighting infrastructure into a platform for scalable multi-operator connectivity, launching in Oxford in April 2025 to expand wireless coverage using existing light points. According to the LoRa Alliance’s 2024 Annual Report, over 350 million end nodes and 6.9 million gateways with LoRa ICs were deployed worldwide as of June 2024, indicating the expanding foundation for interconnected outdoor devices. This technological convergence enhances the operational efficiency and utility of outdoor LED lighting, transforming them into critical nodes for urban intelligence and data transmission.

Another influential trend is the application of AI and predictive analytics for system optimization. This involves leveraging machine learning algorithms to analyze vast datasets collected from smart lighting sensors and other urban data sources. AI-driven systems can predict maintenance needs, optimize energy consumption patterns, and automatically adjust lighting levels to enhance safety and user comfort, moving beyond simple programmed schedules. For example, Philips Hue, a Signify brand, introduced an AI-powered assistant in its app, delivering personalized lighting scenes and managing automations, which became live in most markets in September 2025. The Zhaga Consortium, recognizing the strategic importance of streetlights for smart city sensing tasks, has developed Zhaga Book 18, a standard to make smart city sensors interoperable with next-generation streetlights and their smart control systems. This standardization supports the seamless integration of sensor data, which is essential for effective AI and predictive analytics in outdoor lighting environments.

Segmental Insights

The Software and Services segment is a key driver of growth within the Global Outdoor LED Smart Lighting Solution Market. This rapid expansion is primarily due to the increasing demand for advanced functionalities and sophisticated control over lighting infrastructure, particularly within smart city initiatives and public spaces. Software solutions enable remote monitoring, real-time adjustments, predictive maintenance, and data analytics, which significantly enhance energy efficiency and operational management for municipalities and commercial entities. Furthermore, the integration of smart lighting systems with broader IoT ecosystems and other urban services relies heavily on robust software platforms and specialized services for seamless operation, data exchange, and the delivery of value-added features like enhanced public safety and environmental monitoring. This evolving landscape necessitates continuous software updates, system integration expertise, and ongoing support, solidifying the segment's growth trajectory.

Regional Insights

North America leads the Global Outdoor LED Smart Lighting Solution Market, primarily driven by the widespread adoption of smart city initiatives across its urban centers. This dominance is further strengthened by substantial governmental and private sector investments focused on modernizing infrastructure and advancing energy efficiency goals. Supportive government policies, including various incentives, actively encourage the deployment of advanced LED lighting solutions. The region's early integration of Internet of Things (IoT) solutions into municipal projects and high technological awareness also contribute significantly to its market leadership, enabling enhanced public safety and reduced operational costs through connected lighting systems.

Recent Developments

• In September 2025, Govee unveiled its Permanent Outdoor Lights Prism at IFA 2025, a significant new product launch for the outdoor smart lighting sector. This flagship model features an industry-first triple-color lighting effect with a dynamic optical design, achieved through a custom-engineered optical structure that ensures seamless blending of light zones without overlap. The lights incorporate Govee's LuminBlend™ color management solution, offering 16 million colors and smooth gradients. Designed for extreme outdoor conditions, the product boasts IP68-rated lights and IP67-rated control units, ensuring robust and reliable year-round performance.

• In August 2025, Foshan Lighting showcased a breakthrough in intelligent sensing for outdoor applications with its AI-connected microwave sensing solution. This innovation transforms street lamps into sophisticated sensing nodes within smart cities. The system, which comprises networked microwave lamps, smart gateways, and a central control platform, uses an AI self-learning algorithm to dynamically adjust "virtual lighting circuits" based on real-time traffic and pedestrian movement. This technology is projected to achieve an 82% overall energy-saving rate and facilitates integration with smart city management systems such as parking guidance and traffic dispatching.

• In November 2024, Signify launched the Philips UltraEfficient Professional Range in the Philippines, a development relevant to the outdoor LED smart lighting sector. This new product line includes RoadFlair Pro UltraEfficient Street Lights and UltraEfficient LED Flood Lights, among others, specifically designed for outdoor applications. The range aims to deliver up to 50% lower energy consumption compared to standard LEDs and offers a significantly extended lifespan. The integration with Signify's Interact lighting system enables remote monitoring and control, supporting businesses in achieving energy efficiency and operational objectives for their outdoor lighting infrastructure.

• In January 2024, Nanoleaf introduced its first-ever outdoor smart lighting products, expanding its portfolio to the Global Outdoor LED Smart Lighting Solution Market. The new Essential Matter series includes Smart Multicolor Outdoor String Lights and Smart Multicolor Permanent Outdoor Lights. These Matter-compatible lights are designed to bring dynamic gradients and ambient illumination to exterior spaces such as patios and gardens. Users can manage their outdoor lighting through the Nanoleaf App, integrated smart home ecosystems, or voice commands, providing flexible and customizable lighting experiences for various outdoor environments throughout the year.

Key Market Players

• Signify N.V
• Acuity Brands, Inc
• Savant Technologies LLC
• OSRAM Licht AG
• Eaton Corporation plc
• Cree Lighting USA LLC
• Hubbell Incorporated
• Zumtobel Group AG
• Syska Led Lights Pvt Ltd
• Virtual Extension Ltd.

Report Scope:

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

• Outdoor Led Smart Lighting Solution Market, By Installation Type:

o   New Installations

o   Retrofit Installations

• Outdoor Led Smart Lighting Solution Market, By Component:

o   LED Luminaires

o   Control and Communication Systems

o   Software and Services

• Outdoor Led Smart Lighting Solution Market, By End-user:

o   Government and Municipalities

o   Commercial and Industrial

o   Residential

o   Others

• Outdoor Led Smart Lighting Solution Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Outdoor Led Smart Lighting Solution Market.

Available Customizations:

Global Outdoor Led Smart Lighting Solution Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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