Outdoor Lighting Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Street Lights, Flood Lights, Garden Lights, Path Lights, Bollard Lights), By Light Source (LED, High-Intensity Discharge (HID), Fluorescent Lights, Incandescent Lights) By End User (Government, Commercial, Residential) By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 13.64 Billion
CAGR (2026-2031)	15.76%
Fastest Growing Segment	Incandescent Lights
Largest Market	Asia Pacific
Market Size (2031)	USD 32.82 Billion

Market Overview

The Global Outdoor Lighting Market will grow from USD 13.64 Billion in 2025 to USD 32.82 Billion by 2031 at a 15.76% CAGR. The global outdoor lighting market encompasses the provision of artificial illumination for exterior environments, including roadways, parking facilities, pedestrian pathways, and architectural landscapes, utilizing technologies such as Light Emitting Diodes and High Intensity Discharge lamps. The primary drivers fueling market expansion include the rapid pace of global urbanization which necessitates robust infrastructure development and the implementation of stringent government regulations mandating energy efficiency. These regulatory frameworks compel municipalities and commercial entities to replace legacy lighting systems with sustainable alternatives, thereby stimulating demand for solutions that offer reduced operational costs and lower carbon footprints.

Despite the positive growth trajectory, the market faces a significant challenge regarding the high initial capital expenditure required for the installation of modern smart lighting systems, which can deter budget constrained municipalities from initiating large scale projects. However, industry sentiment remains optimistic regarding future demand and technological adoption within the sector. According to the National Electrical Manufacturers Association, in June 2024, the future conditions component of the Electroindustry Business Confidence Index reached a score of 84.6, reflecting strong expectations for growth within the electrical and lighting manufacturing industries. This positive outlook suggests that long term operational savings are increasingly outweighing concerns over upfront investment costs.

Key Market Drivers

The widespread transition to energy-efficient LED solutions is fundamentally reshaping the global outdoor lighting market as municipalities and utility providers aggressively replace legacy high-intensity discharge systems. This shift is primarily driven by the urgent need to meet decarbonization targets and reduce operational electricity consumption, effectively phasing out conventional lighting technologies. The dominance of solid-state lighting in the current sales mix of major industry leaders exemplifies this trend. According to Signify, January 2024, in the 'Fourth quarter and Full-Year Results 2023 Report', LED-based sales represented 85% of the company's total sales, underscoring the near-total market absorption of this technology over traditional alternatives.

Simultaneously, the implementation of smart city initiatives and infrastructure modernization is creating significant value beyond simple illumination. Urban planners are increasingly integrating IoT-enabled lighting controls to enhance public safety, monitor traffic patterns, and optimize maintenance schedules through connected networks, necessitating substantial capital projects. According to the City of Philadelphia, February 2024, in a 'Philly Streetlight Improvement Project' update, the municipality highlighted a $91 million investment to convert approximately 130,000 streetlights to a network of remotely controlled fixtures. These large-scale modernization efforts continue to sustain substantial revenue streams for manufacturers; according to Acuity Brands, in October 2024, the company reported fiscal year net sales of $3.84 billion, reflecting the enduring scale of demand for advanced lighting and infrastructure solutions.

Download Free Sample Report

Key Market Challenges

The high initial capital expenditure required for advanced outdoor lighting systems acts as a substantial financial barrier that directly impedes market growth. Although LED technology and smart controls offer operational efficiency, the upfront costs for procurement, infrastructure upgrades, and installation remain prohibitive for many buyers. Municipalities and commercial entities often operate under rigid fiscal constraints, making it difficult to allocate large sums for immediate system overhauls. Consequently, these financial limitations force decision-makers to delay or scale down modernization projects, effectively stalling the conversion rate from legacy systems to modern alternatives.

This hesitation to commit capital is evident in recent industry performance data, which contrasts with long-term optimism. According to the National Electrical Manufacturers Association, in 2024, the current conditions component of the Electroindustry Business Confidence Index dropped to a score of 46.7 in April, indicating a contraction in the sector. This contraction underscores the difficulty stakeholders face in executing projects in the present economic environment. When upfront funding is unavailable, the market experiences a tangible slowdown in shipment volumes and project initiations, regardless of the potential for future energy savings.

Key Market Trends

The standardization of modular Zhaga connectivity is emerging as a critical trend for future-proofing luminaires, addressing the need for interoperability and circular economy principles in outdoor infrastructure. Unlike proprietary systems, this shift allows municipalities to upgrade sensing and communication modules without replacing the entire fixture, thereby extending asset lifecycles and reducing electronic waste. This industry-wide move toward interchangeable components is gaining momentum as standards bodies expand their scope to cover diverse lighting types. According to the Zhaga Consortium, November 2025, in the 'Zhaga expands smart lighting standard with new edition of Book 18 for heritage and decorative luminaires' press release, the organization released Edition 4 of its widely adopted specification to strictly define mechanical and electrical interfaces for over 600 member companies, ensuring broad compatibility across decorative and heritage outdoor applications.

Simultaneously, the market is witnessing the widespread adoption of autonomous off-grid solar LED solutions, driven by the requirement for resilient infrastructure that functions independently of the electrical grid. This trend is distinct from general energy efficiency as it eliminates the substantial civil engineering costs associated with trenching and cabling, particularly in remote or expanding urban perimeters. Manufacturers are responding by integrating advanced photovoltaics and battery storage directly into modular pole systems to secure revenue in this high-growth segment. According to Signify, October 2025, in the 'Third Quarter Results 2025' report, the company recorded sales of EUR 1.4 billion, a performance supported by the strategic strengthening of its professional portfolio with new connected solar street lighting products designed to meet these evolving infrastructure needs.

Segmental Insights

Based on recent industry analysis, the Incandescent Lights segment has emerged as the fastest growing category within the Global Outdoor Lighting Market. This trend is primarily driven by a resurgence in demand for decorative and aesthetic lighting solutions across the residential and hospitality sectors. Consumers and businesses are increasingly prioritizing the distinct warm color rendering and vintage appeal of incandescent filaments to create inviting atmospheres in patios, gardens, and dining areas. Additionally, the lower initial cost of these fixtures supports their rapid adoption for seasonal displays and temporary architectural accents, securing a specialized but expanding market position.

Regional Insights

Asia Pacific leads the Global Outdoor Lighting Market, driven by rapid infrastructure development and urbanization in emerging economies. The region experiences high demand for street and highway illumination to support expanding transportation networks. Governments are actively replacing conventional systems with energy-efficient alternatives to reduce power consumption. For instance, initiatives aligned with India’s Smart Cities Mission promote the installation of intelligent public lighting to enhance safety and operational efficiency. Consequently, the continuous focus on modernizing municipal services and developing residential townships establishes the region as the primary revenue generator in the global sector.

Recent Developments

• In November 2025, Schréder and EdgeMachines announced a strategic partnership to launch a compact sensor capable of converting existing lighting networks into smart city platforms. This collaboration focused on the introduction of the Schréder SENSE ONE, a solution designed to deliver real-time data for applications such as traffic monitoring and urban efficiency management. The initiative underscored the company's commitment to leveraging outdoor lighting infrastructure to support broader smart city objectives and enhance the operational capabilities of municipal environments through advanced connectivity, cybersecurity, and data analytics, ensuring a seamless integration of technology into the public realm.
• In September 2025, Signify expanded its professional portfolio with the introduction of new solar and sports lighting products, including the SunStay Pro gen2 and SunStay Pro gen2 mini. These innovations featured an all-in-one modular design utilizing recycled materials and were specifically engineered for connected solar street lighting applications in pedestrian and cycling areas. Simultaneously, the company launched the GreenVision Xceed Pro and Actistar luminaires, aimed at delivering high-performance illumination for stadium and recreational sports facilities. This development highlighted the organization's continued focus on delivering energy-efficient and circular outdoor lighting technologies to the global market.
• In November 2024, Thorn Lighting received industry recognition at the Highway Electrical Association Awards for its deployment of Urba NightTune lanterns on a key active travel route. The project was acknowledged for its ability to balance pedestrian safety with environmental sensitivity, utilizing adjustable color temperatures and precise light control to minimize disturbance to nocturnal wildlife. This application demonstrated the company's capability to deliver outdoor lighting solutions that address ecological concerns while maintaining high standards of visibility for public infrastructure, effectively reducing light pollution in sensitive areas.
• In September 2024, Acuity Brands showcased its latest advancements in roadway and area lighting at the IES Street and Area Lighting Conference. The presentation featured significant performance upgrades to the AEL Autobahn luminaire, which included a new LED light engine and precision-molded optics designed to enhance illumination quality and uniformity. The company also emphasized its expanding portfolio of embedded and Zhaga-compliant control solutions, such as DALI D4i and low-voltage asset management systems. This exhibition reinforced the organization's strategy of integrating smart controls with robust outdoor fixtures to improve the management and efficiency of city lighting networks.

Key Market Players

• Acuity Brands, Inc.
• Hubbell Incorporated
• Osram Licht AG
• Cree, Inc.
• Zumtobel Group AG
• Eaton Corporation plc
• Fagerhult Group AB
• Schreder S.A.

By Type	By Light Source	By End User	By Region
Street Lights Flood Lights Garden Lights Path Lights Bollard Lights	LED High-Intensity Discharge (HID) Fluorescent Lights Incandescent Lights	Government Commercial Residential	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Outdoor Lighting Market, By Type:

• Street Lights
• Flood Lights
• Garden Lights
• Path Lights
• Bollard Lights

• Outdoor Lighting Market, By Light Source:

• LED
• High-Intensity Discharge (HID)
• Fluorescent Lights
• Incandescent Lights

• Outdoor Lighting Market, By End User:

• Government
• Commercial
• Residential

• Outdoor 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