Outdoor Smart Lighting Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Offering (Hardware, Software, Services), By Communication Technology (Wired, Wireless), By Installation Type (New Installations, Retrofit Installations), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 18.19 Billion
CAGR (2026-2031)	5.94%
Fastest Growing Segment	New Installations
Largest Market	Asia Pacific
Market Size (2031)	USD 25.72 Billion

Market Overview

The Global Outdoor Smart Lighting Market will grow from USD 18.19 Billion in 2025 to USD 25.72 Billion by 2031 at a 5.94% CAGR. The Global Outdoor Smart Lighting Market consists of intelligent lighting solutions that combine LED technology with sensors and connectivity to allow for remote management and adaptive control in exterior settings. The primary drivers supporting market growth include the urgent global requirement for energy conservation and the increasing number of smart city projects that use streetlights as a central data platform. These foundational drivers differ from market trends by focusing on the essential economic and regulatory needs to reduce carbon emissions and decrease municipal electricity expenditures.

A significant challenge impeding market expansion is the high initial capital required for installing these advanced networked systems which can deter local governments with limited funds. This financial barrier often complicates the replacement of legacy infrastructure and delays the adoption of connected technologies. According to GOGLA, in 2024, the sector for solar based outdoor lighting recorded sales of 9.3 million units. This figure highlights the sustained demand for sustainable lighting options despite the funding difficulties associated with broader smart infrastructure deployment.

Key Market Drivers

Expansion of Smart City Initiatives and Urban Modernization Projects acts as a formidable catalyst for the Global Outdoor Smart Lighting Market. Municipalities are increasingly deploying networked streetlights to serve as the digital backbone for broader urban intelligence. By transforming static poles into dynamic data hubs, cities can support critical applications like traffic management and public safety analytics without requiring extensive new physical footprints. This shift allows governments to leverage existing vertical infrastructure to accelerate modernization roadmaps. According to Ubicquia, December 2025, in the 'Ubicquia expands intelligent streetlighting ecosystem' press release, the company's smart management platform is now deployed across more than 1,000 cities and utilities, highlighting the widespread integration of these technologies into municipal networks.

Stringent Energy Efficiency Regulations and Sustainability Mandates simultaneously compel the market's trajectory towards adaptive LED solutions. Governments worldwide are enforcing stricter carbon reduction targets, necessitating the replacement of legacy lamps with intelligent systems capable of dynamic dimming and remote scheduling. These regulations drive adoption by directly linking advanced controls with measurable environmental impact. According to Itron, June 2025, in the '2024 Corporate Sustainability Report', the company's intelligent infrastructure solutions helped customers avoid 7.5 million metric tons of greenhouse gas emissions in 2024. The scale of this transition is further evidenced by the growing volume of networked assets. According to Signify, in 2025, the company's installed base of connected light points reached 144 million by the end of the previous year.

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Key Market Challenges

The high initial capital required for installing networked outdoor lighting systems acts as a substantial barrier to market expansion. Implementing these intelligent solutions involves costs beyond simple fixture replacement, including expenses for sensors, connectivity modules, and centralized management software. For municipalities and commercial entities with restricted budgets, this aggregated financial burden often necessitates the postponement of infrastructure upgrades or the selection of basic, non-connected alternatives. Consequently, this budgetary strain complicates the transition from legacy systems, directly delaying the widespread integration of smart technologies required for market growth.

The hesitancy to invest capital also prevents stakeholders from realizing the operational advantages that drive the value proposition of smart lighting. According to the DesignLights Consortium, in 2024, research indicated that Networked Lighting Controls could increase the energy efficiency of lighting projects by an average of about 50 percent. Despite such clear efficiency data, the inability to secure upfront funding keeps these advanced systems underrepresented in the market. This economic friction dampens demand and restricts the sector from achieving its full potential, as buyers remain locked into less efficient, traditional lighting infrastructure.

Key Market Trends

The proliferation of interoperable open standards is reshaping the sector by dismantling proprietary vendor lock-in and enabling municipalities to build heterogeneous networks. Cities are increasingly mandating compliance with protocols like TALQ and mechanical interfaces such as Zhaga Book 18 to ensure that Central Management Systems (CMS) can seamlessly control field devices from multiple manufacturers. This technical convergence reduces investment risk and simplifies future infrastructure upgrades by allowing hardware and software from different suppliers to function within a unified ecosystem. According to the TALQ Consortium, October 2025, in the 'Unbroken Growth Trend for TALQ Certifications Increases Interoperability in Smart Cities' press release, the organization listed 74 TALQ-certified products from various global vendors, reflecting the industry's accelerated shift towards verified compatibility.

Implementation of dark sky compliant spectral tuning is gaining traction as urban centers prioritize minimizing light pollution alongside traditional energy savings. This trend focuses on utilizing warm-spectrum LEDs and precision shielding to mitigate sky glow and protect nocturnal biodiversity, moving beyond simple illumination to ecologically responsible lighting. Regulatory pressure and public awareness are driving manufacturers to engineer luminaires that adhere to strict zero-uplight standards to preserve the nighttime environment. According to DarkSky International, April 2025, in the 'DarkSky International Updates Lighting Standards to Combat Light Pollution' article, global light pollution is increasing by nearly 9.6 percent annually, a statistic that is compelling local governments to urgently adopt these specialized, wildlife-sensitive optical solutions.

Segmental Insights

The New Installations segment is positioned as the fastest-growing category in the Global Outdoor Smart Lighting Market, driven by extensive infrastructure development and smart city projects. Governments and municipal planners increasingly prioritize integrated smart solutions for newly constructed roadways, bridges, and public venues to ensure long-term energy efficiency. This growth is further supported by strict sustainability codes which mandate the inclusion of intelligent lighting controls in greenfield developments. Consequently, the ease of embedding connectivity during the initial construction phase makes new installations a preferred choice over retrofitting, fueling rapid segment expansion.

Regional Insights

Asia Pacific leads the global outdoor smart lighting market due to rapid urbanization and government mandates focusing on energy efficiency. Nations such as China and India are actively replacing conventional systems with intelligent controls to support large-scale infrastructure projects. For instance, India’s Smart Cities Mission drives the adoption of connected street lighting to lower energy consumption and maintenance costs. Additionally, the continuous expansion of commercial and residential construction across the region creates sustained demand for automated lighting solutions, solidifying Asia Pacific’s position as the dominant market in this sector.

Recent Developments

• In November 2025, Schréder entered into a strategic partnership with EdgeMachines to enhance its smart city offerings through the launch of a new sensor solution. The collaboration resulted in the introduction of Schréder SENSE ONE, a compact device capable of transforming existing lighting networks into digital platforms for real-time data collection. This sensor was designed to monitor various urban parameters, including traffic flow, noise levels, and air quality, facilitating better decision-making for city authorities. The partnership aimed to leverage the widespread presence of public lighting infrastructure to deploy cost-effective smart city services that improve urban efficiency and livability.
• In September 2025, Signify strengthened its professional lighting portfolio by launching the SunStay Pro gen2 and SunStay Pro gen2 mini, which are integrated solar street lighting solutions. These new luminaires were designed to operate independently of the electrical grid, utilizing solar panels and batteries to provide reliable illumination for areas such as bike paths, campuses, and pedestrian zones. The products featured motion-sensing capabilities to adjust brightness based on activity levels, thereby conserving energy. The launch highlighted the company's focus on sustainable and off-grid lighting technologies, with the mini version incorporating recycled materials to support circular economy goals.
• In November 2024, Ubicquia announced the release of its UbiCell Utility-Grade Universal (UGU) lighting controller, a device designed to improve the management of streetlights for utilities and municipalities. This new controller was engineered to work with both cobra head and decorative streetlights, providing AI-driven analytics and real-time network visibility. The solution aimed to enhance energy efficiency and asset management by offering advanced electrical diagnostics and surge protection. The product was developed based on insights from extensive deployments and was intended to simplify the operational complexity of managing diverse street lighting infrastructures while reducing maintenance costs.
• In April 2024, Nanoleaf introduced its first outdoor smart lighting solutions, the Smart Multicolor Outdoor String Lights and Smart Multicolor Permanent Outdoor Lights. These products were designed to enhance exterior spaces like patios and gardens with dynamic gradients and warm ambience. The string lights and permanent fixtures were engineered to be compatible with Matter, allowing for seamless integration with major smart home ecosystems. The launch marked the company's expansion from indoor to exterior lighting, offering users the ability to control their outdoor environment through a dedicated app or voice commands. The lights featured IP ratings suitable for year-round outdoor use and offered millions of color options.

Key Market Players

• Control4 Corp.
• Crestron Electronics Inc.
• Hubbell Incorporated
• Lutron Electronics Co. Inc.
• Inter IKEA Holding BV
• Signify Holding
• Wyze Labs Inc.
• EGLO Leuchten GmbH
• Savant Systems Inc.
• Acuity Brands Inc.

By Communication Technology	By Installation Type	By Region
Wired Wireless	New Installations Retrofit Installations	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Outdoor Smart Lighting Market, By Communication Technology:

• Wired
• Wireless

• Outdoor Smart Lighting Market, By Installation Type:

• New Installations
• Retrofit Installations

• Outdoor Smart 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