Outdoor Lighting Market Report

LEDs' commercial viability has increased their adoption in a wide range of industries, including ATG and underwater segments. Throughout the forecast period, the ongoing decline in the average selling price (ASP) of LED is likely to have a significant beneficial impact on its penetration and market growth in both the residential and commercial sectors. Niche markets, such as stage lighting, decorative holiday lights, plant grow lights, traffic signals, pedestrian crossing lights, street and area lights, exit signs and recessed downlights, electric signage and path, step and porch lights are expected to drive LED light market growth during the forecast period. Furthermore, due to the additional benefits of LED technologies, the use of LED lighting in the commercial and residential sectors is expected to increase rapidly in emerging nations such as China, India, South Korea, and South Africa. These factors are projected to boost global market growth over the forecast period.

The market for outdoor LED lighting may be restricted by the development of alternative lighting technologies like laser lights. Laser lights have been shown to be more efficient than LEDs and to be almost as cost-effective in manufacturing. Laser light applications in entertainment displays and architectural lighting are already becoming mainstream, which may contribute to the stalling of LED lighting growth in architectural applications. Living in a world with artificial light, on the other hand, has serious negative effects on animals, humans and the environment. Additionally, according to national geography, only remote regions of the earth such as Siberia, the Sahara, and the Amazon are completely dark, while large expanses of Europe, North America, Asia and Middle East are ablaze with light. Also, the intensity of light pollution is rapidly increasing, and astronomers are having difficulty seeing celestial objects in the sky. According to the International Dark-Sky Association, skylight affects more than 80% of the world's population, including 99% of Americans and Europeans. One of the most common types of light pollution is sky glow due to human activities. As a result, light pollution has the potential to limit the growth of the outdoor lighting market.

Alliances and affiliations are very important in fostering changes and growth in market issues affecting the outdoor lighting business. Consultants in the field are working alongside technological firms to come up with intelligent structures for energy consumption and incorporate advanced elements into exterior lighting structures. Thus, in 2024, Inventronics and Mackwell signed an agreement on the forthcoming partnership for the evolution of the emergency lighting industry. This partnership combines Mackwell’s specialisation in the need for emergency lighting technology together with Inventronics’ large customer base, to bring improved quality and efficient emergency lighting solutions to this additional client base. This will introduce new high technology emergency conversion kits and drivers that will be specially packaged and labelled for Inventronics. The consumption targets of the companies’ products were initially focused on the UK but expand to other regions across Europe, Middle East and APAC. Another takeover was registered in March 2022 when OSRAM Licht AG formed a strategic worldwide focus on the area of optical system solutions, and allowed the sale of AMLS, a specialised company, to Plastic Omnium for US$71. 1 million.

In terms of market share, North America dominates the outdoor lighting market. The higher per capita income and growing awareness of sustainable lighting solutions are attributed to the growth. Additionally, governments all over the globe are pushing the usage of energy-efficient lighting, which is projected to propel the outdoor lighting market forward. For instance, the US government announced the Climate Smart Building Initiative in August 2022, which would strengthen the government's collaboration with the private sector to modernise federal buildings. This initiative includes increasing on-site renewable energy generation, provision efficient lighting and constructing electric vehicle charging infrastructure. Aside from that, new distribution channels, such as online retail outlets, are driving market growth.