Market Trends of Connected Street Lighting Industry
This section covers the major market trends shaping the Connected Street Lighting Market according to our research experts:
Increasing Number of Smart City Initiative and Down Trend of LED Prices to Drive the Market
- One of the main forces behind the adoption of smart and intelligent solutions is an increase in the number of people residing in urban areas, including the overall growth of the urban population (81% of the total population lives in cities). Modern cities have expanded primarily due to the requirement for efficient resource management in smart cities. Governments from many nations are cooperating and partnering with one another to move away from the conventional silo-based service delivery model and toward a collaborative and integrated model. More smart cities globally will result in a more robust demand for linked street lights because the market for connected street lights is strongly correlated with the number of smart city initiatives.
- Additionally, smart cities use various digital technologies to enhance device performance and communication; this helps to save expenses and use resources more effectively. A digital network and embedded sensors in smart street lighting enable the monitoring of municipal traffic and air quality.
- Moreover, government incentives for purchasing semiconductor machinery, such as metal-organic chemical vapor deposition (MOCVD) equipment used to make LEDs, are lowering manufacturing costs, pushing firms to boost their LED production capacity.
- Several industry players are working together with local governments to build smart cities. The connected (smart) street light sector garners participants' attention due to the growing awareness of energy-saving and efficient lighting techniques. Furthermore, it is anticipated that the market will rise due to the development of sensors and wireless systems in smart lighting.
- Additionally, the networked lights can monitor parking availability and identify traffic bottlenecks. It is anticipated that camera-connected smart street lighting will increase road safety by reducing the likelihood of accidents and criminal activity. As a result, the market expansion is expected during the forecast period as smart cities emerge.
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Asia-Pacific is Expected to Hold Major Share
- Asia-Pacific is currently experiencing a significant shift in lighting systems. Several companies operating in the region are increasingly adopting LED lighting, as compared to their counterparts, like incandescent and LFL, for use in their manufacturing plants, due to the improved energy efficiency of LED lighting systems.
- Further, the primary driver towards the adoption of connected street lighting is the government regulations towards preventing CO2 emissions incurred by Asian countries. For instance, South Korea's second National Energy Master Plan established the goal of 13% below the business-as-usual emission level by 2035. It also implemented various regulations, including the plan for an emissions-trading system (financial support and tax credits).
- In many cities around the globe, FTTH/ Hub C plans are ongoing, often using lighting infrastructure to minimize the cost of roll-out. This could also represent a significant boost to the development of smart applications.
- Moreover, In Japan, significant factors providing growth opportunities for smart lighting include the speedy development of sensor and wireless technology and increasing demand for smart lighting solutions for developing smart cities and street lighting. The development projects undertaken by the country's local authorities are further providing the necessary impetus for the market.
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