Europe Street Lighting Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Europe Street Lighting Market Trends and Insights

EU Ban on Fluorescent Lamps and Strict Efficiency Targets

RoHS phase-outs removed compact fluorescent and T5/T8 tubes from sale in August 2023, triggering immediate retrofits across an estimated 11 billion lamp points and accelerating the European street lighting market. Municipalities also face binding 11.7% public-sector energy-consumption cuts by 2030, turning connected LED luminaires into compliance essentials. Signify calculates that converting the continent’s remaining conventional streetlights would trim overall electricity demand from 13% to 8%, roughly equal to shutting 267 average power plants.^{[4]Signify, “Signify European Green Deal,” signify.com} Procurement urgency has intensified because non-compliance now attracts financial penalties under updated Energy Efficiency Directive rules.

Smart-City Stimulus Accelerating Smart-Lighting Roll-Outs

The EU Smart Cities Marketplace has channeled EUR 924 million (USD 1.076 billion) into 100 projects, positioning intelligent luminaires as foundational 5G and IoT nodes. Tampere’s pilot used BrightSites poles to deliver high-speed wireless backhaul at 40% lower cost than trenching fiber. Munich’s 48,000-unit LED upgrade includes adaptive dimming that slashes energy use by 93% during off-peak hours. As one of 100 EU cities pledged to be climate-neutral by 2030, Barcelona centrally monitors more than half of its 146,000 lighting points while upholding 20–30 lux safety levels.

Falling LED, Sensor and Connectivity Costs

Luminaire efficacy leapt from 35 lm/W to 100 lm/W, and 50,000-hour lifetimes now match or beat conventional fixtures on total cost of ownership, propelling the European street lighting market. Miniaturized controllers, such as a 40 × 19 mm LoRaWAN module from Nordic Automation Systems, retail for under EUR 50 and snap into Zhaga sockets, shrinking integration hurdles. NB-IoT boards based on Nordic’s nRF9160 enable secure cellular links at low power draw, letting municipalities future-proof assets without major cost premiums. Infineon’s ALL2GaN project seeks 30% added efficiency through gallium-nitride drivers, offsetting thermal stress in high-power LEDs.

EU Recovery and Resilience Facility Funding

Italy’s EUR 194.4 billion (USD 226.54 billion) recovery plan earmarks substantial sums for green public infrastructure, including lighting, which lifts local demand above the overall European street lighting market growth. The European Investment Bank backed ACEA with EUR 500 million (USD 582.66 million) to digitize Rome’s distribution grid, enabling advanced lighting controls that interact with smart meters.^{[5]European Investment Bank, “ACEA Grid Investments,” eib.org} Terna will spend EUR 16.5 billion (USD 19.23 billion) on grid digitalization between 2024-2028, laying the backbone for demand-responsive luminaires. Funding milestones were met on schedule, ensuring a steady pipeline of municipal lighting tenders.

High Upfront CAPEX for Smart Retrofits

Full smart-ready replacements cost EUR 300-500 per pole versus EUR 150-200 for basic LED swaps, delaying adoption in cash-constrained municipalities and tempering the European street lighting market trajectory. EU evidence calls highlight a financing gap, even though grants exist, pushing vendors to propose light-as-a-service contracts that shift investment off balance sheet. Yet procurement codes in several member states still struggle to accommodate outcome-based models, slowing deal closure.

LED Driver Reliability and Thermal Failure Issues

Consortium studies have traced purple-light failures to phosphor degradation in chip-scale LEDs under high heat, eroding public trust in early installations. Junction temperatures above 75 °C can halve rated lifetimes, particularly in Nordic climates that see wide temperature swings. Micro-heat-pipe drivers now cut operating temps by 5 °C, but add 15-25% to bill-of-materials costs. Specialized high-temperature luminaires are emerging, yet the reliability narrative remains a drag on some retrofit decisions.

Segment Analysis

By Lighting Type: Smart Systems Challenge Conventional Dominance

Conventional luminaires still represented 60.1% of the Europe street lighting market in 2024, but smart systems are accelerating at a 9.3% CAGR as city managers chase connectivity and energy analytics. Germany’s Munich retrofit illustrates the pivot: 48,000 upgraded poles use adaptive dimming to save 93% of overnight power, a data point that resonates across the European street lighting industry planning. 

Barcelona’s centralized control over 146,000 points shows scalability; remote commands keep illumination at 20-30 lux while trimming real-time load, reinforcing confidence in smart upgrades within the European street lighting market.

Municipalities that already switched to LEDs now consider a second wave focused on sensors, traffic monitoring, and 5G small-cell attachment, underpinning service revenue streams. Strasbourg proves dimming policies can coexist with safety by timing partial shut-offs between 01:00-05:00 and cutting energy by 30%. Funding schemes under the Smart Cities Marketplace keep smart-lighting pilots within reach for mid-sized cities, boosting future demand.

By Light Source: LED Technology Dominates Transition

LEDs captured 68.7% share of the European street lighting market size in 2024 and are on track for an 8.7% CAGR through 2030 under the mercury-phase-out timetable. Legacy fluorescent and HID products linger only where budgets delay retrofits or where extreme-output fixtures remain unmatched. 

Performance leaps - from 35 lm/W to 100 lm/W - plus 50,000-hour durability mean most tenders now specify LEDs by default, locking in market leadership. Signify already derives 90% of sales from LED products, signaling maturity even as reliability concerns spur R&D on thermal solutions. EU 2040 climate rules requiring a 90% emissions cut make LED roll-outs non-negotiable for municipalities pursuing net-zero pathways.

By Offering: Hardware Dominance Shifts Toward Service Integration

Hardware still brings in 79.5% of 2024 revenues, yet the software-and-services slice is expanding 8.9% a year as city managers value predictive maintenance and real-time data. Lights and luminaires remain the lion’s share, but control platforms like Schréder EXEDRA are the fastest-growing hardware sub-category, thanks to open APIs that link traffic, air-quality, and grid databases. 

Zumtobel’s light-as-a-service contracts demonstrate momentum toward pay-as-you-save models that bundle hardware, monitoring, and performance guarantees, an approach accelerating the Europe street lighting market shift from CAPEX to OPEX. EU digital-transition grants inside national recovery plans further subsidize software modules that transform poles into multi-sensor edge devices.

By Connectivity Technology: Wireless Solutions Gain Momentum

Wired schemes - PLC, DALI, Ethernet - still connect 71.6% of installations, valued for reliability on dense grids. Yet wireless nodes are climbing at 9.2% CAGR as LoRaWAN and NB-IoT remove trenching costs and speed deployment across the European street lighting market. A Nordic Automation Systems LoRaWAN controller fits inside a Zhaga socket and sells for less than EUR 50, validating volume economics. 

5G convergence is visible in O2 Telefónica’s nationwide street-pole roll-out, where integrated antennas deliver mobile capacity while the lighting circuit feeds power and backhaul. PLC remains relevant for heritage networks, but future tenders in the European street lighting industry often mandate dual-mode capability to hedge technology cycles.

By Installation Type: Retrofit Opportunities Drive Growth

New builds controlled 63.8% revenue in 2024, buoyed by city-center revitalization and greenfield developments that specify connected LEDs from the outset. However, retrofits - including secondary replacements of early LEDs - advance at 9.1% CAGR and are the largest incremental opportunity in the European street lighting market. Milton Keynes’ switch of 18,000 poles to LEDs will save 5 million kWh annually and roughly EUR 2 million, validating the payback narrative. 

Early LED vintages (2015-2020) now face lumen depreciation and outdated control gear, creating a fresh wave of demand for thermally robust fixtures and smart drivers. EU recovery funds further sweeten retrofit economics by covering up to 100% of eligible costs for municipalities that hit climate milestones.

Geography Analysis

Germany’s mature retrofit programs and nationwide 5G streetlight plan keep demand steady even as basic LED penetration passes the halfway mark. Municipal frameworks streamline tenders, and adaptive dimming deployments deliver documented 93% overnight energy cuts, which continue to justify upgrades despite slower volume growth.

Italy is racing ahead under Mission 2 of the recovery plan, with integrated urban projects that bundle energy-efficient lighting, EV charging, and renewable generation. Financing via the EIB and national complementary funds reduces CAPEX barriers, accelerating roll-outs even in smaller municipalities.

Across the rest of Europe, the EU Smart Cities Marketplace helps medium and small towns procure connected lighting without in-house expertise, ensuring that the European street lighting market expands beyond capital cities. Nordic clusters focus on IoT sensors and renewable integration, Eastern states prioritize LED basics, while Southern corridors pilot adaptive dimming to cope with rising energy prices.