Japan Outdoor LED Lighting Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 1.67 Billion |
| Market Size (2030) | USD 2.36 Billion |
| Growth Rate (2025 - 2030) | 7.24% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Japan Outdoor LED Lighting Market Analysis by Mordor Intelligence
The Japan outdoor LED lighting market reached USD 1.67 billion in 2025 and is forecast to climb to USD 2.36 billion by 2030, reflecting a 7.24% CAGR. Market size expansion is driven by the mandatory phase-out of mercury-vapor lamps planned for fiscal year 2026, energy-efficiency directives issued by the Agency for Natural Resources and Energy, and declining LED component prices that shorten municipal payback periods.[1]Ministry of the Environment, “令和6年度予算および令和5年度補正予算 脱炭素化事業一覧,” env.go.jp Smart-city programs in the Tokyo-Nagoya-Osaka corridor amplify demand by bundling 5G small-cell equipment and environmental sensors with luminaires, converting lighting poles into multifunctional assets. Human-centric amber LEDs are gaining traction in environmentally sensitive areas because they reduce insect attraction and light pollution. At the same time, supply-chain exposure to imported gallium-nitride wafers and shrinking municipal budgets outside major metros challenge short-term growth.
Key Report Takeaways
- By product type, luminaires and fixtures led with a 72.45% share of the Japan outdoor LED lighting market in 2024, while lamps are projected to advance at an 8.44% CAGR through 2030.
- By application, street and roadway lighting accounted for a 47.74% share of the Japan outdoor LED lighting market size in 2024; sports and stadium lighting is set to expand at a 9.31% CAGR to 2030.
- By installation type, new installations accounted for 55.23% of the Japan outdoor LED lighting market size in 2024, whereas retrofit work is projected to grow at an 8.68% CAGR between 2025 and 2030.
- By distribution channel, direct sales commanded 68.67% of the Japan outdoor LED lighting market share in 2024, while e-commerce is projected to post a 9.66% CAGR through 2030.
Japan Outdoor LED Lighting Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Energy-efficiency mandates from Agency for Natural Resources and Energy | +1.8% | Nationwide, strongest in large metros | Medium term (2-4 years) |
| Rapid mercury-vapor street-lamp phase-out by FY-2026 | +2.1% | Nationwide, early movers in Tokyo, Osaka, Nagoya | Short term (≤ 2 years) |
| LED price erosion enabling faster municipal ROIs | +1.2% | Nationwide, accelerates rural adoption | Short term (≤ 2 years) |
| Tokyo-Nagoya-Osaka smart-city projects | +0.9% | Mega-corridor with spillover to secondary cities | Medium term (2-4 years) |
| Growing demand for human-centric amber LEDs | +0.6% | Coastal and rural conservation zones | Long term (≥ 4 years) |
| Deployment of 5G equipment on lighting poles | +0.8% | Major metros expanding to suburbs | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Energy-efficiency mandates reshape procurement.
Japan’s national efficiency standards oblige municipalities to meet predefined energy-intensity targets, making LED conversion a legal requirement rather than a discretionary upgrade. Local governments now bundle street, parking, and transit lighting in a single tender to maximize rebate eligibility, resulting in larger contract sizes and shorter project timelines. Transparent reporting rules enable city managers to benchmark their performance, fueling peer pressure that drives uptake among lagging jurisdictions. Penalties for non-compliance further compel rapid deployment even when capital budgets are tight.
Mercury-vapor ban compresses the replacement cycle.
Approximately 3 million mercury-vapor fixtures must be removed by the FY 2026 deadline, forcing municipalities to accelerate their upgrade schedules, which normally span a decade. The regulatory cut-off also stops the import of spare parts, leaving cities with a binary choice between full LED retrofits or non-functional lighting networks. This compressed window pulls demand forward and strains installation capacity, particularly for tunnel and bridge retrofits that need custom brackets.
Price erosion boosts ROI and rural demand.
Packaged LED costs fell by almost 12% between 2023 and 2025, cutting the average payback on street-lighting projects to under four years for most municipalities. Budget-constrained rural towns now meet internal rate-of-return thresholds without third-party financing, opening a previously stalled segment of the Japan outdoor LED lighting market. Component deflation also allows suppliers to bundle smart controls at a minimal premium, thereby raising the project value per pole.
Smart-city corridor turns poles into digital assets.
Metropolitan governments in Tokyo, Nagoya, and Osaka are evaluating LED poles as platforms for 5G small cells, Wi-Fi hubs, and environmental sensors, which generate ancillary revenue from telecom operators. Revenue sharing offsets installation costs and drives higher-specification purchases, such as integrated antennas and cloud-managed controllers. Proof-of-concept deployments demonstrate operating expense reductions and new income streams, enhancing the business case beyond energy savings alone.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Budget freezes in smaller municipalities post-COVID fiscal stimulus tapering | -1.4% | Smaller municipalities, rural areas | Short term (≤ 2 years) |
| High retrofit complexity for Showa-era tunnel lighting fixtures | -0.8% | National, concentrated in older infrastructure zones | Medium term (2-4 years) |
| Supply-chain exposure to gallium-nitride substrate imports | -0.6% | National, affecting all manufacturers | Medium term (2-4 years) |
| Increasing glare-related litigation from residential groups | -0.4% | Urban areas, residential interface zones | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Municipal budget freezes slow rural projects
COVID-19 stimulus funding ended in 2024, leaving many small cities with austerity budgets that prioritize healthcare and disaster resilience over lighting upgrades. Lengthy grant-application processes for green bonds further delay projects, resulting in a two-speed Japan outdoor LED lighting market where major metropolitan areas forge ahead while rural areas stall.
Retrofit complexity in Showa-era tunnels
Tunnels built during the 1960s economic boom utilize non-standard fixtures and corroded mounts, which complicate LED swap-outs. Engineering surveys reveal that installing new cabling and vibration-resistant brackets often doubles labor hours, inflating project budgets and stretching timelines. The added cost dissuades municipalities from addressing tunnel projects until mandatory safety inspections leave no alternative.
Segment Analysis
By Product Type - Fixtures Lead While Lamps Offer Flexibility
Luminaires captured 72.45% of the Japan outdoor LED lighting market share in 2024 as municipalities favored complete system replacement for warranty coverage and uniform optical performance. The Japan outdoor LED lighting market size for luminaires benefits from integrated wireless controls and modular sensor bays that future-proof assets. Lamp-only replacements grow at 8.44% CAGR, a pace that outstrips the total market because they fit mixed-vintage poles where structural elements remain sound.
Manufacturers differentiate luminaires through cloud-managed platforms that push firmware updates and diagnostic alerts. Panasonic’s LANTERNA fixture demonstrates content broadcasting, converting poles into digital signage for municipal messaging. Lamps remain popular in maintenance cycles where truck rolls coincide with routine inspection, allowing quick LED swaps without rewiring.
By Application - Sports Lighting Outpaces Street Dominance
Street and roadway projects accounted for 47.74% of the Japan outdoor LED lighting market size in 2024, as regulatory deadlines focus on public safety corridors. Sports and stadium venues, however, post the fastest 9.31% CAGR as broadcast-grade luminance and dynamic dimming drive procurement ahead of global tournaments.
Venue owners install RGBW fixtures that synchronize with entertainment systems, enhancing spectator experience while meeting television color-rendering standards. Parking lots, transit hubs, and architectural façades follow with steady demand as falling component costs broaden the economic case for non-essential illumination upgrades.
By Installation Type - Retrofit Momentum Builds
New build projects retained 55.23% of the Japan outdoor LED lighting market share in 2024, largely tied to urban redevelopment districts that integrate lighting with fiber-optic backbones. Retrofit programs, although smaller, expand at 8.68% CAGR because the mercury-lamp ban forces action across an installed base exceeding 10 million poles.
Contractors use quick-mount brackets and wireless node controllers to minimize lane closures and labor costs. Case studies in Osaka demonstrate that night-time retrofit crews can complete pole swaps in under 20 minutes, minimizing traffic disruption and thereby strengthening the value proposition.[2]Japan Climate Leaders’ Partnership, “Policy Statement on NDC,” japan-clp.jp
By Distribution Channel - E-commerce Gains Ground
Direct manufacturer sales accounted for 68.67% of the Japan outdoor LED lighting market share in 2024, owing to technical complexity, integration support, and long-term warranties. E-commerce platforms nonetheless record a 9.66% CAGR as standardized product lines and online bidding portals simplify municipal purchasing for smaller orders.
Digital procurement improves price transparency and cuts administrative overhead, particularly when combined with electronic auction protocols mandated by local governments. Distributors respond by offering bundled installation services and remote commissioning tools, narrowing the capability gap with direct OEM sales channels.
Competitive Landscape
Domestic incumbents Panasonic, Toshiba Lighting, and Mitsubishi Electric utilize IoT analytics and their long-standing municipal relationships to defend their market share. Their cloud platforms aggregate pole-level data, enabling predictive maintenance that reduces the need for truck rolls and downtime.[4]Mitsubishi Electric, “Sustainability Report 2023,” mitsubishielectric.com
International entrants partner with Japanese EPC firms to navigate bid requirements and language barriers. Joint ventures often focus on specialty niches such as stadium lighting, where global broadcast experience adds credibility. Supply-chain resilience becomes a differentiator after pandemic-era disruptions spotlight dependence on imported gallium-nitride substrates.
Technology convergence blurs industry boundaries as telecom carriers collaborate with lighting vendors to co-finance smart-pole rollouts. This partnership model accelerates adoption by offsetting capital costs with connectivity revenue, reshaping competitive dynamics beyond pure hardware pricing.
Japan Outdoor LED Lighting Industry Leaders
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Endo Lighting Corporation
-
Nichia Corporation
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Panasonic Holdings Corporation
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Toshiba Corporation
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Mitsubishi Electric Corporation
- *Disclaimer: Major Players sorted in no particular order
Geography Analysis
Metropolitan Tokyo, Nagoya, and Osaka contribute roughly 60% of spending, reflecting higher tax bases, aggressive smart-city roadmaps, and early compliance with efficiency ordinances. These cities pilot 5G-ready smart poles and sensor arrays that establish technical standards later adopted by secondary metropolitan areas.
Regional centers, such as Fukuoka and Hiroshima, display a follow-on pattern, implementing proven solutions 18-24 months after the mega-city trials. Budgetary cycles align with prefectural fiscal years, resulting in synchronized tender releases that create seasonal demand spikes in the Japanese outdoor LED lighting market.
Rural municipalities, though financially constrained, represent the fastest percentage growth as falling hardware prices tip cost-benefit analyses in favor of LEDs. Coastal conservation zones specify amber spectra that minimize ecological disruption, illustrating how environmental regulations shape localized product mixes.[3]Panasonic Corporation, “次世代照明LANTERNA,” prtimes.jp
Recent Industry Developments
- July 2025: LED TOKYO began joint research with the University of Tokyo on wireless power transfer for LED panels, targeting cable-free installations.
- June 2025: YAMAGIWA’s Kyushu branch won the Lighting Science Association’s regional excellence award for exterior illumination of its renovated showroom.
- May 2025: Panasonic launched a cloud service that distributes content to LANTERNA smart fixtures across multiple sites.
- March 2025: Kyocera deployed CERAPHIC RGB-phosphor LED technology at Expo 2025 Osaka.
Japan Outdoor LED Lighting Market Report Scope
Public Places, Streets and Roadways, Others are covered as segments by Outdoor Lighting.| Lamps |
| Luminaires / Fixtures |
| Street and Roadway Lighting |
| Architectural and Landscape |
| Sports and Stadium |
| Tunnel and Bridge |
| Parking and Transit Areas |
| Other Applications |
| New Installation |
| Retrofit Installation |
| Direct Sales |
| Wholesale |
| Retail |
| E-commerce |
| By Product Type | Lamps |
| Luminaires / Fixtures | |
| By Application | Street and Roadway Lighting |
| Architectural and Landscape | |
| Sports and Stadium | |
| Tunnel and Bridge | |
| Parking and Transit Areas | |
| Other Applications | |
| By Installation Type | New Installation |
| Retrofit Installation | |
| By Distribution Channel | Direct Sales |
| Wholesale | |
| Retail | |
| E-commerce |
Market Definition
- INDOOR LIGHTING - It incorporates all LED based lamps and fixtures/luminaire that are used to illuminate indoor section of residential, commercial, industrial buildings and agricultural lighting. LED offers efficient brightness with higher durability in comparison to other lighting technology.
- OUTDOOR LIGHTING - It incorporates the LED lighting fixtures that is used for illumination for exterior/outdoor illumination. For instance, LED lighting fixtures used to illuminate streets and highways, transport hubs, stadiums and other public places such as parking spaces.
- AUTOMOTIVE LIGHTING - It refers to the lighting fixtures installed for illumination and signaling purposes. It is used in both exterior and interior lighting of the vehicle. Headlamps, fog lamp, daytime running light (DRLs) are examples of exterior light whereas cabin light are interior lights.
- END USER - It refers to the end use application area where the LED fixture will be installed. For instance, in terms of indoor lighting, we have residential, commercial and industrial as end user category. For automotive lighting, primary end user considered are automotive manufacturers and aftermarket sale
| Keyword | Definition |
|---|---|
| Lumen | Lumen is a unit of luminous flux in the International System of Units that is equal to the amount of light given out through a solid angle by a source of one-candela intensity radiating equally in all directions. |
| Footcandle | A foot-candle (or foot-candle, fc, lm/ft2, or ft-c) is a measurement of light intensity. One foot-candle is defined as enough light to saturate a one-foot square with one lumen of light. |
| Colour Rendering Index (CRI) | Color Rendering Index (CRI) is a measurement of how natural colors render under an artificial white light source when compared with sunlight. The index is measured from 0-100, with a perfect 100 indicating that colors of objects under the light source appear the same as they would under natural sunlight. |
| Luminous flux | Luminous flux is a measure of the power of visible light produced by a light source or light fitting. It is measured in lumens (lm). |
| Annual Energy Cost | Annual Energy Cost means the average daily energy consumption multiplied by 365 (days per year), expressed in kilowatt hour per year (kWh/a). |
| Constant voltage drivers | Constant voltage drivers are designed for a single direct current (DC) output voltage. Most common constant voltage drivers (or Power Supplies) are 12VDC or 24VDC. An LED light that is rated for constant voltage usually specifies the amount of input voltage it needs to operate correctly. |
| Constant Current Driver | Constant current LED drivers are designed for a designated range of output voltages and a fixed output current (mA). LEDs that are rated to operate on a constant current driver require a designated supply of current usually specified in milliamps (mA) or amps (A). These drivers vary the voltage along an electronic circuit which allows current to remain constant throughout the LED system. |
| Minimum Energy Performance Standards (MEPS) | Minimum Energy Performance Standards specify the minimum level of energy performance that appliances and equipment must meet or exceed before they can supply or used for commercial purposes. |
| Luminous Efficacy | Luminous efficacy is a measurement commonly used in the lighting industry that indicates the ability of a light source to emit visible light using a given amount of power. |
| Solid State Lighting | Solid-state lighting (SSL) is a type of lighting that uses semiconductor light-emitting diodes (LEDs), organic light-emitting diodes (OLED), or polymer light-emitting diodes (PLED) as sources of illumination rather than electrical filaments, plasma (used in arc lamps such as fluorescent lamps), or gas. |
| Rated Lamp Life | Lamp life, also referred to as rated life, is the time in hours a lamp will last before a percentage of lamps will burn out. |
| Color Temperature | Colour temperature is a scale that measures how ‘warm’ (yellow) or ‘cool’ (blue) the light from a particular source is. It is measured in degrees of the Kelvin scale (abbreviated to K), and the higher the number, the ‘cooler’ the light. The lower the ‘K’ number, the ‘warmer’ the light. |
| Ingress Protection rating (IP rating) | The IP (Ingress Protection) rating of a bulb or light fixture declares the level of protection it has against dirt and water. |
| Fidelity Index | The general colour fidelity index, Rf, represents how closely the colour appearances of the entire sample set are reproduced (rendered) on average by a test light as compared to those under a reference illuminant. |
| Gamut Index | The gamut area is defined as “the area enclosed by a set of test color samples illuminated by a light source, in a two-dimensional chromaticity diagram or a plane of color space.”1 Within a defined color space, a “gamut” describes the subset of colors that can be perceived under specific lighting conditions. |
| Binning | In the lighting industry, the act of "binning" of LEDs is the process of sorting LEDs by certain characteristics, such as color, voltage, and brightness. |
| Accent lighting | Accent lighting, also called highlighting, emphasizes objects by focusing light directly on them. Accent lighting is used inside and outside the home to feature locations such as an entrance or to create dramatic effects. |
| Dimmable driver | A dimming driver has two functions: As a driver, it converts the 230V AC mains input to a low voltage DC output. As a dimmer, it reduces the amount of electrical energy flowing to the LEDs, thereby causing them to dim. |
| Flicker | Flicker is the repeated and frequent variation in the output of a light source over time. |
| Fluorescent | A property of materials defined as the ability to emit light after absorbing electromagnetic radiation such as visible or UV light. |
| Candela | The candela is the unit of luminous intensity in the International System of Units. It measures the light output per unit solid angle emitted from a light source in a specific direction. |
| LUX | Lux is used to measure the amount of light output in a given area - one lux is equal to one lumen per square meter. It enables us to measure the total "amount" of visible light present and the intensity of the illumination on a surface. |
| Uniformity (U0) | The uniformity of lighting has significant effects on visual performance in both indoor and outdoor areas. Uniformity (represented as U0) value can be found by dividing the minimum brightness (Emin) resulting from calculations according to the current lighting order, to the average brightness value (Eavg). |
| Visible Light Spectrum | The visible light spectrum is the segment of the electromagnetic spectrum that the human eye can view. More simply, this range of wavelengths is called visible light. Typically, the human eye can detect wavelengths from 380 to 700 nanometers. |
| Ambient Temperature | Ambient Temperature is the temperature of the air surrounding an electrical enclosure. |
| Current-controlled dimming control | Current-controlled dimming controls LED brightness by varying the applied current using a 0-10V dimmer. Current-controlled dimming is smooth and HD-video friendly. It can only dim to a minimum of 5% of light output. |
| Design Light Consortium | It is a partnership of energy efficiency stakeholders in the United States and Canada to “promote quality, performance and energy efficient lighting solutions for the commercial sector”. |
| Pulse Width Modulation | Pulse-width modulation, or pulse-duration modulation, is a method of controlling the average power delivered by an electrical signal. |
| Surface Mounted Device | A surface mount device (SMD) is an electronic device whose components are mounted or placed directly on the surface of a printed circuit board. |
| Alternating Current | Alternating current is an electric current which periodically reverses direction and changes its magnitude continuously with time, in contrast to direct current, which flows only in one direction. |
| Direct Current | Direct current (DC) is an electric current that is uni-directional, so the flow of charge is always in the same direction. |
| Beam Angle | Beam angle (also called beam spread) is a measure of how light is distributed. On any plane perpendicular to the centerline of the light, the beam angle is the angle between two rays where the light intensity is 50% of the maximum light intensity. |
| LED Based Solar High Mast Lighting Systems | A Solar LED High Mast Light is a raised source of High illumination lights (6~8 lights) and with high intensity on the middle of major junctions (Ring roads, Outer Ring roads), turned on or lit automatically in the absence of light (at specified timings or at periodic times, every night). |
| Surface Mounted Diode (SMD) LEDs | A surface mount diode is a type that emits light and is flat mounted and soldered onto a circuit board. |
| Chip on Board (COB) LEDs | A COB LED is basically multiple LED chips (usually 9 or more) glued directly onto a substrate by the manufacturer to form a single module. |
| Dual In-Line Package (DIP) LEDs | A dual in-line package (DIP or DIL) is an electronic component package with a rectangular case and two parallel rows of electrical connector pins. |
| Graphene LED Lights | A graphene LED light bulb is simply an LED light bulb where the filament has been coated in graphene. A graphene LED bulb is reported to be 10% more efficient than regular LED light bulbs and they are cheaper to manufacture and buy. |
| LED Corn Bulbs | LED Corn lights are designed as an energy efficient alternative to high intensity discharge (HID) and SON lamps. It uses a large number of LEDs on a metal structure to provide sufficient light. This arrangement of LEDs looks a lot like a corn cob, hence the name "corn light". |
| Per Capita Income | Per capita income or total income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area's total income by its total population. Per capita income is national income divided by population size. |
| Charging Stations | A charging station, also known as a charging station or electric vehicle utility, is a power supply that provides electrical energy for charging plug-in electric vehicles. |
| Headlight | A headlight is a light that is mounted on the front of a car and illuminates the road in front of it. Low beam and high beam LED headlights are additional categories for these LED headlights. |
| Day Time Running Light (DRLs) | A daytime running lamp is a white, yellow, or amber lighting device mounted on the front of a road-going motor vehicle or bicycle. |
| Directional Signal Light | Directional signal lights are the front and rear lights on an automobile that flash to show the direction of a turn. |
| Stop Light | A red light that is mounted to the back of a car and turns on when the brakes are used to show that the car is stopped. |
| Reverse Light | The reverse light is at the back of the vehicle to indicate its backward motion. |
| Tail Light | A red light that can be seen in the dark is mounted on the rear of a road vehicle. Stop, reverse, and directional signal lights are all part of it. |
| Fog Light | Bright lights in automobiles used to increase visibility on the road in foggy conditions or to warn other drivers of the presence of the vehicle. |
| Passenger Vehicle | A passenger vehicle is a road vehicle, other than a moped or a motorcycle, intended for the transportation of people and designed for up to 8 to 9 seats. |
| Commercial Vehicle | A commercial vehicle (Bus, Truck, Van) is any type of motor vehicle used to transport goods or pay passengers. |
| Two Wheelers (2W) | A two-wheeler is a vehicle that runs on two wheels. |
| Streets & Roadways | Both roads and streets refer to hard, flat surfaces on the ground on which vehicles, people, and animals can travel. Since streetways are usually in cities and towns, they often have houses and buildings on both sides. The roadway is in the countryside and sometimes passes through forests and fields |
| Horticulture Lighting | Horticulture is the science and art of sustainably growing, producing, marketing and using high quality, intensively cultivated food and ornamental plants. |
Research Methodology
Mordor Intelligence has followed the following methodology in all our data center reports.
- Step 1: Raw Data Collection: To understand the market, initially, all crtical data points were identified. Critical information about countries and regions of interest including Per-capita Income, Population, Automotive Production, Interest rate on Auto-Loans, Number of Automobiles on Road, Total LED Import, Lighting Electricity Consumption among others were recorded or estimated based on internal calculations.
- Step 2: Identify Key Variables: To build a robust forecasting model, key variables such as Number of Households, Automotive Production, Road Networks among others were identified. Through an iterative process, the variables required for the market forecast were set, and the model was built using these variables.
- Step 3: Build a Market Model: Based on data and critical industry trend data (variables), including LED pricing, LED penetration rate, and project macro and micor economic factors were utilized for building the market forecasting.
- Step 4: Validate and Finalize: In this crucial step, all market numbers and variables derived through an internal mathematical model were validated through an extensive network of primary research experts from all the markets studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step 5: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
