Market Trends of North America Outdoor Lighting Industry
LED Lighting is Expected to Hold Major Share
- LEDs have steadily progressed in the region, from traditional standalone bulb lighting to integral luminaire system designs. According to the Department of Energy, demand for LED lights in the United States is expected to rise between 2020 and 2035, particularly for outdoor applications. LED lighting will be used in 93% of outdoor lighting installations by 2025, making it the most widely used type across all industries. Such factors are expected to drive the region's LED lighting solutions.
- One of the key factors driving the region's adoption of LED lighting is the region's growing need for energy-efficient lighting systems, which is being met by falling LED product prices and stringent government regulations. Energy savings from LED lighting could reach 569 TWh annually by 2035, according to the United States DOE, which is equivalent to the annual energy production of over 921,000-megawatt power plants. Most lighting installations are expected to be LED-based by 2035, creating opportunities for outdoor lighting applications.
- LED is a highly energy-efficient lighting technology that has the potential to fundamentally change the future of lighting in the United States, according to the Department of Energy. When compared to incandescent bulbs and tube lights, LED light demand has steadily increased due to their higher brightness for the same amount of electricity used. In 2021, the United States imported approximately USD 12.5 billion in lighting fixtures and fittings from the rest of the world, according to U.N. Comtrade.
- The growing demand for energy-efficient lighting systems has been broadly recognized since the government began participating in and encouraging favorable initiatives driving the demand for LED lighting technologies. In the United States, for instance, the Department of Energy announced updated rules to phase out incandescent light bulbs from production and sale before a ban takes effect in 2023. Such initiatives will drive LED lighting demand.
- LED display outdoor applications are expanding. Large-format displays are becoming increasingly common in football and baseball stadiums in the United States, where sporting events are prevalent, captivating the audience with presentations featuring athletes' plays and dynamic visuals and sound. Large LED-based solutions are being installed at major sporting events, which is driving the market.
- Outdoor sports field lighting is used to illuminate the field or stage in professional and amateur arenas and stadiums. For example, the World Athletics Championships will be held in July 2022 at Hayward Field in Eugene, Oregon, United States. A LED signboard with the TDK corporate logo was installed, which illuminated the athletes. This is the first time TDK power supply products designed for industrial equipment have been chosen for this LED signboard at the 2022 event.
- Furthermore, LED lights are gaining popularity in the fields of architectural and landscape design, providing several advantages to designers and their clients. SloanLED, for example, introduced Symphony Area Light in November 2022, a dynamic addition to the Symphony Series of architectural lighting fixtures for the United States and Canada. Symphony Area Light blends seamlessly into the architectural landscape with its three housing sizes and four modular in-field, interchangeable mounting options, delivering strong performance and uniformity for greater pole spacing and minor power density.
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Street lighting/Roadway Lighting is Expected to Drive the Market
- Connected streetlights have emerged as a significant driver of demand in the region for LED market lighting. The growing adoption of LED lighting for energy-efficient lighting systems, rising awareness about low power consumption, and rising adoption of smart cities in North America are the primary factors driving North American street lighting market growth.
- The growth of smart cities across the region drives up demand for LED streetlights. Multiple governments' installed connected LED street lighting in various smart city projects contributes to the broader innovation of aging city infrastructure. Furthermore, various government initiatives in the region to replace traditional lighting with energy-efficient lighting are expected to increase demand for LED lights in street lighting.
- LED technology and smart lighting controls are revolutionizing street lighting by providing a safer streetscape while modernizing and lowering the lighting costs, which is one of the most energy-intensive areas of most cities' energy consumption. According to the DOE, widespread use of LEDs in the United States by 2027 could save more than USD 30 billion in energy savings. The efficiency, financial, and quality of life benefits of LED solutions are expected to be embraced by communities.
- Moreover, Local government legislation requiring the use of energy-efficient goods is expected to drive the market for LED lighting across street lighting applications. For example, in June 2022, the New York Power Authority (NYPA) and the Town of Irondequoit began installing energy-efficient SMART (Self-Monitoring Analysis and Reporting Technology) LED lamps throughout the town as part of the state's Smart Street Lighting NY program. The Power Authority installed and paid for the over USD 3 million improvements, which included replacing approximately 2,000 streetlights throughout the town with energy-efficient LED lighting.
- Many cities in the United States are heavily investing in massive streetlight modernization projects for cost savings and energy-efficient street lighting, which is increasing demand for street lighting in the country. For example, the City of Chicago completed the Chicago Smart Lighting Program in February 2022, a streetlight modernization project that replaced more than 280,000 outdated streetlights with high-efficiency LED lights that improved the quality of night-time visibility across the city and are projected to save Chicago taxpayers USD 100 million in electricity costs over the next ten years.
- Furthermore, in December 2022, the City of Southaven and Entergy began a project to replace the outdated light fixtures on the City's street lights with modern LED lighting. Entergy owns the light poles and fixtures for most of the City's streetlights, and approximately 4,040 streetlights in Southaven will be converted. The project began in Ward 1 in Southaven's older neighborhoods at the request of the City. The city intends to replace all of its light fixtures with LED lighting eventually, with a completion date of 2025.
- The region's growing smart city population and the growing use of smart homes are driving the segment. Furthermore, the growing number of highways and streets in the United States is increasing the demand for street lighting. According to US Census Bureau data, the average monthly value of public highway and street construction in the US was USD 89.4 billion in 2017, rising to USD 99.9 billion in 2021. The above factors are expected to drive demand for street lighting in the United States.
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