STREET AND ROADWAY LIGHTING MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECAST (2025 - 2030)

Global Street And Roadway Lighting Market Trends and Insights

Accelerated LED Retrofit Programs

Municipal LED initiatives now bundle sensor networks, adaptive controls, and grid modernization objectives to unlock deeper carbon and O&M savings. New York Power Authority’s Smart Street Lighting NY illustrates the model by folding demand-response and spectral tuning into LED upgrades.^{[1]New York Power Authority, “Smart Street Lighting NY Progress Update,” ny.gov} Ireland’s EUR 17.5 million rural conversion plan likewise favors fixtures capable of future V2I communication, indicating that cities increasingly write “upgrade-ready” specifications. Financing tools, energy-service contracts, green bonds, and infrastructure funds are widening access and lowering lifecycle costs, expanding the addressable street and roadway lighting market.^{[2]Energy Communities, “Low Carbon Transportation Materials Grant Program,” energycommunities.gov}

Rising Deployment of Connected/IoT-Enabled Street Lights

Cities are moving from pilots to fleet-scale connected lighting roll-outs as the value of granular asset data becomes clear. Signify reported 144 million managed connected light points in 2024, demonstrating platform scalability.^{[3]Signify, “Signify reports first quarter 2024 results,” signify.com} Low-power wide-area technologies like NB-IoT and LoRaWAN have cut connectivity costs, enabling secondary cities to embrace smart lighting. Copenhagen’s 44,000-node network folds air-quality sensing into luminaires, creating new municipal revenue streams from environmental compliance analytics. This pivot from energy savings to data monetization raises switching barriers and lengthens vendor contracts, reinforcing long-term growth.

Government Carbon-Reduction Mandates and Funding

Regulatory urgency is translating into earmarked budgets. The U.S. Infrastructure Investment and Jobs Act assigned USD 982 million to Safe Streets and Roads for All in 2025, with lighting upgrades explicitly eligible.^{[4]Missouri Department of Transportation, “FY25 Safe Streets and Roads for All Notice,” modot.org} Similar EU Green Deal instruments reward projects that quantify CO₂ avoidance and safety benefits, realigning procurement criteria toward adaptive systems with verifiable outcomes. Bundling lighting with EV charging and smart traffic management further inflates contract values, allowing providers to cross-sell services and deepen relationships.

High Upfront Capex for Large-Scale Conversions

Total cost of ownership for connected systems can surpass USD 500 per fixture, triple a basic LED swap, forcing municipalities to seek ESCO financing or PPP structures that prolong procurement cycles by up to 18 months. Smaller cities without capital-improvement budgets face the sharpest squeeze, constraining immediate conversion volumes despite compelling long-term savings. Grant programs partially bridge the gap but often require detailed M&V documentation, adding an administrative burden that delays deployment.

Cyber-Security and Data-Privacy Vulnerabilities

IoT lighting networks introduce fresh attack vectors into municipal IT domains. Pen-tests have shown that compromised gateways can expose traffic-management servers, intensifying risk mitigation scrutiny. Compliance with NIST frameworks and evolving EU Cyber Resilience Act requirements obliges vendors to layer encryption, authentication, and over-the-air patching, costs that inflate bid prices. Procurement teams lacking cyber expertise may defer projects or restrict functionality, capping near-term penetration of full-featured platforms.

Segment Analysis

By Lighting Type: Connected Systems Drive Future Growth

Smart/connected solutions recorded a 7.1% CAGR outlook, yet conventional fixtures still comprised 56.9% of 2024 revenue. This coexistence underscores staggered asset-replacement cycles that keep legacy options viable for basic illumination. Metropolitan agencies deploy connected systems along priority corridors where data analytics can justify premium pricing, whereas smaller jurisdictions favor passive LED swaps with upgrade-ready nodes. The street and roadway lighting market benefits as both pathways steadily erode outdated high-intensity discharge stock. Signify’s 144 million light-point footprint validates platform scalability while reinforcing vendor lock-in.

Momentum continues as standards bodies embed connectivity in future efficiency codes, redirecting capex toward digital luminaires. Vendor roadmaps show edge-AI vision sensors migrating onboard fixtures, promising adaptive dimming and situational awareness that elevate public-safety value propositions. Over the forecast horizon, smart platforms are expected to outpace conventional growth threefold, redefining service models in the wider street and roadway lighting industry.

By Light Source: LED Dominance with Efficiency Evolution

LEDs captured 84.1% share in 2024 and will retain hegemony through 2030 as efficacy inches past 200 lm/W. Niche fluorescent and HID replacements linger primarily in industrial yards, awaiting budget cycles. Amber 590 nm packages are gaining coastal traction to safeguard nocturnal wildlife, while circadian-friendly warm whites appeal to residential precincts. The street and roadway lighting market size for LED-based systems is projected to compound at a 6.9% CAGR, supported by falling per-lumen costs and higher spectral customization.

Driver IC integration and improved thermal paths now push rated lifetimes toward 100,000 hours, reducing relamping truck rolls. Supply tightness in specialty ICs remains a bottleneck, with delivery times extending up to 52 weeks for advanced dimming controllers. Nevertheless, multiyear framework contracts and localized inventory hubs are helping global vendors buffer shocks, sustaining LED’s centrality.

By Offering: Hardware Foundation with Software Growth

Hardware dominated 61.7% of 2024 revenue, anchoring the physical footprint that unlocks future software monetization. Cities increasingly stipulate open APIs and edge compute, compelling luminaire makers to bundle gateways and nodes even in base models. Software and services, led by SaaS lighting-management platforms, are tracking a 7.2% CAGR as municipalities seek predictive maintenance and cross-domain data fusion. This transition lifts recurring revenue visibility, enticing incumbents to acquire analytics specialists and cloud-native startups.

The street and roadway lighting market, therefore, evolves from product sales toward lifecycle value, mirroring trends in adjacent building-automation sectors. Vendor differentiation now pivots on cybersecurity certifications, AI toolchains, and integration ease rather than form-factor aesthetics, elevating entry barriers for commodity players.

By Power Range: Mid-Range Optimization for Urban Applications

Fixtures rated 50-150 W represented 53.6% of 2024 installations and headline a 7.3% CAGR outlook to 2030. They replace legacy 250-400 W HPS heads along arterials, delivering 50-70% energy cuts while meeting Illuminating Engineering Society uniformity norms. Adaptive dimming in this bracket yields incremental 30-50% savings based on traffic volume analytics, aligning with Vision Zero lighting guidelines. Below-50 W units domicile in residential lanes and greenways; above-150 W serve high-mast interchanges.

Market specifications increasingly require lumen-output tunability within this band, enabling municipalities to standardize across diverse roadway classes. As a result, the 50-150 W cohort anchors procurement catalogs, bolstering the street and roadway lighting market share for vendors mastering mid-range photometric design.

By Application: Urban Roads Lead with Specialized Growth

Streets and urban roads held 39.8% of the 2024 spend, reflecting dense fixture grids across global metros. Integrated poles that combine lighting, EV chargers, and environmental sensors are redefining curbside infrastructure, expanding wallet share per pole. Tunnels and underpasses, while only a fraction of the current volume, are slated for a 6.6% CAGR given stricter visibility codes and modernization projects along freight corridors. Highway segments prioritize high-output optics and glare control, whereas parking estates adopt luminaires with embedded cameras for security revenue streams.

Diverse application needs push vendors to expand modular product lines, facilitating lumen and optic swaps without re-engineering housings, thereby shortening design-win cycles and elevating replacement velocity in the street and roadway lighting market.

Note: Segment shares of all individual segments available upon report purchase

By Connectivity Technology: Wired Systems with Wireless Momentum

Power-line communication, DALI, and PoE sustained a 62.4% foothold in 2024 due to reliability and sunk infrastructure. However, wireless paradigms, NB-IoT, LoRaWAN, and increasingly 5G, are catching up at a 6.8% CAGR on the back of lower deployment costs for distributed assets. Cities with fiber backbones often run hybrid networks, reserving wireless for remote districts or retrofit zones devoid of spare conduits. Cyber-hardened stacks featuring TLS 1.3 and hardware root-of-trust chips are easing security hesitations, accelerating wireless acceptance.

For suppliers, multiradio boards and software-defined networking enable SKU rationalization while satisfying heterogeneous municipal specs, protecting the addressable street and roadway lighting market size amid protocol flux.

Geography Analysis

Asia-Pacific commanded 37.2% of 2024 revenue and is poised for a 6.4% CAGR through 2030 on the back of large-scale urbanization in China, India, and ASEAN. Beijing’s low-carbon districts embed air-quality sensors in new luminaires, while India’s Smart Cities Mission is standardizing LED nodes across 100 municipalities, propelling the regional street and roadway lighting market. Local manufacturing capacity shortens lead times and underpins aggressive subsidy programs that compress payback periods below four years.

North America ranks second by value, buoyed by federal funding enclaves like the USD 982 million SS4A mechanism that earmarks lighting for crash-reduction projects. Vision Zero action plans in New York, Portland, and Los Angeles are shifting specifications toward adaptive optics that boost pedestrian visibility. Utilities’ ownership of pole infrastructure, however, introduces alignment challenges that occasionally delay conversions. Still, rising electrical-safety standards and carbon accounting frameworks keep pressure on lagging jurisdictions.

Europe exhibits mature LED penetration yet continues to upgrade via smart controls driven by the EU Green Deal and EN-13201 revisions. Municipal dark-sky ordinances are fueling demand for precision optics and ultra-warm CCTs to curb light pollution, sustaining premium ASPs in the street and roadway lighting market. Innovation grants in Scandinavia and DACH markets sponsor pilot projects exploring wildlife-friendly spectra and V2I corridor lighting, providing test beds for vendors targeting export opportunities.