Smart Street Lights Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Smart Street Lights Market is projected to expand from USD 3.12 Billion in 2025 to USD 11.47 Billion by 2031, growing at a CAGR of 24.23%. This market comprises public lighting infrastructure that integrates sensors, network connectivity, and central management systems to facilitate adaptive control and remote monitoring. Growth is primarily driven by strict government regulations requiring energy efficiency, the need for municipalities to lower operational costs via predictive maintenance, and the widespread adoption of smart city programs designed to improve public safety. These drivers are rooted in economic and regulatory necessities for intelligent lighting transitions, distinct from purely technological trends.

One major challenge potentially hindering market growth is the lack of standardization and interoperability among hardware and software from different vendors, which creates complexities for large-scale deployments. Despite this hurdle, the sector remains resilient. As reported by the National Electrical Manufacturers Association, the business confidence index for the electroindustry sector hit 57.7 in 2024, indicating a strong expansion in demand for advanced lighting and electrical infrastructure. This positive sentiment highlights the enduring priority placed on modernizing urban environments and energy grids.

Market Drivers

The surging demand for energy-efficient LED lighting solutions acts as a primary accelerator for market adoption. Municipalities and utility providers are actively replacing legacy high-pressure sodium lamps with connected solid-state lighting to achieve strict environmental goals and reduce utility bills. This transition involves more than just changing bulbs; it integrates intelligent controls that allow for scheduling and dimming based on real-time needs, fundamentally altering municipal cost structures. According to a May 2024 press release by Signify titled 'Call for Action: Doubling the Rate of Energy Efficiency Improvements,' switching professional lighting points to connected LED technology could reduce electricity consumption by up to 80 percent compared to conventional lighting.

Additionally, the rapid global expansion of smart city frameworks is speeding up the deployment of intelligent street lighting networks, which serve as the backbone for urban IoT applications. City planners are utilizing existing vertical assets to mount communication nodes and sensors, minimizing the need for new physical infrastructure while enhancing service delivery. For instance, the City of Philadelphia's April 2024 update on the 'Philadelphia Streetlight Improvement Project' notes the conversion of approximately 130,000 streetlights to a network-controlled system. Similarly, the New York Power Authority reported in 2024 that its statewide program successfully installed over 500,000 LED streetlights, illustrating the massive scale of these modernization efforts.

Market Challenges

The growth of the Global Smart Street Lights Market is significantly impeded by a fragmented ecosystem resulting from a lack of standardization and interoperability among hardware and software components. This fragmentation forces utility operators and municipalities into "vendor lock-in," compelling them to source all infrastructure elements - from sensors to management platforms - from a single provider to ensure functionality. This dependency removes competitive pricing leverage and restricts the flexibility to upgrade systems with best-in-class technologies from diverse suppliers, often causing city planners to delay or scale back projects due to fears of future obsolescence or high integration costs associated with proprietary solutions.

Moreover, the complexity of harmonizing disparate communication protocols makes deploying large-scale smart city networks technically difficult and resource-intensive. Without a universally accepted framework, integrating street lights with other urban assets remains challenging. This scarcity of fully interoperable solutions is highlighted by recent industry data. According to the TALQ Consortium, in 2025, the global market supported only 74 products that had achieved the official certification necessary to guarantee seamless interoperability between different vendors' systems. This limited availability of verified compliant options underscores the ongoing difficulty in establishing a cohesive technical standard, leaving much of the market reliant on incompatible, proprietary architectures.

Market Trends

A key trend is the convergence of street lighting with electric vehicle (EV) charging networks, transforming standard illumination assets into dual-purpose utility nodes. Municipalities are leveraging the existing electrical backbone of lampposts to provide curbside charging for residents without private parking, thereby overcoming a critical barrier to EV adoption without requiring extensive civil works. This integration optimizes public right-of-way usage and advances urban electrification by converting cost centers into potential revenue-generating infrastructure. Highlighting this momentum, an article in Mobility Plaza from February 2025 titled 'Ubitricity adds EV charging to lampposts across Birmingham' reports that Birmingham City Council is deploying 560 lamppost-integrated EV charge points to facilitate accessible charging for local communities.

Simultaneously, the rise of solar-powered smart hybrid systems is enabling lighting infrastructure to operate independently of the main utility grid. This trend addresses the need for rapid deployment in areas where trenching for cabling is expensive, while also providing resilience against centralized power outages. Modern units combine high-efficiency photovoltaics with battery storage and intelligent management to guarantee reliable performance, effectively decoupling public safety lighting from grid vulnerability. Illustrating this shift, the 'Real Cities, Real Results: Solar Street Lighting Case Studies' report by Fonroche Lighting America in July 2025 notes the company has deployed over 250,000 solar streetlights worldwide, underscoring the substantial demand for autonomous solutions.

Key Players Profiled in the Smart Street Lights Market

• Schreder S.A.
• Signify N.V.
• Hubbell Incorporated
• Eaton Corporation PLC
• OSRAM GmbH
• Cree, Inc.
• Acuity Brands, Inc.
• HCL Technologies Limited
• Siemens AG

Report Scope

In this report, the Global Smart Street Lights Market has been segmented into the following categories:

Smart Street Lights Market, by Component:

• Hardware
• Software
• Services

Smart Street Lights Market, by Lighting Technology:

• LED
• CFL
• High-Pressure Sodium Lamps

Smart Street Lights Market, by Application:

• Highways
• Streets and Roads
• Parks
• Commercial Places
• Industrial Areas

Smart Street Lights Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Smart Street Lights Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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