Street Lighting Market Report Scope & Overview:

The Street Lighting Market size was valued at USD 9.65 Billion in 2025 and is expected to reach USD 13.88 Billion by 2035, growing at a CAGR of 3.70% from 2026 to 2035.

Urbanization trends, increasing public infrastructure investments, and the worldwide trend toward replacing traditional street lighting fixtures with more energy-efficient LED lighting fixtures are still expected to help boost the market. Municipal administrations around the world are focused on improving street lighting systems to increase road safety, reduce criminal activity, and decrease future operating and energy costs, providing constant demand for new installations in developed and developing countries.

The collaboration between Signify and Cornerstone in 2025 aimed at implementing a city-wide multi-operator wireless network based on street lighting poles illustrates how the trend in the market is moving toward street lighting as a common platform for connectivity in smart cities.

Market Size and Forecast:

• Market Size in 2026E: USD 10.01 Billion

• Market Size by 2035: USD 13.88 Billion

• CAGR: 3.70% from 2026 to 2035

• Fastest Growing Region: Middle East & Africa

• Largest Region: Asia Pacific

To Get More Information On Street Lighting Market - Request Free Sample Report

Street Lighting Market Trends:

• Continued transition from high-pressure sodium and mercury vapor fixtures toward energy-efficient LED luminaires is reshaping global installed base composition.

• Growing municipal adoption of networked lighting controls is enabling adaptive dimming, remote monitoring, and predictive maintenance capabilities.

• Rising deployment of street lighting poles as shared smart-city infrastructure is supporting 5G small-cell and IoT sensor connectivity.

• Expanding solar-powered street lighting adoption is extending illumination access to rural and grid-constrained areas across emerging economies.

• Government energy efficiency mandates and subsidy programs continue to accelerate municipal lighting retrofit and modernization cycles worldwide.

U.S. Street Lighting Market Size Outlook:

The U.S. Street Lighting Market was valued at USD 1.48 Billion in 2025 and is projected to reach USD 2.13 Billion by 2035, growing at a CAGR of 3.70% during 2026-2035.

Consistent investments in city infrastructure, smart cities’ pilot projects, and continuous incentives provided by the states and federal organizations for the usage of energy efficient lights will ensure the continuous demand for streetlights in the U.S. Cities such as Los Angeles and Chicago are continuing to deploy lights control systems through the Internet of Things (IoT) due to the trend of networked street lights solution in the country. The bulk purchasing projects of utilities and budgeting for safety and energy savings purposes by the municipalities will ensure continuous demand for installations and replacements.

Cooper Lighting Solutions, a Signify company, continued expanding deployment of its Galleon and Navion LED outdoor luminaires with major U.S. utilities, including Georgia Power, reinforcing Signify's position in large-scale municipal and utility street lighting upgrades across the United States.

Street Lighting Market Segment Analysis:

• By Light Source, LED led the Street Lighting Market with a 79.70% share in 2025, while LED is the fastest-growing light source segment with a CAGR of 6.80% from 2026-2035.

• By Control Type, Conventional/Non-Networked led the Street Lighting Market with a 68.40% share in 2025, while Smart/Networked is the fastest-growing control type segment with a CAGR of 12.60% from 2026-2035.

• By Power Source, Grid-Connected led the Street Lighting Market with a 84.20% share in 2025, while Solar-Powered is the fastest-growing power source segment with a CAGR of 9.80% from 2026-2035.

• By Installation Type, Retrofit led the Street Lighting Market with a 57.30% share in 2025, while New Installation is the fastest-growing installation type segment with a CAGR of 6.40% from 2026-2035.

• By End Use, Roadways led the Street Lighting Market with a 44.60% share in 2025, while Commercial & Public Spaces is the fastest-growing end use segment with a CAGR of 7.90% from 2026-2035.

By Light Source, LED Dominated the Market While LED Is Also the Fastest-Growing Segment

The LED Segment was leading in the Street Lighting Market by holding a revenue share of 79.70% in 2025, owing to the numerous strengths that LED technology holds over legacy technologies such as high-pressure sodium and mercury vapor in terms of energy consumption, lifetime, and cost-effectiveness. On average, an LED luminaire consumes 50 to 80 percent less energy compared to traditional street lights and lasts much longer, making them economically beneficial for cities to use for their lighting networks. In addition to that, government subsidies for LED luminaires and energy efficiency mandates in major economies have made LEDs dominate the global light source market due to their superior performance.

The LED Segment is expected to witness the fastest CAGR among the light sources category during the forecast period 2026-2035 at a rate of 6.80%. This is due to the conversion of the existing legacy street lights such as high-pressure sodium and mercury vapor into LED technology on a global level. The growing decline in the prices of LED fixtures and increasing luminous efficacy of LEDs is making them more cost-effective even in developing countries and thus replacing the traditional lighting system faster.

By Control Type, Conventional/Non-Networked Dominated the Market While Smart/Networked Is the Fastest-Growing Segment

The Conventional/Non-Networked category was the leader in the Street Lighting Market in terms of its revenue share of 68.40% in 2025. This is primarily due to the vast presence of basic timer and photocell controlled lights, which continue to be present in municipal lighting networks across the world. Smaller municipalities and regions, which face a shortage of money for the setup of a networked solution, continue to depend on simple and cheap methods of control owing to the absence of finances required for the construction of the network infrastructure as well as subscription charges to software.

The Smart/Networked category is projected to grow at the fastest CAGR of 12.60% in the forecast period 2026-2035. This will be due to increasing demands from municipalities for remote monitoring, dimming, and predictive maintenance, which lower operating expenses. The increasing trend of smart cities, along with decreasing costs associated with wireless connectivity, has made the adoption of networked street lighting feasible even for mid-sized cities, which had been out of reach before. Increasing demand for street lighting poles as an infrastructure for small cell 5G and environmental sensors is another driving factor.

By Power Source, Grid-Connected Dominated the Market While Solar-Powered Is the Fastest-Growing Segment

The Grid-Connected segment captured the largest market share of 84.20% in the Street Lighting Market in 2025 due to the prevalence of pre-existing electrical grids in urban and suburban regions wherein the vast majority of street lighting installations take place. The use of grid-connected technology remains the most dependable and economical way to power high density urban lighting systems where steady lighting and low downtime are imperative considerations when dealing with extensive inventory of fixtures along pre-existing city streets.

The Solar-Powered segment will witness the highest CAGR of 9.80% during 2026-2035 owing to improvements in the efficiency of solar panels, decreasing cost of battery technology, and increasing governmental support of renewable energy usage in developing nations. Solar street lights are highly beneficial in situations where extending the current electrical grid would prove costly, and therefore enable cities to expand lighting services without having to spend equally on expanding their electrical grid. Increased installation in parking areas, parks, and walkways in both developed and developing countries has bolstered the above-average growth rate of this segment.

By Installation Type, Retrofit Dominated the Market While New Installation Is the Fastest-Growing Segment

Retrofit sub-segment commanded the highest revenue share at 57.30% in 2025 due to the massive extent of aging street lighting infrastructure in the matured cities, which keeps replacing their old infrastructure into the latest technology. The matured cities, which have installed vast networks of street lights, often prefer the retrofit segment due to the high capital that is embedded in existing poles and wiring of infrastructure, preferring fixture replacement for achieving maximum possible savings.

New Installation sub-segment will show the highest CAGR of 6.40% during the forecast period 2026-2035 owing to fast urbanization and construction of new roads in cities of Asia Pacific, Middle East, and Latin America. New developed urban areas and highways require installation of new street lighting infrastructure instead of replacement of only fixture part, thereby providing the huge opportunity for new constructions over retrofit replacement.

By End Use, Roadways Dominated the Market While Commercial & Public Spaces Is the Fastest-Growing Segment

The Roadways segment led the Street Lighting Market with a revenue share of 44.60% in 2025, reflecting the fundamental role of street lighting in supporting road safety, nighttime visibility, and traffic flow across urban and highway networks worldwide. Roadway lighting represents the largest and most consistent category of municipal lighting investment, given its direct linkage to public safety outcomes and legal liability considerations that make it a non-discretionary infrastructure priority for local governments managing extensive road networks across both developed and developing regions.

The Commercial & Public Spaces segment is expected to register the fastest CAGR of 7.90% during the forecast period 2026-2035, driven by growing investment in parks, plazas, parking facilities, and pedestrian zones as part of broader urban livability and placemaking initiatives. Cities are increasingly viewing well-lit public spaces as essential to attracting residents, businesses, and tourism, supporting sustained investment in decorative and functional lighting beyond basic roadway illumination across expanding commercial and civic development projects worldwide.

Regional Analysis:

Asia Pacific Street Lighting Market Insights

The Street Lighting Market in the Asia Pacific Region occupied the biggest share of this market in 2025, which was 41.20%. This growth is due to fast urbanization processes, development of road networks, and high investments made by governments in infrastructure construction in China, India, and Southeast Asia. Implementation of many smart cities projects in the region is helping to further develop the use of the networked lighting control technology alongside with basic LED retrofits.

The share of China in the Asia Pacific market of street lighting was about 42.80% in 2025 because of big investments into the infrastructure development and production of LEDs and lighting controls within the country. India, Japan, and South Korea are also playing a role in the growth of the region. India uses rapidly developed road networks and governmental adoption projects of LEDs, while Japan and South Korea have stable demands for networked lighting control systems.

Get Customized Report as Per Your Business Requirement - Enquiry Now

North America Street Lighting Market Insights

North America constituted a substantial portion of the global Street Lighting Market in 2025 due to consistent investments in municipal infrastructure, advanced pilot projects on smart city technologies, and favorable government policies promoting energy-efficient solutions and safety measures. Utility-led bulk buying schemes and increasing municipal funding on networked lighting control solutions continue to ensure stable demand in the region from both matured urban areas and upcoming suburban regions.

The US is contributing about 85.20% to the North American street lighting market in 2025 owing to the country’s well-developed municipal lighting infrastructure and policies on energy-efficient modernization. The contribution of Canada in the region is being made through provincial investments in infrastructure and installation of networked LED street lighting solutions as a part of infrastructure modernization projects in major cities in Canada.

Europe Street Lighting Market Insights

Europe formed a significant part of the Global Street Lighting Market in 2025 owing to sustainable policies enforced in Europe, stringent CO2 emission goals set up by various EU nations, and adoption of IoT based networked street lighting systems. The focus of the policies prevailing in the region towards energy saving will result in implementation of street lighting systems using LEDs and smart technology in all major cities in Western Europe and also in developing Eastern Europe.

The German nation dominated the Europe street lighting market with a regional market share of 24.60%, owing to infrastructure development within municipalities and adoption of networked lighting control systems. Other nations that have been playing an important role in growth of regional market include the UK, France, and Nordic nations.

Middle East & Africa and Latin America Street Lighting Market Insights

The Middle East & Africa region is projected to register the fastest CAGR during the forecast period 2026-2035, driven by large-scale infrastructure investment tied to economic diversification strategies, rapid urbanization, and expanding road network construction across the Gulf states and parts of Africa. Latin America is similarly benefiting from expanding municipal infrastructure investment and growing solar-powered lighting adoption across grid-constrained rural areas.

Saudi Arabia led the Middle East & Africa market with a 29.40% regional share in 2025, supported by major national infrastructure and smart city development initiatives, while the UAE is separately investing in advanced networked lighting systems as part of its digital infrastructure agenda. Brazil represented 33.60% of the Latin American market in 2025, driven by expanding municipal infrastructure investment, with Mexico also contributing to regional growth through urban road network expansion.

Market Dynamics:

Growth Drivers: Urbanization and Energy Efficiency Mandates Driving Market Growth

Street Lighting Market is growing mainly due to urbanization, construction of roads and public infrastructure, and energy efficiency requirements of governments that are facilitating a shift from traditional lighting systems to LED and networking-based solutions. The municipalities continue to focus on the improvement of the street lighting infrastructure as it is associated with safety, reduction of crime, and costs, thus being an inevitable expense in any municipal budget, irrespective of economic environment of the country.

The adoption of smart city technologies and the need for street lighting systems with adaptive dimming, remote control, and predictive maintenance capabilities adds an extra incentive for municipalities to invest in networking solutions. Governments' subsidies, and public-private partnerships are reducing capital expenses for the replacement of the lighting infrastructure in cities, while the installation of smart city equipment on the existing light poles is justifying the additional expenditure for networking-based systems.

Restraints: High Upfront Capital Costs and Budget Constraints Limiting Market Expansion

Despite favorable underlying demand, the market faces meaningful restraints related to the substantial upfront capital investment required for large-scale lighting modernization, which can be difficult for budget-constrained municipalities to justify despite long-term operational savings. Smaller cities and developing-economy municipalities in particular often lack the capital budget flexibility to pursue comprehensive retrofit programs, instead relying on incremental, fixture-by-fixture replacement that extends modernization timelines considerably compared with more well-funded metropolitan areas.

Extended product lifespans of modern LED fixtures, while a positive attribute for municipalities and the environment, moderately limit replacement frequency and recurring revenue for manufacturers compared with legacy lighting technology requiring more frequent bulb replacement. Growing complexity of networked lighting control systems also requires specialized technical expertise for installation and ongoing management, creating an adoption barrier for municipalities lacking dedicated smart infrastructure staff or established vendor support relationships within their existing operational teams.

Opportunities: Smart City Integration and Emerging Market Expansion Creating New Growth Avenues

Substantial opportunity exists in the continued positioning of street lighting infrastructure as a shared smart-city connectivity platform, supporting 5G small cells, environmental sensors, and IoT applications beyond basic illumination. Vendors that successfully package lighting modernization with broader digital infrastructure services stand to capture disproportionate share of municipal technology budgets as cities increasingly evaluate lighting investment through a comprehensive smart-city lens rather than a standalone utility expense.

Emerging markets across Asia Pacific, the Middle East, and Latin America represent a further significant growth avenue, as rapid urbanization and government infrastructure investment create substantial new-installation demand alongside conventional retrofit activity. Continued improvement in solar-powered lighting technology is also expanding addressable opportunity across rural and grid-constrained areas, enabling municipalities and utilities to extend lighting coverage without proportional investment in conventional electrical grid infrastructure expansion.

Recent Developments:

• 2025: Signify partnered with Cornerstone to deploy a city-wide multi-operator wireless network hosted on street lighting infrastructure, combining lighting control with 5G small-cell and IoT sensor connectivity.

• 2026: Itron expanded its IPv6-based networking and SaaS platform for street lighting management, supporting multi-vendor interoperability through TALQ certification across mixed municipal lighting fleets.

• 2025: Flashnet introduced ANSI-Zhaga dual-socket smart street lighting controllers designed to simplify retrofit deployment across North American and European municipal lighting networks.

• 2025: Cooper Lighting Solutions, a Signify company, continued expanding deployment of its Galleon and Navion LED outdoor luminaires with major U.S. utilities, including Georgia Power.

Street Lighting Companies are:

• Signify N.V.

• Acuity Brands, Inc.

• ams-OSRAM AG

• Cree Lighting USA LLC

• Zumtobel Group AG

• Hubbell Incorporated

• Eaton Corporation plc

• Schréder Group

• Itron, Inc.

• Telensa Limited

• Dimonoff Inc.

• Current Lighting Solutions LLC

• LEDVANCE GmbH

• Wipro Lighting

• Thorn Lighting Ltd.

• Legrand SA

Street Lighting Market Report Scope: