Market Trends of Europe Street Lighting Industry
This section covers the major market trends shaping the Europe Street Lighting Market according to our research experts:
Smart Lighting Segments Holds the Largest Market Share
- The lighting industry has witnessed a rapid transformation over the past few years, driven by quick improvisation in semiconductor technology, the rise of LED lighting, and the demand for energy-efficient and sustainable solutions. Furthermore, Rapid urbanization, digitization, changing lifestyle and consumer preferences, and high disposable income are responsible for adopting smart lighting solutions in the region.
- Smart lighting is extensively being used for both indoor lighting as well as outdoor lighting. Outdoor lighting is expected to grow, owing to the increasing demand for smart streetlight systems across Europe. As such systems can intelligently switch on/off based on the level of traffic and the availability of natural light, significant energy savings can be realized through their deployment.
- Government initiatives and regulatory frameworks for smart cities contribute to the rising demand for smart lighting solutions for street and roadway lighting. Furthermore, the demand for intelligent solutions in a street lighting system is increasing, further proliferating the demand for smart lighting in the region.
- Moreover, many smart cities in the Europe region use IoT devices such as connected sensors, lights, and meters to collect and analyze data. Further, IoT-enabled street lighting system is gaining traction in the region owing to various benefits offered, such as value creation through energy and maintenance savings or the improvement of the environmental impact.
- As per GSMA Intelligence, the number of IoT connections in Europe was 2.5 billion in 2020, which is expected to reach 4.3 billion in 2025. All of the above factors are expected to grow the demand for smart lighting in the Europe street lighting market over the forecast period.
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The United Kingdom Holds the Significant Share in Europe Street Lighting Market
- The United Kingdom street lighting market is booming owing to the increasing demand for connected street light solutions coupled with the application of 5G and IoT technology in the street light. Further, the demand is supported by various initiatives and subsidies announced by the UK Government. Furthermore, With operational costs at the forefront of many street lighting providers' concerns, LED lighting technology provides an economical, efficient solution to UK street lighting.
- Implementing highly controlled and technically advanced street lighting opens up new possibilities for advanced applications connected to street lighting in the region. Further, smart streetlighting solutions are being adopted rapidly over the conventional street lighting solutions in the United Kingdom due to the various features of smart street lighting solutions, like remote control and scheduling, flexible dimming controls, revenue-grade energy metering, asset management, and health monitoring.
- Furthermore, the region has increased government spending over the past few years. For instance, as per data reported by HM Treasury, public sector expenditure on street lighting in the United Kingdom (UK) was 775 GBP million in 2018/2019, which increased to 827 GBP million in 2020/2021.
- Moreover, the authorities in the region are adopting energy and lighting cost-saving techniques to cut energy costs by implementing energy-efficient lights which are brighter and last longer. For instance, in March 2022, the County council announced that around 20,000 street light bulbs in Worcestershire would be replaced with more energy-efficient LED bulbs. The council has already replaced approximately 35,000 lights in the region.
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