Outdoor LED Lighting Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Outdoor LED Lighting Market Analysis

The Outdoor LED Lighting Market size is estimated at 11.39 billion USD in 2025, and is expected to reach 14.44 billion USD by 2030, growing at a CAGR of 4.85% during the forecast period (2025-2030).

The outdoor LED lighting industry is experiencing significant transformation driven by rapid urbanization and infrastructure development worldwide. Currently, 55% of the global population resides in urban areas, with projections indicating an increase to 68% by 2050. This urbanization trend is particularly pronounced in developed regions, with North America leading at 82% urban population. The expansion of urban centers has catalyzed the development of public spaces, including amusement parks, architectural structures, and parking facilities. This urban evolution has created new opportunities for innovative outdoor LED lighting solutions that enhance safety, aesthetics, and energy efficiency in public spaces.

Technological advancements in LED lighting systems have revolutionized the industry landscape, particularly in the realm of the outdoor LED smart lighting solution market. Manufacturers are increasingly incorporating advanced features such as remote monitoring, automated dimming, and integration with smart city infrastructure. These innovations enable better control over lighting systems, optimize energy consumption, and reduce maintenance costs. The integration of LED lighting with Internet of Things (IoT) platforms has enabled real-time monitoring and data analytics, allowing municipalities and private entities to make data-driven decisions about lighting infrastructure management.

Sustainability initiatives and environmental considerations are reshaping the outdoor lighting market. The automotive sector's transition to electric vehicles, which saw global sales exceeding 10 million units and a market share of 14% in 2022, has spurred increased demand for energy-efficient lighting solutions in charging infrastructure and parking facilities. Governments worldwide are implementing stringent energy efficiency standards and supporting the transition to LED lighting through various initiatives. For instance, in July 2023, Chinese authorities allocated CNY 9.18 million (USD 1.28 million) for installing solar-powered streetlamps across 120 villages, demonstrating the growing emphasis on sustainable lighting solutions.

Industry partnerships and large-scale infrastructure projects are driving market expansion and innovation. Major lighting manufacturers are collaborating with municipalities and private developers to implement comprehensive lighting solutions for urban development projects. In Saudi Arabia, a significant investment of SAR 10.1 billion (USD 2.7 billion) was announced in 2023 for developing and modernizing sports facilities over the next five years, including advanced LED lighting systems. These partnerships are facilitating the adoption of cutting-edge lighting technologies while ensuring compliance with environmental standards and energy efficiency requirements. The industry is witnessing a shift towards integrated solutions that combine lighting infrastructure with smart city initiatives, creating more connected and efficient urban environments. Furthermore, the smart horticulture LED lighting market is also gaining traction, highlighting the diverse applications of LED technology.

Global Outdoor LED Lighting Market Trends

Upgradation and renovation of sports stadiums and government funding in the sports sector are expected to drive the growth of the market

• The number of stadiums is expected to witness a growth from 3,957 units in 2022 to 4,205 units in 2030, registering a CAGR of 0.9%. Upgrading new venues as well as the rehabilitation of existing stadiums are encouraged in North America in an effort to increase consumer demand. For the 2022 football season, the new USD 5.5 billion SoFi Stadium in the United States received an upgrade with new illumination that incorporated LED lights. In addition, Jones AT&T Stadium announced plans to focus on two projects and install new LED lights and turf. Jones AT&T Stadium is undergoing a USD 200 million restoration, and Tech Athletics is contributing a total of USD 2.2 million to the project for the additional improvements. These elements support the expansion of the LED market.
• In addition, increasing construction will help fuel the demand in the European market. For instance, Germany constructed its most inclusive stadium in Berlin for the Special Olympics in 2023. The new athletics stadium, which replaced the venerable Friedrich-Ludwig-Jahn-Sportpark, was given EUR 160 million (USD 175.44 million) by the authorities.
• The demand for goods and services in the Asia-Pacific market will also be positively influenced by the increasing government funding for the sports sector and the staging of various events. For instance, the Chinese government announced plans to fund stadium maintenance and infrastructural improvements. For instance, Shanghai suggested that a "sports city" will be built by 2025. The nation hosted competitions like the AFC Asian Cup 2023, the 12th National Traditional Minority Sports in 2023, and the third National Youth Games in order to achieve that. Due to these developments, the LED market is expected to grow in the coming years.

Increasing energy-efficient construction and the rise in global sales of EVs are expected to drive the growth of the market

• The world's population reached 7.89 billion people in 2021. Global employment figures reached 3.32 billion in 2022 from 3.16 billion in 2015, an increase of almost 0.13 billion. The use of LEDs is expected to increase as more knowledge is spread throughout the population as a result of the rise in the number of employed individuals.
• Despite the COVID-19 pandemic, worldwide spending on energy-efficient construction increased by an exceptional 11.4% in 2020 to over USD 184 billion, up from USD 165 billion in 2019. The yearly growth rate for investments in energy efficiency surpassed 3% for the first time since 2015. The requirement for additional rooms in a house is anticipated to result in increased demand for LEDs due to the rise in the development of energy-efficient buildings and to meet the residential needs of the expanding population.
• In 2022, there were 143.96 million automobiles produced worldwide. In 2023, that number was projected to rise to 150.92 million. Global sales of electric vehicles exceeded 10 million in 2022, and it was predicted that sales in 2023 would rise by another 35% to a total of 14 million. The market share of electric cars rose from 4% in 2020 to 14% in 2022 as a result of this quick expansion. Due to the fact that electric cars need more processors per vehicle than conventional automobiles, there has also been an increase in the need for automotive semiconductor chips as more of them are used. The rise in semiconductor demand in the automotive industry is likely to help the market for LED lighting.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Outdoor Lighting

Public Places Segment in Outdoor LED Lighting Market

The Public Places segment dominates the global outdoor LED lighting market, commanding approximately 60% of the total market share in 2024. This segment encompasses various applications, including amusement parks, parking lots, and other public spaces. The segment's prominence is driven by rapid urbanization, with around 55% of the world's population currently residing in urban areas, a proportion expected to reach 68% by 2050. The growth is particularly strong in regions like North America (82% urban population), Latin America and the Caribbean (81%), and Europe (74%). The rise in tourism and various transportation services has significantly contributed to the expansion of public spaces, necessitating advanced lighting solutions. Additionally, this segment is experiencing the fastest growth trajectory, projected to grow at approximately 5% during 2024-2029, driven by increasing government initiatives promoting energy-efficient lighting systems and the rising number of smart city projects worldwide.

Remaining Segments in Outdoor LED Lighting Market

The Streets and Roadways segment represents a significant portion of the outdoor lighting market, serving essential infrastructure lighting needs across urban and rural areas. This segment encompasses applications in highway systems, street lighting, and traffic infrastructure, with implementations focusing on both safety and energy efficiency. The Others segment, which includes specialized applications such as castle illumination, fortress lighting, and stadium lighting, though smaller in market share, plays a crucial role in architectural and sports facility lighting. These segments are witnessing increased adoption due to government initiatives for smart city development, infrastructure modernization projects, and the growing emphasis on energy-efficient lighting solutions in public infrastructure projects. The commercial outdoor lighting market and residential landscape lighting market are also integral to these developments, further enhancing the adoption of advanced lighting technologies.

Outdoor LED Lighting Market Geography Segment Analysis

Outdoor LED Lighting Market in Asia-Pacific

The Asia-Pacific region continues to dominate the global outdoor LED lighting market, commanding approximately 34% market share in 2024. The region's leadership is driven by the presence of major LED manufacturing hubs, particularly in China, Japan, and South Korea. The growing number of LED lighting chip manufacturers, startups, and increasing urbanization have significantly contributed to market expansion. Government initiatives, particularly in India and China, focusing on smart city development and energy-efficient lighting systems, have created substantial market opportunities in the outdoor LED market in India. The region's robust construction sector, coupled with increasing investments in public infrastructure and commercial spaces, has further accelerated market growth. Additionally, the strong presence of domestic manufacturers and the availability of cost-effective production facilities have made Asia-Pacific a global center for LED manufacturing and innovation. The increasing adoption of smart lighting solutions and the integration of IoT technologies in outdoor LED lighting systems have also played a crucial role in market development.

Outdoor LED Lighting Market in Europe

The European outdoor LED lighting market has demonstrated steady development, registering approximately 1% growth from 2019 to 2024. The market's evolution has been shaped by stringent energy efficiency regulations and sustainability initiatives across the European Union. The region's focus on smart city development and sustainable urban infrastructure has created significant opportunities for LED lighting implementations. European countries have been at the forefront of adopting innovative lighting technologies, particularly in architectural lighting and street lighting applications. The presence of prominent players such as OSRAM GmbH and Signify Holdings, combined with advanced production facilities, has strengthened the region's market position. The increasing complexity of traffic infrastructure has driven the need for improved street lighting solutions, particularly in countries like the United Kingdom and Germany. The designer lighting segment for architectural applications has gained significant traction in Western European countries, driven by the construction of modern and sustainable buildings. Furthermore, the European Union's green initiatives have accelerated the replacement of traditional halogen street lights with LED lighting systems.

Outdoor LED Lighting Market in Middle East and Africa

The Middle East and Africa outdoor LED lighting market is projected to grow at approximately 4% annually from 2024 to 2029. The region's market dynamics are significantly influenced by government initiatives promoting energy-efficient lighting solutions and sustainable urban development. Energy subsidies remain among the most widely used fiscal policy tools in the Middle East and North Africa, driving the adoption of LED lighting systems. The rapid adoption of solar street lights in Africa has emerged as a key growth driver, particularly benefiting businesses and tourism sectors in newly lit areas. The United Arab Emirates' sustainability campaigns offering discounts on LED bulbs have accelerated market penetration. Several governments in southern Africa have implemented regulations banning conventional light bulbs, creating new opportunities for LED lighting solutions. The region's focus on developing smart cities and modernizing infrastructure has created substantial demand for outdoor LED lighting systems. The presence of significant construction and infrastructure development projects, particularly in Gulf Cooperation Council countries, has further stimulated market growth.

Outdoor LED Lighting Market in North America

The North American outdoor LED lighting market demonstrates robust development driven by technological advancement and strong infrastructure investment. The region's market is characterized by the growing trend of connected lighting controllers for outdoor applications and substantial government support through incentive programs and rebate schemes. The emphasis on smart cities and the need for energy efficiency has created significant market opportunities. The region's strong focus on modernizing existing infrastructure, particularly in the United States and Canada, has been a key market driver. Canadian cities are increasingly investing in energy-efficient street lighting systems to replace outdated infrastructure, while also focusing on reducing operational and maintenance costs. The presence of advanced research and development facilities, coupled with strong technical expertise, has facilitated continuous innovation in LED lighting solutions. The region's commitment to reducing energy consumption and greenhouse gas emissions has further accelerated the adoption of LED lighting technologies across various outdoor applications.

Outdoor LED Lighting Market in South America

The South American outdoor LED lighting market exhibits significant growth potential, driven by increasing urbanization and infrastructure development initiatives. The region's market is characterized by growing awareness of energy-efficient lighting solutions and increasing government support for LED adoption. Brazil, as the largest market in the region, has been instrumental in driving market growth through various public-private partnership initiatives and infrastructure development projects. The construction sector's positive outlook, particularly in commercial and hospitality segments, has created new opportunities for outdoor lighting market implementations. The region's focus on modernizing public infrastructure and street lighting systems has generated substantial demand for LED solutions. The increasing adoption of smart lighting technologies and the growing emphasis on sustainable urban development have further strengthened market prospects. Additionally, the region's efforts to reduce energy consumption and operational costs have accelerated the transition from traditional lighting systems to LED solutions.

Free With This Report

We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 40+ free charts, the sections cover difficult to find data on various countries on Automotive Production, Lighting Electricity Consumption, Road Network, Number of Stadiums, Number of Charging Stations among others.