Market Trends of North America Street Lighting Industry
LED Segment is Expected to Hold the Largest Share
The LED light technology has evolved significantly over time in the region, which has led to various government initiatives to replace conventional lighting with energy-efficient lights in the region. Multiple cities across North America have adopted LED streetlights because of the longer lifespan and lower energy consumption of LED lights.
Furthermore, the development of smart cities across the region propels the demand for LED streetlights. The installation of connected LED street lighting in various smart city projects by multiple governments contributes to the broader innovation of aging city infrastructure. Further, the addition of LED sources in smart and connected systems has resulted in a steep reduction in energy consumption, thus increasing the demand for LED lights in street lighting.
Furthermore, the Canadian government has implemented a rule that mandates the registration of products with energy labeling. The government has introduced various initiatives for reducing light energy consumption, such as ENERGY STAR in Canada. Moreover, many regional governments are looking to implement energy-efficient street lights to save costs.
For instance, in March 2021, the City of Laval in Canada gave the green light for a project to convert approximately 37,000 fixtures to LED luminaires with smart controls. This conversion to LED lights is expected to result in annual savings of USD 2.75 million, primarily in energy consumption and maintenance costs. The move toward adopting LEDs is also in line with the strategic vision of 'Urban by Nature,' which aims to make the City a model city in sustainable urban redevelopment.
Additionally, as per data reported by the US Department of Energy, the adoption rate of LED lights in the United States was 39% in 2017, which is expected to increase to 99% in 2035. All of the factors mentioned above are further expected to propel the demand for LED lights in the street lighting market in North America.
The United States Holds the Largest Share in North America Street Lighting Market
The United States market is expected to hold the dominant share and continue its lead over the forecast period. The presence of major street light market players such as Cree Lighting, Acuity Brands Inc., and GE Lighting has contributed to widespread product adoption for the street lights in the region.
Many cities across the United States are heavily investing in massive streetlight modernization projects for cost savings and energy-efficient street lighting, thus growing the demand for street lighting in the United States.
For instance, in February 2022, the City of Chicago completed the Chicago Smart Lighting Program, a streetlight modernization project to replace more than 280,000 outdated streetlights with high-efficiency LED lights that have improved the quality of night-time visibility across the city and are projected to save Chicago taxpayers USD 100 million in electricity costs over the next ten years.
Furthermore, smart street lights are the platform of a smart city as they can have many features to support a smart city. Intelligently designed streetlights can reduce electricity usage in the city and enhance public safety and well-being. Smart Cities development is primarily driven by technologies such as the Internet of Things (IoT); this Internet of Things (IoT) has been implemented in various smart cities in the United States. The demand for street lighting coupled with IoT across the region is expected to grow.
Moreover, the increasing number of highways and streets across the United States is also growing the demand for street lighting. As data reported by US Census Bureau, the average monthly value of public highway and street construction in the United States was USD 89.4 billion in 2017, which increased to USD 99.9 billion in 2021. The abovementioned factors are expected to propel the demand for street lighting in the United States.
