Smart Poles Market Expected to Reach $35.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Smart Poles Market," The smart poles market was valued at $7.1 billion in 2021, and is estimated to reach $35.9 billion by 2031, growing at a CAGR of 17.9% from 2022 to 2031.

Smart poles are innovative and technologically advanced street light poles equipped with various sensors, cameras, and communication devices. These poles have the ability to collect, analyze and transmit data to a central management system to provide real-time information about traffic, weather, air quality, and other city-related information.

The main factor propelling smart poles market growth globally is their potential to keep electronics, sensors, and software controls that can assist in data transmission and reception from the pole position to the operator location. The need for smart poles is expected to increase due to their potential to offer traffic management with the following features: traffic monitoring, traffic directing, car monitoring, and parking guidance, smart poles are becoming more and more common in cities as a means of reducing traffic congestion and averting accidents. Furthermore, the ability of smart poles to lessen collisions and traffic congestion as well as the rising demand for energy-efficient lighting are all factors that are driving the market expansion.  

However, some of the disadvantages of smart poles are privacy concerns, high cost of installation, and maintenance costs. This system's more expensive infrastructure and equipment compared to the old poles are a significant barrier to the market growth. In addition, setting up the smart poles requires a lot of hardware and software, including dimmers, communication tools, control systems, and sensors, all of which are highly expensive. This is a crucial barrier to the widespread adoption of smart poles. The development of this system is also hampered by numerous other considerations, including location, source, and wattage type.

Large and small communities have experienced widespread economic growth owing to the advancements in communication technology. The development of a smart city and the advent of 5G smart pole technology present a sizable possibility for the market for smart poles to expand. In countries such as China, India, Japan, and Australia, several government initiatives are being taken to replace the traditional pole systems with this new technology in order to reduce energy usage by 40%. The system has a great scope for growth due to the traffic management features of the design, such as traffic monitoring, vehicle monitoring, traffic guiding, and parking guidance. The industry is expected to have attractive potential owing to the government's developing smart city projects, which will accelerate the demand for smart pole solution. Numerous market expansion chances are also projected to be provided by the growing use of artificial intelligence (AI) and the Internet of Things (IoT) to increase the effectiveness of the smart light poles. These factors are anticipated to generate excellent opportunities for the key players in the smart poles market in the upcoming years.

The smart poles market analysis report is segmented on the basis of type of hardware, products, installation, application, and region. By type of hardware, the smart poles market is classified into lighting lamp, pole bracket and pole body, communication device, controller, and others. By products, it is classified into hardware, software, and services. By installation, it is classified into new installation and retrofit. By application, it is classified into highways and roadways, public places, and railways and harbors. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the smart poles market report include Philips Lighting Holding B.V., GE Lighting Co. Ltd, Hubbell Incorporated, Cree, Inc., Eaton Corporation, Acuity Brands, Sunna Design, Mobile Pro Systems, Goldspar Australia Pty Ltd., and Virtual Extension Ltd.

The report offers a comprehensive analysis of the global smart poles market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and the emergence of substitutes in the market.

Impact of COVID-19 on the Global Smart Poles Industry

• The COVID-19 outbreak had a significant influence on the smart poles market. The sector witnessed both short-term and long-term effects owing to the emergence of many obstacles, including the suspension of numerous operations, impeding corporate growth, and other issues. These issues had a significant impact on the supply and demand of construction materials.
• COVID-19 impacted almost all industries and the smart pole manufacturing companies had to cease their operations owing to import-export restrictions and the shutdown of manufacturing facilities across several countries, according to the National Highways Authority of India (NHAI) and the National Highways and Infrastructure Development Corp. Ltd. (NHIDCL).
• The pandemic halted construction and development activities owing to the shortage of laborers and construction personnel. These factors have significantly hampered the market expansion.

Key Findings of the Study

• Based on type of hardware, the lighting lamp sub-segment accounted for the largest smart poles market size and the communication device sub-segment is anticipated to be the fastest growing during the forecast period
• Based on products, the hardware sub-segment held the largest smart poles market share in 2021 and the software sub-segment is predicted to show the fastest growth in the upcoming years
• Based on installation, the new installation sub-segment emerged as the global leader in 2021 and the retrofit sub-segment is anticipated to be the fastest growing during the forecast period
• Based on application, the highways and roadways sub-segment emerged as the global leader in 2021 and the public places sub-segment is predicted to show the fastest growth in the upcoming years
• Based on region, the North America market registered the highest market share in 2021 and the LAMEA region is estimated to show the fastest growth during the forecast period