Street and Roadway lights are often used with other traffic safety equipment to increase visibility of equipment, obstacles, or unlit common areas. The primary or major function of street lights is to illuminate objects or areas that would otherwise be dark at night. Street lights are a confirmed way of reducing robberies, burglaries, property defacement, property damage, and other crimes that often happen after the sundown. The developers are making massive investments in building smart cities, and government incentives are provided for outdoor lighting applications such as freeways, bridges, roadways, tunnels, and in-city street lights.
Market Scope and Structure Analysis
Description
The growing complications of transportation groundwork have increased the need for improved illumination on the streets and roadways, in order to ensure people’s safety and security on the streets and roads and to ensure smooth traffic operations on the road as well, while maintaining cost-effectiveness. Street and road lighting plays a fundamental role in the safety and security of the streets and public places. Road lighting is an essential service provided by governments to ensure safety and security at night for its citizens and significant infrastructure developments, such as the construction of highways for connecting cities, are few factors because of which companies are entering into this sector. With a thought in mind to reduce light pollution and energy consumption, cities have started to substitute their sodium street lights with energy Light Emitting Diodes (LEDs) based lights. Safety is the utmost essential advantage of lighting. By enlightening roads, parks and other public spaces, we decrease the risks of accidents, mishaps and injuries. Lighting is also very important for driving during the night. Well-lit public locations also provide pedestrians the much desired sense of security to step out of home after sundown. The street and roadway lighting market is separated in fragments and has high competitions owing to the existence of a large number of local and international players across the world. In countries, like China and India, the governments are inspiring the adoption of LED technology for roadway and highway operations, so as to save energy and maintenance costs. Moreover, in order to encourage investments in the market, the Indian government has only imposed a free tariff (basic tariff) on LED component imports that facilitates the LED products to enter the Indian market as semi-finished products. The report analyses those factors that affects street and roadway lighting market from both demand and supply perspective and further assesses market dynamics that will affect the market during the forecast period.
COVID-19 Impact analysis
- COVID-19 pandemic has shut-down the production of various products in the street and roadway lighting industry attributed to the lockdown in countries worldwide. This has hampered the growth of street and roadway lighting market from the last few months and is likely to continue during 2021.
- COVID-19 has already affected the sales of street and roadway lighting in the first quarter of 2021 and is anticipated to cause a negative impact on the market growth throughout the year.
- The major demand for street and roadway lighting was previously noticed from giant manufacturing countries including the U.S., Germany, Italy, UK, and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for street and roadway lighting.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Street and roadway lighting manufacturers can afford a full lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce the expenses. Whereas few players also adopted employee lay-offs to sustain during the COVID-19 health crisis
- Street and roadway lighting are expected to focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
The speedy development of infrastructure projects across the globe, which increased introduction of LED lights and luminaires in street lighting applications, the rising demand for energy-efficient street lighting systems are the noteworthy factors impacting the evolution of the street and roadway lighting market. Further, strict government regulations about lighting efficiency along with the modernization and development of infrastructure across various countries such as China, India, Japan, and among other are also fuelling the requirement for street and roadways lighting market. The quick adoption of connected lights is likely to create remarkable opportunities for the key players of the street and roadway lighting market in the forthcoming years. The reports cover major developments in the street and roadway lighting market as organic and inorganic growth policies. Various companies are concentrating on organic growth strategies such as product launches, product approvals and others such as patents and events. Inorganic growth strategies activities observed in the market were acquisitions, and partnership & collaborations. These activities have showed the way for expansion of business and customer base of market players. The market players from street and roadway lighting market are predicted to profitable growth openings in the future with the increasing demand for street and roadway lighting in the global market.
Market Trends
- Mergers and acquisitions have emerged as a common business strategy for companies focusing to expand into new markets or territories, have a competitive edge, or obtain new technologies and skill sets. For instance, on March 2020, Signify announced the completion of the acquisition of Cooper Lighting Solutions from Eaton for USD 1.5 billion. With this acquisition, the company plans to emphasis on the innovation of connected lightings and systems. This is estimated to speed up the revenue growth of the company in the North American market with an aimed increase in professional revenues from 42% to 53%.
- Business expansion strategies also assist in enhancing the geographic footprint of the company and help in gaining significant market share for street and roadway lighting market. For instance, on May 2020 - GE Current opened a new distribution centre in the greater Atlanta area. With the addition of the location, GE Current was then able to provide same-day and next-day services to its lighting and controls customers regionally.
- Several companies are now shifting towards making LED lights because these are more eco-friendly since they consume low energy and have low maintenance costs as well. For example, Chinese government provided high incentives to substitute streetlights with LED-based streetlights due to its great energy savings efficiency. Such project by government also helps in the market growth of street light. Asia Pacific is probable to witness fastest growth rates in street lighting market during forecasted period. In North America, the U.S holds the major market share in street lighting market. Introduction of new and advanced products in the street lighting further enhance the street lighting market.
- Moreover, customization is also a widely used strategy for diversifying and expanding the business. For instance, many global brands such as Philips, Honeywell and Osram offers customize products in the market with prominence on latest technology, quality, innovation and value merged with better after-sales services. Growing investment over research and development on various street lighting and introduction of new technology such as wireless, sensor based street light further helps in the growth of street lighting market.
Key Benefits of the Report
- This study presents the analytical depiction of the street and roadway lighting market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the street and roadway lighting market share.
- The current market is quantitatively analysed to highlight the street and roadway lighting market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed street and roadway lighting market analysis based on competitive intensity and how the competition will take shape in coming years.
Key Market Segments
- By Lighting
- Conventional Lighting
- Smart Lighting
- By Light Source
- LEDs
- Fluorescent Lamps
- High-intensity Discharge Lamps
- By End-user industry
- By Offering
- Hardware
- Software
- Services
- By Power
- Below 50W
- between 50-150W
- More Than 150W
- By Region
- North America
- Europe
- France
- Germany
- Italy
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- UAE
- Rest of LAMEA
Key Market Players
- Signify
- ClaroLux Landscape Lighting (U.S.)
- WS Atkins plc (UK)
- OSRAM
- Cree, Inc. (U.S.)
- Koninklijke Philips N.V. (Netherlands)
- Forus Electric Private Limited (India)
- Cree
- OSRAM Licht GmbH (Germany)
- Acuity Brands Lighting, Inc. (U.S.)