Annual revenue from smart street lighting will grow at CAGR 31% to reach
US$1.7 billion in 2026. Street lighting programs today, and over the
next several years, will focus on replacing conventional lamps with LED
lamps. However, only 20 percent of LED street lamps will be truly
“smart” through integration with lighting controls systems. This
imbalance will slowly correct itself and by 2026, central management
systems will connect to over two-thirds of all new LED street light
installations.
“Smart street lighting vendors such as Telensa, Telematics Wireless,
DimOnOff, Itron, and Signify have been the most successful in benefiting
from their cost-optimized products, market expertise, and aggressive
commercial approach,” said Adarsh Krishnan Principal Analyst at ABI
Research. “And, there are additional opportunities to be had by smart
city suppliers leveraging street pole infrastructure by hosting of
wireless connectivity infrastructure, environmental sensors, and even
intelligent cameras. The challenge is finding a feasible business model
that encourages deployment of multi-sensor solutions cost-effectively at
scale.”
Smart street lighting applications that have seen the most adoption are
(in order of priority): remote scheduling of dimming profiles based on
seasonal changes, time shifts, or special social events; metering
individual street light energy consumption for accurate usage-based
billing; asset management to improve maintenance planning; and finally,
sensor-based adaptive lighting.
Regionally, street lighting deployments are unique in a vendor and
technology approach, as well as end-market requirements. In 2018, North
America has been a leader in smart street lighting accounting for 31
percent of the global install base, followed by Europe and the Asia
Pacific. In Europe, non-cellular LPWA network technologies have a
dominant share of smart streetlights today but will cede some market
share to cellular LPWA network technologies, especially as NB-IoT based
end-devices become more commercially available in Q2 2020.
By 2026, the Asia Pacific region will have the largest install base of
smart streetlights, accounting for over one-third of global
installations. This growth is due to China and India, both which not
only have ambitious LED street lamp retrofit programs but also are
building local LED component manufacturing facilities to lower lamp
costs. “In India and China, LED streetlights have seen a very low
penetration of lighting control systems due to a nascent domestic
solution vendor ecosystem and international vendors that are unable to
adapt their solution to meet local market requirements for innovative
yet low-cost products, “concluded Krishnan. Low-cost solutions based on
cellular LPWA network technologies followed by non-cellular LPWA network
technologies will witness the most growth in the APAC region, accounting
for a market share of 48 percent and 36 percent respectively of the
total install base in 2026.
These findings are from ABI Research’s Smart
Street Lighting market data report. This report is part of the
company’s M2M,
IoT & IoE research service, which includes research, data, and
Executive Foresights. Market
Data spreadsheets are composed of deep data, market share analysis,
and highly segmented, service-specific forecasts to provide detailed
insight where opportunities lie.
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