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The outdoor landscape lighting market size is forecast to increase by USD 746.3 million at a CAGR of 6.02% between 2023 and 2028. The market is witnessing significant growth due to the increasing demand for LED lighting for various applications. LED lighting offers energy efficiency, longer lifespan, and versatility, making it a preferred choice for outdoor lighting. Additionally, rapid advances in technology in the lighting industry are leading to the development of innovative solutions, such as smart lighting systems and wireless controls, which are gaining popularity among consumers. However, poor performance of LED lighting at high temperatures remains a challenge for market growth. Manufacturers are addressing this issue by developing LED lighting solutions with improved thermal management capabilities. Overall, the market is expected to experience steady growth in the coming years, driven by these trends and the ongoing technological innovations.
The outdoor lighting market is witnessing significant growth due to the increasing demand for artificial lighting in outdoor spaces. Visual performance and human activity are the key factors driving the growth of the outdoor lighting industry. Traditional lighting solutions, such as incandescent bulbs and conventional bulbs, are being replaced by energy-efficient lighting systems like LED solutions, CFL lights, and fluorescent lights. The landscape lighting industry is shifting towards modern landscape lights that offer superior energy efficiency and longer lifespans. Daylight sensors and control systems are becoming increasingly popular in outdoor lighting applications. Chip-on-board technology is gaining traction due to its high performance and cost-effectiveness.
The outdoor environment poses unique challenges for lighting, and energy-efficient lighting systems are the preferred choice for streets, public places, and commercial sites. Solar energy and renewable energy are emerging trends in the outdoor lighting market, offering sustainable and cost-effective solutions. Fluorescent light sources are being phased out due to their energy inefficiency and environmental impact. Smart outdoor lighting systems are the future of the outdoor lighting market, offering advanced features and improved energy management.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The ATG segment is estimated to witness significant growth during the forecast period. The Outdoor lighting market encompasses a variety of Above-the-ground (ATG) lighting solutions designed to enhance the visual performance of outdoor spaces. These lighting systems, which run on solar and low-voltage energy sources, include floodlights, landscape lights, motion sensor lights, spotlights, garden lights, pathway lights, lanterns, moonlights, spread lights, downlighting, shadow lights, wall lights, and deck or step lights. Retailers such as Alliance Outdoor Lighting, Cree Inc., Eaton Corporation Plc, Halco Lighting Technologies, WAC Lighting, and Signify NV provide a comprehensive range of energy-efficient outdoor landscape lighting products for ATG applications. Cree Inc., for instance, offers advanced outdoor lighting solutions, featuring XLamp LEDs, J Series LEDs, and high-brightness LEDs.
These energy-efficient lighting options contribute significantly to energy savings and long product life. The integration of smart lighting systems, sensors, control, communication, and information technologies further enhances the safety, productivity, well-being, and livability of outdoor spaces. These systems provide real-time information, ensuring optimal energy consumption, environmental friendliness, and infrastructure development. Additionally, they offer enhanced safety and security, illuminating driveways, stair railings, post-mounted lanterns, wall lights, gateways, exits, step lights, and path lights. By deterring burglars and improving visibility, these lighting solutions contribute to peace of mind and overall security.
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The ATG segment was valued at USD 1.41 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Outdoor lighting plays a significant role in enhancing the visual performance of outdoor spaces, enabling human activity even after sunset. Artificial lighting, including Incandescent bulbs, Conventional bulbs, Fluorescent lights, CFL lights, and the latest Energy-efficient lighting solutions like LED lights, is essential for ensuring safety and security in outdoor environments. Energy efficiency, efficient lighting, and energy savings are key considerations in the selection of outdoor lighting. Light-emitting diodes, or LED lights, offer long product life, energy efficiency, and environmental friendliness, making them an ideal choice for outdoor applications. Infrastructural development in power grids and advancements in Information technologies have led to the emergence of smart lighting systems.
These systems incorporate sensors, control, communication, and real-time information to optimize energy consumption, ensuring safety, productivity, well-being, and livability. Outdoor lighting applications include driveways, stair railings, post-mounted lanterns, wall lights, gateways, exits, step lights, and path lights. LED lights, with their energy efficiency and long product life, are increasingly being adopted to illuminate these areas, providing safety and security while reducing energy consumption. Smart lighting systems can also deter burglars, adding an extra layer of security.
Our outdoor landscape lighting market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market experiences continuous growth due to increasing preference for energy-efficient LED lighting solutions for various applications. The market is witnessing significant growth due to the increasing adoption of energy-efficient lighting solutions, such as LED lights, in various applications. Sustainability and resource efficiency are key drivers in the market, with LEDs offering up to 80% energy savings compared to traditional lighting sources. Artificial Intelligence and Human Centric Lighting are modern technologies gaining traction, enabling occupancy sensors, daylight harvesting, and connected lighting systems. Smart cities and the Internet of Things are also fueling market growth, with wireless lighting control and connected lighting solutions becoming increasingly popular. The negative effects of light pollution, including sky glow and light trespass, are leading businesses and metropolitan cities to invest in LED lighting for streetlamps, tunnel lights, highways, parking lots, and building exteriors.
The commercial viability of LEDs, coupled with the continuous decrease in their average selling price, is driving their penetration and market size in both the residential and commercial sectors. Niche markets, including stage lighting, plant grow lights, decorative holiday lights, traffic signals, pedestrian crossing lights, street and area lights, exit signs and electric signage, recessed downlights, and step, path, and porch lights, are expected to drive market growth during the forecast period. The outdoor lighting industry is witnessing innovation with the integration of wireless technologies, such as Bluetooth and Wi-Fi, and lighting accessories, such as motion sensors and dimmers, to enhance the functionality and user experience.
CXOs of commercial buildings and modern technologies are recognizing the importance of outdoor lighting in creating a welcoming environment and improving safety and security. Parks and public spaces are also benefiting from the adoption of LED lighting, enhancing their beauty and functionality.
The market experiences continuous evolution, driven by technological innovations in the lighting industry, enhancing functionality and aesthetics for residential and commercial applications. The market is experiencing significant technological advancements, with a focus on sustainability and resource efficiency. Artificial Intelligence and Human Centric Lighting are emerging trends, enabling occupancy and daylight sensors to optimize artificial light usage. Connected lighting and the Internet of Things are transforming urban landscapes into smart cities, reducing negative effects such as light pollution and sky glow. Metropolitan cities are increasingly adopting modern technologies, including LED lights, plasma lamps, wireless lighting control, and lighting accessories, for street lighting, tunnel lights, highways, parking lots, and building exteriors. Commercial buildings, parks, and outdoor billboards are also embracing these innovations. Direct sales and retail channels, including hypermarkets and specialty stores, as well as micro-firms, are driving demand for advanced outdoor lighting solutions.
CXOs in businesses are recognizing the importance of these technologies to enhance their property's appeal and functionality, while minimizing energy consumption. The global outdoor lighting industry is poised for strong growth during the forecast period, with the LED lights segment leading the charge.
The market may experience challenges with the limited efficiency of LED lighting in high-temperature environments, impacting market growth. The market is witnessing significant growth due to the increasing adoption of sustainability and resource efficiency in modern technologies. Artificial Intelligence and Human Centric Lighting are key trends driving market growth. LED lights, a major segment of the industry, face the challenge of heat management due to their inverse relationship with performance and temperature. As LED chips generate heat during operation, heat transfer technologies like heat exchangers become essential to maintain optimal performance. The Internet of Things and Smart City initiatives are also fueling the demand for connected lighting and wireless lighting control systems. In metropolitan cities, the negative effects of light pollution from electric lights on cars, streetlamps, outdoor billboards, buildings, and tunnels are becoming a concern.
Businesses and commercial buildings are investing in energy-efficient alternatives to reduce their carbon footprint and enhance the visual appeal of their exteriors. Micro-firms and specialty stores are also adopting modern lighting solutions to meet their unique requirements. Overall, the Outdoor Lighting Industry is evolving with the integration of wireless technologies and lighting accessories to cater to the diverse needs of various sectors.
The outdoor landscape lighting market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acuity Brands Inc.: The company offers Linear Flood Lights, such as the 4750L model, which is renowned for its superior illumination and durability.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Outdoor lighting plays a significant role in enhancing the visual performance of outdoor spaces, enabling human activity even after sunset. Artificial lighting solutions, including incandescent bulbs, conventional bulbs, fluorescent lights, CFL lights, and energy-efficient LED lights, are increasingly being adopted for outdoor applications. Energy efficiency is a key consideration in the outdoor lighting market, with LED lights offering long product life, energy savings, and environmental friendliness. Power grids face increasing energy consumption due to the widespread adoption of outdoor lighting, making energy efficiency a critical factor. Infrastructural development, safety and security, and livability are primary drivers for the outdoor lighting market.
Outdoor lighting is used for various applications such as driveways, stair railings, post-mounted lanterns, wall lights, gateways, exits, step lights, and path lights. Smart lighting systems with sensors, control, communication, and information technologies offer real-time information, safety, productivity, and well-being benefits. Outdoor lighting also plays a crucial role in enhancing safety and security by deterring burglars and improving visibility.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.02% |
Market Growth 2024-2028 |
USD 746.3 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.59 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acuity Brands Inc., ALLIANCE Outdoor Lighting, Cast Lighting, Cree Lighting, Eaton Corp. Plc, Current Lighting Solutions LLC, Halco Lighting Technologies LLC, Hubbell Inc., Kichler Lighting LLC, Landscape Forms, LSI Industries Inc., Modern Lighting by Lumens Light and Living, Orbit Lightings, OSRAM Licht AG, Oversea Lighting and Electric (M) Sdn. Bhd., Panasonic Holdings Corp., Signify NV, VOLT Lighting, WAC Lighting, and Wipro Lighting |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Source
8 Market Segmentation by End-user
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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