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The global Outdoor Landscape Lighting market size is forecast to increase by USD 704.78 million at a CAGR of 6% between 2022 and 2027.The growth of the market depends on several factors, including the growing demand for LED lighting for different applications, the increasing awareness of the benefits of using high-quality and energy-efficient lighting devices, and the strong government support for the lighting industry.
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This report extensively covers market segmentation by application (ATG and underwater), source (LED and traditional), end-user (commercial and residential), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the ATG segment will be significant during the forecast period. Many different varieties of Above-the-ground (ATG) lights, including floodlights, landscape lights, motion sensor lights, spotlights, garden lights, pathway lights, lanterns, moonlights, spread lights, downlighting, shadow lights, wall lights, deck or step lights, are available in the market.
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The ATG segment shows a gradual increase in the market share of USD 1,359.69 million in 2017 and continued to grow until 2021. These lights run on solar and low-voltage energy sources. Cree offers advanced outdoor lighting products, including path lights, step lights, and spotlights. XLamp LEDs, J Series LEDs, and high-brightness LEDs are the featured products offered by the company. Similarly, Halco Lighting Technologies offers a comprehensive range of outdoor lighting products for ATG applications through its Sollo brand. The company designs its fixtures from the ground up to achieve high flexibility and increase the ease of installation with simple and elegant designs. During the forecast period, the vendors of this market segment are expected to increasingly adopt LED technology at a moderate rate. This is primarily because LED is energy-efficient and has a long lifecycle. These factors will improve the market share of this segment during the forecast period.
The growing demand for LED lighting for different applications is notably driving the market growth, although factors such as poor performance of LED lighting at high temperatures may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Market Driver
The growing demand for LED lighting for different applications is notably driving market growth. The commercial viability of LEDs has accelerated their use for different applications, including ATG and underwater segments. They are increasingly deployed in retail, hospitality, and architecture, as well as other commercial and residential applications. This is increasing the adoption of LED lighting worldwide. The continuous decrease in the average selling price (ASP) of LED is expected to positively affect its penetration and market size considerably in both the residential and commercial sectors during the forecast period.
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, which require small and colored lighting products is expected to drive the market growth by LED lights during the forecast period. In addition, the adoption of LED lighting in the office and residential sector is expected to grow rapidly in developing countries, including China, Brazil, India, South Korea, Qatar, Peru, and South Africa, owing to added benefits of LED technologies. These factors are expected to boost the growth of the global market during the forecast period.
Significant Market Trends
The rapid advances in technology in the lighting industry are a major trend in the market. The global market is recording rapid advances in lighting technologies. For instance, in the residential segment, CFL, incandescent, and halogen lighting technologies are currently dominating the market in terms of revenue contribution. However, it is expected that LEDs will emerge as the major revenue contributor in the residential and commercial segments during the forecast period. The technological transition in the market is trending toward product enhancements in terms of better efficiency and power-saving capabilities. These technological transitions in the market will also encourage vendors to be more responsive to the technological changes that customers need. Therefore, the rapid advances in technology are expected to have a positive influence on the growth of the market during the forecast period.
LED technology has advanced rapidly over the years, giving rise to LEDs with more brightness. The production of bright and less-expensive LEDs will gain momentum in the coming years. R&D has assumed immense significance among the vendors. LED lighting products have also become more advanced in terms of safety for home applications. The market competitors are developing LED devices with a high tolerance for fluctuations in the supply of electricity. Therefore, the global market is expected to register robust growth during the forecast period.
Major Market Challenge
Poor performance of LED lighting at high temperatures is a major challenge impeding the market. The performance of LED chips and their related products is inversely proportional to temperature. The higher the temperature, the lower the LED performance. Since LED lights work on electricity and electricity generates heat, the constant current results in the light output of an LED varying as a function of its junction temperature. At the high junction, the temperature heats the semiconducting element, resulting in causing the light output to decrease at a faster rate over the long term. The LED chip, as well as related products like LED lamps, modules, and fixtures, has a major problem with high temperatures. Therefore, such heat should be channeled away from the LED with heat transfer technologies like heat exchangers.
High temperatures do not affect the functioning of traditional lighting due to their warm beams. However, LEDs perform better in a relatively cooler environment as they have a cool beam due to the absence of infrared radiation. Therefore, high temperatures bring imminent mechanical failure or a significant drop in LEDs performance. The high temperature also has a long-term influence on LED life expectancy. Therefore, this factor, along with LED lighting's high cost, is expected to pose a threat to the overall growth of the global market during the forecast period.
The market growth analysis 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 market trends and analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Vendors 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.
Hubbell Inc. - The company operates under two segments including electrical solutions, and utility solutions, with a high focus on electrical solutions. The company under this segment?offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, components and assemblies for the natural gas distribution market, and other electrical equipment. The company's key offerings include products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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APAC is estimated to contribute 46% 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.
Rising disposable incomes, an increasing number of dual-income households, growing product awareness, and increasing availability of a comprehensive range of product offerings are the major factors that are expected to fuel the growth of the market in APAC during the forecast period. Rising disposable incomes enable consumers to invest in premium, high-quality lighting products to enhance the aesthetic appearance of their establishments.
The urban population in various countries in the region has increased significantly over the past few years. The rise in the urban population has led to a rise in the construction of residential and commercial establishments in the region. Hence, the growth in the number of commercial and residential buildings, coupled with economic stability and growing urbanization, is expected to fuel the growth of the market in APAC during the forecast period.
The global outdoor lighting market is witnessing significant growth driven by the demand for energy-efficient lighting systems and government initiatives promoting electric vehicle supply infrastructure installation development. While temporary closures of stadiums and parks and travel restrictions may have impacted demand, producer of lighting products are adapting to the changing landscape. Initiatives like the US federal government's Climate Smart Building Initiative aim to modernize federal buildings with efficient lighting provision and on-site renewable electricity generation. Private sector collaboration is key in installing electric vehicle supply infrastructure and integrating smart outdoor lighting and smart and connected technology solutions like Philips Hue and Inara. These technologies offer brightness adjustment and voice control features, catering to diverse outdoor lighting settings such as streets, highways, public places, gardens, commercial sites, outdoor parking lots, and university campuses. With the growing focus on solar and renewable energy, falling prices of raw materials, easy installation, and increased lifespan are driving the market's expansion.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Outdoor Landscape Lighting Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6% |
Market growth 2023-2027 |
USD 704.78 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.4 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acuity Brands Inc., ALLIANCE Outdoor Lighting, Cast Lighting, Cree Lighting, GE CURRENT A DAINTREE COMPANY, Halco Lighting Technologies LLC, Hubbell Inc., Kichler Lighting LLC, Landscape Forms, LSI Industries Inc, Modern Lighting by Lumens Light and Living, Orbit Lightings, OSRAM GmbH, Oversea Lighting and Electric (M) Sdn. Bhd., Panasonic Holdings Corp., Signify NV, VOLT Lighting, WAC Lighting, Wipro Lighting, and Eaton Corp. Plc |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, 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 |
If our market growth and trends report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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