The rising traffic has been a significant reason pushing the development of streets and highways. It is being driven by the increasing number of passenger and commercial vehicles and the growing urbanization rate. For reducing traffic jams, the government of different countries, such as China, India, and the U.S., is coming up with multiple initiatives, such as investing in road infrastructure development. The construction of tunnels, highways, and streets is incomplete without proper lighting. As a result, the global outdoor lighting market value will rise from $10,352.1 million in 2020 to $20,269.7 million by 2030, at a 7% compound annual growth rate.
Among the different types of lights available for outdoor purposes, LEDs remain the most popular, a situation that is unlikely to change in the coming years. These lights are widely being installed in stadia and on streets as they help in increasing energy savings and can offer effective use of light intensity control. LEDs consume almost 75% less energy than conventional incandescent bulbs and also last up to 25% longer. Moreover, as per the U.S. government, widespread LED usage in the country could save 569 TWh of electricity by 2035.
Therefore, the streets category is predicted to grow massively within the application segment of the outdoor lighting market in the coming years. It will also be due to the development of smart cities, inclusive of high-quality roads and highways. Moreover, cities are fast replacing their conventional streetlights with LEDs, to save energy, reduce carbon emissions, control light intensity, and decrease maintenance costs. For instance, way back in 2017, South Delhi Municipal Corporation replaced 200,000 conventional street lamps with LEDs and launched the initiative to replace 75,000 more fixtures with energy-efficient variants.
Such replacement and new installation projects have been driving the demand for both fixtures and controls, of which fixtures witness the higher sale. Fixtures are the lights themselves and the enclosures wherein they are fixed or housed. Since most of the energy-efficient lights installed till now are conventional in the way that they are not integrated with smart controls, the demand for fixtures has been more than controls. But, with the growing awareness on smart lights as a way to further reduce energy consumption and bills, the demand for controls will surge rapidly in the near future.
