Smart Street Lighting & Connected Street Lighting Market

Smart Street Lighting & Connected Street Lighting Market Overview

The smart street lighting market and the broader connected street lighting market represent powerful examples of how smart lighting technologies are transforming urban infrastructure. These markets combine energy-efficient LED lighting with intelligent control systems, communication networks, and data analytics to create lighting networks that not only illuminate streets but also enhance safety, reduce energy costs, and support smart city initiatives. The evolving demand for connected public infrastructure and sustainability has propelled these markets forward with strong growth and adoption globally.

According to the MarketsandMarkets Smart Lighting Market Report, the global smart lighting industry which includes smart street lighting technologies is expected to grow from approximately USD 9.86 billion in 2025 to about USD 17.38 billion by 2030, at a compound annual growth rate (CAGR) of 12.0% during the forecast period. This growth is driven by rising urbanization, supportive government policies, investments in smart city infrastructure, and broader adoption of IoT-enabled solutions. 

Market Size & Growth Forecast

The global smart lighting market encompasses smart street lighting systems, residential and commercial smart lighting solutions, and other connected lighting technologies. This market is expected to expand significantly as municipalities and governments prioritize energy efficiency and sustainability.

• Market Size (2025): USD 9.86 billion

• Market Size (2030): USD 17.38 billion

• Forecast CAGR (2025–2030): ~12.0%

The growth reflects increasing demand for IoT-integrated smart lighting solutions, edge computing technologies, and data analytics capabilities that support automated control, remote management, and adaptive lighting functions. Smart street lighting, as a key subsegment, plays a vital role in smart city projects that aim to reduce energy consumption and optimize municipal services.

Key Trends Driving the Market

Several key technology trends and market developments are shaping the smart street lighting and connected street lighting landscape:

• IoT Integration and Communication Technologies: Smart street lighting systems increasingly leverage wireless connectivity (such as Zigbee, LoRaWAN, and Wi-Fi) and communication protocols to enable remote monitoring and centralized control.

• LED & Energy-Efficient Lighting: The widespread adoption of LED street lights which consume significantly less power than traditional lighting  is a major driver of market growth.

• Smart City Initiatives: Governments worldwide are embedding smart street lighting into their smart city strategies to improve public services and achieve sustainability goals.

• Data Analytics & Sensors: Street lighting networks now often include environmental and motion sensors that support traffic, air quality, and pedestrian analytics, enhancing value beyond illumination.

• Retrofitting Demand: Retrofit installations are common as existing street lights are upgraded to connected LEDs rather than replaced entirely, lowering deployment costs.

These trends demonstrate a shift from traditional lighting toward connected lighting ecosystems that deliver operational efficiency and actionable insights.

Device & Technology Components

Smart street lighting involves a combination of hardware, software, and services. These components create a connected lighting infrastructure that supports optimization, automation, and real-time analytics:

Hardware Devices

• LED Street Lights: Core illumination devices with improved energy efficiency.

• Smart Controllers & Sensors: Provide adaptive lighting control, motion detection, and environmental monitoring.

Communication Technologies

• Wireless Networks: Support remote operations, data transmission, and mesh networking.

• IoT Gateways: Connect lighting systems to central management platforms.

Software & Services

• Lighting Management Software: Enables scheduling, analytics, and system optimization.

• Installation & Maintenance Services: Ensure optimal system performance and longevity.

Together, these devices create a connected infrastructure that enhances not only street lighting efficiency but also public safety and urban analytics capabilities.

Industry Analysis & Market Share

The smart street lighting and connected street lighting market is highly competitive and led by both established lighting manufacturers and technology platform providers. Key stakeholders include global firms that specialize in energy solutions, lighting systems, and IoT platforms. Technology partnerships, regional expansions, and product innovations are common strategies.

According to verified market research, North America held a significant share of the global smart connected street lights market, supported by robust smart city initiatives and infrastructure investments. Europe and Asia Pacific also show strong growth dynamics, with Asia Pacific often emerging as the fastest-growing region due to rapid urbanization and government support for energy efficiency.

Hardware typically constitutes the largest revenue share due to the need for LEDs, controllers, and sensors, while software and analytics services are growing quickly as municipalities adopt more advanced, data-driven systems.

Future Outlook & Forecast

Market forecasts for connected street lighting technologies indicate continued adoption and expansion across global urban infrastructure projects:

• Connected Street Lighting Market Expansion (2025–2035): Expected to grow substantially with robust demand for energy-efficient street lighting and IoT-enabled smart infrastructure.

• Smart Street Lighting Installations: Projections show millions of units installed worldwide as cities modernize lighting networks and integrate additional smart services.

• Innovation Trajectory: Advancements in sensor integration, cloud analytics, and edge computing will drive the next phase of functionality, empowering municipalities to leverage data beyond illumination management.

The outlook for the smart street lighting market remains strong as urban centers continue to pursue sustainability, efficiency, and digital transformation.

A few key smart lighting players are Signify Holding (Netherlands), Legrand (France), Acuity Brands, Inc. (US), Panasonic Holdings Corporation (Japan), ams-OSRAM AG (Austria), LEDVANCE GmbH (Germany), Wipro Lighting (India), and Zumtobel Group (Austria). Key strategies adopted by the players in the smart lighting market ecosystem include product launches, developments, partnerships, acquisitions, expansions, and collaborations in order to increase their market share and expand their presence in the market.

Frequently Asked Questions (FAQs)

What is the smart street lighting market forecast for the next decade?

The global smart lighting market which includes street lighting is projected to grow from about USD 9.86 billion in 2025 to USD 17.38 billion by 2030, at a CAGR of around 12.0%, driven by smart city initiatives and IoT integration.

What are the key trends in connected street lighting systems?

Key trends include adoption of LED and IoT-enabled lights, integration of sensors for analytics, use of wireless communication for remote control, and retrofitting existing infrastructure for cost-effective upgrades.

Which regions are leading the smart street lighting market?

North America and Europe are established leaders in smart street lighting adoption, while the Asia Pacific region is experiencing the fastest growth, fueled by rapid urbanization and smart city investments.

Related Reports:

Smart Lighting Market by Lights and Luminaire, Lighting Controls, LED Drivers and Ballasts, Sensors, Switches, Gateways, Dimmers, Relay Units, DALI, Power over Ethernet (PoE), Power Line Communications (PLC) and Zigbee - Global Forecast to 2030

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