Outdoor Street Lighting and Lighting Control Industry
Weekly Report

The third week of March 2025

Overview

This week, the global outdoor lighting and control industry showed two major characteristics: accelerated technological iteration and deepening policy-driven development. As the world’s largest market, China’s demand for intelligence and greening continues to rise, driven by smart city construction and the “dual carbon” goal. The LED penetration rate has increased to more than 85%, and the installation volume of intelligent control systems has increased by 15% year-on-year. In the international market, Europe and the United States have accelerated the layout of renewable energy lighting due to the energy crisis, while the Southeast Asian market has benefited from the urbanization process and the demand growth rate is significant.

Market dynamics

Main events

China’s policies add to smart streetlights

The Ministry of Housing and Urban-Rural Development issued the “Guidelines for Intelligent Renovation of Urban Road Lighting”, which clearly stated that 30% of traditional streetlights will be transformed into smart ones by 2025, and promote multi-functional integration such as 5G base stations and environmental monitoring.

European energy subsidies have been implemented

The EU has passed the “Green Lighting Plan” and will allocate 2 billion euros in the next two years to support the deployment of solar streetlights and smart control systems, which is expected to drive related companies’ exports by 10%.

Growth drivers

Technology upgrades

LED luminous efficiency has increased to 200lm/W, and costs have dropped by 20%, driving replacement demand.

Energy saving needs

Against the backdrop of rising global electricity prices, smart control systems can reduce energy consumption by 30%-50%, becoming a standard feature of municipal projects.

Policy and competition environment

Policy interpretation

China’s “dual carbon” goals

Local governments will include outdoor lighting energy efficiency in their assessments, and high-energy-consuming lamps must be eliminated by 2025, which is good for LED and solar products.

U.S. Infrastructure Act

Added $5 billion in budget for the construction of smart streetlights in rural areas, requiring local procurement to account for no less than 60%, intensifying competition among international manufacturers.

Competitive landscape

The concentration of leading companies has increased

The concentration of leading companies has increased
The top five companies in the world (Philips, Osram, Opple, NVC, Sanxiong Aurora) have a market share of 45%, and small and medium-sized manufacturers have turned to niche markets (such as landscape lighting).

Industry chain integration is accelerating

Upstream chip companies (such as Sanan Optoelectronics) cooperate with downstream integrators to develop an integrated “lamp pole + charging pile” solution to reduce overall costs.

Future trend forecast

Short term (next 6 months)

Intelligent explosion

The penetration rate of the Internet of Things (IoT) will exceed 25%, and remote fault diagnosis and adaptive dimming functions will become standard.

Regional market differentiation

Due to the growth of infrastructure investment, demand in Southeast Asia increased by 20% year-on-year; the growth rate in Latin America slowed down to 5% due to exchange rate fluctuations.

Long term (next 3-5 years)

The concentration of leading companies has increased

AI algorithms optimize lighting solutions, such as adjusting the brightness of street lights through traffic flow prediction, and energy-saving efficiency will be increased by another 15%.

Industry chain integration is accelerating

The proportion of solar street lights will increase from 12% to 30%, and hydrogen power supply technology will enter the pilot stage.

Conclusion and Recommendations

Strategic Recommendations

Focus on technological innovation

Enterprises need to increase investment in AIoT (artificial intelligence Internet of Things) research and development, such as developing edge computing modules to reduce cloud dependence.

Layout of emerging markets

Intelligent control systems (CAGR of 18%), multi-functional light poles (market size of US$12 billion in 2027).

Investment Directions

High-potential areas

AI algorithms optimize lighting solutions, such as adjusting the brightness of street lights through traffic flow prediction, and energy-saving efficiency will be increased by another 15%.

Risk Warning

Be wary of price fluctuations of raw materials (such as aluminum) and international trade barriers, and it is recommended to establish a diversified supply chain.

Data Visualization

Global outdoor lighting market structure in 2025

Forecast of global outdoor lighting market size and intelligent control system share

Data support

The global outdoor lighting market is expected to reach $320 billion in 2025, of which smart control accounts for more than 40%. Enterprises need to keep up with the dual-wheel drive of policies and technologies to seize market opportunities.

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