As smart cities projects globally show continued promise but also face uneven prospects, their foundational layer – smart street lighting – continues to show steady growth, with large-scale projects now underway in almost all regions of the world. This is according to a new study released by market intelligence firm Northeast Group.
Total investment in LED and smart street lighting, as well as additional smart city sensors attached to streetlight infrastructure, will reach $28.1 billion over the next decade.
Over a quarter of all streetlights globally have been converted to LEDs, while over 10 million smart streetlights have been connected globally, not including China and India, according to the Global Smart Street Lighting & Smart Cities: Market Forecast (2020-2029) Volume VI.
As the market develops, the vendor landscape remains extremely fragmented and ripe for consolidation.
The market also now includes some vendors focused primarily on the software component of smart street lights, which will reach over $200 million in recurring revenue per year by 2029.
Including LED lighting and additional smart city infrastructure, hundreds of vendors are active in this market.
Chris Testa, research director at Northeast Group, said: “The challenges of 2020 have reinforced some of the key trends that were already developing in the smart street lighting market.
“Covid-19 has highlighted the importance of automation and resiliency for cities, but reduced municipal budgets mean that access to financing through ESCOs and other third parties is increasingly important. Likewise, a phased-in approach to smart cities that starts with smart street lighting before proceeding to other applications and a focus on choosing interoperable software platforms that can serve multiple smart city segments are also key trends that have only become more salient in the past year.”
The study explores the deployment of smart street lights in 125 countries.
Visit www.northeast-group.com for further information on the study.