The global smart streetlight market will record more than 28% annual increase between 2018 and 2023, according to Technavio.
Incremental market growth is expected to be $675 million.
The top two connectivity segments are expected to be wireless and wired connections, with the wired segment expected to account for more than 54% of the market share.
One of the key drivers is the emergence of smart cities.
Smart streetlights are expected to help smart cities to reduce energy costs and to detect traffic congestion and track parking space availability. Smart street lights connected with cameras can improve road safety by reducing the risk of crime and accidents.
The Asia-Pacific region is expected to record the highest growth during the forecast period owing to the increasing technology awareness and technology adoption by governments.
A senior research analyst at Technavio, said: “The wired connected street lights use programmable logic controller (PLC), which is the most secure communication module and is better than a wireless communication module such as Bluetooth. However, the upfront cost of PLC based wired connected street light is higher than that of smart street light systems that work on a wireless communication module. As a result, the adoption of wireless street lights is expected to increase significantly during the next few years.