North America Outdoor Led Lighting Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

North America Outdoor Led Lighting Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The North American Outdoor LED Lighting Market is expected to register a CAGR of approximately 14% over the forecast period. LEDs are one of the fastest-developing and energy-efficient lighting technologies. With outdoor LED systems, it is easy to control the direction of the light. This step makes them safer by lowering the need for fire hazards such as reflectors or shades. This factor also makes LEDs a more efficient option for recessed lighting. Installing adequate outdoor lighting goes beyond decorative ambiance, provides safety and security, and discourages crime. The growing usage of LEDs, as well as improvements in technology, has led to the costs of LEDs being lowered.

• Outdoor lighting serves multiple purposes. It helps pedestrians and drivers see well enough to avoid hazards. The primary benefits of having outdoor street lights are to provide safety and security and increase the quality of life by artificially extending the dawn hours of the day so that regular activity can occur. Outdoor street lighting improves safety for drivers, riders, and pedestrians, especially at intersections and crossings. It aids navigation and helps drivers turn vehicles and judge the safety of the route.
• In October 2022, the University of Hawaii at Manoa upgraded the lighting poles along the upper campus main roadways with new energy-efficient LED lights is completed. In October, the UH Manoa Office of Campus Operations and Facilities will begin replacing 150 lighting poles, fixtures, and foundations on East-West Road and Maile Way. This project is expected to take about 18 months. UH, Manoa completed similar outdoor lighting upgrades over the last several years, yielding better lighting and energy savings of millions of kilowatt hours annually. Those projects included the law school library courtyard and the parking lots at the Pacific Biosciences Research Center, Center for Korean Studies, Kennedy Theatre, and Spalding Hall, among others.
• Due to the unique characteristics of LED lights, they are becoming more and more popular for commercial and industrial applications, especially outdoor lighting. LEDs are more durable, reliable, and need little to no maintenance. According to energy.gov, if United States switched to the widespread use of LED lighting, it could make the single most significant impact on nationwide energy savings. By 2027, the general use of LED lighting could save the electrical output equivalent of 44 large power plants, with a total savings of USD 30 billion at today's electricity prices.
• The demand for LED lighting is also increasing due to the emphasis on smart cities and the need for energy efficiency. Furthermore, growing vehicular traffic is leading to massive investments in infrastructure development, especially roads and highways, which will drive the outdoor LED lighting market. LED performance increases as operating temperatures drop. This benefit makes LEDs perfect for outdoor applications such as parking lots and wall packs. In November 2022, the government of Canada announced USD 4.2 million in joint funding for two infrastructure projects in Kensington. The rink upgrade project includes installing LED lights and a resurfaced parking lot.
• In October 2022, the Lighting Research Center (LRC) at Rensselaer Polytechnic Institute (RPI) of United States was granted USD 1.125 million to help the country's airports and airfields to improve energy-efficient LED lighting for navigation. The LRC's research has enhanced the visibility and reliability of airport visual guidance systems while improving the energy efficiency of lighting at US airports and airfields. This support has ranged from researching the visual needs of pilots for accurately identifying signals and signs used in airport visual guidance applications to assessing technologies that can aid in developing and deploying new lighting systems.
• Due to the COVID-19 pandemic, the lighting industry's supply chain disintegrated profoundly, due to which the LED Lighting market was oppressively impacted. Still, the demand for the LED Lighting market in applications such as Highway/Street/Roadway Building exterior/Architectural, Parking Lots/Parking Garages, Airport perimeters, Stadium, and Sports Arena witnessed the demand from smart metropolitan cities. This market is expected to grow drastically in the coming times by seeing advanced connectivity situations, better performance, effectiveness, and power monitoring in commercial lighting sectors.

• LED lighting solutions ensure a safe and efficiently managed transport infrastructure. While allowing the civil authorities to save significantly on operating and maintenance costs, LED luminaires also assist in building up a secure environment. They illuminate the area uniformly to improve visibility, eventually minimizing the risk of accidents or crashes. According to the U.S. Department of Energy, the number of LED light installations in United States is expected to reach 7.9 billion units in 2035. The outdoor sector is expected to have the highest penetration rate of LED lights.
• Innovative and smart lighting solutions like adaptive lighting, smart outdoor lighting, etc., ensure supreme performance and reduce energy costs and carbon emissions. Lighting is a primary safety measure that provides safe transit on the roads and highways. It supports road safety by flourishing uniform illumination that improves nighttime visibility. This measure eventually minimizes the risk of unfortunate accidents on the roads. Furthermore, the leading commercial lighting manufacturers believe LED streetlights can contribute to developing smart and empowered cities.
• Highway lighting is essential in ensuring that the roadways are safe for drivers by providing that the streets are visible, even at night. Although similar to street lighting, highway lighting serves a much more vast purpose. Highway lighting allows drivers to traverse uninhabited stretches of road without danger safely. They illuminate other vehicles, barriers, bridges, signs, and ditches to help reduce car accidents.
• According to Transport Canada, it will upgrade nearly 80,000 light fixtures on Quebec's (Canada) road network over the next six years. An investment of USD 190 million will be dedicated to installing light-emitting diode (LED) technology, which the Transport Canda states offers a superior and more centralized light flux on roads, ensuring better visibility for drivers. The government notes the change will reduce electricity consumption and the number of maintenance operations by at least 40% compared to high-pressure sodium (HPS) lighting.
• Cities in Canada are increasingly investing in energy-efficient street lighting systems to replace or enhance their outdated systems. While reliable and bright public lighting reduces accidents and crime and allows for economic activity after sunset, modern energy-efficient street-lighting technology can also significantly lower energy consumption and operation and maintenance costs. US and Canadian governments believe that countries can save half to three-quarters of energy by using LEDs. These savings are generated because LEDs emit almost no heat compared to traditional lighting systems.
• The governments of Canada and Alberta recently announced funding to improve road safety and travel efficiency on Highways 15 and 19. The Canadian government will contribute more than CAD 73 million (USD 58 million), while the government of Alberta will contribute more than CAD 114 million (USD 90 million). Such government investments and initiatives are expected to fuel the market growth of outdoor LED lighting in highway-type applications during the forecast period.

• LEDs have become crucial in the lighting industry for their versatility, energy efficiency, maintenance benefits, and public safety improvements. LEDs are more cost-effective because they primarily last longer than incandescent or fluorescent lights. So, downtime and maintenance costs are consequently lower. More government agencies in United States are recognizing the benefits of LEDs and making the switch, creating numerous opportunities for vendors and contractors.
• According to the Environmental Protection Agency's s Energy Star program in July 2022, lighting consumes nearly 35% of the electricity used in United States commercial buildings. The range of standard wattages for LED parking lot lighting tends to be from 40 to 600 watts. The exact wattage for HID parking lot lights would range from 400 watts to 1000 watts. So just transitioning from HID to LED results in a 40%-60% reduction in energy consumption. This factor indicates saving up to USD 300 per fixture, per year, in electricity costs alone. Depending on the size of the parking lot, this could be a considerable price reduction.
• Beyond cost and energy savings, the higher efficiency of LED lights provides other benefits, including reduced carbon emissions, helping cities reach carbon reduction goals, reduced light pollution from less light being directed into the night sky due to optical control, and more perceived public safety because of improved visibility through better color rendering and more uniform lighting distribution. According to U.S. Census Bureau, it is projected that the revenue of parking lots and garages in the U.S. will amount to approximately USD 11,3 billion by 2024.
• United States Department of Transportation, in January 2022, announced more than USD 1.2 billion for the Appalachian Development Highway System (ADHS) toward the timely completion of designated corridors in 11 states in the Appalachian region. The annual funding for the ADHS will increase by 146%, providing dedicated funding to the ADHS to spur economic growth in an isolated region. The total amount available to the states in the Fiscal Year 2022 is USD 246 million. Such investments in the highways will drive the demand for outdoor LED lighting.
• According to United States Department of Energy, in September 2022, Chicago undertook a streetlight modernization project, converting more than 280,000 High-Pressure Sodium streetlights to high-efficiency LED lights. Beyond improving the quality of nighttime visibility throughout the city, the project is expected to save taxpayers USD 100 million over the next decade. Additionally, MRA Group, Spring House Innovation Park research campus, installed exterior LED lighting for parking lots, walking paths, and courtyard space. Advanced wireless controls allow detailed scheduling over 35 zones and dimming based on occupancy. In line with such developments, lighting in applications such as parking lots/parking garages are expected to rise, likely contributing to the outdoor LED lighting market's growth.

The North American Outdoor LED Lighting Market is quite competitive. The market is fragmented due to various small and large players. The major players in the market are Signify Holding, Acuity Brands, Ideal Industries, GE Current (including Hubbell Lighting), TCP Lighting, Circadian Lighting, SLV Lighting, Cree Lighting, and many more. The companies are increasing their footprint share by forming multiple partnerships, investing in projects, and launching new products in the market.

• September 2022: Signify and Upciti partnered to help cities and utilities across North America leverage their street lighting infrastructure to improve transportation, public safety, and sustainability. The companies aim to help cities and utilities across United States and Canada get added value, well beyond illumination, from their lighting infrastructure. By leveraging Signify’s road and street LED luminaires, Interact IoT connected lighting system, and Upciti’s privacy by designing edge computing image analysis sensors, cities can improve services like parking. NYPA (NewYork Power Authority's Smart Street Lighting Program) engaged Signify through a competitive procurement process that enabled Albany to upgrade its nearly 11,000 streetlights to energy-efficient, connected LED luminaires. The city also uses Signify’s Interact IoT system to monitor and manage the lights, helping it become an energy-smart city.
• February 2022: Current Lighting Solutions LLC (GE Current) completed the acquisition of Hubbell Incorporated’s commercial and industrial (C&I) lighting business, creating a premier end-to-end lighting solutions business. Hubbell’s C&I lighting business provides professional lighting, controls, and connected lighting that offers a comprehensive range of outdoor lighting products for industrial, commercial, and institutional applications. The combined business now offers an extensive product portfolio of lamps, fixtures, and controls uniquely tailored to C&I, Signage, and Roadway markets. The acquisition also expands Current’s distribution partner base and specific agent networks for the defined businesses and brands.

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