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A Healthy Future Forecast for the Outdoor LED Luminaire Lighting Market

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Strategies Unlimited recently released its research on the outdoor lighting market for year 2015 through 2021. The report sought to quantify the lighting market for the major outdoor lighting segments such as street lights, parking lots, parking garages, tunnels, and wallpacks/ flood lights. The outdoor application has been a crucial market for LED lighting and we have seen great energy efficiency strides in this lighting application. For year 2015 the total outdoor lighting market was assessed at $6.5 Billion USD with LEDs and connected LED luminaires making up close to 51% of the market in terms of revenue. The outdoor lighting market is projected to grow at an annual compound growth rate of 4% from 2015 to 2021 (in terms of revenue shipment).

Global Outdoor Lighting Market 2015-2021

One of the findings of the research was the current low presence of connected LED luminaires in the overall outdoor luminaire shipment when interviewing companies. Though the potential and market for connected LED luminaires is heavily discussed, connected LEDs luminaires still comprise less than 1% of the total shipment of most luminaire manufacturers. One of the major reasons for this is that a connected LED outdoor luminaire may cost on average $100 on top of the cost of the luminaire (you can find out about the other obstacles facing the smart lighting market here). Strategies Unlimited believes that though connected LED luminaires are inevitable, their rise will be a slow and steady one. There still needs to be more changes on the policy, interoperability and compatibility level for wide-spread and rapid adoption of connected LED luminaires.

Compared to our projections from last year’s connected outdoor lighting market, Strategies Unlimited believes that proprietary based lighting communications technologies will have a longer and larger lingering presence in the market than previously anticipated. Though open standards such as ZigBee, Power line communication, and other non-proprietary standards see favorable adoption in most of the outdoor lighting segments, proprietary lighting communication networks still comprise majority of the smart lighting market.

The report also identified the differing lighting control needs of street light, parking lot, parking garage, tunnel and wallpack/flood light segments. It wasn’t surprising to see the high demand for photo sensors by end-users for outdoor luminaires but it was somewhat surprising to see the request for dimmers on luminaires. The dimmers are usually being used to offset or lower the bright and glaring light of luminaires.

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