Global Outdoor Light-emitting Diode (LED) Lighting market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Outdoor Light-emitting Diode (LED) Lighting Market Size

• The global Outdoor Light-emitting Diode (LED) Lighting market size was valued at USD 29.73 billion in 2024 and is expected to reach USD 51.62 billion by 2032, at a CAGR of 7.14% during the forecast period.
• Growth is propelled by rising demand for energy-efficient lighting, government initiatives promoting smart city projects, and increasing adoption of LED technology for street lighting, security, and architectural applications due to its long lifespan and low maintenance.

Outdoor Light-emitting Diode (LED) Lighting Market Analysis

• Outdoor LED lighting involves the use of light-emitting diodes for illuminating outdoor spaces such as streets, landscapes, building exteriors, and public areas. These solutions are highly energy-efficient, durable, and offer superior brightness compared to traditional lighting technologies like incandescent or high-intensity discharge (HID) lamps.
• Key growth drivers include global urbanization, the push for sustainability, and the integration of smart lighting systems with IoT for real-time monitoring and energy optimization. The market is further boosted by government policies promoting energy conservation and the replacement of conventional lighting with LEDs in public infrastructure.
• Asia-Pacific is expected to dominate the market due to rapid infrastructure development, smart city initiatives, and the presence of major LED manufacturers in countries like China, Japan, and South Korea.
• Europe is projected to be the fastest-growing region, driven by stringent energy efficiency regulations and widespread adoption of smart LED lighting systems in urban areas.
• The LED segment is expected to dominate the Outdoor Light-emitting Diode (LED) Lighting market, with a market share of 38.5% during the forecast period. This leadership is driven by the increasing demand for high-brightness, energy-efficient, and scalable display solutions, growing adoption in digital signage, retail, and public infrastructure, and ongoing advancements in LED technology enhancing durability and visual performance.

Report Scope and Outdoor Light-emitting Diode (LED) Lighting market Segmentation

Outdoor Light-emitting Diode (LED) Lighting market Trends

“Integration of Smart and IoT-Enabled LED Lighting Systems”

• The market is shifting toward smart outdoor LED lighting systems integrated with IoT, enabling remote monitoring, adaptive lighting adjustments, and energy optimization for applications like street and security lighting.
• Advancements in LED technology are delivering higher lumens per watt, longer lifespans, and improved durability, making them ideal for harsh outdoor environments
  • For instance, in January 2021, Signify expanded its Philips Hue portfolio with outdoor LEDs, including the Amarant linear spotlight and Appear wall light, designed for smart control and aesthetic enhancement.
• Demand for motion-sensitive lighting and automatic dimming functions is growing, especially in commercial and public safety zones to reduce energy wastage and improve surveillance

Outdoor Light-emitting Diode (LED) Lighting market Dynamics

Driver

“Rising Demand for Energy-Efficient Lighting in Smart Cities”

• The global push for energy conservation and smart city development is driving the adoption of LED lighting for streetlights, public spaces, and infrastructure, reducing energy consumption by up to 90% compared to traditional lighting.
• Government initiatives, such as New York’s plan to convert 250,000 streetlights to LEDs, are accelerating market growth
• LED lighting reduces maintenance costs and improves urban safety by offering better visibility and integrating features like emergency signaling.
  • For instance,  In 2025, Ukraine’s government approved a national energy-efficiency program aimed at replacing traditional incandescent bulbs with energy-saving LED lighting across households and public institutions. This initiative is part of the country’s broader strategy to reduce energy consumption, cut electricity costs, and lower carbon emissions.
• Standardization of LED modules and smart interfaces is making it easier for municipalities to upgrade legacy lighting infrastructure with efficient, interconnected systems.

Opportunity

“Expansion of Smart Street Lighting in Urban Infrastructure”

• Smart street lighting systems, combining LEDs with sensors and IoT, are being deployed in smart cities for real-time monitoring, traffic management, and environmental data collection.
• The adoption of IoT-enabled LFDs with cloud-based content management systems enhances scalability and operational efficiency in urban environments.
• The adoption of IoT-enabled LFDs with cloud-based content management systems enhances scalability and operational efficiency in urban environments.
  • For instance, Barcelona installed 3,000 LED-based smart streetlights equipped with environmental sensors to monitor noise levels, humidity, air quality, and pollution, significantly advancing the city’s smart urban infrastructure. These intelligent streetlights are part of Barcelona’s broader smart city strategy aimed at enhancing urban sustainability, energy efficiency, and real-time data-driven governance.
• Public-private partnerships are emerging to finance LED upgrades, creating new avenues for vendors to offer performance-based contracts and managed lighting services.

Restraint/Challenge

“High Initial Costs and Installation Challenges”

• The high upfront cost of LED lighting systems, including smart components and IoT integration, limits adoption in developing regions and small municipalities.
• Retrofitting existing infrastructure with LEDs requires significant investment and technical expertise, posing challenges for widespread deployment
• Retrofitting existing infrastructure with LEDs requires significant investment and technical expertise, posing challenges for widespread deployment
  • For instance, In 2024, several European municipalities reported delays in their LED streetlight upgrade projects due to budgetary constraints and persistent supply chain disruptions, particularly affecting high-wattage LED components. While local governments continue to prioritize energy-efficient infrastructure, economic pressures—stemming from inflation, increased energy costs, and post-pandemic recovery efforts—have limited funding allocations for large-scale lighting initiatives.
• Additionally, Complex regulatory and technical approval processes for smart infrastructure can hinder deployment timelines, especially for large-scale public LED lighting projects.

Outdoor Light-emitting Diode (LED) Lighting Market Scope

The market is segmented on the By offering, installation type, wattage and application.

In 2025, the Hardware is projected to dominate the market with a largest share in by offering segment

The Hardware segment is expected to hold the largest share of approximately 65% during the forecast period, driven by the widespread adoption of LED lamps and luminaires for street and security lighting applications.

The Street Lighting is expected to account for the largest share during the forecast period in Outdoor Light-emitting Diode (LED) Lighting market 

In 2025, the Street Lighting segment is projected to hold a share of approximately 40%, attributed to large-scale municipal projects and government incentives for energy-efficient public lighting.

Outdoor Light-emitting Diode (LED) Lighting market Regional Analysis

“Asia-Pacific Holds the Largest Share in the Outdoor Light-emitting Diode (LED) Lighting market”

• Asia-Pacific leads the Outdoor LED Lighting market due to large-scale infrastructure expansion, urban development, and widespread adoption of energy-efficient lighting solutions in countries like China, India, South Korea, and Japan.
• China and South Korea play a critical role, leveraging strong manufacturing ecosystems and aggressive government programs supporting sustainable public lighting and smart city frameworks.
• Japan’s commitment to high-performance, durable, and intelligent lighting technologies also contributes to regional dominance, especially in transportation hubs, urban streetscapes, and disaster-resilient lighting systems.
• Supportive government policies, export-driven production, and large population bases needing urban infrastructure upgrades fuel consistent demand in this region.

“Europe is Projected to Register the Highest CAGR in the Outdoor Light-emitting Diode (LED) Lighting market”

• Europe is expected to witness the fastest growth in the Outdoor LED Lighting market, driven by stringent EU regulations on energy efficiency and carbon emissions.
• Countries like Germany, France, the Netherlands, and the Nordic nations are aggressively transitioning to LED lighting across municipal, historical, and smart city projects.
• The region benefits from strong public-private partnerships, smart grid integration, and emphasis on sustainable urban development through initiatives like the European Green Deal.
• Additionally, the adoption of connected LED systems with environmental monitoring, adaptive brightness, and motion sensors is growing rapidly in line with Europe's digital and green transformation goals.
• Local governments are allocating significant funding for streetlight retrofitting, urban renewal, and smart lighting infrastructure—contributing to Europe’s rapid market acceleration.

Outdoor Light-emitting Diode (LED) Lighting Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

The Major Market Leaders Operating in the Market Are:

• Signify (Philips Lighting) (Netherlands)
• Osram GmbH (Germany)
• Cree Lighting (U.S.)
• Zumtobel Group (Austria)
• Acuity Brands, Inc. (U.S.)
• Hubbell Incorporated (U.S.)
• Dialight PLC (U.K.)
• Syska LED (India)
• Nichia Corporation (Japan)
• Samsung LED (South Korea)
• Everlight Electronics (Taiwan)
• Delta Electronics, Inc. (Taiwan)
• Halco Lighting Technologies (U.S.)
• Evluma (U.S.)
• Virtual Extension (Israel)

Latest Developments in Global Outdoor Light-emitting Diode (LED) Lighting market

• On May 10, 2023, Signify NV launched a durable outdoor LED lighting line engineered to endure extreme weather conditions. These lights offer high energy efficiency, UV resistance, and are ideal for coastal or humid climates, supporting municipalities and businesses aiming to reduce energy costs and enhance environmental resilience..

• On May 17, 2023, Acuity Brands’ Cyclone Lighting launched Elencia, a high-style outdoor LED post-top luminaire. Designed for parks and city streets, it combines elegant aesthetics with advanced optics for uniform illumination, making it a premium choice for enhancing urban landscapes and pedestrian areas. 
• On May 2024, ATP Lighting introduced Metrópoli Color, an RGBW LED outdoor light with Bluetooth and DMX control. The system can display over 250 million colors, making it ideal for ornamental and decorative lighting in parks, squares, and public installations requiring dynamic and programmable lighting effects
• On March 2022, Evluma launched RoadMax, a new LED highway fixture featuring anti-glare optics and field-adjustable wattage. Designed for safe and efficient road illumination, it includes customizable light shields and supports sustainability goals while ensuring precise light distribution on highways and wide streets.

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