Outdoor lighting systems are in the early stages of a transition from fluorescent, high-pressure sodium, and metal halide lamps to light-emitting diodes (LEDs). As LED prices continue to fall, the case for replacing today’s most prevalent lighting technologies in outdoor systems is becoming more and more compelling. According to a recent report from Navigant Research, worldwide revenue from LED luminaires for outdoor and parking applications will grow from $921 million annually in 2014 to $1.4 billion in 2021.
“While the deployment of LED lighting in parking lots will dramatically cut energy bills and help politicians achieve environmental goals, better lighting quality is a significant additional benefit in itself,” says Jesse Foote, senior research analyst with Navigant Research. “LED lighting can help drivers better identify objects, obstacles, and individuals; minimize glare and light pollution; and make spaces more visually appealing while enhancing safety for pedestrians and motorists.”
Because the lifespan of LEDs is much longer than that of conventional lighting, direct revenue from lamp and luminaire sales will actually decline gradually after 2021, according to the report. This trend will drive the large lighting providers to move toward a “lighting-as-a-service” model, in which LED lighting and energy management will be offered as an ongoing service rather than a one-time equipment sale.
The report, “Outdoor and Parking Lighting Systems”, analyzes the global market opportunity for outdoor luminaires, lamps, and lighting controls in end-use applications, including city parks and public areas, sports parks and stadiums, commercial site lighting, open air parking lots, indoor parking garages, and university and college campuses. The report provides a comprehensive assessment of the demand drivers, business models, policy and regulatory factors, and technology issues associated with the global market for these products. Key industry players are profiled in depth, and worldwide revenue and unit shipment forecasts, segmented by nine product types and five major geographic regions, extend through 2023. An Executive Summary of the report is available for free download on the Navigant Research website.