Outdoor Lighting - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the outdoor lighting market size is projected to expand from USD 16.27 billion in 2025 and USD 17.32 billion in 2026 to USD 23.72 billion by 2031, registering a CAGR of 6.48% between 2026 and 2031.

This report is Segmented by Product Type (Decorative, Post, Wall, Path and Step, Deck and Patio, Garden, Security, Flood and Spot, Bollard, Others), Light Source (LED, Fluorescent, Incandescent, Halogen, Others), Installation Type (New, Retrofit), Application (Residential, Commercial), Distribution Channel (Direct B2B, Online D2C, Distributors), and Geography. Market Forecasts in Value (USD).

Global Outdoor Lighting Market Trends and Insights

Rapid Urbanization and Infrastructure Development

Cities are shifting from static grid-tied systems to modular, software-defined lighting that scales with growth and strengthens asset control. In March 2026, Los Angeles approved a two-year plan to deploy up to 60,000 solar roadway and area lights, the city's largest single lighting investment, to address a backlog of 32,000 service requests and rampant wire theft that strained maintenance budgets. Hyderabad, India authorized an INR 1,340 crore (USD 161.4 million) program to modernize 760,000 streetlights with a Centralized Control and Monitoring System, performance-based penalties, and device-level tracking to lock in uptime and accountability. Pittsburgh combined Rescue Plan funds and bond proceeds to upgrade more than 35,000 fixtures with wireless management and illuminance analytics to cut energy use and reduce light spill. These actions reflect a pragmatic path for rapidly urbanizing regions that must combine new coverage, lifecycle savings, and measurable service levels. Hong Kong Trade Development Council sentiment data highlights India, ASEAN, and the Middle East as among the most promising near-term demand pools for suppliers aligned with public-infrastructure pipelines. Concentration of LED component manufacturing in Asia continues to underpin the scaling of such projects.

Growing Demand for Energy-Efficient LED Solutions

Minimum-efficacy rules and fast paybacks make LED the default across exterior categories. New York City's 2025 Energy Conservation Code, effective March 2026, tightened lighting power density and made high-efficacy LED systems the practical path to compliance for most nonresidential interiors and exterior lighting. California's Title 24 updates in 2026 widened daylight-responsive coverage and required continuous dimming for multilevel control, pushing site and parking applications to networked LEDs with granular control. LED systems typically deliver 100-150 lumens per watt and can reduce energy use by 75-80% compared with legacy lamps, with smart controls further improving performance through scheduling, occupancy, and daylighting. A county-wide upgrade in West Sussex will convert 64,000 streetlights to LED and connect them to a remote monitoring platform, with annual savings projected at 10.7 million kWh and 1,633 tons of CO2. Retrofit programs that reuse existing housing can preserve capital while harvesting energy savings, as shown by insert-based LED upgrades that recorded 45-51% reductions at scale.

High Initial Installation and Retrofit Costs

Full smart-lighting projects can carry premium costs for controllers, gateways, and central software, stretching municipal budgets. Even straightforward conversions show the scale at play, such as a four-year West Sussex upgrade of 64,000 roadway fixtures for an estimated USD 30.7 million. Some owners offset this with policy tools and incentives, such as Portland's dedicated funding for high-crash corridors and the U.S. 179D tax deduction, which compresses paybacks for large campuses and commercial properties. Nonetheless, long payback periods on fully networked systems and grant caps that limit project size can slow adoption in cash-constrained municipalities. Residential buyers face a similar hurdle for premium outdoor packages with smart features and solar storage, which can delay uptake in price-sensitive segments. Transaction frictions also increase costs, as many cities must define interoperability requirements and vet multi-vendor control stacks before awarding contracts.

Other drivers and restraints analyzed in the detailed report include:

1. Smart City Initiatives and IoT Integration
2. Rising Focus on Safety and Security
3. Light Pollution and Environmental Concerns

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Decorative lighting led the category with 38.82% in 2025 as hospitality, campuses, and residential settings used designer forms and finishes to extend exterior experiences. The fastest-growing deck and patio segment is advancing at 8.47% CAGR, supported by residential upgrades where layered task, ambient, and accent lighting elevate outdoor living. Post and wall lights serve as both architectural accents and pathway illumination, while HoReCa venues specify IP-rated fixtures that balance visual appeal with weather resilience. Security lighting benefits from motion-activated controls and low-glare optics that tune output to activity while maintaining visual comfort. Warm-color garden and bollard fixtures continue to win in residential projects due to comfort and curb appeal requirements for evening use.

Demand in this segment reflects the outdoor lighting market's trend toward connected, low-maintenance, and curb-appeal solutions that enhance perceived safety and property value. Institutional buyers focus on vandal resistance and compliance with accessibility requirements in pathways and steps to reduce incidents and liability. In premium applications, high-CRI options help hospitality and public spaces maintain color fidelity for facades, landscaping, and art. The outdoor lighting market is also adopting formats for faster installation and serviceability, enabling projects to close faster with fewer site disruptions. Where data points are available, designers are aligning with dark-sky principles to control uplight while preserving ambiance.

LED technology captured 68.36% of the light source mix in 2025, reflecting superior efficacy, long life, and mature price points that continue to displace legacy lamps. Other light sources posted a 7.39% CAGR through 2026-2031 outlook from a smaller base, finding roles in specialty niches where LEDs have technical or aesthetic constraints. Regulatory phase-outs have accelerated the decline of fluorescent lamps, while new LED forms that emulate warm filament tones have further reduced demand for incandescent and halogen. In high-lumen stadium and long-throw applications, LEDs continue to expand their share as optical design, thermal management, and lumen density improve. OLED and laser-based solutions remain limited to specific design or performance briefs due to cost and reliability constraints in exterior settings.

With controls standardizing on interoperable protocols, planners can mix LED luminaires across brands while maintaining unified management layers that support reporting and optimization. The outdoor lighting market is also seeing better integration between luminaires and sensors to capture traffic, occupancy, and environmental data for municipal analytics. Field-serviceable components and modular drivers are helping large owners reduce downtime and carry fewer spares. As energy codes ratchet up, fixture efficacy and controllability will remain the main reasons LED technology maintains its dominance. Continued maturity in the LED ecosystem provides both buyers and integrators with stable performance and support baselines.

Geography Analysis

North America led with 37.85% in 2025 as federal incentives, strong municipal pipelines, and mature distribution supported steady demand. Los Angeles approved the largest lighting investment in its history to deploy up to 60,000 solar streetlights that tackle theft and service backlogs. Pittsburgh set aside USD 15 million to manage more than 35,000 fixtures with wireless controls and enhanced reporting. Portland dedicated USD 37 million from a voter-backed fund specifically for LED streetlighting on high-crash corridors and powers the load with renewable energy. Commercial retrofits benefit from the 179D deduction, which has enabled large projects to pass payback hurdles through stacked incentives. Regional manufacturing footprints reduce tariff exposure and buffer logistics for United States-bound products.

Asia-Pacific is the fastest-growing region, with a 8.92% CAGR driven by smart-city spending, urban migration, and expanding residential investment. Hyderabad's 760,000-light program couples centralized monitoring, fines for downtime, and complete asset traceability to enforce service levels. Manufacturing and packaging bases across Asia underpin cost and volume advantages for global projects during competitive tenders. Market sentiment surveys identify India, ASEAN, and the Middle East as priority destinations for suppliers growing footprints beyond incumbent regions. Municipalities in the Gulf are implementing remote management and multi-color systems for bridges and gateways while meeting sustainability targets. Cities like Amman are replacing thousands of lights with smart LEDs that support remote intensity control and fault reporting.

Europe shows steady activity as energy-efficiency rules and circularity ambitions steer procurement to LEDs and remanufacturable designs. West Sussex's four-year program will replace 64,000 fixtures and integrate a monitoring system with expected long-term maintenance and energy benefits. Insert-based retrofits in Denmark reuse aluminum housings to cut both energy and embodied emissions at favorable returns. Phase-outs of legacy lamps accelerate commercial and industrial conversions that improve controls readiness. Some vendors are localizing assembly to shorten times and limit tariff exposure while upstream components remain globally sourced.

Middle East and Africa (MEA) spans advanced smart-city deployments and large-scale solar programs that improve electrification. Abu Dhabi City Municipality upgraded bridge lighting with remote management and programmable color for civic events, while meeting sustainability criteria. In Oman, Muscat Hills combined LED performance with RF mesh controllers and a central platform to improve reliability and save energy. Ghana's program to deploy tens of thousands of solar streetlights aims to reduce peak loads and relieve grid pressure. Sub-Saharan markets often emphasize off-grid and hybrid systems to avoid trenching and reduce reliance on diesel. In contrast, GCC markets align more closely with codes and standards adopted from global best practice. South Africa's load-shedding challenges are creating niches for off-grid public lighting with local maintenance capacity.

South America shows modest growth as urban retrofits progress where funding and stability allow. Brazilian cities leverage national programs and multilateral finance to expand LED streetlighting in high-crime districts. Chile integrates solar streetlights for remote and mining-adjacent communities with high solar resources. Macroeconomic volatility in some markets has slowed municipal procurement, though pockets of private demand persist in commercial districts. Fragmented standards and local-content policies complicate cross-border supply chains and specifications. The outdoor lighting market remains opportunity-rich, with safety, power costs, and reliability gains aligning with access to funding.

1. Signify (Philips Lighting)
2. Nichia Corporation
3. Leotek
4. LSI Industries
5. Pemco Lighting
6. Seoul Semiconductor
7. Musco Lighting
8. Kichler Lighting
9. Volt Lighting
10. Eaton Lighting (Cooper Lighting Solutions)
11. RAB Lighting
12. Acuity Brands
13. Fagerhult Group
14. LIGMAN Lighting
15. Siteco GmbH
16. Kenall Manufacturing
17. H. E. Williams
18. Kingspan Light + Air
19. Cree Lighting
20. ams OSRAM

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support