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

According to Mordor Intelligence, the Europe street lighting market size is projected to be USD 3.33 billion in 2025, USD 3.59 billion in 2026 and reach USD 5.09 billion by 2031, growing at a CAGR of 7.23% from 2026 to 2031.

This report is Segmented by Lighting Type (Conventional Lighting, and Smart Lighting), Light Source (LEDs, Fluorescent Lamps, and HID Lamps), Offering (Hardware, and Software, and Services), Connectivity Technology (Wired, and Wireless), Installation Type (New Installation, and Retrofit), and Country (Germany, United Kingdom, France, and More). The Market Forecasts are Provided in Terms of Value (USD).

Europe Street Lighting Market Trends and Insights

EU Ban on Fluorescent Lamps and Stricter Ecodesign Targets

The European Commission's Mercury Regulation 2024/1849 mandates a complete phase-out of compact fluorescent lamps by December 2025 and linear fluorescent lamps by December 2026, closing the final loophole for mercury-containing sources. Compliance deadlines have triggered a surge in tender releases as municipalities rush to replace obsolete inventories and retrain crews on LED diagnostics. France has tied EUR 1.5 billion (USD 1.61 billion) of municipal grants to adherence, accelerating take-up in smaller towns. Obsolete ballast write-offs and mandatory recycling add near-term budget pressure, yet they open multiyear demand for connected LED systems that meet updated Ecodesign efficacy thresholds.

Smart-City Stimulus and Pilot Replication Momentum

Horizon Europe labeled 103 cities as climate-neutral demonstrators in 2024 and allocated EUR 41 million (USD 43.9 million) for integrated pilots where lighting forms the digital backbone. Germany's EUR 10 billion (USD 10.7 billion) climate fund reimburses up to 50% of retrofit costs when projects embed traffic sensing and air-quality nodes, spurring replication in mid-sized municipalities. The RESONANCE project is scaling LoRaWAN-based architectures proven to cut energy use 35% and truck-rolls 42% in Iceland. Funding consistency and published best-practice playbooks continue to shrink decision cycles, propelling the Europe street lighting market toward platform models.

High Up-Front CAPEX for Smart Retrofits in Small Municipalities

A networked LED unit costs EUR 300-500 versus EUR 150 for a non-connected replacement, a hurdle for towns with annual budgets under EUR 5 million (USD 5.93 million). While the ELENA facility has mobilized EUR 1.1 billion (USD 1.31 billion) for technical assistance since 2009, coverage remains uneven in Southern and Eastern Europe. France's France 2030 plan bundles lighting with broader infrastructure upgrades, effectively sidelining stand-alone bids from cash-strapped communes. Cyclic grant windows further delay adoption, constraining early volume in the Europe street lighting market.

Other drivers and restraints analyzed in the detailed report include:

1. Declining Total Cost of Ownership for LED and Connectivity
2. EU Recovery and Resilience Facility E-Mobility Corridors
3. LED Driver Reliability and Thermal Ageing Failures

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

Segment Analysis

Smart platforms accounted for 52.67% of 2025 revenue, demonstrating that the Europe street lighting market is steadily migrating from commodity lamp replacement to network intelligence. Remote diagnostics and adaptive dimming lower lifecycle costs, while pole-mounted radios support add-on services such as traffic analytics and environmental monitoring. Municipal bundling with 5G small cells opens incremental lease income, reinforcing platform economics. Conventional lighting retains relevance in rural zones where debt capacity is limited, yet declining component prices and widening grant access are set to narrow its addressable pocket by 2030.

Continued stimulus from Horizon Europe and evidence from pilots such as LORIOT's 6,000-node Iceland deployment have validated energy and maintenance savings, shortening payback periods below four years. As cities publish open-data dashboards powered by lighting networks, civic appetite for sensor integration is rising, anchoring future procurement specifications firmly in favor of smart infrastructure.

LEDs commanded an 86.58% share in 2025 and are advancing at an 8.33% CAGR to 2031 as the Europe street lighting market size shifts wholesale toward solid-state sources. Mercury Regulation 2024/1849 makes the purchase of fluorescent lamps illegal after 2026, while high-pressure sodium remains in slow retirement due to poor dimming compatibility. Secondary replacement of early LED vintages further lifts unit volumes without adding new poles.

Advances in chip-scale packaging and silicon-carbide drivers are extending usable life under high-ambient conditions, directly addressing the primary restraint of thermal driver failures. As ballast inventories and technician skill sets for legacy lamps vanish, post-2026 tenders are expected to specify LED-only solutions, cementing the technology's near-total dominance.

Complete Report Scope:

• By Lighting Type
  • Conventional Lighting
  • Smart Lighting
• By Light Source
  • LEDs
  • Fluorescent Lamps
  • HID Lamps
• By Offering
  • Hardware
    • Lights and Bulbs
    • Luminaires
    • Control Systems
  • Software and Services
• By Connectivity Technology
  • Wired (PLC, DALI, Ethernet)
  • Wireless (Zigbee, LoRa-WAN, NB-IoT, 5G)
• By Installation Type
  • New Installation
  • Retrofit, Secondary Replacement
• By Country
  • Germany
  • United Kingdom
  • France
  • Italy
  • Rest of Europe

List of Companies Covered in this Report:

1. Signify N.V.
2. Zumtobel Group AG
3. Schreder SA
4. Eaton Corporation plc
5. OSRAM GmbH
6. Acuity Brands Inc.
7. Cree Lighting (IDEAL Industries)
8. Itron Inc.
9. Telensa Ltd.
10. Sensus (Xylem)
11. Flashnet SRL (InteliLIGHT)
12. Lucy Zodion Ltd.
13. Fagerhult Group
14. Thorn Lighting Ltd.
15. Le-Tehnika d.o.o. (Luxtella)
16. Hubbell Incorporated
17. Urban Control Ltd.
18. AEC Illuminazione Srl
19. Fagerhults Belysning AB
20. Cisco Systems - Smart Lighting

Additional Benefits:

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