LED Street Lighting to Surpass $2 Billion by 2020

The market for LED street lighting is expected to generate more than $2 billion in annual revenue.

Falling costs and improvements in efficiency are driving the increased sales of LED street lighting lamps. According to a new report from Pike Research, "LEDs will become the second-leading type of lamp for streets in terms of sales by 2020."

The costs of LED street lighting have fallen as much as 50 percent over the past two years, and are expected to continue falling. The market for LED lamps is expected to generate more than $2 billion in annual revenue. The current most popular street lighting is high pressure sodium lamps.

"Smart street lighting systems can provide a backbone for other smart city applications, and conversely, a city investing in networking capabilities for smart city applications should also be looking to include better management of street lighting," says research analyst Jesse Foote.

The Smart Street Lighting report also noted how the adoption of LED street lights is seriously hindered by the ownership models and tariff structures in place across the U.S.

"If utility companies own street lighting systems and charge a fixed tariff per light to municipalities, then towns have little financial incentive to pay for upgrading their lights. However, the potential for significant energy savings, reduced emissions and improved quality of service, combined with falling LED prices, means that more and more cities will find this an attractive proposition over time."

The report analyzed the global market opportunity for lamp upgrades and lighting controls in five public outdoor light categories: highways, roads, parking lots, city parks, and sports stadiums.

Source: Business Wire