The connected streetlight market worldwide is expected to post a compound annual growth rate of more than 28 percent during the period 2019-2023, according to research from Technavio. The total market will grow by $674.75 million during the period.
The report – Global Connected (Smart) Street Light Market 2019-2023 – suggests that the operational benefits of smart streetlights will be one of the major factors driving the growth of the market.
Smart lighting is often seen as a starting point for smart cities, providing a digital infrastructure to roll out further applications down the line in areas such as monitoring air quality and traffic congestion.
The rising focus on reducing energy costs and carbon dioxide emissions will also lead to increased adoption of smart streetlights.
The European region led the market in 2018, followed by North America, APAC, MEA, and South America respectively. During the forecast period, the APAC region is expected to register the highest incremental growth, due to the increasing technology awareness and technology adoption by governments in the region.
But more than a third of the growth (34 per cent) will come from Europe. In 2018, five European cities took the Humble Lamppost initiative for the deployment of smart technologies, including smart streetlights; such initiatives are expected to drive the growth of smart street lighting market size in Europe.
“The wired connected street lights use programmable logic controller (PLC), which is the most secure communication module and is better than a wireless communication module such as Bluetooth,” said a Technavio analyst.
“However, the upfront cost of PLC-based wired connected streetlight is higher than that of smart streetlight systems that work on a wireless communication module. As a result, the adoption of wireless streetlights is expected to increase significantly during the next few years.”
The report describes the market as “fairly concentrated” with a relatively small number of players. It has analysis on Adesto Technologies, Cisco Systems, Itron, Signify and Telensa.