According to Allied Market Research, the outdoor lighting market was valued at $12.5 billion in 2021 and is estimated to reach $22.6 billion by 2031, growing at a compound annual growth rate (CAGR) of 5.6% from 2022 to 2031.
By type, the LED lights segment was the highest revenue contributor in 2021, also with a CAGR of 5.6%. Additionally, different standards are applied when comparing the usable lifespan of LED lighting products with those of other light sources, such as incandescent or compact fluorescent lighting (CFL).
Hybrid methods are also emerging, utilising non-standard bulbs or switchable light sources designed specifically for certain fixtures. Compared to conventional lighting technologies, LEDs offer a wider range of applications and significant potential for form factor innovation.
By application, the building exteriors segment had the largest outdoor lighting market share in 2021, valued at $3,791.4 million, and is projected to reach $7,080.2 million by 2031, at a CAGR of 6.0%. Proper illumination of doors, entrances, exits, landscaping, statues, and wayfinding signs helps facilitate navigation.
Adequate exterior lighting ensures that visitors feel safe and at ease when entering or leaving a building at night. There are numerous other areas where external lighting is installed. While the specific applications of outdoor lighting may differ between businesses, they all aim to enhance the functionality, safety, aesthetics, and security of outdoor spaces.
By distribution channel, the direct sales segment held the largest share in 2021 and is expected to maintain the largest market share by 2031.
Manufacturers are increasingly encouraging retail chains to promote their products by offering exclusive discounts through these outlets, significantly boosting outdoor lighting sales. These efforts include making products more visible on store shelves, which attracts customers and contributes to the market's growth.
By region, Europe accounted for the largest share of the market in 2021, valued at $3,764.8 million, and is forecasted to reach $6,831.3 million by 2031, at a CAGR of 5.7%. The growth of Small and Medium-sized Enterprises (SMEs) is likely to increase demand for outdoor lighting in commercial buildings, creating opportunities for manufacturers to expand their market presence in the region.
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