The Asia-Pacific (APAC) outdoor lighting market growth is propelled by factors such as swindling prices of light-emitting diodes (LEDs), an increasing number of smart cities, and rising government initiatives toward energy conservation. These drivers will drive the market at an 11.1% CAGR from 2019- 2024 (forecast period). The market generated $5.6 billion in 2018 and it is set to reach $10.6 billion by 2024. Currently, the market is observing a trend of using solar power for powering street lights. Solar street lights are suitable for remote areas where electricity is scarce.
One of the prime factors fueling the APAC outdoor lighting market is the increasing traffic congestion in the APAC region, on account of the burgeoning number of passenger vehicles on roads, due to the rapid urbanization and the surging disposable income of individuals. Governments of several regional countries, especially India and China, are installing outdoor lighting systems to reduce traffic jams. These countries are making huge investments in road infrastructure development, thereby leading to the development of new streets and highways, which require numerous street lights.
Moreover, the rising adoption of LED lights is also facilitating the market, as these consume low energy and are economical for governments and businesses, in long term. Additionally, LED emergency lights last longer, are brighter, and lesser fragile than other types of lights. Besides, the cost-effectiveness of such lamps adds to their popularity. Because of such advantages, these lights are being installed in smart cities of India and China. Apart from smart cities, metropolitan cities of the Indian states like Delhi, Maharashtra, and West Bengal are also shifting toward LED lighting systems.
The categories under the component segment of the APAC outdoor lighting market include fixture and control. In 2018, the fixture category held a larger market share, due to their acceptance as outdoor lighting technology to offer artificial light through fluorescent lights and LEDs and mass installation of such lighting systems, in the region. Whereas, the control category will demonstrate faster growth throughout the forecast period, on account of the robust advancements and developments in lighting system controls, primarily in countries such as India, China, and Japan.