Connected Street Lighting Market By Component (Hardware, Software, Services); By Connectivity Type (Wireless Connectivity, Wired Connectivity); By Application (Roadways, Residential Streets, Parking Lots, Public Parks, Commercial Districts); By End User (Municipalities, Utilities, Smart City Operators, Commercial Real Estate Developers); By Geography, Segment Revenue Estimation, Forecast, 2026–2032

How Large Is the Connected Street Lighting Market and What Is Driving Its Expansion?  – (Updated On: 01-Sep-2026)

The Global Connected Street Lighting Market was valued at USD 3.15 billion in 2025 and is projected to reach USD 6.25 billion by 2032, expanding at a CAGR of 10.3%, according to Strategic Market Research. For this report, connected street lighting includes networked luminaires and controllers, gateways and communications equipment, central management and analytics software, and implementation or managed services directly associated with remotely monitored or controlled street lighting. Standalone LED luminaires without network functionality and unrelated smart-pole applications are excluded from the core revenue model.

 

The long-term retrofit opportunity remains structurally large. The International Energy Agency estimated in 2021 that the world had about 320 million street-lighting poles and that only around 3% were smart-enabled; the same source noted that street lighting can account for up to 65% of municipal electricity budgets and that smart street lighting can reduce electricity use by as much as 80% under favorable operating conditions. These figures are best treated as an installed-base and technical-potential benchmark rather than as a 2026 penetration measurement.

 

More recent operating evidence shows why cities continue to fund networked controls. The U.S. Department of Energy recognized Memphis for a citywide conversion of more than 77,000 streetlights with networked controls; the USD 47 million project is expected to save more than 37 million kWh annually and reduce energy costs by 55%. Singapore's Land Transport Authority reports that its Remote Control and Monitoring System automatically detects lighting faults, reduced public feedback on maintenance issues by 80%, eliminated night patrols, and saves about 4,200 man-hours each year. The commercial case therefore extends beyond electricity savings into fault visibility, service response, asset data and reduced field inspection.

 

Connected poles can also host traffic, environmental, parking, video or communications devices, but those adjacent applications should not be automatically counted as street-lighting revenue. Their strategic importance lies in making the lighting network a powered, geographically distributed platform on which municipalities can layer additional services. This increases the value of interoperable controllers, open central management systems and upgradeable node interfaces even when the adjacent sensor or communications revenue falls outside the market definition.

 

Retrofit Economics Move the Market Beyond First-Generation LED Conversion

The next demand cycle is increasingly about adding intelligence to LED estates rather than replacing conventional lamps alone. India illustrates the scale of that installed base: the Ministry of Power reported more than 13.1 million LED streetlights installed under the Street Lighting National Programme by November 2024, with approximately 8.8 billion kWh of annual electricity savings and around INR 61.78 billion in annual monetary savings. A March 2025 EESL parliamentary response again reported more than 13.1 million installations. These lights are not automatically connected, but they demonstrate how large municipal LED fleets can become future candidates for controls, monitoring and asset-management upgrades.

Adaptive control economics depend on more than the controller price. FHWA guidance notes that a financially viable adaptive roadway-lighting system requires a dimmable, controls-ready luminaire, a control system and either localized metering or an electricity-rate structure that recognizes reduced lighting levels. In practice, the investment case also depends on communications coverage, avoided truck rolls, fault-response costs, maintenance contracts, commissioning effort and whether the utility tariff allows the municipality to monetize dimming-related savings.

This distinction matters for suppliers. In cities still converting legacy high-intensity discharge lighting, connectivity can be bundled into the LED project with relatively low incremental disruption. In cities that already completed an LED conversion without networked controls, the retrofit decision is more selective because the authority must justify returning to an asset that is already energy-efficient. Suppliers that reduce commissioning labor, reuse existing sockets and wiring, or demonstrate maintenance savings have a stronger route to converting the installed LED base into connected-lighting revenue.

 

Hardware Anchors Installed-Base Revenue While Software and Services Capture the Faster-Growing Value Pool

Hardware generated 62.0% of 2025 market revenue, equivalent to USD 1.953 billion, and is projected to expand at an 8.6% CAGR to approximately USD 3.479 billion by 2032. Hardware remains the largest value pool because each newly connected light typically requires a physical control endpoint, while many deployments also require gateways, communications devices, compatible drivers or network-ready luminaires. The segment therefore scales directly with the number of connected lighting points, although pricing pressure and increasingly standardized interfaces can moderate revenue growth.

Software accounted for 23.0% of the market in 2025, or USD 0.725 billion, and is forecast to grow at a 12.4% CAGR to about USD 1.642 billion by 2032. Growth is driven by central management systems that turn field data into outage alerts, dimming schedules, energy reports, maintenance workflows, asset inventories and permission-based operating views. As cities add multiple controller types and extend smart-city programs over many years, the ability of a CMS to manage mixed-vendor estates becomes commercially more important than a closed hardware-only proposition.

Services represented 15.0% of 2025 revenue, or USD 0.473 billion, and are the fastest-growing component at a 13.2% CAGR, reaching approximately USD 1.125 billion by 2032 in the SMR model. Commissioning, migration, integration, network optimization, cybersecurity support, software configuration and managed operations create revenue after the initial controller sale. The services opportunity rises as municipalities seek to modernize legacy lighting networks without replacing every field device at once.

 

Brownfield Retrofits Favor Wireless Control, but RF Mesh and Cellular Models Compete on Different Economics

Wireless connectivity held 76.0% of the market in 2025, equal to USD 2.394 billion, and is projected to grow at an 11.3% CAGR to approximately USD 5.065 billion by 2032. The brownfield advantage is straightforward: communications can be added during a luminaire or photocontrol replacement without trenching a data cable to every pole. The strategic choice inside the wireless category, however, is increasingly between mesh and direct cellular architectures rather than simply 'wireless versus wired.'

Signify's current EasyConnect architecture illustrates the RF-mesh approach: luminaires automatically commission into Interact City, while RF mesh nodes form a self-healing local network and link nodes combine RF with cellular backhaul. Dhyan's Ohli represents the direct-cellular model, using eSIM connectivity across multiple cellular technologies and bundling cloud-based management into the controller proposition. These models compete on gateway requirements, telecom cost, commissioning labor, coverage resilience and lifecycle service structure rather than on lighting control alone.

Wired connectivity represented 24.0% of 2025 revenue, or USD 0.756 billion, and is forecast to grow at a 6.6% CAGR to about USD 1.183 billion by 2032. Wired systems remain relevant in cabinet-controlled estates, tunnels, campuses and locations where communications infrastructure already exists or where a municipality prefers to retain a fixed architecture. Growth is slower because wireless controllers provide a lower-disruption path for most pole-by-pole retrofits.

 

Roadways Anchor Volume While Parking and Multi-Sensor Use Cases Expand the Higher-Growth Edge

Roadways led the market with 46.0% share in 2025, equivalent to USD 1.449 billion, and are projected to grow at a 9.4% CAGR to around USD 2.718 billion by 2032. Road networks combine high asset counts with geographically dispersed maintenance requirements, making automated fault identification and scheduled or traffic-responsive dimming economically relevant. FHWA's adaptive-lighting framework reinforces the role of dimmable luminaires and control systems where operating conditions allow light levels to be reduced without undermining the applicable roadway-lighting criteria.

Public parks accounted for 12.0% of 2025 revenue, or USD 0.378 billion, and are growing at a 10.5% CAGR. Parks are suited to occupancy-responsive lighting because pedestrian activity varies materially by time of night, but deployment decisions remain sensitive to safety requirements and public acceptance. Remote status monitoring also reduces the cost of locating failures across paths, recreational areas and dispersed public spaces.

Parking lots represented 14.0% of the market in 2025, or USD 0.441 billion, and have the fastest application CAGR at 12.2%. Variable occupancy creates a clear dimming and scheduling opportunity, while the pole locations can support adjacent sensing. Ubicquia's December 2025 expansion of its intelligent streetlighting ecosystem introduced UbiScout, an AI-enabled video accessory positioned for adaptive lighting, traffic intelligence and curb analytics. Those analytics are adjacent to the core lighting market, but they strengthen the business case for deploying connected poles in parking and curb environments.

Residential streets held 18.0% share, valued at USD 0.567 billion, and are expanding at a 10.3% CAGR. The revenue case is driven by individual-light outage alerts, remote schedules and the ability to manage dispersed neighborhoods from the same municipal platform used for arterial roads. Commercial districts held 10.0%, or USD 0.315 billion, and are projected to grow at an 11.1% CAGR as mixed-use areas require more flexible operating schedules around retail hours, events, pedestrian activity and low-traffic overnight periods.

 

Municipalities Control Deployment Scale While Smart-City Operators Represent the Faster-Growing Revenue Pool

Municipalities dominated end-user revenue with 63.0% share in 2025, equivalent to USD 1.985 billion, and are projected to grow at a 9.1% CAGR. Their scale reflects direct responsibility for roadways, residential streets and public spaces. Procurement increasingly evaluates lifecycle operating cost, interoperability, commissioning burden and cybersecurity alongside luminaire performance because a connected-lighting contract can remain in service across multiple software and communications technology cycles.

Utilities represented 16.0% of 2025 revenue, or USD 0.504 billion, and are growing at a 10.2% CAGR. Utilities can extract more value when networked lighting controllers share communications infrastructure and operating processes with broader grid or IoT programs. Itron's CityEdge portfolio, for example, combines networked lighting controllers, communications hardware and a management platform, positioning streetlights as managed endpoints inside a wider utility or municipal network.

Smart-city operators accounted for 14.0% of the market, or USD 0.441 billion, and are the fastest-growing end-user category at a 14.5% CAGR. In the SMR model this category covers dedicated smart-city operating entities, concession structures and platform-led organizations that manage urban IoT infrastructure separately from routine municipal lighting departments. The higher growth rate reflects the use of streetlighting networks as infrastructure layers for additional sensor and data applications, not an assumption that all adjacent smart-city revenue is included in the lighting market.

Commercial real estate developers represented 7.0% of 2025 revenue, or USD 0.221 billion, and are expanding at an 11.3% CAGR. The segment covers private roads, campuses, large parking estates, resorts and mixed-use developments where a single owner or operator manages a concentrated outdoor-lighting portfolio. Centralized scheduling, fault identification and energy reporting can therefore be deployed without the fragmented ownership structure typical of public street networks.

 

Interoperability Is Becoming a Procurement Requirement Across NEMA, Zhaga-D4i and TALQ Architectures

Interoperability is moving from a technical preference to a procurement consideration because streetlighting assets often remain in service longer than individual communications technologies. In the United States, ANSI C136.41-2025 defines mechanical and electrical interface requirements between locking-type external controls and roadway or area luminaires, with scope covering 0–10V and DALI dimming. Wireless controllers operating as intentional radiators under FCC Part 15 generally require equipment certification before marketing, adding a regulatory layer to controller and radio-module design.

Globally, Zhaga Book 18 Edition 4, released in October 2025, extends the Zhaga-D4i ecosystem to heritage and decorative outdoor luminaires and standardizes the interface used to add sensing or communications modules. TALQ addresses interoperability at the software layer between central management systems and outdoor device networks. As of September 2026, the TALQ certification database lists 87 certified products from 59 companies, including 39 CMS products and 48 gateways, and identifies TALQ Specification 2.7.1 as the current version. The breadth of that certification ecosystem increases the practical feasibility of multi-vendor procurement.

Cybersecurity requirements are also becoming more material for connected lighting because each radio-equipped controller is a networked digital product. In the European Union, the cybersecurity requirements activated under the Radio Equipment Directive from August 1, 2025 remain relevant for covered radio equipment placed on the market through December 10, 2027. Commission Delegated Regulation (EU) 2026/339 repeals the RED cybersecurity delegated regulation from December 11, 2027, when the Cyber Resilience Act becomes fully applicable, avoiding duplication between the two regimes. For suppliers, this transition raises the value of secure update mechanisms, lifecycle support and documented conformity processes.

 

Regional Growth Is Moving from LED Conversion Toward Connectivity Upgrades and Greenfield Smart Infrastructure

North America is estimated to account for 34.0% of the market in 2025, or USD 1.071 billion, and is modeled at a 9.4% CAGR through 2032. The region combines large municipal and utility lighting estates with established performance-contracting and networked-control suppliers. The strategic opportunity is increasingly the conversion of existing LED fleets into remotely managed assets, particularly where authorities can quantify maintenance savings or procure through established cooperative and utility channels.

Europe is estimated at 29.0% share in 2025, equivalent to USD 0.914 billion, with a reconciled 9.2% CAGR. Demand is shaped by long asset replacement cycles, energy-efficiency targets, interoperability requirements and increasing scrutiny of connected-product cybersecurity. Open CMS architecture and Zhaga-D4i-compatible field devices are particularly relevant where municipalities want to avoid replacing the complete network when controllers, communications modules or software reach end of life.

Asia Pacific is estimated to represent 28.0% of 2025 revenue, or USD 0.882 billion, and has the strongest regional CAGR at 12.1%. The region combines very large LED conversion programs with greenfield smart-city development. India's more than 13.1 million SLNP LED streetlights illustrate the scale of the installed base that can support future control upgrades, while Singapore's RCMS shows a mature operating model in which fault detection and remote management are already embedded into transport-agency maintenance processes.

Latin America is estimated at 5.0% share in 2025, or USD 0.158 billion, and is modeled at a 10.8% CAGR. Opportunity is more project-specific and often depends on municipal financing, energy-service structures and whether controls are integrated during the initial LED conversion. The commercial advantage is strongest when networked controls can be specified at the same time as the luminaire upgrade rather than added in a later retrofit.

The Middle East & Africa is estimated to hold 4.0% of the market in 2025, equivalent to USD 0.126 billion, with an 11.2% CAGR. Greenfield road infrastructure, new urban districts and centrally managed public-realm developments can favor connected systems because network-ready luminaires, controller interfaces and communications requirements can be designed before installation. The regional figures are SMR analyst estimates and have been mathematically reconciled to the USD 6.25 billion 2032 global forecast.

 

Competitive Advantage Is Moving from Luminaires to Open CMS, Network Flexibility and Lifecycle Services

Competition is no longer defined only by luminaire efficacy or controller price. Municipalities increasingly compare the complete operating stack: controller interface, RF mesh or cellular architecture, central management software, multi-vendor interoperability, cybersecurity, commissioning workflow, migration capability and ongoing service model. TALQ's current certification base of 87 products from 59 companies indicates a broad ecosystem in which cities can increasingly source different network layers from different vendors rather than accepting a single closed stack.

Signify competes through Interact City and EasyConnect, with the current EasyConnect design emphasizing automatic commissioning, RF mesh connectivity and cellular-capable link nodes. The commercial proposition is built around reducing deployment complexity during large retrofit programs rather than requiring a separate manual commissioning process at each pole.

Itron's CityEdge portfolio includes external and low-profile networked lighting controllers, MicroAP communications hardware, CityEdge Platform and Streetlight Essentials. Its positioning is particularly relevant to utilities and municipalities that want streetlighting controls to coexist with a broader IoT network and to preserve the NEMA-based ability to add other compatible devices.

Schréder combines EXEDRA central management with OWLET IV controllers and POHO GEN2 retrofit hardware. Current product material shows OWLET IV options using cellular and mesh communications and POHO GEN2 as a route to connect installations that were not originally designed for a controller socket. This gives the company a pathway across new connected luminaires and legacy-estate retrofits.

Ubicquia is pushing connected lighting toward higher-value edge analytics. In December 2025 the company introduced UbiCell Micro, enhancements to the UbiVu platform and UbiScout, an AI-enabled video accessory for adaptive lighting, traffic intelligence and curb analytics. The launch illustrates how vendors are attempting to increase the value per connected pole without relying only on electricity savings

Tvilight's current portfolio spans CityManager software, CitySense adaptive sensors, SkyLite RF controllers and OpenSky Zhaga, NEMA and pole-mounted IoT controllers. That mix allows municipalities to select mesh and direct-IoT deployment models while retaining a common management layer, aligning with the market shift toward modular rather than monolithic architectures.

Dimonoff combines SCMS and DOO Express software with RME, RTM and G3+ field hardware. Its current U.S. public-sector route also includes a Sourcewell cooperative purchasing contract covering smart-lighting platforms, nodes, gateways, training and support through July 2029. The procurement route matters commercially because reduced tender friction can influence the speed at which municipal pilot projects convert into larger deployments.

Dhyan is differentiated by legacy-network migration as well as new controllers. The company states that, by the start of 2025, it had migrated more than 40 former ROAM customers representing over 120,000 lights to StreetMan; Ohli cellular controllers can then be managed alongside the migrated legacy hardware. This addresses a core market problem: cities often want a modern CMS before they are ready to replace every installed controller.[20]

Acuity Inc.'s Acuity Brands Lighting business participates through American Electric Lighting's AutoConnect roadway platform and DTL controls. The current AutoConnect proposition emphasizes DALI D4i, Zhaga, Bluetooth and Local/Global Connect options for municipal, utility, DOT and ESCO applications. The corporate name changed from Acuity Brands, Inc. to Acuity Inc. in March 2025, while the lighting operating segment continues as Acuity Brands Lighting.

 

2025–2026 Market Moves Favor Easier Commissioning, Open Interoperability and Higher-Value Edge Functions

Three developments summarize the current competitive direction. First, vendors are reducing installation friction: automatic commissioning, direct cellular connectivity and retrofit node formats lower the labor required to connect an existing LED estate. Second, the interoperability layer is becoming richer, with Zhaga Book 18 Edition 4 and TALQ 2.7.1 extending the ecosystem of standardized field interfaces and certified software/gateway products. Third, suppliers are using the connected pole as a platform for higher-value functions such as traffic and curb analytics, while keeping those adjacent applications commercially separable from the core lighting-control revenue model.

 

Retrofit ROI, Telecom Costs, Cybersecurity and Legacy Infrastructure Define the Forecast Downside

The principal market constraint is not the technical ability to connect a streetlight; it is the incremental economics of networking an asset that may already have been converted to LED. Municipal budget cycles can delay projects even when the lifecycle case is attractive. Direct-cellular systems can reduce gateway requirements but introduce connectivity-service economics; mesh systems can lower recurring telecom exposure but require careful network design and gateway placement. Legacy wiring, mixed luminaire generations and older controller estates also increase integration complexity.

Cybersecurity reviews are likely to become more rigorous as connected lighting is integrated into wider municipal networks. Procurement teams increasingly need evidence on device identity, secure communications, software updates, vulnerability handling and long-term support rather than accepting a controller solely on lighting functionality. Open standards reduce one form of vendor lock-in, but multi-vendor estates can still create responsibility gaps across the luminaire, controller, radio network, CMS and field-service layers.

The forecast therefore assumes continued adoption but not an immediate conversion of the global installed base. Growth is strongest where connectivity can be bundled with a planned LED replacement, where maintenance costs are high enough to justify remote diagnostics, where the tariff structure rewards adaptive dimming, or where a city has a clear multi-application infrastructure strategy. Projects with weak savings measurement, uncertain communications coverage or no operational owner for the data are more likely to remain pilots.

 

Analyst Commentary: Connected Street Lighting — The Next Winner Will Own the Urban Data Layer, Not the Lamp

The connected street lighting market is approaching a structural shift: the value proposition is moving from energy-saving lighting assets to distributed urban intelligence infrastructure. LED conversion created the first wave, but the second wave will be driven by companies that can monetize connectivity, data, and city-level services.

Current leader: Wireless luminaire control ecosystems. RF mesh remains the most practical solution for large-scale retrofit markets because cities can connect millions of existing light points without rebuilding infrastructure. However, connectivity alone will become commoditized. The long-term winners are unlikely to be companies selling controllers; they will be companies owning the software layer that manages millions of connected assets.

Breakthrough technology: AI-enabled smart poles. The biggest market opportunity is not adaptive dimming but transforming streetlights into multi-service infrastructure nodes. Integration of cameras, environmental sensors, traffic intelligence, EV charging, and telecom capabilities could change municipal procurement from “lighting projects” into “urban platform investments.” Companies capable of combining lighting hardware with AI analytics and open IoT platforms could capture significantly higher recurring revenue.

Technology to watch: Cellular-based intelligent lighting. Cellular controllers using NB-IoT/LTE-M/4G connectivity could gain strategic importance because municipalities may prefer carrier-managed networks rather than operating dedicated communication systems. This creates an opportunity for companies with telecom partnerships and cloud platforms rather than traditional lighting expertise alone.

Company to watch: Ubicquia. While established players such as Signify, Schréder, Itron, and Acuity Brands have scale, Ubicquia represents the shift toward the next business model—streetlights as smart-city sensing infrastructure. Its combination of cellular control, cloud management, and AI-enabled applications positions it closer to the future value chain.

The strategic battleground will move from hardware ownership to platform ownership. Software, cybersecurity, analytics, and recurring managed services will determine profitability as connected lighting becomes part of broader smart-city infrastructure.

The next inflection point to monitor is when municipalities stop buying “smart lights” and begin buying connected urban operating systems. Companies positioned at that intersection of lighting, IoT, AI, and infrastructure management are likely to capture the highest future value.

 

Report Coverage Table

Report Attribute	Details
Forecast Period	2026 – 2032
Market Size Value in 2025	USD 3.15 Billion
Revenue Forecast in 2032	USD 6.25 Billion
Overall Growth Rate	CAGR of 10.3% (2026 – 2032)
Base Year for Estimation	2025
Historical Data	2019 – 2024
Unit	USD Million, CAGR (2026 – 2032)
Segmentation	By Component, By Connectivity Type, By Application, By End User, By Geography
By Component	Hardware, Software, Services
By Connectivity Type	Wireless Connectivity, Wired Connectivity
By Application	Roadways, Residential Streets, Parking Lots, Public Parks, Commercial Districts
By End User	Municipalities, Utilities, Smart City Operators, Commercial Real Estate Developers
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, UK, Germany, France, Italy, China, Japan, South Korea, India, Brazil, Mexico, Saudi Arabia, UAE, South Africa
Market Drivers	Growing municipal focus on energy-efficient lighting infrastructure and operational cost reduction Rising adoption of smart city initiatives and connected urban management platforms Increasing demand for remote monitoring, predictive maintenance, and interoperable lighting control systems
Customization Option	Available upon request