The street lighting market - Italy

1.2 The global market

In ****, the global street lighting market reached a value of $*.* billion. A compound annual growth rate (***) of *.* percent is projected for the period ****-****, which would bring the market to a value of $**.* billion.

Street lighting market value World, ****-****, billion dollars Researchandmarkets

The highest compound annual growth rates are in China, Canada, Japan, and Germany due mainly to the conversion of street lighting to new technologies. Compound annual growth rate lighting market World, ****-****, % Researchandmarkets China records by far the highest value in lighting equipment exports with more than $** billion in value. It is followed by Germany, Mexico, Italy and the United States. Major exporters of lighting equipment World, ****, billion dollars UN Comtrade On the import side, the United States is by far the country that imports the largest amount of lighting equipment, with a value of $**.* billion. It is followed by Germany, France, the United Kingdom and the Netherlands. Major importers of lighting equipment World, ****, billions of dollars UN Comtrade .

1.3 The street lighting market in Italy

In order to analyze the Italian market, the national energy consumption for public lighting between **** and **** and the turnover of the lighting equipment industry between **** and **** are considered.

National energy consumption for public lighting has remained essentially stable in recent years. The advent of the pandemic in **** and the subsequent increase in electricity supply prices caused by the Russian-Ukrainian conflict have contributed to a significant decrease in consumption over the past * years.

Energy consumption for public lighting Italy, ****-****, TWh Terna

The turnover of the industry specializing in the production of lighting equipment appears to be fluctuating between **** and ****. After declining in **** and **** (***), in **** the industry is up **.* percent from the previous year. In ****, abetted by the pandemic condition, turnover declines again: -**.*% compared to ****.

Lighting equipment manufacturing turnover Italy, ****-****, billion euros ISTAT

1.4 Import - Export

For the import-export analysis, due to the absence of specific data concerning only street lighting, it was decided to use data on the entire lighting equipment sector.

As confirmed by the coverage ratio always above * over the entire period, between **** and **** Italy is a net exporter of lighting equipment. With the exception of ****, exports remained stable, with an average value of *.* billion euros. The same applies to imports although **** saw an increase of *.* percent compared to ****.

Import - export lighting equipment Italy, ****-****, billion euros UN Comtrade

Italy imports **.*% of lighting equipment from China. It is followed by Germany, France, Spain and Austria.

Main countries of origin lighting equipment Italy, ****, millions of euros UN Comtrade In terms of exports, the main destinations are France and Germany, collecting **.* percent and **.* percent respectively. This is followed by the United States, the United Kingdom and Spain. Main destination countries lighting equipment Italy, ****, millions of euros UN Comtrade

1.5 The consequences of the Russian-Ukrainian conflict

The energy crisis that was triggered by the outbreak of the Russian-Ukrainian conflict has also had major consequences for public lighting in Italy. The recent conjuncture has made public lighting an unsustainable current expense for Italian municipalities (***). Between **** and ****, the price of electricity for nonresidential consumers rose from *.**€/kWh + VAT to *.**€/kWh + VAT. The increase in two years is +***.*%.

Price of electricity for nonresidential users Italy, ****-****, €/kWh EUROSTAT

at the same time, an increase in industry producer prices can be detected. In particular, the lighting fixture production industry experienced a price increase between January **** and June **** of *.*%, and the producer price index reached a value of ***.*. This means that compared to ****, production cost is *.*% higher.

Lighting equipment output price index Italy, ****-****, base ****=*** ISTAT

2.1 Demand in Italy

For the analysis of demand in Italy, in the absence of firm data on the number of street lamps in the territory, the consumption of electricity for public lighting and the spending of the main Italian municipalities on roads and road infrastructure are considered.

Between **** and ****, electricity consumption for public lighting decreased by **.* percent. The drop in consumption is concentrated between **** and ****, while in the following two years the decline is more even (***).

Electricity consumption for public lighting Italy, ****-****, GWh TERNA

Between **** and ****, spending on roads and road infrastructure, within which spending on the installation and maintenance of street lighting is included, in the four main Italian municipalities is found to be growing in Rome, Milan, and Turin (***).

Expenditure on roads and road infrastructure Italy, ****-****, millions of euros Openbilanci

2.2 Demand drivers

The main demand drivers are related to:

Pedestrian safety: adequate lighting of crosswalks improves the visibility of pedestrians and motorists, reducing the risk of traffic accidents and increasing the safety of crossings. Prevention of nighttime accidents: during nighttime hours or low visibility conditions, pedestrian crossing lighting is crucial to avoid collisions and accidents. Promotion of pedestrian mobility: good lighting encourages people to use designated crosswalks, thus helping to promote sustainable mobility and road safety. Reducing pedestrian fear: crosswalk lighting reduces pedestrians' fear of crossing the road at night or in poor visibility conditions, encouraging greater use of pedestrian crossings. Urban design and pleasant environment: well-designed lighting can improve the aesthetic appearance of the urban environment and help create a pleasant environment for residents and visitors.

(***)

2.3 Geographical distribution of demand

To visualize the geographic distribution of demand, a map was created with the consumption of electricity for public lighting by Italian macro-region.

The Northwest turns out to be the main consumer, with **.*% of the national total. It is followed by the South with **.* percent, the Northeast with **.* percent, the Center with **.* percent, and finally the Islands with **.* percent.

2.4 New demand trends

The street lighting market is increasingly moving toward a model that combines energy savings with the concept of a "smart city." In the street lighting sector, demand is moving more and more insistently toward products that can offer integrated management that ensures lighting only when and where it is needed. The "smart" lighting system is based on the use of motion and twilight sensors through which the static nature of public lighting can be eliminated. The growing interest in this paradigm is explained by several factors:

Reduced operating costs: administrations that have adopted this technology have gone on to save **-**%. When considering an LED streetlight with an electric power regulation system, based on brightness and presence, the savings in terms of energy compared to an SAP streetlight is about **%. In the case of a lamp equipped with a photovoltaic system, the savings is ***%.(***) Improved and reduced maintenance: the intelligent functionality of the lamps allows any inefficiencies to be detected and resolved instantly. With the dimming system, there is an increase in the average life of LED lamps, which can be estimated at around **%, due to the reduction of the turn-on time; thus the life can be considered to be around ...

3.1 The size of the market

The analysis of the size of the street lighting market is carried out based on data on the manufacture of lighting equipment (***). Specifically, three different magnitudes are considered:

Number of enterprises Number of employees Legal form of enterprises

Number of enterprises

In ****, there were *,*** lighting equipment manufacturing enterprises in the territory. During ****-****, the figure remained stable, with one exception in **** when *,*** active enterprises were registered.

Enterprises by lighting equipment manufacturing Italy, ****-****, thousands ISTAT

Employed

In terms of employment, the trend in recent years follows that of firms, with the figure remaining stable throughout the period with the exception of ****. Between **** and ****, the average number of people employed in the industry is **,***. Employment in lighting equipment manufacturing Italy, ****-****, thousands ISTAT Legal form Finally, regarding the legal form of businesses in the sector, as of **** S.R.L. appears to be the most common, accounting for **.* percent of the total. This is followed by sole proprietorships at **.* percent, general partnerships at **.* percent, limited partnerships at *.* percent, joint stock companies at *.* percent, and finally other business forms at * percent. Business forms manufacture of lighting equipment Italy, ****, % ISTAT

3.2 The value chain

In the street lighting market, the end user is the public administration and more specifically the municipalities. In fact, as enshrined in Article ** of the Highway Code, the entity that owns the road must provide for the safety of the road, maintenance and eventual replacement of the facilities and equipment.(***)

3.3 Distribution

The process of installing street lighting infrastructure, as the responsibility of the entity that owns the roads, involves the Public Administration on the one hand and manufacturers on the other. The involvement of the Public Administration makes it necessary to comply with public contract regulations and the process defined by them. The tender process is developed according to the following stages:

Definition of the subject matter and technical specifications: in this first phase, needs are assessed, the environmental requirements of the procurement are defined, the market is analyzed, and finally the environmental impact during the entire project life cycle is assessed. Definition of participation and exclusion criteria: in the second stage, the criteria for participation are defined based on the technical/financial and/or technical/professional capabilities required to execute the contract, the environmental competencies of the suppliers are evaluated, and the bidding strategy is defined. Bid evaluation: the contract is awarded considering both the environmental quality of the project and the most economically advantageous bid. Abnormally low bids are discarded and the best value for money is chosen. Contract execution: in the last stage, the proposed contract clauses are checked and the criteria for contract execution are defined.

(***)

In ...

3.4 The main manufacturers

Some of the leading manufacturers of public lighting equipment in Italy are:

Gewiss: founded in ****, it is now the most important company in the Italian-capital electrotechnical sector. It operates in the production of home automation, energy and lighting solutions and products for the residential, tertiary and industrial sectors. Aec: founded in ****, this company makes design, innovation and tradition the cornerstones of its production process. With a sales network that extends to more than ** countries around the world, this company represents one of the best Italian examples in the lighting sector. Eulux: founded in **** from the evolution of a company operating in the hardware and software design sector, this company specializes in the production and supply of a wide range of LED products for street and non-street lighting. Neri: Since **** it has been a symbol of excellence in high-end street furniture and lighting systems in Italy and around the world. The company offers three categories of products designed to improve the urban environment: lighting, street furniture and structures. Cariboni Group: founded in ****, the group decided to enter the lighting field in the early ****s. In ****, Cariboni Group was one of the first companies to believe and invest in the production of LED ...

4.1 Type of the offer

The supply of street lamps can be differentiated by considering two different factors: the technology used and the luminous efficiency. Below is a classification of the main technologies used in street lamps:

Metal halide lamp: due to metal halide, the comtatic performance is very good. However, the lifetime and luminous efficiency (***) High-pressure sodium vapor lamp: in the field of street lighting, the replacement of old mercury vapor lamps with modern high-pressure sodium vapor (***) Low-pressure sodium vapor lamp: although little used today, this technology results in higher energy savings than SAP. However, due to poor color rendering (***) LED lamp: increasingly used in street lighting, LED lamps have many advantages when compared with previous technologies. Compared with mercury vapor lamps, the energy saving is **%. Compared with SAP lamps, the lifetime is almost four times longer (***)

Products available on the Italian market include:

LED street lamp: a street assembly designed for lighting public and private roads, large outdoor areas and parking lots. The modularity of LED modules and different optics allow for different levels of illumination. Photovoltaic street lamp: LED lamp characterized by 'very high energy efficiency, low manutation and very long lifetime. Integrated photovoltaic LED street lamp: has intelligent management board with * programs ...

4.2 The products

The following is a list of products available in the Italian market:

4.3 New supply trends

One of the most important supply trends in the street lighting industry is the increase in energy-saving and "smart city" technology-conscious products. In particular, products are increasingly focusing on:

Durability: some lamps are reaching ***,*** hours of life.(***) Adaptability: focus is placed on design requirements by ensuring dozens of luminous flux levels depending on weather, traffic or luminance needs.(***) Integration and new services: some of the new models brought to market include the ability to monitor traffic and assess air quality.(***) Meeting new technologies: one of the most recent projects integrated lighting with electric vehicle charging, providing street lighting and two electric vehicle charging stations in the same infrastructure at the same time.(***)

By ****, the global smart lighting market is worth $*.** billion and is expected to grow at a compound annual rate of **.* percent through ****.

Smart lighting market World, ****-****, billion dollars Fortunebusinessinsights

.

5.1 The legislation

Legislation regarding street lighting can be divided according to whether it concerns the production of lamps or the design of lighting systems. Regarding production below is the current European legislation:

Regulation (***) ****/****: sets specifications for the eco-design of light sources and separate supply units. Regulation (***) No. ***/****: establishes ecodesign requirements for fluorescent lamps without integrated ballast, for high intensity discharge lamps, and for ballasts and luminaires capable of powering such lamps Regulation (***) No. ****/****: regulates the ecodesign requirements for directional lights, light-emitting diode lamps and related equipment.

in the case of the design of lighting systems, the Italian Standards Authority has intervened several times in order to regulate the process. Some of the main standards are:

UNI *****: proposes a classification of road types (***). UNI EN *****-*: assigns, from the lighting point of view, minimum values for luminance, brightness, uniformity and glare control. UNI EN *****-* and UNI EN *****-*: define, respectively, specific calculation methods for the design of systems to be installed and for verification and control procedures for infrastructure systems.

6.1 Segmentation

Italian Manufacturers

Foreign manufacturers

• Gewiss
• Linea Light Group
• Disano Illuminazione
• Artemide
• Neri
• EULUX
• AEC ILLUMINAZIONE S.R.L.
• IGUZZINI ILLUMINAZIONE
• CARIBONI GROUP S.P.A.