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Summary of our market study
The street lighting market, focusing on public lighting infrastructure encompassing lamp posts, lamps, and other illuminating devices, is undergoing considerable technological advancement and growth. As of 2020, the global market was valued at US$8.3 billion, with an anticipated climb to US$11.6 billion by 2027, growing at a CAGR of 4.9%. The European market, which devotes approximately 14% of its total electricity to lighting, has increasingly embraced energy-saving practices, with Germany serving as a primary example. German municipalities have extensively renovated their street lighting systems to integrate energy-efficient LED technology, signaling a move away from older, mercury-containing bulbs. Despite the energy sector crisis which saw a steep rise in energy prices in 2022, with costs nearly doubling from 0.086 kWh in 2021 to 0.160 kWh in 2022, local German authorities, the principal consumers of street lighting, continue to drive demand through overhauls focusing on energy conservation. Germany, with approximately 9 million streetlights, aims to halve municipal spending on street lighting by adopting better management practices, widespread LED usage, and intelligent lighting control systems. This shift not only contributes to substantial cost savings but also mitigates the environmental impact, aligning with the broader trend towards eco-friendly and smart street lighting solutions in the global market.
German Street Lighting Market Trends and Analysis
In response to energy-saving directives from regional governments, Germany has seen a substantial shift in its street lighting market. Municipalities have committed to extensive overhauls of their aging urban lighting systems, many of which are more than two decades old. As a result, there's been a significant move towards the adoption of more efficient lighting technologies, particularly LED bulbs, which have proven instrumental in reducing energy consumption and costs. This move towards modernization is reflective of both the German government's recommendations for energy conservation and the understanding among cities and towns that investment in LED technology can lead to considerable long-term savings. German locales such as Schnaittach and Oberelsbach have replaced traditional bulbs with LEDs, reaping the benefits of lower energy consumption and reduced CO2 emissions. The trend is such that in Germany, a substantial proportion of street lighting includes at least one LED lamp, and many municipalities have adopted the technology for more than half of their public lighting. Another trend gaining traction is the use of intelligent street lighting solutions, or Smart Street Lighting, which operates on sensors and other technologies to regulate lighting intensity based on pedestrian or vehicular movement. This efficient method is reported to have the potential to halve municipal expenses on street lighting. From a regulatory perspective, European and national laws have had a considerable impact on the market. Regulations have led to the discontinuation of less efficient incandescent and fluorescent lamps, favoring more sustainable products and cycling. The emphasis on ecologically sound policies and technologies is expected to continue shaping the German lighting market moving forward. German cities are the main consumers of street lighting and tend to have higher management costs, particularly in rural areas, resulting in relatively higher public lighting expenditure compared to urban centers. With Germany's urbanization rate at approximately 77.3%, and major cities like Berlin, Hamburg, Munich, and Cologne bustling with activity, the demand for effective street lighting is robust. The market is structured with a variety of roles—electricity producers, lighting equipment manufacturers, and network operators. Local authorities often own their lighting networks, engaging in public-private partnerships to manage their systems. In terms of energy consumption, the German street lighting market represents a notable segment, with an annual spend of between €250 and €500 million on electricity, between €200 and €250 million on procurement of equipment, and a potential €300 million in savings through modernization initiatives. In summary, Germany's street lighting market is experiencing a dynamic evolution towards energy efficiency, with LED adoption and smart lighting solutions at the forefront of.
Illuminating the Path: Key Market Leaders in Street Lighting Arena
As we delve into the intricate ecosystem of the street lighting market, certain organizations emerge as luminaries, collectively shaping the horizon with their innovative solutions and far-reaching presence. Different segments of the market are illuminated by these players, each contributing to the ever-evolving landscape of public illumination.
- Beacon Innovators: Leading Electricity Producers
At the forefront of energy provision, E.ON and RWE stand as titans, generating the electrical backbone that powers the very essence of street lighting infrastructure. Meanwhile, EnBW and Vattenfall not only contribute significantly to the supply of electricity but also demonstrate a commitment to sustainable and eco-friendly energy solutions, aligning with the global trend towards environmental conscientiousness.
- Artisans of Light: Manufacturers of Street Lighting Solutions
The art and science of lighting equipment are exemplified by specialists such as Siteco, whose extensive portfolio in manufacturing street lighting components reflects precision and quality. Further enriching the spectrum, global giants like Osram and Signify are recognized for their diverse array of products, while Hella has firmly established itself with its strong automotive lighting heritage. On another spectrum, Lixtec and Lumega, though comparatively smaller, display a nimble approach tailored to the market's ever-changing demands, punching above their weight class in ingenuity. RP Technik rounds out this segment by blending robust German engineering with a deep understanding of luminous applications.
- Custodians of the Grid: Public Lighting Managers Overseeing
the complex networks that bring light to our cities, Innogy emerges as a pivotal figure, efficiently blending operational management with technological mastery to keep the lights on and the streets safe. Circutor complements this segment, focusing on energy management and innovative solutions to streamline the operational facets of public lighting. Together, these entities form a tapestry of technical prowess, operational excellence, and visionary foresight. They are the custodians of night-time urban landscapes, and their roles in the street lighting market are as crucial as they are diverse, ensuring the paths remain lit for society's secure and sustainable future.
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Summary and extracts
1 Market overview
1.1 Street lighting market definition
The street lighting market refers to all activities related to the energy sector that require the provision of a public lighting service (mainly street lighting) that all municipal authorities must provide in the areas they administer for their citizens.s must provide in the areas they administer for their citizens - for its part, public lighting is defined as all the equipment, items and devices (lamp posts, lamps, lighting towers, illumination, etc.) that make up and function together to provide a public lighting service.) that make up and function together to provide lighting in public places.
In response to the energy-saving recommendations of the Länder governments, municipalities have embarked on major renovations of their urban lighting systems.schnaittach, for example, has decided to replace the bulbs in its street lamps with more efficient LED lights.
Finally, this aging lighting system, some of which is more than 25 years old, has been replaced by more efficient LEDs the OECD estimates that there are some 9 million of them in Germany - is benefiting from new technologies and substantial public investment, making the German street lighting market a high-potential one for equipment manufacturers and network operators.
1.2 A major global market
Worldwide, there are around *** million street lighting luminaires, **% of which are in Asia, **% in Europe and North America, and **% in South America. Global lighting density, in terms of urban population per light point, averages around **, ranging from * in European countries to over ** in Asia-Pacific[***]
Number of light points by country World, ****, in millions Source: ****
Given the local dimension of street lighting projects, it is difficult to have a precise estimate of the global market. Nevertheless, according to Market and Research data, the street lighting market was worth US$*.* billion in ****, and is expected to reach US$**.* billion in ****, growing at a CAGR of *.*% between **** and ****.
Global street lighting market World, ****-*****, US$ billions Source: ****
1.3 The European market
According todataaFE (***), around **% of total electricity production in Europe - or- i.e. *,*** TWh in **** - is devoted to lighting, representing *** TWh on the European continent. Part of this production is dedicated to public lighting, but a large part is used for domestic and business lighting.
In total, on the European continent, there would be a total of ** million urban luminaires, a tiny portion of the * billion street lighting lamps in use worldwide.
The following graphshows the evolution of the price per kWh in Europe between **** and ****, excluding tax. It shows arelatively stable priceover the first ** years, interrupted by a year **** which saw the price of energy almost double from *.*** KwH in **** to *.*** KwH in ****
Electricity prices for non-residential customers European Union, **** to ****, in kw/h Source: ****
The following graph shows the average electricity price in kWh for several European countries. It shows that Germany is at the top end of the scale, with a price of *.*** kWh for the year ****.
Electricity prices for non-residential customers European countries, ****, in kWh Source: ****
Each country's share of spending on public lighting is invariably linked to this unit price, since it is generally the largest item of expenditure, particularly in Germany, as we shall ...
1.4 The German market
According to an article in the German newspaper Zeit, there are almost ** million street lamps in Germany, accounting for around *% of total electricity consumption. In total, this represents a consumption ofaround * TWh according to data of the ***.* TWh consumed in Germany in ****, according to OECD figures world Data.
Adequate lighting of streets and public spaces is a public service obligation. According to dena, every year, around €*** million is spent in Germany on personnel, maintenance and energy. Electricity costs account for between ** and **%. By modernizing services, potential savings of around *** million (***).
Using dena data, it is possible to determine the size of the various market segments:
Energyconsumption (***) Networkmanagement, including maintenance and repair (***) Equipmentprocurement (***)
The following graph shows the evolution of the price per kWh in Germany between **** and ****. The price rises very slightly between **** and ****, before rising sharply in ****, from *.*** to *.*** euros including taxes and levies, and from *.*** to *.*** excluding taxes and levies.
Price per kWh Germany, **** to ****, in euros Source: ****
The price per kWh should continue to rise, compared to the year ****, (***) due to the measures that Germany is adopting, i.e. cleaner energy production methods - notably with the passage of the EEG law that came into force in ****. This ...
2 Demand analysis
2.1 German cities and their demand drivers
German cities
Unlike Belgium's freeways, which are illuminated at night, this option was only considered once in Germany in ****, before being abandoned. Local authorities are therefore the only consumers of electricity for street lighting.
As we saw earlier, urban consumption varies greatly according to the nature of the city - urban cities tend to consume more than rural areas. It therefore seems necessary to have an overview of the profile of German cities.
Population densityGermany, ****
Source: ****
The map above represents population density in Germany. The northeastern part of the country is the least densely populated , while the major cities - with the exception of Berlin - are located in the west, close to the border with France and Belgium. The highest density is found in Munich, with *,*** inhabitants per square kilometer.
The rate of urbanization in Germany today is **.*%, according to World Bank data, a proportion that is rising steadily, though has slowed over the last ten years.
Urbanization rate in Germany Germany, **** to ****
The most populous cities in Germany, and the largest, are :
Berlin (***) Hamburg (***) Munich (***) Cologne (***)
The demand for street lighting in these cities is broken down into several expenditure items, each with its own importance (***):
Share of city ...
2.2 A desire to save energy with LED bulbs
saving money with LEDs
Under the impetus of the German government and its recommendations, towns and cities have adopted a much more favorable stance towards LEDs, understanding that the investment offers long-term energy savings.
Many of them have therefore decided to renovate their lighting systems, either partially or completely, as in the case of Schnaittachwhich replaced all its streetlight bulbs with low-energy LED bulbs (***) at a total cost of **,*** euros. This is also the case for Oberelsbach which has replaced the bulbs in its *** lights with LEDs. This not only saves energy, making the investment pay off in just a few years, but also reduces CO* emissions.
According to this article in the Zeit, the LED trend is the optimum solution for changing street and road lighting, which currently consists of conventional street lamps with long florescent tubes as the light source. These streetlights are not only targeted at roads, but sometimes extend further out, into fields or onto facades. It would be preferable to use more energy-efficient, fully-shielded LED reflector lamps, which emit a downward-targeted beam towards the sidewalk or road.
LED streetlight bulb
Transition from mercury-containing bulbs to LEDs
The following graph shows the percentage of mercury-containing vapour lamps ...
3 Market structure
3.1 Market organization and dynamics
If we look at the breakdown of expenditure on street lighting in local authority budgets, it's clear that network managementseau (***).
Who supplies the electricity?
When it comes to electricity supply, local authorities can turn to the * major companies in the sector : E.ON, RWE, EnBW and Vattenfall.
Who owns the grid?
In **% of cases, local authorities own their own street lighting network , according to data data. This means that they either own the streetlights and maintain them themselves, or hire a management company to do so. Otherwise, it means that the local authority pays a service provider to manage its own street lighting network. This type of contract is generally awarded within the framework of a public-private partnership (***).
The division of tasks is more complex, and usually depends on the contract signed with the service provider. In most cases (***), municipalities operate their own lighting networks, but they can also entrust this task to a private company.
Share of street lighting operators in municipalities Germany, ****, in percent Source: ****
However, on average, **% of tasks are outsourced by local authorities and carried out, either in part or in full, by town halls. PWC also notes that when town halls operate the city's lighting network ...
3.2 Production and distribution of electricity and equipment
In the public lighting sector, production is carried out by several types of company:
Large groups, either specialized in the production of lighting equipment (***). They generally have considerable resources, but face a number of difficulties. The SMES whose core business is lighting (***), which have have adapted to new trends and are increasingly and are increasingly producing intelligent management and LED solutions.
Distribution therefore takes place between companies and local authorities, the latter being those who buy products and services from companies.
In **** and according to dena, getion was mainly individual by German municipalities concerning lighting management with almost **%.
Public lighting management models in German municipalities Germany, ****, in percent Source: ****
3.3 Lighting market
Although the subject of this study only concerns public lighting, it is relevant to observe a certain downward trend in final energy consumption for lighting, as shown in the following graph. It shows a **% drop in final consumption in petajoules between **** and ****.
Final energy consumption for lighting Germany, **** to ****, in petajoules Source: ****
A similar trend can be observed in lighting industry sales, which have been in recession since ****, the year of Germany's strong measures to reduce lighting consumption. Between **** and ****, the lighting industry lost *.** million euros in sales, a drop of **%.
Lighting industry sales Germany, **** to ****, in millions of euros Source: ****
4 Offer analysis
4.1 A complex, multi-variant product
Installing a floor lamp
Installing a streetlight involves several steps:
Connecting to the power supply : generally speaking, streetlights are connected to the electrical network via a cable to a general control box, present on every street, linked to a central receiver which can control the boxes. Support system: the installation of a streetlight presupposes the installation of a support system, which may be a pole or suspended cables. Housing: this protects the bulb from the outside environment, and is generally made of aluminum or fiberglass-reinforced plastic. Optical system : shapes the light emitted by the bulb to provide maximum illumination on public roads, while limiting glare and light pollution. This system is generally made of aluminum or a mirror. Bulbs: used to generate light. Circuit: there are a number of options for switching on street lighting, including centralized or decentralized twilight switches or timers.
In addition, after selecting a combination of the above equipment to provide street lighting, artificial light is obtained using lamps that differ according to:
Light output, with the same electrical energy consumption Color of light emitted (***) Color rendering, which indicates the characteristics of a lamp to enable color nuances to be appreciated Average life (***)
Unit power values available ...
4.2 Prices vary according to the technology used
It is possible to detail the prices, lifetimes and average efficiencies of the different types of lamps available in the retail trade for private customers. Prices are taken from French websites, but should not differ from those in Germany, although prices for street lamps are probably higher.
On the other hand, the price of floor lamps (***) can vary widely. The simplest models start at €***, but prices range from €*** to €*,***.
4.3 Towards a more eco-friendly, smarter offering
LED bulbs and eco-friendly technologies
LED
As we've seen, local authorities are upgrading their lighting systems with LEDs, which saves electricity and therefore money in the long term. In ****, * in *** streetlights used LED technology; in ****, this number was * in **, according to the report report. The town of Bensheim, for example, improved its street lighting system by installing LED bulbs at *,*** light points, thereby reducing its electricity consumption for street lighting by **% according to OSRAM. They also enable the installation of intelligent management systems, which is not possible with traditional bulbs.
Solar panel lamps
Streetlights can also be modified to save even more energy. The town of Gescher, for example, has installed lamps lined with solar panels, as reported by ZDFreports, providing street lighting while reducing electricity consumption.
Smart Street Lighting
Another trend gaining in popularity, not just in Germany but worldwide, is Smart Street Lighting, also known as Intelligent Street Lighting. This is lighting that adapts to the presence - or absence - of pedestrians, two-wheelers or cars. The luminosity is normal when the streetlight detects a presence, then dimmed if no movement is detected.
Sensors or cameras installed on the lampposts detect movement, modulate the light accordingly, and eventually communicate ...
5 Regulations
5.1 Regulations that favor the environment
European law
The first regulation on the manufacture of lighting equipment comes from the European Union ecodesign Directive ****/** / EC. Its requirements, as described by the European Commission, do not set absolute values for lamp power consumption, but may require the product to meet them:
Energy-efficient consumption Recyclability Information on how to use the product to minimize its impact on the environment A product life-cycle analysis to determine the feasibility of redesign or improvement
The text resulted in a ban on the marketing of incandescent lamps and their gradual withdrawal from the market from ****.
In December ****, the European Commission this time decided to ban the marketing of fluorescent lamps with a **mm stem.
With regard to competition laws, the European Commission imposes a call for tenders
For supplies and services over ***,*** euros For works in excess of *.** million euros
National law
Taxation
Although maintenance and repair projects are not covered by a taxpayer contribution obligation, renovations and improvements may benefit from a taxpayer contribution obligation. However, the local council must itself advance part of the sum (***).
Environment
Fluorescent tubes and other mercury-containing lamps have been classified as "hazardous waste". Due to the particular risk associated with this type of material, public lighting ...
6 Positioning the players
6.1 Segmentation
- E.ON
- RWE
- EnBW
- Vattenfall
- Siteco
- Signify
- Hella
- Circutor
- Lixtec
- Lumega
- RP-Technik
- Innogy
- Osram
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