News | February 18, 2014

Smart Streetlights Critical Layer Of 'Internet Of Things,' Will Save Cities $11.3B Per Year By 2025

Across the globe, LED and smart streetlights are helping to establish smart cities and represent a critical layer of the emerging 'Internet of Things.' With rapid urbanization and the rise of global megacities, energy efficiency is becoming critical in public lighting infrastructure. By 2025, cities and municipalities are projected to save $11.3B (more than 86,000 GWh) per year from efficient LED and smart streetlights. Investment in this technology will reach $72B cumulatively by 2025, according to a study published today by Northeast Group, LLC.

Cities and municipalities are beginning to replace their streetlights with more efficient light-emitting diode (LED), or solid-state lighting. They are also increasingly adding communications and sensors to streetlights, part of a larger trend towards the 'Internet of Things,' or embedding networked sensors in physical objects. As rapidly falling prices lead to cost parity with legacy streetlights in the next few years, this market will accelerate.

"There are 281.4 million streetlights in the world and this figure will grow to 339.9 million by 2025," said Ben Gardner, president of Northeast Group. "LED and smart streetlights offer clear energy and maintenance savings and increase public safety. For municipal leaders looking to develop smart cities, this new street lighting technology is key. Countries across the world are rapidly urbanizing and need to focus on energy efficiency in their public lighting, especially since this can make up 40% of a city's energy budget."

About one-third of this $72B market will come from installation services, with the remainder from LED luminaires, communications components and software. Spending is currently concentrated in developed countries, but will expand to emerging markets as costs come down and innovative financing emerges. The World Bank recently pledged $1B in financing for LED streetlights and new performance contracting models are emerging.

Northeast Group's Global LED and Smart Street Lighting: Market Forecast (2014 2025) study is 105 pages long, including eleven regional forecasts. An additional dataset is available with market forecasts for 125 individual countries in four different market segments (over 17,000 data points). The study analyzed more than 200 LED and smart streetlight projects across the world. For more information, visit

Source: Northeast Group, LLC