According to the latest "2020 Global LED Lighting Market Report-Lighting-Level Packaging and Lighting Product Trends" released by LEDinside, the Optoelectronics Research Division of TrendForce, the global LED smart street lamp market is estimated in 2024 (the smart street lamp market size only includes lamp cap products and single (Light control system) scale is 1.094 billion U.S. dollars, with a compound growth rate of 8.2% from 2019 to 2024.
TrendForce Consulting analyst Liu Lingli said that downstream LED lighting demand is highly related to macroeconomic development. Although there are many uncertainties in the impact of the epidemic, governments around the world have implemented different levels of fiscal stimulus policies and new smart cities to invest in new foundations. In order to alleviate the negative impact of COVID-19 on the economy, especially in China and North America, road construction is a major investment expenditure item. For example, the overall road construction expenditure of the US government in 2019 was 97.6 billion US dollars (+6.34%) YoY), outdoor LED street lighting will benefit from this. LED street lighting manufacturers including Signify, AcuityBrands, Zumtobel, Guanglin (a lighting brand under Lite-On Group) and Unilumin Technology have been continuously launching new outdoor smart lighting products and overall solutions in the past two years, which will accelerate the penetration of the smart street lighting market.
From the perspective of the construction cost of smart street light projects, TrendForce Consulting stated that, broadly speaking, smart light poles mainly include 6 core functions: 1) smart lighting; 2) information release; 3) security monitoring; 4) environmental testing; 5 ) Charging pile; 6) 5G micro base station platform. Among its functional accessories, smart lighting equipment is a 100% standard product, including LED modular design lamp holders and single lamp controllers. According to the survey conducted by TrendForce, the average market price of the highest equipped (optional) smart light pole is US$6,997.9, of which the average market price of smart lighting equipment is US$182.5, accounting for 2.6%.
Figure. Analysis of construction cost structure of smart street light project
Source: TrendForce, Aug. 2020
In fact, although China is the main driver of the global smart street lamp development, such large-scale municipal engineering projects appear to be more complicated in the domestic market and involve multiple interest groups. Without clear and unified standards, the actual implementation of the project is slow. In addition, under the framework of smart city construction, the smart street light bidding involves the Internet of Things and communication fields. Therefore, the government tends to give this bidding to enterprises with concentrated resources and strong strength, which is inevitable in the construction and transformation of urban street light projects. It can be completed by multi-party cooperation. As far as LED lighting manufacturers are concerned, to complete smart street light projects, they must rely on strong communication companies. According to observations, China’s smart street light projects will be led by companies with strong resource integration capabilities including Huawei and Tencent in the future.
TrendForce Consulting believes that the more the smart street light goes to the downstream industry chain, the greater its added value. LED lighting manufacturers strengthen their system service capabilities based on their existing advantages, broaden the integration strength of LED lighting products, and improve their own comprehensive service level. Enter the supply system. At the same time, the government needs to clarify the standards for smart street lights and do a good job in smart city planning to provide a reliable basis for the development of the LED smart street light industry.