The intelligent street lighting market - France

1.2 The global market for intelligent street lighting

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, the LED segment of the street lighting market was worth US$*.** billion in ****, and is expected to reach US$**.** billion by ****, growing at a CAGR of *.**% between **** and ****[***].

Global LED market for street lighting World, ****-*****, US$ billions Source: ****

The penetration rate of LEDs is also growing rapidly, reflecting a general craze for this type of luminaire around the world.

Worldwide LED penetration rate Worldwide, **** - *****, in Source: ****

The intelligent street lighting segment is booming. According to Berg Insights, there will be **.* million intelligent lighting units worldwide by the end of ****. With a compound annual growth rate (***) of **.*%, this number will reach **.* million by the end of ****. The number of intelligent lighting units World, ****-*****, in millions Source: ****

The Berg Insights report also points out that ...

1.3 The French market for intelligent street lighting: great growth potential?

In **** in France, street lighting accounted for over **% of local authorities' electricity consumption, **% of their energy consumption and **% of their electricity bill [***]. The switch to intelligent, less energy-intensive and more sustainable lighting is therefore a major challenge for local authorities. According to data collected by the AFE, street lighting in France will represent average sales of *.* billion euros in ****. This figure includes around * billion euros spent on maintenance, approximately *** to *** million euros invested in renewing the park and more than *** million euros attributable to energy consumption.

Breakdown of public lighting expenditure France, ****, € million Source: ****

there are three sub-markets:

The maintenance and renovation market, which is stable. The renewal market, dependent on contextual, political and economic changes. The energy consumption market.

The public lighting market is expected to grow in the short term, driven by the renewal of the installed base and the massive arrival of LEDs. by ****, growth will be driven by intelligent lighting solutions and the smart city. According to figures published by the AFE, there are ** million urban luminaires in France today, **% of which are over ** years old.

Maintaining and then renewing these luminaires will therefore be a key element in the growth strategy of the smart street lighting ...

1.4 The effect of the COVID-19 pandemic

The street lighting market, including intelligent street lighting, is largely financed by local authorities. With the Covid-** health crisis, local finances have been hit hard. The government estimates that local authorities as a whole have suffered a *.* billion euro drop in tax revenues, a *.* billion euro drop in tariff resources, to which must be added all the additional expenses linked to the crisis. All in all, local authorities record a net loss of *.* billion euros compared with ****. [***]

Nevertheless, the shutdown of cities' economic activities has led to a drop of around **% in cities' electricity consumption, and therefore energy-related expenditure. [***]

The health crisis also confirmed certain trends. The containment period enabled some towns to test the cutting of public lighting during certain hours of the night, and ultimately to adopt it. Orsay, for example, switched off its streetlights from **pm to *am. [***]

The impact of Covid-** on the budgetary policy of local authorities can therefore be double-edged. While it is certain that towns and cities will be extremely careful with their spending in the years to come, and may consider reducing the amount of tenders they issue for the management of their lighting systems, the impact of Covid-** on the budgetary policy ...

2.1 Renewing France's lighting stock

The renewal of France's lighting stock represents a real ecological and economic challenge. It also represents a real opportunity for the intelligent lighting market.

Aging lighting stock

Source: ****

In ****, of the * million lighting points, **% were sodium vapor lamps, **% mercury vapor lamps and around **% other lamps (***). [***]

Despite all this, the installed base remains aging. Between **** and ****, almost **% of public lighting fixtures should have been replaced, due to European regulations and the new electrical and photometric performance of sources and luminaires. It should be noted that the average renovation rate for public lighting is around *% per year. [***] Despite a major effort to replace mercury vapor lamps, following the entry into force in **** of a new stage in the ban on energy-saving lamps, the company is now working to reduce the number of energy-saving lamps.in****, some ***,*** lamps willstill be mercury vapor lamps, mainly in rural communities.

In ****, **% of the stock is still made up of sodium vapor lamps, **% of the stock is now made up of LEDs, **% is still mercury vapor lamps, *% metal halide and *% other lamps[***].

Composition of public lighting stock France, ****, in Source : AFE The renewal of France's lighting stock is the first line of development for intelligent public lighting. Replacing ...

2.2 Intelligent street lighting meets the multifaceted expectations of French consumers

Street lighting plays a central role in French people's daily lives. For a majority of French people, street lighting is synonymous with safety (***), conviviality and heritage enhancement.

Role of public lighting France, ****, in Source: ****

Nevertheless, in a context of energy crisis and global warming, the French are aware of the importance that the lighting stock of municipalities can represent in terms of light pollution and energy bills. A study carried out in **** by INRAE shows that a majority of French people are in favor of better management of light points: **% are in favor of reducing light intensity and switching off lights from * a.m. to * a.m., and for some from ** p.m. to * a.m.[***].

Preferred solutions for optimizing public lighting France, ****, in Source: ****

In this respect, the development of a smart public lighting network is an interesting response. Indeed, the implementation of intelligent street lighting solutions not only helps to reduce energy bills, but also provides an accurate, live picture of the city. What's more, these solutions generally focus on more precise management of lighting schedules, and on the possibility of modifying light intensity according to the number of people passing through and the time of day.

2.3 Environmental considerations are driving growth in the intelligent street lighting market.

Reducing national energy consumption

Traditional public lighting, i.e. uniform, centralized lighting, results in excessive energy bills. In fact, it's the biggest item of expenditure for local authorities, accounting for **% of electricity bills. Although LED-type lighting still accounts for less than a quarter of all street lighting (***), it still has considerable growth potential. LED bulbs can cut energy consumption by up to **% for local authorities. Many local authorities are converting to this type of lighting. This is the case in Toulouse, for example, where **% of the lighting stock is now made up of LEDs, a figure set to rise to ***% by ****[***].

France's major energy players believe that the transition to a fully intelligent public lighting system would be a major lever for reducing energy consumption. Indeed, France's energy transition objectives are, by ****, to reduce energy consumption by **% compared with ****, and to increase the share of renewable energy in final energy consumption to **%. As a result, local authorities are having to adjust their consumption within an increasingly constrained budgetary framework. Reducing energy costs, cutting greenhouse gas emissions and enhancing the region's image are all challenges that public decision-makers must now reconcile: intelligent street lighting is one of the levers that will enable ...

2.4 Urbanization 2.0 in France drives demand for intelligent street lighting

In ****, **.*% of the French population lived in urban areas, i.e. ** million people. Eight out of ten people live in an urban unit, and almost five out of ten in an urban unit with more than ***,*** inhabitants. The population is concentrated in the largest urban units: **% of French people live in the Paris urban unit, and one in four in an urban unit with over ***,*** inhabitants. Cities now occupy **.*% of the territory, an increase of **% in ten years[***].

Urban population as a percentage of total population in France France, **** - *****, as % of total population Source: ****

Urban planning is inextricably linked to the issue of intelligent street lighting. This explains why French towns and cities are now at the forefront of this field, with a number of initiatives underway. The Lighting Days trade show held in Lyon in **** was an opportunity to take stock of the various initiatives undertaken by French cities[***], the main ones of which are included in the table below.

For example, the Metropole of Dijon took advantage of the renewal of its public lighting contract to complete its "smart city" arsenal with the ON Dijon plan. The project leverages this major contract (***).

The European Metropolis of Lille and ...

3.1 A value chain that is becoming increasingly complex with the arrival of new technologies

A complex value chain

The intelligent street lighting value chain is becoming increasingly complex, with the arrival of new players in charge of new technologies and network management platforms. In addition to the existing players in the street lighting sector, there are new start-ups and companies specializing in the development and production of innovative technologies for intelligent lighting.

Building an intelligent system

Deploying intelligent street lighting is the first necessary step in any smart city development project. However, there are a number of stages to the effective deployment of a truly intelligent street lighting arsenal

*. Switch to LEDS bulbs

Despite the various controversies that may exist today concerning LED bulbs, it appears that switching from conventional bulbs to LED bulbs is a sine qua non condition for transforming one's lighting network. Indeed, the adoption of LEDs, or light-emitting diodes, is currently the change favoured by local authorities to reduce their energy consumption and bills. On the one hand, LEDs consume far less energy than sodium lamps, and on the other, they last ten times longer.

What's more, LED technology makes it easy to modulate light intensity by means of a remotely-configurable dimmer. Combined with a presence sensor or an urban ...

3.2 Local authorities, a central player in difficulty

The départements are responsible for lighting departmental roads and, where applicable, public works, sites and buildings in their possession. In the case of sections of departmental roads running through built-up areas, the mayor of the commune is responsible for deciding on lighting arrangements[***]. Communes can manage their public lighting either at communal or inter-communal level, or entrust management to an energy syndicate.

The NOTRe law makes it compulsory for communes to belong to an intercommunal body. Intercommunalization involves transferring the management of one or more public services to an intercommunal structure with the status of an Établissement Public de Coopération Intercommunale (***). It enables communes interested in building a facility or providing a public service to pool their resources.

These regulations are leading to a revision of departmental plans for intercommunal cooperation, with the aim of creating ever-larger EPCIs. EPCI mergers are on the increase. On January *, ****, there will be *,*** EPCIs with their own tax status, compared with *,*** on January *, ****. Depending on the size of the commune, management of the lighting stock is the responsibility of either the mayor or an elected official in charge of energy[***].

Percentage of communes with an elected energy official France, **** - ****, in % Source: ****

Over ...

3.3 The different players in the intelligent street lighting market

The market for intelligent street lighting and remote management is highly competitive, with a multitude of players operating in different market segments. The graph below shows the breakdown of market shares as carried out by the firm's Berg Insight study. The main global players in **** were the giants Telensa and Signify, with ** and **% market share respectively.

Intelligent lighting market share breakdown World, ****, in Source: ****

French manufacturers of lamps, luminaires and candelabras, some ** companies with *,*** employees, are just emerging from several dark years. During the period ****-****, street lighting specialists, who represent around a third of the profession, saw their sales melt by **% before stabilizing at *.* billion euros in ****. [***] Among the suppliers to the public lighting market, there are some traditional players, with the following examples:

Schréder offers lighting solutions for pedestrian zones and roadways. The company specializes in intelligent systems that adapt lighting to the presence of passers-by Agora Technologies, and more specifically its subsidiaries GHM and Eclatec, which specialize in public lighting equipment Ragni, which designs and produces public lighting systems Groupe Lacroix, European leader in intelligent street lighting management

Traditional manufacturers are being challenged in two ways: firstly by the arrival of start-ups, and secondly by the development ...

4.1 The smart city - at the heart of intelligent street lighting and remote management solutions

The French Data Protection Authority (***)

In this context, intelligent street lighting was initially aimed at reducing costly energy consumption. Today, new technologies are transforming street lamps and other light points into " multifunctional interactive systems " (***) that collect, aggregate and analyze data in a coherent, responsive system. Today, dimming, which consists in reducing the light intensity of a light point at a given moment, is one of the main ways in which savings can be made. Projections byAgoria Smart Citiesresult in the following figures:

Source: ****

To move even closer to a smart network, dimming can be coupled with a presence detection system, to adjust lamp power according to the number of people in a given area. This system enables lighting to be switched on only when necessary. Detectors can be infrared, high-frequency radar or image-analysis cameras. [***]

connected sensors

Cities equipped with connected lighting points World, ****, in thousands of connected light points Source: ****

Paris is the world's second-largest city in terms of connected light points, with ***,*** in ****. This places it far behind Miami, but well ahead of Madrid.

4.2 New players shake up the offering

Start-ups are distinguishing themselves in the street lighting market in two ways: by offering innovative equipment (***).

Start-up Glowee aims to replace electric street lamps with bioluminescent marine bacteria that reproduce endlessly and are biodegradable. The bioluminescence of these bacteria does not yet match the luminous intensity of an electric street lamp, but the aim is to get there. For the moment, the company is concentrating on luminescent street furniture and lighting installations. Woodlight wants to revolutionize urban lighting with plants that produce their own light[***]. The idea is to transfer to plants the bioluminescence possessed by certain species of algae, fish or fireflies - a "clean and recyclable" alternative. Start-up SmartNodes has developed an urban lighting system based on communicating modules linked by a wireless mesh network.wireless network and capable of detecting the presence of a car, cyclist or pedestrian and determining their position and speed. The street lamps light up as the vehicle passes. Start-up Lumi'iN offers a solar-powered, mobile and energy-autonomous streetlight, a connected tool for the environment[***]. The streetlights developed by Lumi'IN can capture, store and release solar energy according to users' needs, but can also operate ***% autonomously or function as a hybrid connected to the grid. Kawantech ...

4.3 Switching to LEDs and remote management, the cornerstones of our offer

LEDs: a must?

LED penetration in the street lighting market Worldwide, ****, % Source: ****

In ****, the penetration rate of LEDs in France for street lighting is around **%. by comparison, Japan has reached **%, according to AD Little. And LED imports continue to rise.

LED imports France, **** - ****, in millions of US dollars Source: ****

A functional LED luminaire costs between *** and *,*** euros, and this extra cost compared with other technologies is leading local authorities to adopt a global analysis (***). The associated maintenance costs are also lower. These optimizations deliver a return on investment of * to * years, according to the French Lighting Agency.

today, **% of renovations and new installations are for LED sources[***]. This technology, which is more expensive to install, seems to have reached maturity, with falling prices and greater reliability in recent years. In addition, energy-saving subsidy policies, like those linked to open data, are in its favor

Historically, the French streetlight market has been made up of high-pressure sodium (***) and mercury lamps, but the trend today is to gradually replace these lamps with LEDs, for a variety of reasons.

One advantage of LEDs is their ability to modulate power. This reduction in luminous flux, known as dimming, is more effective with LEDS than ...

4.4 Initiatives by major cities to renew their fleets

In France, only *% to *% of the lighting stock is renewed each year. At this rate, it would take ** years to renew the entire stock[***]. Nevertheless, the need to switch to intelligent lighting is prompting major French cities to invest in the technological renewal of part of their infrastructure.

5.1 Current regulations

European regulations

The European ErP Directive of **** defined minimum energy efficiency values in three stages (***), depending on the type of lamp:

Since ****, the energy efficiency of metal halide lamps has had to reach ** to over ** lm/W, depending on wattage; In addition, at **,*** hours of operation, they must maintain at least **% of luminous flux and a survival rate of at least **%.

National regulations

Standard NF EN *****, applicable since **** and revised in ****, sets out performance requirements and is an aid for selecting pavement classes. It optimizes energy expenditure and ensures that :

produce, at any time of night, only the amount of light necessary and sufficient to ensure visibility and safety for road users reduce, as far as possible, the drop in luminous flux that must be compensated for between two preventive maintenance operations.

The experimental standard XP X**-*** "Nuisances lumineuses extérieures, méthodes de calcul et de contrôle" involves calculating, for a lighting project, the maximum luminous flux directed towards the sky. this flux includes the direct flux leaving luminaires above the horizon, but also the flux leaving luminaires below the horizon, downwards, which overflows the useful illuminated surface and is more or less reflected towards the sky.

In ...

6.1 Positioning the players

• Glowee
• Kawantech
• Lucibel
• BH Technologies
• Citelum groupe
• Citéos (Vinci Energie)
• INEO (Engie Energie Service)
• Valmont France
• Lacroix Groupe
• Nexiode
• Fonroche Lighting
• Upciti
• Solarem
• Clareo Lighting
• ELC Electric Lighting Concept
• Novea Energies
• Eldom