The public lighting market - Germany

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.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 17/02/2023

Summary and extracts

List of charts presented in this market study

• Worldwide street lighting market
• Number of light points by country
• Electricity prices for non-residential customers
• Electricity prices for non-residential customers
• Urbanization rate in Germany
• Share of city council expenditure on street lighting in Germany
• Breakdown of mayoral expenses
• Share of high-pressure mercury vapour lamps in municipal street lighting
• Percentage of LED luminaires in municipalities
• Share of LED technology in the modernization of street lighting in German municipalities
• Share of street lighting operators in municipalities
• Division of tasks between local authorities and service providers
• Street lighting management models in German municipalities
• Price per kWh
• End-use energy consumption for lighting
• Lighting industry sales