Analysis of the prospects for outdoor lighting investments: The market demand is constantly rising

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From: www.lightingchina.com.cn

Issue Time: Mar 5,2024

Summary

According to the report released by the Guanyan Research Network titled "In-depth Study of the Current Situation and Investment Prospects of the Chinese Outdoor Lighting Industry (2023-2030)," outdoor illumination refers to lighting outside of indoor spaces. Outdoor lighting is required to meet the visual work needs and achieve decorative effects outdoors.

Analysis of the prospects for outdoor lighting investments: The market demand is constantly rising

According to the in-depth research and investment prospect analysis report on the current situation of the outdoor lighting industry in China (2023-2030) released by the Research Report Network, outdoor illumination refers to lighting outside of indoor spaces. Outdoor lighting is required to meet outdoor visual work needs and achieve decorative effects.

Outdoor lighting fixtures are used outdoors, for example, in parks, squares, along roadsides, and for outdoor advertising.

Main types of outdoor lighting fixtures: lawn lights, courtyard lights, tunnel lights, floodlights, underwater lights, street lights, wall washers, landscape lights, and buried lights.

Specifications of the fixtures: The lamp frame is made of high-quality steel, treated with hot-dip galvanizing, and aluminum plates are used at the sealing. The fasteners, bolts, and nuts are made of stainless steel.

The scale of the industry market.

With the acceleration of urbanization, the demand for outdoor lighting in urban landscapes, road lighting, commercial lighting, sports facilities lighting, and other fields continues to increase.

According to the "China Urban Construction Statistical Yearbook" edited by the Ministry of Housing and Urban-Rural Development, the number of urban road lighting fixtures in China increased from 27.38 million in 2018 to 32.4593 million in 2021, with an average annual growth rate of 5.77%. It is estimated that the number of urban road lighting fixtures in China will reach 34.5463 million in 2022. Following the average replacement cycle of road lights in China of 8 years, the estimated additional or replaced urban road lighting fixtures in 2022 will be approximately 5.177 million.

Based on an estimated average price of 12,800 yuan per set of street lights, the market size of urban road lighting fixtures in China in 2022 is projected to be 66.244 billion yuan.

Additionally, in China's urban lighting investment, landscape lighting accounts for approximately 20% to 35%. Therefore, it can be concluded that the domestic urban outdoor lighting market in 2022 is approximately 98.009 billion yuan.

The outdoor lighting market in other industrial and commercial sectors in China accounts for approximately 30% to 40% of the total outdoor lighting market.

By applying this proportion, it can be calculated that the market size of the outdoor lighting industry in China in 2022 is 164.305 billion yuan, as shown in the specific figure.

The scale of the industry market.

The outdoor lighting market in other industrial and commercial sectors in China accounts for approximately 30% to 40% of the total outdoor lighting market.

By applying this proportion, it can be calculated that the market size of the outdoor lighting industry in China in 2022 is 164.305 billion yuan, as shown in the specific figure.

According to data from the Ministry of Housing and Urban-Rural Development, the number of urban road lighting lamps in China has increased from 27.38 million in 2018 to 32.4593 million in 2021. By 2022, the total length of urban roads in China has exceeded 570,000 kilometers, with approximately 433,000 kilometers of roads installed with street lights, totaling over 34.4 million lamps for road lighting.

In our country, street lights are replaced on average every 8 years. With the rapid advancement of urbanization, there has been a significant increase in urban lighting facilities.

In 2022, our country will need to build and replace over 5 million sets of street lights annually, as detailed below:

Segmentation of the industry market

Urban Street Lighting

Urban street lighting refers to the provision of lighting for city roads. It plays a crucial role in creating a favorable visual environment for drivers, cyclists, and pedestrians, ensuring traffic safety, improving transportation efficiency, and beautifying the urban nighttime setting. With the acceleration of urbanization and the continuous expansion of urban areas, the demand for road lighting has been on the rise.

By the end of 2022, the market size of urban street lighting in China reached 66.244 billion yuan, detailed as follows.

Landscape Lighting

Depending on the objects being illuminated, urban landscape lighting can be categorized into architectural landscape lighting, various square landscape lighting, commercial district landscape lighting, garden and green space landscape lighting, mountain and water landscape lighting, and decorative lighting for other public facilities. With the development of the tourism industry, more and more tourist attractions and cities are in need of landscape lighting to attract visitors.

In 2022, the market size of outdoor landscape lighting in China reached 31.766 billion yuan, as illustrated in the following graph.

Other Outdoor Lighting

The illumination of commercial and residential buildings can enhance their aesthetics and recognizability, contributing to the increase in the value of commercial and residential areas. Commercial buildings such as shopping centers, office buildings, and hotels have a strong demand for lighting focusing on aesthetics, energy efficiency, and intelligence.

In 2022, the market size of the outdoor lighting industry in the commercial and industrial sectors in China was approximately 66.296 billion yuan, as depicted in the graph.

The demand for outdoor lighting in park areas is showing a trend towards diversification. Different types of parks and various application scenarios require different lighting solutions, such as office parks, commercial parks, industrial parks, and ecological parks.

The "14th Five-Year Plan for the Development of the Digital Economy" clearly proposes to promote the digital transformation of industrial parks and industrial clusters, marking a new stage in which parks, as an important part of the construction of new infrastructure and digital economy, are entering. Relying on new generation information technologies such as the Internet of Things, 5G, cloud computing, big data, and artificial intelligence, integrating park management platforms and applications to provide a digital environment for park management, industrial upgrading, and enterprise operations, forming a digital ecosystem of parks with continuous gathering of data elements and continuous integration of technological scenarios.

- Data Source: Compiled by the Research World Data Center -