PUBLIC LIGHTING
NUCLEAR
The use of lamp posts to support multiple
applications is expected to increase in popularity as
cities strive to deploy more sensor-based solutions
for a range of city services.
How public
street lighting
is becoming
smart
I
n 1807, London’s Pall Mall became
the first street in the world to be
illuminated with gaslight. Since then,
street lighting (first by gas and then
electricity) has become a fundamental
technology shaping our experience
of urban living. Street lighting is once
again becoming a focus for innovation
and a priority issue for city managers
as they try to reduce energy costs and
meet their sustainability targets.
A primary reason for this new focus
is that street lighting can account for up
to 40% of a municipality’s electricity bill,
not counting maintenance costs. A move
to more efficient lighting technologies
is the obvious step for cities looking to
reduce both energy costs and carbon
emissions – in most cases, this means
adopting LED lighting.
Falling costs and improvements
in quality are making LED lighting the
22
default option as cities replace and
upgrade existing lighting systems.
LEDs can reduce energy consumption
for street lighting by around 50%,
and the attractiveness of LED lighting
is increasing as initial issues are
addressed. The cost of LED fixtures
has come down significantly over
the last few years and is projected
to continue to do so during the next
decade. Some early LED products
had quality issues, but manufacturers
have placed a large emphasis on
addressing these issues, and many
vendors of lower quality products
have been forced out of the market.
Improvements have also been
made in efficiency, efficacy and the
colour temperature of bulbs. These
improvements make for more reliable,
cost-effective, and aesthetically
pleasing public lighting. By 2025,
Navigant Research estimates that
LEDs will account for 94% of outdoor
luminaire shipments globally, up from
68% in 2016.
Connected lighting and
smart cities
The adoption of LED lighting is only
the first step. The real revolution
comes when intelligence is added to
a lighting system through the use of
networked controls, making it truly
smart. Combining LED technology and
intelligent controls can reduce energy
consumption of street lighting by a
further 30%.
In addition to increasing the
energy efficiency of the city (and so
reducing energy costs and carbon
emissions), intelligent controls can
also reduce maintenance costs. The
control network can also provide
ESI AFRICA ISSUE 5 2016
PUBLIC LIGHTING
The adoption of LED lighting is only the first
step. The real revolution comes when intelligence
is added to a lighting system through the use of
networked controls, making it truly smart.
Lighting controls revenue by product type. World markets: 2016-2025
$1,400,000
Motion Sensor
Photocell
Intelligent Controls
Control Software
($ Thousands)
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
(Source: Navigant Research)
a backbone for a range of other
city applications, including public
safety, traffic management, smart
parking, environmental monitoring,
and extended Wi-Fi and cellular
communications. For these reasons,
smart street lighting is being adopted as
part of the wider development of smart
city initiatives across the world. These
extended capabilities enable cities to
make further cost savings and improve
services and security. They also offer
the potential for added revenue streams
related to connected lamp posts.
The use of lighting controls is on the
rise, but many municipalities are still only
using basic controls such as dimming
and automatic shut-offs during night
time hours. More sophisticated controls
are being explored, mainly by early
adopters. But interest in lighting controls
and broader smart city technologies
within cities and municipalities has
increased rapidly in the last few years
and is expected to continue to do so as
the technologies mature. The controls
market is expected to see major growth,
as network technologies and control
protocols become more standardised
and decision makers become more
comfortable with using them. Navigant
Research estimates that the market for
smart street lighting control devices and
software will grow from $492 million
in 2016 to $1.3 billion in 2025, with an
expected compound annual growth rate
(CAGR) of 11% over the decade.
The challenges
While many positive factors are lined
up to encourage the adoption of smart
street lighting, a number of significant
barriers remain.
24
Finance: The biggest challenge
for cities looking to change their
lighting systems is common to
many smart city innovations:
finance. The long-term savings
may be indisputable, but cities
still need to find the upfront
investment. Although the cost
of LEDs and controls continue
to come down, a premium still
exists when compared to less
efficient technologies. Cities
are using municipal bonds and
drawing on national government
programmes to fund upgrades.
Green investment funds and
development organisations such
as the World Bank are also
working with cities to provide the
necessary financial instruments to
support lighting upgrades.
Customer understanding: A lack
of understanding of newer lighting
technologies is a barrier to mass
adoption of LEDs and networked
solutions. While the LED lighting
market is getting over this hurdle,
controls will lag further behind since
customers are even less familiar
with these technologies. The issue
is not about quality, but rather a lack
of knowledge of the business case
for the additional benefits intelligent
lighting brings, particularly for
secondary applications.
Utility-owned street lights:
In some countries there is an
additional challenge as street
lighting may be provided by
the local utility, so building the
business case for energy efficiency
depends on the incentives set for
the utility by regulators.
This means that some utilities have
been reluctant to invest in lighting
network upgrades. However,
even in this sector, attitudes are
changing due to the pressure to
reduce carbon emissions and a
recognition of street lights as a
valuable asset and potential source
of revenue.
Safety issues: Some municipalities
have struggled with safety issues
around dimming or shutting lights off
during certain hours on roadways.
There is concern around liability if
a crime or accident happens if an
area is unlit or if occupancy sensors
in place fail to light an area. There
is also some discrepancy on the
appropriate level of lighting for each
of these applications in order to save
energy while maintaining safety and
security. Most of these issues are
being addressed through education
and the growing experience of how
best to use the new capabilities to
maximum benefit.
The future is bright
Despite the challenges, the future
of public lighting lies in greater
connectivity and increased
intelligence. The use of lamp posts
to support multiple applications is
expected to increase in popularity as
cities strive to deploy more sensorbased solutions for a range of city
services. Further development will be
accelerated by standards’ initiatives,
which will be an important factor in
reassuring cities concerned about
the openness of technologies and
their ability to integrate different
applications from diverse suppliers. If
the industry is able to address these
concerns, street lighting can play
as transformative a role in the 21st
century smart city as gaslights did in
the 19th century city.
ABOUT THE AUTHOR
Eric Woods is a research director
leading Navigant Research’s
coverage of smart cities. He has
written numerous reports on smart
city markets and technologies and
has more than 20 years’ experience
as an analyst and consultant on new
technology trends.
ESI AFRICA ISSUE 5 2016