Australia and New Zealand will see significant investments in smart street lighting deployments and could become the most developed markets in the world by the end of the forecast period. Until recently, these two countries lagged behind the global leaders such as the UK and US and even today there are comparatively few LED and smart street lighting deployments, particularly in Australia. But the market has changed significantly in the past three years since the region's smart streetlight roadmap was first developed. Australia and New Zealand are now on pace to reach nearly full LED penetration and over 70% smart penetration by the end of the forecast period.
Most notably, both Australia and New Zealand have significant regulatory drivers. In New Zealand, the government is funding 85% of smart and LED streetlight conversions through 2021, while Australia has set a nominal goal of achieving full smart streetlight penetration by 2027. To achieve this target, Australian states have been funding conversions and altering lighting codes to incentivize utilities (which own almost all the streetlights in Australia) to convert to smart streetlights.
Meanwhile, many of the barriers that had previously held up the market are now being addressed. Prices for both LED luminaires and controls are declining (both on the global level and in Oceania, where previously small volumes had driven up per-endpoint costs). Australia and New Zealand are also now adopting international standards, which will facilitate a competitive vendor landscape and smoother conversions. Finally, as deployments have increased, so has local knowhow, and models are now in place for large-scale conversions. There are still important obstacles to overcome - most notably, there are conflicts of interest for utilities that own the streetlights but also generate revenue from energy sales and streetlight maintenance contracts. As much as there is clear momentum, most projects are still at the pilot level in Australia and regulations are still being adjusted. But with an improving framework in place, a rapidly developing market in New Zealand, and declining prices for luminaires and controls, the region as a whole looks poised to develop one of the most complete smart streetlight markets in the world by 2027.
Key questions answered in this study:
- How are LED and smart streetlight deployments advancing at the largest cities and utilities in both Australia and New Zealand?
- What are the market shares of both the leading streetlight communications and controls vendors?
- What cities have upcoming RFPs or have just begun streetlight and smart city projects?
- What new regulations are driving the markets in Australia and New Zealand?
- What is the ten-year forecast for LED and smart street lighting across all segments?
Table of Contents
- i. Executive Summary
- 1. What's new in 2018?
- 2. Oceania street lighting overview
- 3. Market forecast
- 4. Vendors
- 5. Appendix
- 5.1 Methodology
- 5.2 List of abbreviations and companies covered
List of Figures, Boxes, and Tables
- US LED and smart street lighting: key takeaways
- Figure 1.1: Recent smart streetlight activity in Australia & New Zealand
- Figure 1.2: Annual smart streetlight deployments by project type
- Box 1.1: New Zealand streetlight financing
- Table 1.1: Progress and notable developments since IPWEA roadmap of 2015-16
- Figure 1.3: Smart city activity in Australia & New Zealand
- Table 1.2: Smart city applications
- Figure 1.4: Australia-NZ streetlight networking market share
- Figure 1.5: Australia-NZ streetlight nodes/controllers market share
- Table 1.3: LED deployments in other Oceania countries
- Figure 2.1: Australia-NZ streetlights by luminaire type
- Figure 2.2: Streetlights in Australia by state
- Table 2.1: Streetlight ownership in Australia
- Table 2.2: Sample regulatory suggestions from SLSC roadmap
- Figure 2.3: Largest cities in Australia and New Zealand
- Table 2.3: Largest cities in Australia-New Zealand and streetlight conversion status
- Table 2.4: LED and smart streetlight costs and benefits
- Figure 2.4: Smart streetlight benefits (10-year savings)
- Table 2.5: Additional benefits to smart streetlights
- Table 2.6: Challenges to implementing smart and LED streetlight projects
- Figure 3.1 Cumulative investment in LED and smart streetlights
- Table 3.1: Cumulative investment in LED and smart streetlights
- Figure 3.2: Cumulative LED streetlight forecast with installation separate
- Figure 3.3: Installed base of legacy streetlights and annual shipments of LED streetlights
- Figure 3.4: Oceania LED and smart streetlight penetration rate
- Figure 3.5: Annual LED and smart streetlight shipments
- Figure 3.6: Average cost per streetlight of smart LED projects
- Figure 4.1: Australia-NZ streetlight networking market share
- Figure 4.2: Australia-NZ streetlight nodes/controllers market share
- Figure 4.3: Smart lighting value chain
- Figure 4.4: Major smart streetlight projects by vendor
- Table 4.1: Smart street lighting communications vendors
- Table 4.2: Streetlight control hardware vendors
- Table 4.3: ESCOs and smart city integrators
- Table 4.4: General LED lighting vendors