Smart Pole Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Hardware (Lighting Lamp, Pole Bracket and Pole Body, Communication Device, Controller, Others), By Installation Type (New Installation, Retrofit Installation), By Applications (Highways and Roadways, Public Places, Railways and Harbors) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global smart pole market was valued at USD 11,104.43 million in 2023. It is expected to reach USD 55,182.34 million in 2032, growing at a CAGR of 19.5% over the forecast period (2024-32). The rapid urbanization and the growing adoption of smart city projects worldwide are major drivers. Smart poles, equipped with various sensors and communication devices, are crucial in enhancing urban infrastructure by providing services such as public Wi-Fi, surveillance, and traffic management.

Moreover, smart poles contribute to energy efficiency by integrating LED lighting, which consumes less power than traditional lighting systems. They can also be equipped with solar panels, further reducing energy consumption and promoting sustainability.

Smart street poles can adjust the luminance and dimming based on the time of day and ambient conditions, contributing significantly to energy conservation, environmental protection, and LED light sources. Smart poles help monitor traffic flow, pedestrian crossings, parking slots, seismic activities, and atmospheric changes. Smart poles can also be equipped with speakers to alert citizens during emergencies. Cameras installed atop smart poles can be helpful for law enforcement agencies.

In the event of a problem, the smart poles may effectively be managed from a distance and communicate with the central control swiftly and easily. They can also serve distinct purposes, such as connecting weather stations, emergency buttons, cameras, a backlit information panel, different sensors, or a Wi-Fi transmitter to improve comfort, awareness, and, most importantly, safety in the streets of a smart city. Smart poles can elevate citizens' quality of life, improve operational efficiency, and reduce costs.

Highlights

• Hardware dominates the component segment
• Controller dominates the hardware segment
• Public places dominate the application segment
• North America is the highest shareholder in the global market

Market Dynamics

Market drivers

Rising Need for Energy-Efficient Pole Lighting Systems

Various governments emphasize enhancing their existing lighting infrastructure by implementing energy-efficient lighting systems. Integrating smart poles with software such as command and control solutions has enabled smart poles to be connected with other smart city infrastructure, including environmental sensors and cameras. The command-and-control solutions allow city authorities to monitor the entire lighting infrastructure and control the brightness of lights. Therefore, the increasing demand for energy-efficient lighting solutions is expected to bode well for the market's growth.

Several models have been developed globally to execute energy-efficient street lighting projects, including public-private partnerships, benefitting the market's growth. Various energy providers, such as the San Diego Gas & Electric (SDG&E) and Central Hudson Gas & Electric, emphasize developing programs to replace traditional light systems with smart poles. Similarly, the growing investment in LED street lighting programs will drive the demand for smart poles over the forecast period.

Increasing Government Initiatives for Smart Cities 

Several governments are realizing the necessity of modernizing public infrastructure by adopting new technology and implementing innovative systems to enhance the quality of life. There has been a growth in Public-Private Partnerships (PPPs) for smart city projects during the past several years. The market will rise as governments in the Americas and Europe collaborate on smart infrastructure development and deployment. For instance, the Future Internet Public-Private Partnership (FI-PPP), a USD 664 million EU program, accelerates the developing and adoption of emerging internet technologies for smart infrastructure and improves internet connectivity to improve business processes across Europe.

Furthermore, smart city authorities are extensively focused on the launch of PPPs for smart pole projects. For instance, in August 2017, Bhopal launched the PPP-based smart poles and intelligent streetlights project under the Smart Cities Mission. The project installs 400 smart poles across the city and replaces 20,000 sodium lighting with LEDs, fueling the market expansion.

Market restraint

Higher Upfront Costs Compared to Traditional Poles

The smart pole technology is in the nascent stage, with different delivery models, making it difficult to calculate the total costs. Multiple factors determine the cost of installing street lighting systems, such as wattage type, source type, and location. Additionally, installing a smart pole requires various hardware components, such as sensors, communication devices, dimmers, control systems, and the necessary software. The high costs of these components are leading to a significant increase in the installation costs of smart poles compared to conventional poles. This is expected to hinder the large-scale adoption of smart poles.

Market opportunities

Use of IoT Technology in Smart Poles

The extensive use of IoT technology in smart poles is anticipated to create new growth avenues for the market players. Various governments are partnering with private companies to upgrade the existing lighting networks in cities. The partnerships were also aimed at developing self-operated fuel stations, which use smart poles for connecting different systems such as automatic number plate recognition systems, smoke detectors, gas sensors, and electric vehicle chargers to enhance the safety of these stations. In addition, the growing use of products like LED lighting and solar panels in energy management systems is expected to substantially impact the market growth for smart poles over the forecast period.

Furthermore, the emergence of IoT and cloud computing has enabled the addition of features such as remote monitoring, secure communication, and easy programmability. Various Information Technology (IT) providers are establishing partnerships with smart city authorities and Original Equipment Manufacturers (OEMs). These partnerships aim to integrate smart poles with components such as Radio-Frequency Identification (RFID) readers, signage boards, touchpads, interactive kiosks, and variable message signage boards. This offers growth opportunities for various market players and encourages them to focus on developing a smart pole network.

Regional Analysis

North america dominates the global market

Based on region, the global smart pole market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America is the most significant global smart pole market shareholder and is anticipated to exhibit a CAGR of 16.91% during the forecast period. The presence of developed economies like the U.S. and Canada characterizes the North American region. The organizations operating in the region have showcased early and rapid adoption of innovative smart pole systems. Similarly, the increasing number of regional private infrastructure companies is estimated to contribute to the regional market's growth. The region's continuing research and development activities for the introduction of smart poles equipped with electric vehicle charging systems are contributing to the regional market growth. In addition, the U.S. is one of the early adopters of smart pole systems owing to the country's advent of smart city projects. It has been amongst the leading countries in the world regarding smart city projects covering parking, environmental monitoring, streetlights, auto traffic monitoring, and public safety. All these factors are estimated to bolster the growth of the country's market over the forecast period.

Asia-Pacific is estimated to exhibit a CAGR of 20.8% over the forecast period. Asia-Pacific is estimated to exhibit the quickest CAGR over the forecast period owing to several elements, such as the increasing government initiatives in countries like China, Japan, India, South Korea, and Australia for the replacement of conventional pole systems with smart poles to reduce the energy consumption of streetlights are expected to contribute to the regional market growth. Furthermore, the growing deployment of Automatic Number-plate Recognition (ANPR) systems for traffic control in countries such as China, India, Indonesia, Vietnam, and South Korea is also fueling market growth in the region. China is the most significant market for electric vehicles in terms of the number of on-road vehicles. As a result, the use of smart poles outfitted with electric vehicle charging infrastructure is increasing. It is also projected to boost the demand for advanced smart pole systems and drive market growth in the country.

In Europe, the adoption of smart poles is expected to be high owing to factors such as better economic integration, vast geographical area, and the presence of significant participants in the market, such as Siemens AG, Signify Holdings, Zumtobel Group, and Philips. The region's environmental standards help regulate the performance and safety of outdoor commercial lighting, such as highway lighting, roadway lighting, harbor lighting, etc. Several regional governments are installing smart poles to comply with these standards. Furthermore, the market is expanding due to rising energy-saving consciousness. Germany is characterized by the presence of leading manufacturers of LED lights that are installed in the smart poles. Further, the availability of advanced manufacturing facilities supports the growth of the smart poles market in the country.

Latin America is experiencing a continuous influx of citizens. According to a recent study, by 2050, around 85% of the region's population will live in urban areas. This expected demographic shift is compelling for governments to adopt advanced urban planning and grip technology-driven infrastructure innovations. This is expected to expedite the growth of the smart pole market in the region. Latin America is characterized by the availability of low-cost human resources to drive infrastructure development. Its proximity to North America encourages several multinational companies operating in the smart pole market to establish regional manufacturing and assembly units. These factors are also benefiting the growth of the region's smart pole market.

Segmental Analysis

The global smart pole market is segmented by component, hardware, installation type, and application. 

Based on components, the global market is bifurcated into hardware, software, and services. 

The hardware segment is the most significant contributor to the market share and is anticipated to exhibit a CAGR of 19.0% over the forecast period. The major aspect contributing to the growth of the hardware segment is the current upgrading of lighting infrastructure around cities. The rising demand for energy-efficient lamps has created a growing need among governments to replace traditional incandescent lamps with energy-efficient LED lights. Similarly, the increasing demand for public Wi-Fi networks has augmented the sales of communication devices. Moreover, the rising pollution levels have led to an increased need for cameras and air quality sensors, boosting the sales of hardware components of smart poles.

Based on hardware, the global market is divided into lighting lamps, pole brackets and pole bodies, communication devices, controllers, and others. 

The controller segment dominates the global market and is projected to exhibit a CAGR of 19.0% over the forecast period. Smart poles are connected to control centers and centralized commands, which help the authorities to monitor smart solutions installed in cities. The controller segment witnessed growth due to increased awareness regarding daylight saving. Smart pole technology uses control devices to control light efficiently and other features based on parameters such as movement, occupancy, temperature, and amount of natural light.

Additionally, governments are concentrating on minimizing energy consumption with sophisticated lighting management systems because lighting uses a lot of electricity and is expensive in smart poles. For instance, Tvilight offered its connected, intelligent lighting solution to Helmond. The solution includes wireless lighting controllers and streetlight sensors to adjust the illumination level based on real-time human presence efficiently. In addition, integrating control products with luminaires enables software installation on microcontrollers. Such systems offer control at a spatial resolution, which is expected to expedite the demand for controllers in the global market.

Based on installation type, the global market is bifurcated into new installation and retrofit installation. 

The retrofit installation segment is the most significant contributor to the market and is anticipated to exhibit a CAGR of 19.8% during the forecast period. The retrofit installation segment dominated the market owing to numerous smart city projects by various governments focusing on installing public Wi-Fi, digital signage, security cameras, and environmental monitoring systems on existing light poles. Most governments nowadays prefer retrofitting smart street poles by equipping them with sensor technology or upgrading them with IoT applications to achieve cost savings with equal benefits. For instance, in 2016, the Chinese government contracted Shanghai Sansi Electronic Engineering Co., Ltd. to install public Wi-Fi, digital signage, environmental monitoring systems, and security cameras on active light poles across Hongze County.

Additionally, in August 2021, the Greater Chennai Corporation of India announced the installation of smart poles across the city. These smart poles are implemented under the urban renewal and retrofitting program by the Union Ministry of Urban and housing affairs. These smart poles will provide free Wi-Fi access to the citizens at 49 locations across the city.

Based on application, the global market is segmented into highways and roadways, public places, and railways and harbors. 

The public places segment owns the highest market and is expected to grow at a CAGR of 20.01% during the forecast period. Smart poles offer numerous features such as announcement speakers, charging points to help tourists visit public places and internet connectivity. Smart poles with solar power are further expected to support the installation of smart poles in distant public places such as beaches, architectural sites, and public parks, among others. Additionally, increasing vehicle crime has compelled governments to employ Automatic Number Plate Recognition (ANPR) systems on smart poles at public places such as public squares, national parks, public parking facilities, fuel stations, and beaches. Moreover, the rise in the installation of electric vehicle charges in smart poles is one of the major factors driving the segment's growth. For instance, in August 2021, Kansas City and Missouri announced the installation of electric vehicle chargers on streetlights to enhance electric vehicle charging infrastructure.

Recent Developments

• March 2024 - British mobile and broadband provider Virgin Media O2 (VMO2) and its partner Liberty Global have unveiled their newest project, the Smart Pole Trial. To increase the capacity and coverage of their mobile network, VMO2 has installed 4G and 5G smart poles on top of their existing fiber network as part of the trial. The poles are more compact than standard mobile masts, allowing for speedy installation without the need for planning approval or other red tape.
• March 2024 - The 12-month pilot initiative in Fishermans Bend announced that they would activate new smart poles that feature weather sensors, transport sensors, LoRaWAN connectivity, and smart lighting. As part of the "gateway" to the General Motors Holden (GMH) project in Fishermans Bend, the state government and the city of Melbourne are collaborating to test eight smart poles on Turner and Graham streets.