Stadium Lighting Market

Market Overview

The global stadium lighting market size was worth USD 635 million in 2022. The market is projected to grow at a CAGR of 8.7% from USD 723.9 million in 2023 to USD 1534.23 million by 2031. The rising use of LED lighting in stadiums all around the world is a result of their greater energy efficiency. The switch to LED stadium lights from conventional stadium lights is one of the essential drivers supporting industry growth. Additionally, the decreasing cost of LED lights is a significant factor driving their increased acceptance in stadiums, impacting the stadium lighting market growth. 

Stadium lighting primarily consists of LEDs (Light Emitting Diodes) that emit floodlights and are typically mounted at tall heights with small beam angles. Because of these smaller beam angles' higher light intensities, bright light can reach the ground from elevated heights. Players respond quickly to the tiny, swiftly moving balls using this technology, and the LEDs can endure thunderstorms and other extreme weather conditions. Stadium lighting is used in various indoor and outdoor settings, including parking lots, walkways, football, hockey, and rugby stadiums, as well as for high-definition television and ultra-slow motion technology.

Market Dynamics

Global Stadium Lighting Market Drivers:

• Increasing Investments in Developing Sports Infrastructure

Governments in the Asia-Pacific countries are increasingly investing in sports infrastructure and expanding stadium facilities. Sports organizations like the Indian Premier League (IPL), Board of Control for Cricket in India (BCCI), New Zealand Cricket, Melbourne Cricket Association, and Sahara Force India use smart technologies for hosting international and domestic tournaments. Besides, stadium officials must regularly evaluate their existing luminance systems and report them to the governing bodies. Therefore, government initiatives in the field of sports also contribute to the Asia-Pacific stadium lighting market growth.

• A lot of Investments in the Construction and Renovations of Stadiums and Arenas

The surging investments in the construction and renovation of arenas and sports stadiums have been escalating for the past five years in North America. The government in North America is investing drastically in stadium construction and development. The US and Canada are the notable countries in North America driving the regional market growth. Renovations of stadiums to deliver a better experience to the audience and players are extensively taking place in the region.Professional sports teams across various leagues in the United States are actively pursuing new stadium and arena projects. The Buffalo Bills are seeking a $1.3 billion NFL stadium, the Chicago Bears are investing in land for a potential new home, and the Washington Football Team is lobbying for a stadium in Virginia. In MLB, teams like the Kansas City Royals, Oakland Athletics, and Tampa Bay Rays are considering new parks. In the NBA, the Los Angeles Clippers are building a $1.2 billion arena, with the Philadelphia 76ers and Dallas Mavericks also exploring new venues.

Global Stadium Lighting Market Restraint:

• The Rise in environmental concerns

One impeding the growth of the stadium lighting market is the rise in environmental issues about stadium lights. Energy dissipation and carbon dioxide emissions are rising due to an increase in the use of energy resources. Governments in wealthy and developing countries are enforcing strict laws to reduce carbon dioxide emissions in response to growing environmental concerns, such as global warming and ozone depletion. For instance, Stadium 974 in Qatar is an extraordinary innovation in the world of sports venues. What sets it apart is its unique mobility – it can be disassembled and transported to another nation to host games, making it the world's first movable stadium. This remarkable structure was built using 974 recycled shipping containers, demonstrating a commitment to sustainability.

Global Stadium Lighting Market Opportunities:

• Increasing Implementation of IoT, Big Data, and Analytics

IoT is increasingly finding applications in many fields, and stadium lighting is among them. Even though some developed countries have started adopting this technology in stadium lighting, it is not prevalent in emerging economies. Therefore, it is estimated that IoT will engender immense opportunities for the global stadium lighting market. Moreover, incorporating IoT with lighting systems is expected to enhance the infrastructural capabilities of stadiums. This makes the lighting systems more self-governing and intelligent in sharing data with building automation systems and the cloud. For instance, with the help of embedded sensors and data, IoT enables automatic light adjustments all over the stadiums based on the occupancy of seats, thus saving energy and operating costs. The adoption of IoT for stadium lighting is still in the rudimentary stage, but the solutions' opportunities are promising.

Regional Analysis

Based on region, the global stadium lighting market is segmented into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.

Europe held the largest market share and is expected to experience significant growth during the forecast period. The market growth is accredited to the rising investments by the government to provide efficient lighting services. Moreover, countries including Germany, Russia, the UK, and Denmark are focusing on deploying efficient lighting to enhance the lighting quality and reduce overall operational cost, which is anticipated to accelerate the demand for LED lighting products and solutions. Europe is home to the UEFA European Football Championship, held every four years. The global spectacle is anticipated to attract more than 2 billion viewers, with the final match potentially reaching over 300 million spectators. Stadium owners strive to engross football fans in the sporting event atmosphere. To achieve the same, stadium owners must not turn a blind eye to qualities that high-performance and realistic lighting can offer. Apart from enhancing the visual playing conditions for spectators and players and reducing shadows, stadium lighting complies with strict guidelines laid by the Union of European Football Associations (UEFA). Stadiums are required to meet the demands of high efficiency and intensity, flicker-free light, and abide by broadcasting regulations. More innovative and flexible lighting systems replace high-intensity discharge lamps with LEDs, commonly used in stadium lighting. Therefore, rising sports activities in Europe are expected to accelerate the growth of the stadium lighting market.

North America is the second largest region. It is anticipated to achieve a significant increase in value by 2031, growing consistently over the specified period. The main driver of market expansion in North America is the population's growing embrace of new technologies. The growth of the North American market is aided by the far-reaching development of the sports and athletic field building business in the United States. The region's private and public markets' volatile investments in the creation of new athletic fields and sports facilities also help to advance the market. Currently, there are thought to be 244 stadiums in the United States. To improve the hospitality for the spectators, business owners in the US construct, modify, and remodel sports stadiums and arenas. The demand in this area is primarily driven by academic institutions or for-profit sports organizations like leagues and franchises. Owners must use contemporary lighting techniques in stadiums because the lighting system draws spectators. Such factors contribute to market growth. 

The Asia Pacific Is the fastest growing region. India hosted international sporting events, including cricket world cups, Asian games, commonwealth games, and FIFA under-17 world cups. The country also has domestic sports leagues, such as the Indian Premier League, the I-League, the Indian Super League, and many others. Indian premier league is conducted annually, and several other cricket tournaments are also hosted in Indian stadiums, which are expected to bolster the market growth in the coming years. Cricket matches are also held at nighttime, thereby prompting the need for adequate lighting in stadiums.

Segmental Analysis

The global stadium lighting market is segmented by light source, sport type, application, and region.

Based on the light source, the global stadium lighting market is segmented into the light-emitting diode, high-intensity discharge, high-pressure sodium, and induction lights. Light-emitting diode segment accounted for the largest market share and is estimated to grow at a CAGR of 8.1%during the forecast period. Falling LED lighting costs, increased global LED penetration, expanding industrial demand for adequate power lighting, supportive governmental regulations, and the phasing out of conventional lighting are the main factors promoting the expansion of the LED industry. Governments worldwide are also promoting the usage of LEDs in both public and private settings. The Chinese government adopted LED lighting before its planned ban. The European Union, United States, and Canadian governments' bans on inefficient lighting helped the LED market expand across all industries.

High-pressure sodium is the second largest region. It has a significant efficiency and reasonably maintains luminescence, with a lifespan of around 24,000. It is cost-effective and does not emit infrared or UV radiation. As the UV radiations result in adverse environmental impacts, the high-pressure sodium segment is anticipated to find more applications in the stadium lighting market. It utilizes high-pressure sodium capacitors, typically emitting yellowish light, and is also available in white light. When stadiums require a yellowish tint, HPS light sources are predominantly used.

Based on application, the global stadium lighting market is segmented into indoor and outdoor stadiums. 
The outdoor stadium segment holds the largest market share and is expected to experience significant growth throughout the forecast period. The rising number of cricket and football matches globally is the critical factor driving the growth of the indoor stadium lighting segment. 

The indoor stadium is the second largest segment. The swelling interest in sports in youth has resulted in a burgeoning number of stadiums. Some popular games require indoor stadiums, including rugby, badminton, tennis, swimming, skating, volleyball, wrestling, floor exercise, martial arts, and others. Hence, the rising sports liking among generality resulted in the growth of indoor stadiums. Consequently, indoor sports venues are gaining momentum as they provide a place to play undeterred by the weather conditions.

Based on sport type, the global stadium lighting market is segmented into cricket, football, basketball, volleyball, ice hockey, and others.The football segment holds the largest market share and is expected to see significant growth during the forecast period. In the global stadium lighting market, football holds a prominent share because of its multipurpose application, such as stage shows and music concerts. Football is the most prevalent sport in most countries around the globe and is played in more than 117 countries. Installing high-quality lighting in a football stadium enables a wide range of benefits to the viewers and players. Some benefits of football fields with stadium lights include flexibility in match planning and enhanced visual experience. Considering the abovementioned factors, football stadium administrators are integrating high-quality stage lighting, further driving the market growth.

Basketball is the second largest segment. The basketball court requires the anti-glare feature, as light's intense glare discomforts the player. This issue strongly affects indoor basketball stadiums due to the reflective nature of the floor. Therefore, indirect lighting is often used to overcome the problem mentioned above. Traditional stadiums generally use sodium lamps, but since the advent of LED lights, several stadiums have shifted toward a new approach. Hence, it is anticipated that this shifting of basketball stadiums toward a modern LED lighting system will spur the stadium lighting market growth.

Recent Developments

• July 2022 - The market leader in lighting, Signify (Euronext: LIGHT), has unveiled a new line of Philips Hue smart lighting solutions that provide even more customization, control, and flexibility for the home. The first fully customized track lighting with its line of lights and the first portable, rechargeable lamp intended for indoor and outdoor use are two exciting new products that Philips Hue introduced.
• March 2022 - Signify (Euronext: LIGHT), the world leader in lighting, installs its Philips UV-C lighting disinfection solutions in 80 restaurants run by TTFB, the largest Asian cuisine chain restaurant operator in Taiwan.
• April 2022 -The pioneer in lighting, Signify (Euronext: LIGHT), has released its first-ever Climate Action Report, demonstrating the strides we've made in implementing climate action throughout our whole value chain. They are on track to double the pace of the Paris Agreement 1.5°C scenario in the first year of the ambitious five-year Brighter Lives, Better World 2025 sustainability program and have generated between 61 and 64 percent of Climate action revenues, which contributes to the ambition to double the positive impact on society and the environment by the end of 2025.