Navigant Research Blog

New Zealand Street Lighting Updates Could Make for an Attractive Market

— May 5, 2015

New Zealand lighting designer Bryan King estimates that his country is roughly 5 years behind the United States in terms of upgrading street light infrastructure from high-pressure sodium (HPS) to light-emitting diode (LED). Recent developments and a successful Road Lighting conference, however, may help close that gap quickly or even put the small country in the lead. This makes for an interesting case study in how a smaller market can rapidly shift from one technology to another, undergoing the process at a much faster rate than larger markets are capable of doing.

Favorable Factors

According to Navigant Research’s Smart Street Lighting report, there are an estimated 370,000 street lights installed in New Zealand. This represents a small fraction of the installed base of the United States and other large countries, making the challenge of upgrading far less daunting. Another significant factor that this country has in its favor is that municipal lighting is generally owned by the municipality, rather than by a utility that may not have a financial incentive to reduce electricity consumption, especially during nighttime hours. In addition, 50% of funding for street lighting comes from the NZ Transport Agency. This government agency has recently stipulated that its funding must be spent on LED lights and not on older lamp technologies. That alone will spur retrofit projects and likely means that no new HPS luminaires will be purchased.

The recently held Road Lighting 2015 conference is also expected to drive adoption of both LED street lighting and networked street lighting control. The conference organizers were able to gather representatives from a significant portion of the country’s municipalities, who then learned from city managers and other experts from around the world who have already implemented LED and controls projects. While decision makers in the United States often seem reluctant to draw on international experiences, decision makers in New Zealand were quite eager to benefit from the lessons learned by their peers around the globe.

Road Lighting

A significant focus of the Road Lighting conference was on the use of networked controls to deliver advanced control features to street lighting systems. As discussed in Smart Street Lighting, networked systems are being adopted in ever growing numbers around the world, but many municipalities have upgraded to LEDs without also adding controls. A new and widely adopted American National Standards Institute (ANSI) standard (136.41) means that adding controls after a luminaire has been installed is relatively simple, but it still involves physically accessing every single street light. Thus, it entails a cost and effort that deters many municipalities. New Zealand is in an excellent position to take advantage of the benefits of both LEDs and controls, installing both of these now maturing technologies at the same time to reduce costs.

It is yet to be seen just how quickly New Zealand will adopt LED street lighting and networked lighting control. The City of Auckland has announced plans to switch all of its lights to LEDs in the next 5 years, and the timeline is expected to be similar for other cities and only slightly slower for smaller municipalities. So, while the total market size is modest, the rapid changeover when conditions are ripe can still make a small market attractive to international manufacturers.

 

LEDs Lead Smart City Networks

— July 3, 2014

The path to more systematic and dynamic control of street lighting is being blazed by the adoption of light-emitting diode (LED) technology.  The continuing fall in the price of LED street lights has made them attractive to city managers around the world, particularly for new installations.  In our new report, Smart Street Lighting, Navigant Research estimates that 53% of street light luminaire sales in 2014 will be LED, and that percentage will grow to 94% by 2023.

This rapid transition to LED street lights is occurring as new, networked control systems become widely available.  These systems can bring added energy savings as well as additional value through greater control and reduced maintenance costs (see here, here, and here for examples).  Given the comparative ease and reduced cost of installing a control node while replacing a luminaire, the LED transition is proving to be a boon in the adoption of networked street light systems.  Navigant Research forecasts that revenue from the control equipment for such systems will grow from $197 million in 2014 to $477 million by 2023.

Illuminated Backbone

With the installation of a network that can communicate with street lights comes the opportunity to integrate those controls with multiple other intelligent systems: traffic light controls, security cameras, electric vehicle charging stations, environmental sensors, and digital signage.  The availability of both power and communications on street light poles throughout a city provides a ready-made backbone for many of those other services.  The same communications infrastructure can often be expanded for additional applications, and once the value of one such system is proven, city managers become far more likely to seek new applications for the technology.

In order to fulfill the potential of integration between multiple smart city systems, however, smart street lighting systems have to become more adaptable and more open.  In short, they need to look more like platforms than proprietary, closed systems.

Standards Emerge

The adoption of standards at multiple levels is crucial if smart street lighting networks are to serve as the platform for other smart city projects.  Standards adoption will open up the market and provide cities with more choice and greater confidence about the future value of their investment.

Standards-based software and communications protocols enable greater interoperability between systems, but there is also a role for more standards at the hardware level.   For this reason, the publication of a new standard by the National Electrical Manufacturers Association (NEMA) earlier this year is an important development.  Standard 136.41 defines a dimming controller and socket for street light luminaires.  The implication of the new standard is that, as long as a city purchases compliant street lights, it will be able to add control features, such as dimming and wireless communications, at a later date simply by purchasing any vendor’s compliant controller and plugging it into the top of their lights.  I discussed the new standard in more detail in a previous blog.

For a detailed examination of the benefits of smart street lighting for smart cities, the challenges still to be addressed, and Navigant Research’s forecasts for the growth of the market, please join us for the upcoming free webinar, Smart Street Lighting for Smart Cities, on July 8 at 2 p.m. EDT.  Click here to register.

 

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