The 5th-ranked government spending hotspot in 2016 was in smart lighting, according to the latest special report from Onvia’s B2G market research team, 10 Hotspots in Government Contracting for 2017.

As cities and other government agencies look to save money on energy costs, they are releasing more LED lighting contracts for bid. These new lighting systems are not only increasing efficiency; they’re helping drive the smart cities movement by making public spaces safer and more connected.

Smart Lighting – A Key Part of Government Digital Infrastructure

LED lighting and smart lighting are becoming necessary technology for many state, local and federal lighting programs – and the market is expected to keep growing. Industry analysis firm Global Market Insights forecasted growth of 22% per year in global spending in the smart lighting market between the years 2016 and 2023.

Lighting is at the heart of city infrastructure – affecting everything from quality of life and jobs to operations and commuter safety.

LED Journal

As data in Onvia’s B2G Intelligence System (B2GIS) shows, many of these LED lighting upgrade projects can be quite large. For example, the City of Detroit recently upgraded 40% of their street lights (a total of 32,000 lights) to contain LED bulbs, as a part of a major, three-year, $185 million lighting overhaul. While smart lighting and LED lighting contracts can be found nationwide, areas with high levels of urban density are the most common, so B2G vendors should target cities and the counties they reside in.

California was the top state for smart lighting bids & RFPs, with three other western states – Oregon, Utah and Washington – making the top 10.

Top 10 States for Smart Lighting Bids & RFPs

Smart Lighting Market Impacts More Than Just Street Lights

The number of LED lighting contracts has grown dramatically in the last year, with 15% growth in bids and RFPs from state, local and education government agencies – making this the 5th-ranked hotspot in government contracting in 2016.

Smart Lighting Bids & RFPs 2016 vs 2015

One important point to note about the smart lighting market isn’t even related to the lights themselves. Smart lighting can serve as an important part of a city or town’s digital infrastructure. The networks connecting the lights, and the fixtures housing the lights, can contain functionalities aimed at addressing crime and improving quality-of-life.

Below are three types of government contract leads that are related to smart lighting bids and RFPs. Growth in smart lighting contracts indicates growth in these areas should follow.

  • Gunshot Detection Services

Cities are increasingly placing gunshot detectors or other surveillance tools in their smart lighting setups, helping to reduce crime in troubled areas.

  • Air Quality Data Collection

Air quality sensors spread throughout a city or urban area can determine which neighborhoods are most at-risk of poor air.

  • Tracking Foot Traffic

Some cities are using foot traffic sensors to track pedestrian traffic levels, gathering data that can inform more efficient traffic signals.

Opportunities to Win More Government Bids and RFPs

Our research team tracks the broad market of all government purchasing activity, and uncovered 9 other groups that saw major growth in bids and RFPs in the past year.

To find out which hotspot ranked at the top, download a free copy of Onvia’s “10 Hotspots in Government Contracting for 2017” report by clicking the below link. You can also request a free consultation to have one of our expert advisors walk you through how to use Onvia’s sales acceleration technology to grow your government business.

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