Smart Lighting Market Trends

Global Smart Lighting Market Overview:

The Smart Lighting Market size was valued at USD 9.2 billion in 2021. The smart lighting industry is projected to grow from USD 11.05 Billion in 2022 to USD 40 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 20.1% during the forecast period (2024 - 2032). Growing smart city projects in developing nations and advancement in the integrated lighting control system are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Smart Lighting Market Trends

The growing use of LED lights and luminaires in outdoor lighting to boost the market growth

The major reasons for installing LEDs over conventional lights include energy and price savings. LEDs are replacing conventional light sources, including incandescent, fluorescent, high-intensity discharge (HID), and high-pressure sodium lamps in outdoor lighting applications. Outdoor lighting applications majorly include highways, roadways, public places, and stadiums. As per the US DOE, LED lighting would represent 86% of all lighting sales by 2035 due to the benefits offered by LED lights over their conventional counterparts.

Further, technological advancements and developments in various countries have revolutionized outdoor luminescence from on & off systems to smart luminescence. The adoption of loT and Al technology in the lighting industry has increased the demand for smart lighting for city streets. This leads to the rise in the need for luminescence systems that provide automated operations.

Additionally, Government policies encouraging energy conservation and environmental protection, along with stringent regulations, discourage the usage of incandescent lamps, which is expected to bolster the demand for LED smart lighting. The global lighting industry consumes around 19% of the total electricity and is accountable for around 6% of the total greenhouse gas emissions. On the contrary, LED smart lights are positively efficient. They customer almost 70% lesser energy and connect devices to collect details for future processes. They have extremely longer life spans and are free from any mercury content. Similarly, there are no dangerous greenhouse gas emissions associated with LED lights. Thus, LED technology has potentially revolutionized the entire lighting industry and infiltrated the smart lighting segment, wherein LED is a preferable choice among vendors and consumers, which has enhanced the smart lighting market CAGR across the globe in recent years.

However, advancements in wireless technology and a surge in IoT technology for hyper-connectivity between devices in smart infrastructure are expected to increase the growth of the smart lighting market revenue.

Smart Lighting Market Segment Insights:

Smart Lighting Component Insights

The Smart Lighting Market segmentation, based on components, includes software, and service. The software segment held the majority share of the Smart Lighting Market revenue. The demand for smart lighting is driven by the growing adoption of smart lighting for data-driven causes in crucial areas. The apps also assist in connecting smart lights with smart platforms such as Crotona, Alexa, and Siri to control using voice commands. However, service is the fastest-growing category over the forecast period due to the growing demand for the service of connected lighting bulbs and fixtures that can adjust hues, dim lights, and switch on/off utilizing a controlling device such as a smartphone or tablet.

Smart Lighting Product Type Insights

The Smart Lighting Market segmentation, based on product type, includes luminaries and lighting controls. The luminaries segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the installation of new track lights and light poles as a result of the expanding commercial building space and developing smart city initiatives. However, lighting controls are the fastest-growing category over the forecast period due to the increasing technological advancement and ever-changing controls in smart lighting solutions. Hence, rising controls enable intelligence in lighting products positively impact market growth.

March 2022: Wipro Lighting launched Aqua, a stylish range of designer office space luminaire solutions to brighten up workspaces. Aqua provides a variety of curved luminaires that are suitable for translating an architect's design intent. They are simple to install and have adjustable height suspension, which adds to the location's appeal. Wipro Lighting's Aqua is a blend of elegance and sophistication for modern interiors, with a flexible design, adaptable shape, and no visible hardware.

Smart Lighting Light Source Insights

The Smart Lighting Market data has been bifurcated by the light source into LED, FL, and HID. The LED segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is attributed due to rising construction in both developing and developed countries, together with government laws limiting the use of inefficient lighting systems. However, HID is the fastest-growing category over the forecast period due to growing adoption in indoor applications.

Figure 1: Smart Lighting Market, by Light Source, 2021 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Smart Lighting Communication Technology Insights

Based on communication technology, the global smart lighting industry has been segmented into wired and wireless. Wireless held the largest segment share in 2021. Wireless connectivity in a smart lighting environment is hugely preferred among consumers that require connections within a small range. However, wired is the fastest-growing category over the forecast period due to the growing adoption of smart lighting in commercial and industrial spaces is driving the market for wired connectivity in the smart lighting space.

Smart Lighting Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe smart lighting market accounted for USD 4.04 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This market's expansion in this region can be linked to the IT industry's booming construction sector, which is benefiting from increased investments and fresh infrastructure development initiatives. Further, the Germany smart lighting market held the largest market share, and the UK smart lighting market was the fastest-growing market in the European region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Smart Lighting Market SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America smart lighting market accounts for the second-largest market share due to consumers' growing acceptance of smart lighting and the energy-efficient solution to the lighting problem in the region. Further, the Germany smart lighting market held the largest market share, and the UK smart lighting market was the fastest-growing market in the North America region.

The Asia-Pacific smart lighting market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the increasing commercial building construction for office, retail, and entertainment is creating an opportunity for fresh demand for smart lighting. Moreover, China smart lighting market held the largest market share, and the India smart lighting market was the fastest-growing market in the Asia-Pacific region.

Smart Lighting Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the smart lighting market grow even more. Market participants are also taking a range of strategic initiatives to grow their footprint globally, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the smart lighting industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global smart lighting industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. The smart lighting market's major players, such as Koninklijke Philips (Netherlands), Osram Gmbh (Germany), Lutron Electronics Co. Inc. (US), and others, are working to expand the market demand by investing in research and development activities.

Leviton Manufacturing Company, Inc. is an American manufacturer of electrical wiring equipment in North America. It produces receptacles and outlets, electrical light sockets, switches, dimmers and other lighting control systems, wire, power cables, power cords, wall and ceiling occupancy sensors, wall plates, datacom, and other electrical products. In May 2022, Leviton announced the extension of its Decora Smart product range, which now includes a comprehensive range of Wi-Fi lighting systems with an option for every room and house. The newest devices expand Leviton customers' intelligent lighting control options, including an innovative No-Neutral Transition and Dimmer for those residing in older residences, in addition to two new 2nd Gen gadgets that are consistent with Hey Google, Amazon Alexa, and HomeKit/Siri to discuss and assistance user voice - activated preferences.

Also, The Zumtobel Group is an Austrian company specializing in lighting headquartered in Dornbirn. Zumtobel engages in the production, development and sales of lighting, luminaires, lighting management and lighting components for indoor and outdoor applications. The company is a European market leader for professional lighting systems and the number two for lighting components in Europe. In March 2022, Zumtobel Group AG participated in the Data Centre World 2022 exhibition in the UK. The company presented its outdoor lighting solutions for data centers and upcoming innovations in intelligent lighting, thus contributing to the industry demand.

Key Companies in the Smart Lighting market include

• 
  

  Koninklijke Philips (Netherlands)

  
  


• 
  

  Osram Gmbh (Germany)

  
  


• 
  

  Lutron Electronics Co. Inc. (US)

  
  


• 
  

  Legrand S.A. (France)

  
  


• 
  

  Daintree Networks (US)

  
  


• 
  

  Bridgelux (US)

  
  


• 
  

  Echelon Corporation (US)

  
  


• 
  

  Streetlight vision (France)

  
  


• 
  

  Zumtobel (Austria)

  
  


• 
  

  Honeywell (US)

  
  


• 
  

  Acuity Brands Inc. (US)

  
  


• 
  

  General Electric Company (US)

  
  


• 
  

  Eaton Corporation (Ireland), among others

  
  

Smart Lighting Industry Developments

February 2024: New Delhi is the location where the Philips Smart Light Hub (SLH) was introduced, according to the announcement made by Signify, which is the global leader in lighting (Euronext: LIGHT). Customers are provided with a comprehensive shopping experience at this establishment, which was created on the basis of the notion of an experience center concept.

A comprehensive destination for all of the lighting requirements, the Philips Smart Light Hub is a space that spans over two thousand square feet and has a broad selection of over three hundred stock-keeping units (SKUs). Customers will be able to explore and experience the most recent advancements in smart lighting technology firsthand thanks to the store's architecture, which has been designed to deliver an atmosphere that is both immersive and engaging.

"The inauguration of North India's Biggest Philips Smart Light Hub marks a significant milestone for Signify and underscores our commitment to innovation and customer satisfaction," said Raja Moudgil, Business Head India - Smart Homes, and Switches Signify. "The hub is the largest Philips smart light hub in North India." "We are overjoyed to bring this one-of-a-kind shopping experience to Delhi, which will give our customers access to a wide variety of Philips decorative home lighting products in the region," said the company.

As of right now, Signify has more than ninety Philips Smart light hubs located across the northern region of India, with seventeen of those hubs located in New Delhi. Customers who are looking for superior lighting solutions will find the store's location easily accessible and convenient since it is situated in the center of Malviya Nagar, which is located in South Delhi. It is anticipated that the Philips Smart Light Hub will become the destination of choice for homeowners, interior designers, architects, and lighting lovers alike as a result of its strategic positioning.July 2022: Signify, the global pioneer in lighting, unveiled a new line of intelligent WiZ lighting solutions to provide smart lighting aficionados with better comfort and efficiency daily. WiZ smart lighting has expanded its established line with various tables and lighting fixtures, a compact light switch, and additional roof lights and lamps, allowing consumers a broad range of alternatives to make their house all interconnected with lighting systems.

Smart Lighting Market Segmentation:

Smart Lighting Component Outlook

• 
  

  Software

  
  


• 
  

  Service

  
  

Smart Lighting Product Type Outlook

• 
  

  Luminaries

  
  


• 
  

  Lighting Controls

  
  

Smart Lighting Light Source Outlook

• 
  

  LED

  
  


• 
  

  FL

  
  


• 
  

  HID

  
  

Smart Lighting Communication Technology Outlook

• 
  

  Wired

  
  


• 
  

  Wireless

  
  

Smart Lighting Regional Outlook

• 
  

  North America

  
  
  
  
  • 
    

    US

    
    
  
  
  • 
    

    Canada

    
    
  
  
  
  


• 
  

  Europe

  
  
  
  
  • 
    

    Germany

    
    
  
  
  • 
    

    France

    
    
  
  
  • 
    

    UK

    
    
  
  
  • 
    

    Italy

    
    
  
  
  • 
    

    Spain

    
    
  
  
  • 
    

    Rest of Europe

    
    
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • 
    

    China

    
    
  
  
  • 
    

    Japan

    
    
  
  
  • 
    

    India

    
    
  
  
  • 
    

    Australia

    
    
  
  
  • 
    

    South Korea

    
    
  
  
  • 
    

    Australia

    
    
  
  
  • 
    

    Rest of Asia-Pacific

    
    
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • 
    

    Middle East

    
    
  
  
  • 
    

    Africa

    
    
  
  
  • 
    

    Latin America