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    US Smart Lighting Market

    ID: MRFR/SEM/12762-HCR
    100 Pages
    Garvit Vyas
    October 2025

    United States Smart Lighting Industry Research Report to 2032

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    US Smart Lighting Market Infographic
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    US Smart Lighting Market Summary

    As per MRFR analysis, the US smart lighting market size was estimated at 4.8 USD Million in 2024. The US smart lighting market is projected to grow from 5.84 USD Million in 2025 to 41.5 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 21.66% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US smart lighting market is experiencing robust growth driven by technological advancements and increasing consumer demand.

    • The market is witnessing increased adoption of IoT technology, enhancing connectivity and control.
    • Energy efficiency remains a focal point, with consumers seeking solutions that reduce energy consumption.
    • Integration with smart home systems is becoming prevalent, allowing for seamless user experiences.
    • Major market drivers include the growing demand for energy management solutions and advancements in LED technology.

    Market Size & Forecast

    2024 Market Size 4.8 (USD Million)
    2035 Market Size 41.5 (USD Million)

    Major Players

    Signify (NL), Osram (DE), Acuity Brands (US), Cree (US), GE Lighting (US), Philips (NL), Honeywell (US), Lutron Electronics (US), Legrand (FR)

    US Smart Lighting Market Trends

    The smart lighting market is currently experiencing a transformative phase, driven by advancements in technology and increasing consumer awareness regarding energy efficiency. The integration of Internet of Things (IoT) capabilities into lighting systems has enabled users to control their lighting remotely, enhancing convenience and personalization. This shift towards smart solutions is further supported by government initiatives promoting energy conservation and sustainability. As a result, consumers are increasingly opting for smart lighting solutions that not only reduce energy consumption but also offer enhanced functionality, such as automated scheduling and adaptive brightness. Moreover, the growing trend of smart homes is significantly influencing the smart lighting market. Homeowners are seeking integrated systems that provide seamless connectivity and control over various devices, including lighting. This trend is likely to continue as more individuals recognize the benefits of smart technology in improving their living environments. Additionally, the rise of energy-efficient lighting options, such as LED technology, is contributing to the market's expansion. These developments suggest a promising future for the smart lighting market, characterized by innovation and a commitment to sustainability.

    Increased Adoption of IoT Technology

    The integration of IoT technology into lighting systems is becoming more prevalent. This trend allows users to control their lighting remotely through smartphones or voice-activated devices, enhancing user experience and convenience. As consumers become more familiar with smart home technologies, the demand for IoT-enabled lighting solutions is expected to rise.

    Focus on Energy Efficiency

    There is a growing emphasis on energy efficiency within the smart lighting market. Consumers are increasingly aware of the environmental impact of their choices and are opting for solutions that reduce energy consumption. This trend is supported by government incentives aimed at promoting energy-efficient technologies, further driving market growth.

    Integration with Smart Home Systems

    The trend towards smart homes is significantly influencing the smart lighting market. Homeowners are seeking lighting solutions that can seamlessly integrate with other smart devices, such as security systems and thermostats. This interconnectedness enhances the overall functionality of home automation systems, making smart lighting an essential component of modern living.

    US Smart Lighting Market Drivers

    Advancements in LED Technology

    The rapid advancements in LED technology are significantly influencing the smart lighting market. LEDs are becoming increasingly efficient, with lifespans extending beyond 25,000 hours, which reduces the frequency of replacements and maintenance costs. The smart lighting market is leveraging these advancements to create products that not only consume less energy but also offer enhanced features such as color tuning and dimming capabilities. The integration of smart controls with LED technology allows users to customize their lighting experience, further driving adoption. As the cost of LED components continues to decline, the overall affordability of smart lighting solutions is expected to improve, potentially increasing market penetration across various sectors.

    Regulatory Support for Energy Efficiency

    Regulatory frameworks promoting energy efficiency are playing a crucial role in shaping the smart lighting market. In the US, various initiatives and incentives are being introduced to encourage the adoption of energy-efficient technologies. For instance, the Department of Energy has set ambitious targets for reducing energy consumption in buildings, which includes the implementation of smart lighting systems. This regulatory support not only fosters innovation within the smart lighting market but also provides financial incentives for consumers and businesses to invest in these technologies. As compliance with energy efficiency standards becomes increasingly mandatory, the demand for smart lighting solutions is likely to rise, further propelling market growth.

    Integration with Renewable Energy Sources

    The integration of smart lighting systems with renewable energy sources is emerging as a key driver for the smart lighting market. As the US shifts towards sustainable energy solutions, the ability to synchronize lighting systems with solar panels and other renewable sources is becoming increasingly attractive. This integration allows for optimized energy usage, reducing reliance on traditional power grids. The smart lighting market is exploring innovative solutions that enable seamless connectivity with renewable energy systems, which could lead to substantial cost savings for consumers. As the push for sustainability continues, the demand for smart lighting solutions that support renewable energy integration is likely to grow, fostering further advancements in the market.

    Growing Demand for Energy Management Solutions

    The increasing focus on energy management solutions is a pivotal driver for the smart lighting market. As businesses and consumers alike seek to reduce energy consumption, smart lighting systems offer an effective means to achieve this goal. According to recent data, the energy savings from smart lighting can reach up to 50% compared to traditional lighting systems. This trend is particularly pronounced in commercial sectors, where operational costs are closely monitored. The smart lighting market is responding to this demand by developing advanced technologies that allow for real-time monitoring and control of lighting systems. This not only enhances energy efficiency but also contributes to sustainability goals, making smart lighting an attractive option for environmentally conscious consumers and businesses.

    Rising Consumer Awareness of Smart Technologies

    Consumer awareness regarding the benefits of smart technologies is steadily increasing, which is positively impacting the smart lighting market. As individuals become more informed about the advantages of smart lighting, such as convenience, energy savings, and enhanced security, the market is witnessing a surge in demand. The smart lighting market is capitalizing on this trend by launching educational campaigns and user-friendly products that appeal to tech-savvy consumers. This heightened awareness is not only driving sales but also encouraging manufacturers to innovate and improve their offerings. As more households and businesses recognize the value of smart lighting, the market is expected to expand significantly.

    Market Segment Insights

    By Installation Type: New Installations (Largest) vs. Retrofit Installations (Fastest-Growing)

    In the US smart lighting market, the installation landscape is predominantly characterized by new installations, which account for a significant share of overall market activity. This segment benefits from the increasing number of smart building projects, as developers are more inclined to incorporate advanced lighting systems from the onset. Conversely, retrofit installations, while smaller in market share, are rapidly gaining traction as existing building owners seek to upgrade their lighting for efficiency and modern functionality, highlighting a shift in utility-driven consumer behavior. The growth dynamics in this segment are driven by several factors, including technological advancements, the push for energy efficiency, and attractive government incentives supporting smart upgrades. New installations continue to thrive as more homes and commercial spaces are built with smart configurations, while retrofit installations show the fastest growth as property owners capitalize on the long-term savings and sustainability benefits of smart lighting systems. Additionally, awareness campaigns about energy savings further fuel the increase in retrofit projects.

    New Installations (Dominant) vs. Retrofit Installations (Emerging)

    New installations dominate the US smart lighting market by offering a broad array of cutting-edge features tailored to modern demands. This segment sees widespread adoption in new constructions where integrated smart systems can be established seamlessly. Enhanced user experience, energy savings, and improved aesthetics are key characteristics driving demand. On the other hand, retrofit installations represent an emerging trend, appealing to those looking to upgrade existing infrastructures without the need for complete overhauls. This segment is rapidly evolving, showcasing the adaptability of smart lighting technologies to fit older systems. As energy costs rise and sustainability becomes a priority, retrofit installations are expected to grow, enabling older buildings to transition to smarter solutions without compromising on functionality.

    By Offering: Hardware (Largest) vs. Software (Fastest-Growing)

    In the US smart lighting market, the distribution of market share is prominently led by the hardware segment, which dominates due to widespread adoption of energy-efficient lighting solutions. Hardware components, including LED bulbs and fixtures, are essential for the functionality of smart lighting systems, providing a strong foundation for market growth. Meanwhile, software solutions also capture a notable share, driven by the increasing demand for smart home integration, but they trail behind hardware in overall market presence. Recent trends indicate that software solutions in the US smart lighting market are rapidly emerging as the fastest-growing segment. This growth is largely fueled by advancements in IoT technology and the rising consumer preference for remote control and automation features. Furthermore, the integration of AI in lighting systems enhances user experience, thereby propelling the software segment forward, while the hardware segment continues to enjoy steady demand due to its established market position.

    Hardware (Dominant) vs. Software (Emerging)

    The hardware segment of the US smart lighting market remains dominant, characterized by a broad range of products such as LED bulbs, smart fixtures, and sensors that contribute significantly to the overall functionality of smart lighting systems. These products are widely adopted by both residential and commercial sectors, providing a solid base for the continued growth of the market. Conversely, the software segment, although currently considered emerging, is rapidly gaining traction, supported by innovations in user interface design, energy management applications, and cloud-based solutions that enhance interconnectivity and user interaction. Together, these segments illustrate the evolving landscape of smart lighting, where hardware serves as the backbone while software represents the future of intelligent lighting solutions.

    By End Use Application: Indoor (Largest) vs. Outdoor (Fastest-Growing)

    The US smart lighting market is currently dominated by the indoor segment, which accounts for a significant portion of the overall market share. With the increasing adoption of smart technologies in homes and commercial spaces, indoor smart lighting solutions have emerged as a key preference among consumers. This shift is driven by the need for energy efficiency, enhanced control over lighting conditions, and a desire for integrated home automation solutions. Conversely, the outdoor segment is recognized as the fastest-growing area within the market. Factors such as the rising emphasis on smart city initiatives, enhanced public safety, and the transition towards energy-efficient street lighting are fueling this growth. As municipalities and urban planners increasingly adopt smart lighting solutions for outdoor applications, the demand for advanced outdoor lighting technologies continues to surge, creating vast opportunities in this segment.

    Indoor (Dominant) vs. Outdoor (Emerging)

    Indoor smart lighting represents a dominant force in the US smart lighting market, characterized by its ability to enhance user experience through customizable lighting options and smart control systems. This segment includes solutions such as smart bulbs, connected fixtures, and integrated lighting systems that cater to both residential and commercial applications. In contrast, the outdoor segment is emerging rapidly, driven by factors like urbanization and the need for smart infrastructure. Outdoor smart lighting technologies include smart streetlights, pathway lights, and security lighting solutions, offering benefits such as reduced energy consumption and improved safety. The juxtaposition of these segments highlights a market in transition, balancing established indoor preferences with a growing reliance on outdoor smart lighting innovations.

    By Communication Technology: Wireless (Largest) vs. Wired (Fastest-Growing)

    In the US smart lighting market, wireless communication technology dominates the segment with a substantial market share due to its versatility and ease of installation. As smart home devices proliferate, consumers increasingly prefer wireless systems, which offer flexibility and scalability. Conversely, wired communication technology holds a smaller share but is gaining interest among industrial and commercial users seeking reliable, uninterrupted connectivity. The growth trends within this segment indicate a robust shift towards wireless solutions, driven by advancements in IoT and increasing consumer demand for smart home automation. However, wired technology is emerging as a strong contender, particularly in environments where signal interference is a concern. The market is witnessing innovative combinations of both technologies, enhancing user experience and operational efficiency.

    Communication Technology: Wireless (Dominant) vs. Wired (Emerging)

    Wireless communication technology represents the dominant force in the US smart lighting market, favored for its flexibility, cost-effectiveness, and ease of use. It allows for seamless integration with various smart devices, providing users with control and convenience through mobile apps and voice commands. The emerging wired communication technology, while less prevalent, is gaining traction due to its reliability and security, especially in industrial applications where performance is critical. With ongoing developments in both domains, a hybrid approach is likely to become more common, catering to diverse consumer preferences and enhancing overall system efficiency.

    Get more detailed insights about US Smart Lighting Market

    Key Players and Competitive Insights

    The smart lighting market is currently characterized by a dynamic competitive landscape, driven by technological advancements and increasing consumer demand for energy-efficient solutions. Key players such as Signify (NL), Acuity Brands (US), and Cree (US) are strategically positioning themselves through innovation and partnerships. Signify (NL) has focused on expanding its portfolio of connected lighting solutions, while Acuity Brands (US) emphasizes smart building technologies to enhance operational efficiency. Cree (US) is leveraging its expertise in LED technology to develop high-performance lighting systems, collectively shaping a competitive environment that prioritizes sustainability and digital transformation.

    In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance responsiveness to market demands. The competitive structure of the market appears moderately fragmented, with several players vying for market share. However, the collective influence of major companies is significant, as they drive innovation and set industry standards, thereby shaping consumer expectations and preferences.

    In October 2025, Signify (NL) announced a partnership with a leading smart home technology provider to integrate its lighting solutions with home automation systems. This strategic move is likely to enhance user experience by providing seamless control over lighting, thereby positioning Signify (NL) as a frontrunner in the smart home segment. The collaboration underscores the importance of interoperability in smart lighting solutions, which is increasingly becoming a key differentiator in the market.

    In September 2025, Acuity Brands (US) launched a new line of energy-efficient smart lighting products designed specifically for commercial applications. This initiative not only reflects Acuity's commitment to sustainability but also aims to capture a larger share of the growing demand for energy-efficient solutions in the commercial sector. The introduction of these products is expected to strengthen Acuity's market position and appeal to environmentally conscious consumers.

    In August 2025, Cree (US) unveiled its latest LED technology that promises to reduce energy consumption by up to 30% compared to traditional lighting solutions. This innovation is significant as it aligns with the increasing regulatory pressures for energy efficiency and sustainability. By enhancing its product offerings, Cree (US) is likely to attract a broader customer base, particularly among businesses seeking to reduce operational costs and meet sustainability goals.

    As of November 2025, current competitive trends in the smart lighting market are heavily influenced by digitalization, sustainability, and the integration of artificial intelligence (AI). Strategic alliances are becoming increasingly prevalent, as companies recognize the need for collaboration to enhance product offerings and market reach. Looking ahead, competitive differentiation is expected to evolve, with a shift from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition suggests that companies that prioritize R&D and strategic partnerships will likely emerge as leaders in the smart lighting market.

    Key Companies in the US Smart Lighting Market market include

    Future Outlook

    US Smart Lighting Market Future Outlook

    The smart lighting market is projected to grow at a 21.66% CAGR from 2024 to 2035, driven by advancements in IoT, energy efficiency, and consumer demand for automation.

    New opportunities lie in:

    • Development of integrated smart home ecosystems for seamless user experiences.
    • Expansion into commercial sectors with tailored lighting solutions for energy savings.
    • Partnerships with tech firms to enhance AI-driven lighting control systems.

    By 2035, the smart lighting market is expected to achieve substantial growth, driven by innovation and strategic partnerships.

    Market Segmentation

    US Smart Lighting Market Offering Outlook

    • Hardware
    • Software
    • Services

    US Smart Lighting Market Installation Type Outlook

    • New Installations
    • Retrofit Installations

    US Smart Lighting Market End Use Application Outlook

    • Indoor
    • Outdoor

    US Smart Lighting Market Communication Technology Outlook

    • Wired
    • Wireless

    Report Scope

    MARKET SIZE 2024 4.8(USD Million)
    MARKET SIZE 2025 5.84(USD Million)
    MARKET SIZE 2035 41.5(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 21.66% (2024 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Million
    Key Companies Profiled Signify (NL), Osram (DE), Acuity Brands (US), Cree (US), GE Lighting (US), Philips (NL), Honeywell (US), Lutron Electronics (US), Legrand (FR)
    Segments Covered Installation Type, Offering, End Use Application, Communication Technology
    Key Market Opportunities Integration of energy-efficient technologies and smart home systems drives growth in the smart lighting market.
    Key Market Dynamics Growing consumer demand for energy-efficient solutions drives innovation and competition in the smart lighting market.
    Countries Covered US

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    FAQs

    What is the expected market size of the US Smart Lighting Market in 2024?

    The US Smart Lighting Market is expected to be valued at 4.5 billion USD in 2024.

    How much is the US Smart Lighting Market projected to grow by 2035?

    By 2035, the market is projected to grow to approximately 10.5 billion USD.

    What is the expected CAGR for the US Smart Lighting Market from 2025 to 2035?

    The expected compounded annual growth rate for the US Smart Lighting Market from 2025 to 2035 is 8.007%.

    Which installation type has a higher market value in 2024: new installations or retrofit installations?

    In 2024, retrofit installations have a higher market value at 2.4 billion USD, compared to new installations at 2.1 billion USD.

    What is the market value for new installations in the US Smart Lighting Market by 2035?

    The market value for new installations is expected to reach 5.0 billion USD by 2035.

    What are the key players in the US Smart Lighting Market?

    Major players in the market include TE Connectivity, Signify, Osram, Philips, Leviton, Honeywell, Lutron Electronics, and General Electric.

    What is the market value for retrofit installations expected to be in 2035?

    By 2035, the market value for retrofit installations is anticipated to reach 5.5 billion USD.

    Which segment is anticipated to drive growth in the US Smart Lighting Market?

    Both new installations and retrofit installations are anticipated to drive significant growth in the market.

    Are there any emerging trends in the US Smart Lighting Market?

    Emerging trends include increasing energy efficiency, smart home integration, and enhanced connectivity technologies.

    What impact does the current market scenario have on the growth of smart lighting?

    The current market scenario favors growth due to advancements in technology and a rising demand for energy-efficient solutions.

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