Smart Lighting Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Smart Lighting Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Smart Lighting Market size is estimated at USD 22.98 billion in 2025, and is expected to reach USD 58.25 billion by 2030, at a CAGR of 20.47% during the forecast period (2025-2030).

The smart lighting market is experiencing robust growth, driven by increasing demand for energy-efficient home solutions. This growth is supported by evolving consumer behaviors, technological advancements, proactive government policies, and the adoption of technologies like light-emitting diodes (LEDs). Smart lighting systems, designed to optimize electricity use, provide precise control over lighting levels and schedules, further fueling market expansion.

Key Highlights

• Additionally, the integration of sensors and connectivity enables smart lighting to adapt to natural light and room occupancy, bolstering market expansion. Global initiatives, including policies from governments and environmental agencies, advocate for energy-efficient lighting to mitigate carbon footprints and address climate change, further energizing the market.
• Consumer interest in personalized home environments, along with the increasing demand for energy-saving solutions at homes, is driving market growth. Smart lighting systems provide extensive customization, enabling users to adjust brightness, color, and temperature for their desired ambiance. Additionally, the surge in popularity of connected homes, coupled with a heightened interest in interior design and home automation, is boosting the demand for smart lighting solutions that blend functionality with aesthetic appeal.
• As awareness of lighting's effects on health and well-being rises, along with the increasing demand for energy-saving solutions at homes, the adoption of smart lighting solutions surges, propelling market growth.
• The lack of standardized protocols and compatibility among various brands creates confusion for consumers, making product selection increasingly difficult. This challenge is further exacerbated by uncertainties surrounding future-proofing, upgrade options, and interoperability with emerging technologies, which collectively hinder informed decision-making and adoption.

Smart Lighting Market Trends

Smart Lamps and Fixtures Product Type Segment is Expected to Hold Significant Market Share

• Technological innovations, energy efficiency goals, and a heightened focus on smart city initiatives are driving a transformative shift in the lighting industry, with smart lamps and fixtures leading the way. These solutions are globally redefining lighting system operations, offering enhanced functionality, connectivity, and sustainability benefits.
• Governments worldwide are rolling out smart city initiatives, incorporating IoT-enabled lamps and fixtures for purposes such as adaptive street lighting and real-time monitoring. Notable examples include the U.S.'s smart city deployments and India's Smart Cities Mission, both of which highlight the importance of intelligent lighting systems.
• In October 2023, Deutsche Telekom, in collaboration with edge IoT solutions firm cThings.co showcased the potential of 5G network slicing for vital urban infrastructure. This demonstration was held at the recent launch of the hubraum 5G Testing Lab in Kraków, Poland. The spotlight was on a smart lamp pole, a product of things.co and U.S.-based Valmont, tailored for smart city applications.
• Smart Lighting Solutions relies on the Internet of Things (IoT) to optimize lighting by enabling device communication. The network includes sensors, relays, gateways, and other components that transmit occupancy, time, and daylight data for efficient lighting management.
• Nobi, a global leader in innovative AgeTech solutions, has partnered with Frontier Senior Living, one of the largest senior housing operators in the United States. As part of this collaboration, Nobi's AI-powered Smart Lamps will be installed in 56 Frontier communities, covering 3,700 living units. This effort aims to improve fall detection and prevention, enhancing safety and saving lives in senior care.
• Nobi's AI-powered Smart Lamps fit easily into senior living spaces, combining a stylish design with useful features. These lamps help prevent falls, detect them instantly, and provide lighting that supports natural sleep patterns, all while ensuring strong privacy protection. Nobi's AI-powered Smart Lamps seamlessly integrate into senior living environments with their sophisticated design and advanced functionality. These lamps assist in fall prevention, provide real-time fall detection, and adjust the lighting to align with residents' natural circadian rhythms—all while maintaining strict privacy standards. Replacing standard ceiling fixtures, the lamps are equipped with four cameras.
• However, these are not traditional CCTV cameras. Instead of recording video, the lamps capture one image per second. The AI then replaces the person in the image with a stick figure to ensure residents' privacy is protected.

Asia Pacific is Expected to Hold Significant Market Share

• Smart lighting allows users to control and automate their home lighting through smartphone apps or other connected devices, removing the need for manual switches. These systems offer features such as color adjustments, scheduled operations, auto-dimming, and basic lighting functions. Over time, smart lighting proves to be both energy-efficient and cost-effective, enhancing convenience and reducing expenses.
• As of early 2024, China reported 1.09 billion internet users, with an internet penetration rate of 76.4%. This growing digital population is set to drive the smart lighting market. Rapid economic progress has significantly advanced the country's lighting industry, with widespread adoption of light-emitting diodes (LEDs) and smart LED lighting transforming urban spaces, homes, and businesses.s. Government-backed initiatives and favorable policies have fueled the expansion of China's smart lighting market, fostering innovation and increasing demand. LED smart lighting is now extensively utilized across residential, commercial, industrial, and public infrastructure sectors.
• Japan, being the 2nd most major market of smart lighting in the Asia Pacific, has witnessed a decade-long technological evolution, revolutionizing smart homes and reshaping societal and economic landscapes. This transformation, driven by the aging population's focus on healthcare, has improved living standards for seniors and their families. Smart home systems, including lighting, climate control, security, and entertainment, are seamlessly operated through voice commands, mobile apps, or centralized hubs. Additionally, Japan's advancements in robotics, such as SoftBank Robotics' Pepper, have introduced robotic companions designed for smart home integration.
• India, the most populous country and a key electricity consumer, struggles with a growing disparity between electricity demand and supply, causing frequent power outages. 'The lighting sector, which uses nearly 18% of the nation's electricity, is in focus as the government promotes energy-efficient solutions, driving growth in the smart lighting market.
• Smart lighting, defined by features like remote operation, customizable brightness, and compatibility with smart home systems, is rapidly gaining popularity in Vietnam. This growth is driven by urbanization and increased energy efficiency awareness. As part of Vietnam's smart city initiatives, 48 out of 63 provinces and cities are implementing smart street lighting projects, as highlighted during the Vietnam – Asia Smart City Conference 2023 in Hanoi. Signify N.V. (formerly Philips Lighting) actively promotes its smart lighting solutions, such as the CityTouch Connect App, aiming to integrate them into these projects.

Smart Lighting Industry Overview

Cost, efficiency, and quality are key considerations for residential and commercial sectors when selecting smart lighting products. The entry of new competitors into the global smart lighting market has intensified competition, driving prices down and benefiting consumers. These new entrants offer comparable quality at lower prices, pressuring established companies like Signify N.V. and Acuity Brands, Inc. to adjust their pricing, though their rates remain higher than those of the newcomers due to competitive dynamics.

Partnerships between smart lighting companies and residential, as well as commercial groups are strengthening the market presence of key players. For instance, Deako, Inc., a leader in modular smart lighting solutions, recently signed an exclusive three-year agreement with CBUSA, a Buildertrend company. This partnership designates Deako, Inc. as the sole smart lighting provider for CBUSA's builder network, which constructs over 13,000 homes annually. Builders, including custom home developers, now have access to Deako, Inc.'s patented smart light technology, enhancing safety, convenience, and energy efficiency in new constructions.

As governments in various countries are focusing on efficiency and smart adoption in smart cities, the demand for smart lighting products will rise as there is increasing pressure on customers to shift from conventional lighting to smart lighting solutions such as Smart LEDs, dimmers, and, smart bulbs and lights, etc.

Major companies, such as Philips Lighting (Signify) and Osram Licht AG, are leveraging their strong market presence and advanced smart lighting solutions by increasing R&D spending and expanding into nearby competitive markets. This strategic approach is anticipated to moderately increase the level of competitive rivalry within the market, fostering a more dynamic business environment.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support