Smart Lighting Market Forecasts to 2030 – Global Analysis By Product Type (Lighting Controls and Lights & Luminaries), Installation Type (Retrofit Installations and New Installations), Offering, Communication Technology, End User and By Geography

Smart Lighting Market Forecasts to 2030 – Global Analysis By Product Type (Lighting Controls and Lights & Luminaries), Installation Type (Retrofit Installations and New Installations), Offering, Communication Technology, End User and By Geography

According to Stratistics MRC, the Global Smart Lighting Market is accounted for $18.07 billion in 2023 and is expected to reach $65.14 billion by 2030 growing at a CAGR of 20.1% during the forecast period. Smart lighting is a lighting system that incorporates advanced technologies, such as LED bulbs, sensors, and connectivity, to provide enhanced functionality, efficiency, and control compared to traditional lighting solutions. Smart lights are often integrated with sensors, which turn them into a point of intelligence device to gather information on activity patterns, daylight levels, occupancy, changes in temperature, or humidity. They offer numerous benefits, including energy savings, convenience, customization, and automation, making it an increasingly popular choice for homes, offices, and commercial spaces.

According to 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.

Market Dynamics:

Driver:

Rising emphasis on energy conservation and sustainability

As societies prioritise eco-friendly solutions, the market for smart lighting is driven by the emphasis on sustainability and energy conservation. With rising concerns over climate change, reducing energy consumption becomes imperative. Smart lighting addresses this by offering superior energy efficiency compared to traditional systems and leveraging technologies like LEDs and sensors for optimised usage. Businesses and consumers seek these solutions to comply with regulations, lower energy bills, and minimise carbon footprints. Moreover, alignment with environmental values drives demand, fostering innovation and growth in the smart lighting sector.

Restraint:

High initial cost

Initial investment in smart lighting systems, including specialised bulbs, sensors, and control devices, tends to be higher compared to traditional lighting solutions. This higher upfront cost can deter potential adopters, especially budget-conscious consumers and businesses. Despite long-term energy savings and benefits, the initial financial outlay may pose a barrier to entry, delaying adoption and inhibiting market growth.

Opportunity:

Commercial and industrial applications

Smart lighting solutions provide energy efficiency, cost savings, and enhanced productivity through features like LED technology, occupancy sensors, and tunable lighting. These solutions cater to the extensive lighting needs of businesses, ensuring optimal lighting conditions for different tasks and environments. Additionally, smart lighting enhances safety and security with features such as motion detection and remote access control. Furthermore, integration with IoT and building management systems further amplifies the benefits, making smart lighting a compelling choice for commercial and industrial facilities.

Threat:

Interoperability challenges

The incapability of various smart lighting devices and protocols to work together seamlessly might impede the smooth integration of lighting systems and restrict their functionality and scalability. This instability makes it more difficult to install, maintain, and utilise smart lighting systems, which upsets users and makes them reluctant to use them. Also, lack of interoperability also hampers innovation and market growth by inhibiting collaboration among manufacturers and limiting the development of cohesive ecosystems.

Covid-19 Impact

COVID-19 initially caused disruptions that affected production and supply chains, causing a temporary dip in growth. This particularly impacted hardware-focused segments like lights and luminaries. With people spending more time at home, demand for home improvement and convenience surged. This led to increased adoption of smart lights for their energy efficiency, customisation, and enhanced comfort, boosting the residential segment. Additionally, government stimulus packages and a growing focus on energy-saving solutions further fuelled market recovery.

The lights & luminaries segment is expected to be the largest during the forecast period

The lights & luminaries segment is estimated to hold the largest share. Lights & Luminaries represents the physical fixtures and bulbs that emit the light. This segment encompasses smart bulbs, LED strips, light panels, and other luminaires specifically designed to integrate with smart lighting systems. These products typically offer features like remote control, colour changing, dimming, and integration with voice assistants or automated schedules, contributing to the overall functionalities and benefits of the Smart Lighting Market.

The outdoor segment is expected to have the highest CAGR during the forecast period

The outdoor segment is anticipated to have lucrative growth during the forecast period. This segment encompasses a range of intelligent lighting solutions designed for exterior environments such as streets, parks, stadiums, and building facades. These solutions leverage technologies like LED, sensors, and wireless connectivity to provide features such as adaptive lighting, remote monitoring, and motion sensing. Outdoor smart lighting systems prioritize energy efficiency, enhanced visibility, and safety while offering opportunities for smart city initiatives, environmental monitoring, and data-driven urban planning

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period due to rising LED adoption, energy efficiency demands, and a tech-savvy population. China is leading the way in the commercial sector's adoption of smart lighting for convenience and cost savings, followed by India and South Korea. While both wired and wireless technologies are used, BLE and Zigbee have greater popularity due to their lower costs. Furthermore, affordability and government regulations fostering energy efficiency are key growth drivers, making the future bright for smart lights in the region.

Region with highest CAGR:

North America is expected to witness profitable growth over the projection period, due to growing demand for energy-efficient solutions. The US dominates, fuelled by major players and smart city initiatives. With a focus on enhancing convenience, reducing energy consumption, and enabling customization, smart lighting systems incorporating IoT connectivity and sensor technologies are gaining traction across residential, commercial, and industrial sectors. Key players in the region are actively innovating to offer integrated solutions that provide remote control, automation, and data analytics capabilities, poised for continued growth in the North American market.

Key players in the market

Some of the key players in the Smart Lighting Market include Honeywell International Inc., Signify, Acuity Brands, Inc., Legrand S.A., Lutron Electronics, Leviton Manufacturing Company, Inc., Zumtobel Group, Hubbell Incorporated, Dialight PLC, GE Current, Deal Industries, Inc., Panasonic, Adesto Technologies , Synapse Wireless, ABB, Wipro Enterprise Ltd, Savant Systems Inc., LG Electronics, Enlighted Inc and RAB Lighting.

Key Developments:

In January 2024, Leviton announced that it acquired PRISM Data Centre Solutions (DCS) Limited, a leading manufacturer of network enclosures. The acquisition adds network rack, data and server cabinets to Leviton’s system offering for enterprise and data centre customers

In August 2023, Honeywell launches new airfield ground lighting manufacturing facility in India. AGL plays a crucial role in airport operations and is subject to comprehensive safety and compliance regulations by global aviation standards and regulatory bodies.

In May 2022, Leviton Adds Five New Products to Decora Smart® Offering, Expanding Compatibility and Smart Lighting Capabilities for More Homes.

Product Types Covered:
• Lighting Controls
• Lights & Luminaries

Installation Types Covered:
• Retrofit Installations
• New Installations

Offerings Covered:
• Software
• Hardware
• Services

Communication Technologies Covered:
• Wireless
• Wired

End Users Covered:
• Outdoor
• Indoor
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances