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Smart Lighting Market

Smart Lighting Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

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Industry: Information & Communications Technology | Author Name: Mohit


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Smart Lighting Market: Overview

The market size for smart lighting was USD 10.5 billion in 2021, and it is projected to grow at a CAGR of 20.1 percent during the forecast period. Smart technologies are being used more frequently, which has improved smart lighting technology. The software-based smart lighting is simple to operate through remote control. These technical developments are leading to an increase in the global market size for smart lighting. Advances in robust Wi-Fi networking modules and enhanced LED drivers are driving up sales of smart lighting. Due to the growing demand for smart lighting to enhance building appearance, industry statistics will improve during the projected time frame.

The growing environmental concerns have a significant impact on the market for smart lighting. Energy conservation is regarded as one of the essential issues on every continent, and effective or smart lighting substantially helps with energy savings. Regarding human-centric lighting and lighting systems, Europe is the global leader. Several European lighting associations are working diligently to implement smart lighting controls in public and private spaces. For instance, smart streetlights connecting to IoT devices ensure safety by providing extensive coverage, environmental monitoring, parking and traffic management information, and municipal surveillance. Since sensors are typically integrated into smart lights, they can be used to collect information on activity patterns, sunlight intensity, occupancy, temperature changes, or humidity. For government agencies to respond appropriately and keep an eye out for suspicious conduct, they need this information to monitor the city. One of the biggest lighting organizations in Europe, Lighting Europe, has organized 19 smart lighting events, published 400 scientific articles, and produced 400.

For instance, the European Investment Bank (EIB) approved investments totaling €4.9 billion in 2020 for infrastructure projects in the fields of clean energy, sustainable transportation, high-speed communications, social housing, and health and education, with a focus on initiatives like energy in Serbia, Spain, and Romania. The development and sales of energy-efficient products, such as smart bulbs and lights, are anticipated to increase due to such investments, propelling the market for smart lighting throughout the anticipated time frame. For instance, on 16 May, Signify, the new name of Philips Lighting, was formally unveiled. The shift happens after several years of transformation as the business realigns its priorities to concentrate on developing lighting products and solutions.

Smart Lighting Market: COVID-19 Impact

The market for smart lighting suffered the most in 2020 and 2021 due to the innovative COVID-19 and its variations breakout. As a result, companies involved in the smart lighting market, including G.E. Lighting, Acuity Brands, and Silver Spring Networks, suffered large financial losses. However, the market is expanding significantly due to the OEMs' early 2022 launches of new products. OEMs strongly emphasize growing their dealer networks in underserved areas to boost their net sales and quicken the market's development.

Smart Lighting Market: Drivers

Utilizing More LED Luminaires and Lights for Outdoor Illumination Drive the Market Growth

Energy and cost savings are two main benefits of using LEDs instead of conventional lighting. In outdoor lighting applications, LEDs replace traditional light sources like fluorescent, high-intensity discharge (HID), incandescent, and high-pressure sodium lamps. Applications for outdoor lighting are typically found in highways, streets, public spaces, and stadiums. The advantages that LED lights to have over conventional lights, according to the US DOE, will account for 86% of all lighting sales by 2035.

Even if LED light sources are energy-efficient, if the right controls are not applied, approximately 30% of lighting energy consumption would be lost. Lighting control systems and LEDs have the potential to extend the lifespan of an LED light source, reduce maintenance costs, and shorten the payback period. Therefore, LED lighting products with dynamic lighting control systems would use less energy for illumination. These benefits have prompted highway and stadium construction companies to use LED lighting systems.

Demand for Street Lighting Systems is Increasing, while IOT And A.I. Technology are Becoming More Prevalent

Outdoor luminescence has undergone a revolutionary change from an on-and-off system to smart luminescence due to technological improvements and innovations in numerous nations. The adoption of IoT and A.I. technology in the lighting sector has boosted the demand for smart street lighting. Because of this, the demand for automated luminescence systems is increasing. The development of wireless technology and the explosion of IoT technology for hyper-connectivity between devices in smart infrastructure are expected to increase the demand for smart lighting globally. Lighting systems with artificial intelligence and Internet of Things (IoT) integration offers operational advantages, including auto-dimming and intelligent illumination, as needed in various applications like vertical farming, automotive interiors, and smart homes. Since it may easily be integrated into the civic infrastructure or the I.T. network of a building to convey data about the operation's state, smart lighting is sometimes referred to as connected lighting. Around 19% of the world's electricity is used by the lighting industry, which also accounts for 6% of all greenhouse gas emissions. LED smart lights, on the other hand, are incredibly effective. They connect gadgets to gather data for upcoming procedures and use nearly 70% less energy.

Smart Lighting Market: Restraints

Equipment and Accessories for Smart Lighting have High Starting Prices to Hamper Market Growth

The initial cost of smart lighting systems is high due to the cost of the equipment and the cost of integration and installation services, although they are long-term cost-saving lighting solutions that use less energy. Dimmer switches, sensors, control systems, and software are a few of the hardware parts of smart lighting systems. Because of this, installing smart lighting is more expensive than installing traditional lighting systems. This is primarily because smart lighting solutions require extremely expensive software, control systems, and LED light sources. This problem hampers the deployment of smart lighting control technologies.

Smart Lighting Market: Segment Overview

New Installation to Dominate the Market due to its Frequently used in Residential, Commercial Projects

The forecast period will see new installations holding a bigger market share among installation types. New installations mean installing new lighting systems, including sensors, switches, dimmers, gateways, and new-generation LED drivers and ballasts. In contrast to retrofit installations, new installations entirely replace an existing lighting system after totally replacing the bulb and all associated controls and fixtures with new lamps. An entirely new setup and the newest equipment are added to the system during a new installation. New installations are most frequently used in residential, commercial, and industrial construction projects. It can even be applied outside, where conventional lighting systems were previously installed.

With Increased Demand for Wireless Technology, Wireless Connectivity Segment Dominates Market

Over the projection period, the wireless connectivity category is anticipated to have the highest CAGR. Consumers who require connections within a short distance strongly choose wireless connectivity in a smart lighting environment, making it the market category with the largest growth over the forecast period. Lighting fixtures are connected with smartphone apps via wireless technology such as Wi-Fi, Bluetooth, SmartThings, Z-Wave, or ZigBee. For aesthetic reasons, in a small space, the residential industry has heavily embraced wireless technology to regulate the color and tint of luminaires. In 2021, the wired connectivity market became the largest revenue contributor, and it is anticipated that it will continue to dominate during the forecast period. For the range above 30 feet, wired connections are necessary. Except for Ethernet, which allows for wired connections up to 100 meters away, connectivity is offered by DALI, DSI, and DLVP over distances greater than 1,000 feet. The demand for wired connectivity in the smart lighting industry is driven by the growing usage of smart lighting in commercial and industrial settings.

Smart Lighting Market: Regional Landscape

Europe to Dominate market due to Growing Preference for Indoor Commercial Smart Lighting

Europe is setting the bar for developing performance and safety standards for specific indoor commercial smart lighting for parking lots, roads, and garages. In keeping with the ongoing developments in LED designs and technology, dedicated LED luminaires and LED smart replacement lamps are emerging as important growth areas in the lighting industry. Existing manufacturers diversify their product lines to enter the market, while established smart lighting manufacturers regularly update their product offers. A growing excess of dedicated smart luminaire vendors can be recognized for applications including downlighting, task lighting, landscape lighting, general ambient illumination, and outdoor general area lighting. For instance, an outstanding illustration of a modern office building in Europe is The Edge in Amsterdam. PoE lighting solutions are used in commercial buildings because they provide flexible, intelligent lighting controls and a comfortable working environment. Due to rising energy-saving awareness and the execution of numerous government initiatives. The drivers fueling the growth of the smart lighting market in Europe are high disposable income, a higher standard of life, and an increase in the deployment of smart lighting solutions in the residential, commercial, and public sectors.

Due to consumers' increasing acceptance of smart lighting and the region's adoption of energy-efficient lighting, North America is predicted to be the second-largest region with the highest CAGR. Additionally, several top businesses, like Honeywell International Inc., have unveiled smart lighting solutions using cutting-edge technology, promoting their use in the area.

Global Smart Lighting Market: Competitive Landscape

In April 2021, Leviton Manufacturing Company increased the compatibility and usefulness of its award-winning lighting control portfolio with the introduction of Decora Smart Wi-Fi 2nd Gen, which includes four new devices including a 600W Dimmer, 15A Switch, Mini Plug-in Switch, and Mini-Plug-in Dimmer. In February 2021, Honeywell and IDEMIA established a strategic partnership to develop an intelligent building ecosystem that offers a more smooth and improved experience for operators and occupants. In January 2021, the new LED Illuminated Switches from Leviton are the only illuminated switches on the market that function at their best with LEDs, CFLs, and incandescent bulbs. Additionally, these switches can be installed without a neutral wire.

Few of the players in the Smart Lighting Market include Signify (Philips Lighting) (Netherlands), Legrand S.A. (France), Acuity Brands, Inc. (U.S.), Lutron Electronics (U.S.), Leviton Manufacturing Company, Inc. (U.S.), Zumtobel Group (Austria), Honeywell International Inc. (U.S.), Hubbell Incorporated (U.S.), GE Current (U.S.), Dialight PLC (U.K.), Helvar (Finland), Ideal Industries, Inc. (Cree Lighting) (U.S.), Adesto Technologies (Echelon Corporation) (U.S.), Panasonic (Japan), LightwaveRF PLC (U.K.), RAB Lighting (U.S.), Synapse Wireless (U.S.), Syska LED (India), Wipro Enterprise Ltd (India), L.G. Electronics (South Korea), ABB (Switzerland), Savant Systems Inc. (G.E. Lighting) (U.S.), and Enlighted Inc (a Siemens company) (U.S.).

Global Smart Lighting Market is Segmented as Below:

By Offering

  • Hardware
  • Software
  • Services

By Installation Type

  • New Installations
  • Retrofit Installations

By End Use Application

  • Indoor
  • Outdoor

By Communication Technology

  • Wired
  • Wireless

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Smart Lighting Market

  • Smart Lighting Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value and Volume, 2018 - 2021
  • Volume Consumption at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Production Output Analysis (Major Producing Regions)
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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  • The segmentation/company profiles/countries depicted above may vary in the actual report.

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