Smart Lighting Market By Offering (Hardware, Software, Services); By Light Source (LED Lamps, Fluorescent Lamps, Compact Fluorescent Lamps, High Intensity Discharge Lamps, Others); By Installation Type (New Installation, Retrofit); By Communication Technology (Wired, Wireless); By End-Use Application (Indoor, Outdoor); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2022-2032

Smart Lighting Market Overview

Smart lighting market revenue will reach approximately USD 14.8 billion in 2022. Further, our Smart lighting market insights show that the market is expected to grow at a CAGR of approximately 12.5% during the forecast period and reach a value of approximately USD 48.4 billion by 2032. The market is expected to grow significantly due to the increasing demand for energy-efficient lighting solutions, the growing adoption of smart home technologies, and the rising awareness of the benefits of smart lighting.

Smart lighting refers to advanced lighting technologies and systems embedded with various sensors and wireless technologies. They comprehensively aid in minimizing greenhouse gas emissions, enabling remote light management, ensuring energy efficiency, convenience, high-cost savings, and security in the various application of lighting systems across several sectors. It includes automated controls and highly efficient fixtures that could be adjusted depending on conditions such as occupancy and external lighting availability, among others.  

They usually consist of a wall keypad and touchscreen panel and are also accessible through a smartphone application, making them easily controllable and desirable across various end-user industries globally.

The global smart lighting market is estimated to grow at a CAGR of around 19.1% over the span of next 5 years.

Smart Lighting Market Drivers

The growth of this market is attributed towards major relying factors including; the emergence of integrated lighting control systems on the global level, the high demand of energy efficient lighting systems that provide better illumination while consuming less power, the upcoming smart city projects in developing economies, the increasing adoption and decreasing cost of LEDs, the growing awareness about environmental benefits of energy efficiency among consumers and governments worldwide, the adoption of IoT and AI technology in the lighting industry and the increasing advancements in wireless communication technology etc.

Additionally, governments across the globe are consistently working to eradicate the application of inefficient lamps such as incandescent and halogen lamps by formulating policies and norms. Also, authorities are offering tax rebates and subsidies to promote the use of more efficient lighting technologies across the globe. This growth in stringent governmental regulations propels the demand and growth of the overall smart lighting market.

Moreover, digitization, along with the adoption of connected technologies and smart automation is revolutionizing the way lighting systems interact with their surroundings and consume energy across all end-user verticals. With that said, smart city initiatives that depend on an open connected technology infrastructure require the organization of operations for energy conservation. Smart lighting with its components creates an intelligent and systematized sensing network, which collects information related to the smart city’s environment. This helps corporations reduce energy consumption and maintenance cost of smart cities, which, in turn spurs the growth of overall smart lighting market.

Furthermore, other factors such as rise in demand for intelligent street lighting systems, growing investment in smart home & cities, propelling demand for lighting systems equipped with wireless sensors, the increasing consumption of energy as a result of industrialization and urbanization and the increasing adoption of advanced technologies such as intelligent sensing in lighting solutions further enhance the growth of the market.

However, factors such as the high installation cost and maintenance cost of smart lighting systems, lack of skilled expertise, security issues associated with the use of connected lighting and smart lighting systems and the incompatible wireless communication solutions hamper the growth of this market.

Smart Lighting Market Segmentation

By Offering

• Hardware
  • Lights & Luminaires
    • Smart bulbs
    • Fixtures
  • Lighting Controls
    • LED drivers & ballasts
    • Sensors
    • Switches
      • Manual on/off switches
      • Electronic switches
    • Dimmers
      • Wired dimmers
      • Wireless dimmers
    • Relay units
    • Gateways

• Software
  • • Local/Web Based
    • Cloud Based
• Services
  • • Pre-installation Services
    • Post-installation Services

By Light Source:

• LED Lamps
• Fluorescent Lamps
• Compact Fluorescent Lamps
• High Intensity Discharge Lamps
• Others
   

By Installation Type:

• New Installation
• Retrofit

By Communication Technology:

• Wired
  • DALI
  • PLC
  • POE
  • Wired Hybrid Protocols 
• Wireless
  • ZigBee
  • Bluetooth/BLE
  • EnOcean
  • Wi-Fi
  • 6LoWPAN  
  • Wireless Hybrid Protocols

By End-Use Application:

• Indoor
  • Residential
  • Commercial
  • Industrial
  • Others
• Outdoor
  • Highways & Roadways Lighting
  • Architectural Lighting
  • Lighting for Public Places
  • Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Smart Lighting Market Regional Insight

The European region followed by the North American region accounts for the largest share in the smart lighting market and is poised to maintain its position at the top in the upcoming years also owing to factors such as the increasing adoption of smart lighting systems as energy efficient lighting solutions, the growing number of stringent government regulations for the use of inefficient lighting technologies in the region, the free distribution of LED lamps along with tax rebates and subsidies and the increasing presence of key players in the region etc.

The Asia Pacific region is the fastest growing regional market for smart lighting technology and systems and is projected to witness tremendous growth in the next few years as well. The growth in this region can be well attributed to factors such as the increasing adoption of smart lighting framework over the private and commercial sectors, the increasing investments by the governments on public infrastructure, the presence of well-established technology giants in the major economies of the region, the growing housing  and construction industries, the growth of the smart city initiatives in countries like India and the availability of raw materials and cheap labor in the region etc. The major contributors in the region include India, China and Japan.

Smart Lighting Market Key Players

• General Electric Company
• OSRAM Licht
• Lutron Electronic
• Zumtobel Group
• Honeywell International Inc.
• Hubbell Incorporated
• Bridgelux
• Streetlight Vision
• Encelium technologies
• Royal Philips elect. N.V
• Schneider Electric SA
• Digital Lumens Inc.
• Cisco Systems Inc.
• Legrand S.A.
• Acuity Brands Inc.
• Leviton Manufacturing Company Inc.
• Cree Lighting
• Echelon Corporation
• Panasonic
• LightwaveRF PLC
• Tvilight
• Deco Lighting, Inc.
• Daintree Networks
• RAB Lighting
• Synapse Wireless
• Syska LED
• Wipro Enterprise Ltd.
• LG Electronics
• ABB
• Enlighted Inc.
• Koninklijke Philips NV
• Philips Lighting
• GE Lighting
• Echelon Corporation
• Silver Spring Networks
• Deako
• Eaton Corporation
• Sengled Optoelectronics Co. Ltd
• IKEA Systems BV​
• Other Players

RECENT DEVELOPMENTS

• In January 2021, Xicato, the leading provider of Bluetooth smart building wireless controls and highest quality spotlight sources and linear lighting, announced a partnership with Agustos Teknoloji, a top-notch lighting sales agency, to promote and sell the broad Xicato portfolio of state-of-the-art lighting products in Turkey. Xicato is focused on providing an expansive family of the highest quality lighting solutions with leading-edge smart wireless Bluetooth controls. Agustos Teknoloji is similarly focused on providing the best-in-class architectural lighting solutions that bring the latest proven technologies to the building projects in Turkey.
• In January 2021, TP-Link, a leading global provider of networking and smart home products, released the Kasa Smart WiFi Light Bulb, Multicolor (KL125), a full-featured, affordable, smart lighting solution with more than 16 million colors and tunable whites to accommodate any event or living space.