Smart Lighting Market

Smart Lighting Market Size:

The global smart lighting market size reached US$ 16.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 72.6 Billion by 2032, exhibiting a growth rate (CAGR) of 17.5% during 2024-2032. The market is rapidly expanding owing to the rapid advancements of the Internet of Things (IoT) and energy-efficient technologies, rising demand for personalized and aesthetic lighting solutions, growing smart city initiatives, and the increasing awareness about the impact of light on health and well-being.

Smart Lighting Market Analysis:

• Market Growth and Size: The market is witnessing stable growth, driven by rapid advancements in technology, growing environmental consciousness, and the rising demand for personalized and aesthetic lighting solutions.
• Major Market Drivers: Key drivers influencing the market growth include the increasing demand for energy efficiency, advancements of the Internet of Things (IoT) and connectivity technologies, growing smart city initiatives, rising consumer demand for personalization and aesthetics, and a heightened focus on health and well-being.
• Key Market Trends: The key market trends involve the integration of artificial intelligence (AI) and the IoT for advanced lighting control, ongoing shift towards human-centric lighting, and the increasing use of wireless technologies. Additionally, the growing emphasis on sustainable and eco-friendly lighting solutions is bolstering the market growth.
• Geographical Trends: Europe leads the market due to early adoption of smart lighting solutions and implementation of stringent energy regulations. Other regions are also showing significant growth, fueled by rapid urbanization and the growing integration of smart lighting in smart city projects.
• Competitive Landscape: The market is characterized by the active involvement of key players who are focusing on innovation, strategic partnerships, and expanding geographic presence. Furthermore, they are engaged in mergers and acquisitions to gain new technologies and expand their customer base.
• Challenges and Opportunities: The market faces various challenges, such as high initial costs, interoperability issues among different systems, and security concerns in IoT-enabled devices. However, rapid technological advancements that reduce costs, rising demand in emerging economies, and growing awareness about the benefits of smart lighting are creating new opportunities for the market growth.
   

Smart Lighting Market Trends:

Increasing demand for energy efficiency and cost savings

The heightened demand for energy-efficient lighting solutions is fueling the market growth. Smart lighting systems are designed to reduce electricity consumption by allowing more precise control over lighting levels and schedules. Moreover, the growing application of energy-efficient technologies in lighting, such as light-emitting diode (LED) lighting, is boosting the market growth. Along with this, the widespread incorporation of sensors and connectivity, allowing smart lighting to adjust to natural light availability or occupancy in a room, is acting as a growth-inducing factor. Moreover, the implementation of various policies by governments and environmental agencies across the globe, promoting the adoption of energy-efficient lighting solutions to reduce the carbon footprint and combat climate change, is stimulating the market growth.

Rapid technological advancements

The integration of the Internet of Things (IoT) with lighting systems is a key factor fueling the market growth. IoT enables lighting systems to be connected and managed remotely through networks, providing greater flexibility and control. Moreover, rapid advancements in connectivity technologies, such as Wi-Fi, Bluetooth, and Zigbee, making it easier to integrate lighting systems into the broader smart home and smart building ecosystems, are anticipated to drive the market growth. It enables users to control lighting using smartphones, voice assistants, or integrated control systems, offering enhanced convenience and experience. Along with this, the rising adoption of connectivity technologies, enabling data collection and analytics that allow for more intelligent lighting decisions based on user behavior, ambient conditions, and energy usage patterns, is offering remunerative growth opportunities for the market. 

Rising focus on smart city initiatives and infrastructure development

The rising focus on smart city projects across the globe that incorporate smart lighting as a fundamental component of urban infrastructure development is providing an impetus to the market growth. These initiatives aim to enhance public safety, improve energy efficiency, and increase the quality of life in urban areas. Moreover, the widespread adoption of smart lighting in public spaces, adapting to varying conditions, such as traffic density or pedestrian movement, is enhancing the market growth. In line with this, its integration with other smart city systems for improved urban management is also fueling the market growth. Additionally, the increasing investment by governments and municipal authorities in lighting solutions for streetlights, public parks, and public buildings, driven by the need to reduce energy costs and enhance urban safety, is offering remunerative growth opportunities for the market. 

Heightened consumer demand for personalization and aesthetics

The increasing consumer interest in personalized home environments is a major factor catalyzing the market growth. Smart lighting systems offer extensive customization options, allowing users to adjust the brightness, color, and temperature of lights to create desired ambiance and moods. Moreover, the rising popularity of connected homes and the growing interest in interior design and home automation technologies, propelling the demand for smart lighting solutions that offer functionality and aesthetic appeal, is fueling the market growth. Additionally, the increasing integration of lighting with entertainment and lifestyle applications, such as music, movies, or games, to enhance the entertainment experience is bolstering the market growth. Furthermore, the growing shift towards minimalism and decluttering in home design, boosting the adoption of smart lighting as it offers an elegant solution that reduces the need for multiple fixtures and controls, is enhancing the market growth.

Growing awareness about the impact of light on health and well-being

The growing awareness about the impact of lighting on health and well-being, boosting the adoption of smart lighting solutions, is favoring the market growth. Smart lighting systems can mimic natural light patterns, which helps in maintaining the human circadian rhythm, thus improving sleep quality and overall well-being. Moreover, they reduce eye strain and improve visibility, which is beneficial in workplace settings. Along with this, the increasing adoption of smart lighting solutions in healthcare facilities to create environments conducive to patient recovery and staff efficiency is strengthening the market growth. Additionally, the rising popularity of smart lighting due to its potential in therapeutic applications, such as treating conditions like seasonal affective disorder (SAD) and certain sleep disorders, is catalyzing the market growth.

Smart Lighting Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on offering, communication technology, installation type, light source, and application.

Breakup by Offering:

• Hardware
  • Lights and Luminaires
  • Lighting Controls
• Software
• Services
  • Design and Engineering
  • Installation
  • Post-Installation
     

Hardware accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on offering. This includes hardware (lights and luminaires and lighting controls), software, and services (design and engineering, installation, and post-installation). According to the report, hardware represented the largest segment.

Hardware represents the largest market share, encompassing a broad range of products, including LED bulbs, luminaires, lighting controls, sensors, and switches. The rapid adoption of LED technology, which offers superior energy efficiency, longer lifespan, and better light quality compared to traditional lighting solutions, is favoring the market growth. Moreover, the rising innovations in hardware, such as adaptive lighting and integration with IoT devices, enhancing the appeal of smart lighting systems, are fostering the market growth. Besides this, the development of smart bulbs that are controlled via smartphones or voice assistants, making smart lighting more accessible to the average consumer, is contributing to the market growth.

Software includes platforms and applications that enable the control, management, and optimization of lighting systems. It is crucial for the functionality of smart lighting, as it allows for the customization of lighting settings, scheduling, and integration with other smart home systems. Moreover, software solutions offer the ability to remotely monitor and manage lighting systems, which is beneficial for large-scale and commercial applications.

Services include installation, maintenance, and consulting, which are essential for the successful deployment and ongoing operation of smart lighting systems. They are utilized for initial planning and design, where lighting layouts and control strategies are developed, and post-installation support, including system updates and troubleshooting. Moreover, services are employed for complex installations in commercial and industrial settings, where lighting needs are more extensive and require expert input. 

Breakup by Communication Technology:

• Wired Technology
• Wireless Technology
   

Wired technology holds the largest share in the industry

A detailed breakup and analysis of the market based on communication technology has also been provided in the report. This includes wired technology and wireless technology. According to the report, wired technology accounted for the largest market share.

Wired technology holds the largest market share as it includes systems that use physical connections like ethernet, digital addressable lighting interface (DALI), and power over ethernet (PoE) for communication and control. Moreover, the increasing reliability and stability in the communication of wired technology, essential in large-scale and commercial lighting installations, is supporting the market growth. Additionally, wired systems are less susceptible to interference and security issues compared to wireless setups, making them a preferred choice in environments where uninterrupted lighting operation is critical, such as healthcare facilities, industrial settings, and high-end commercial buildings.

The wireless technology includes systems that use Bluetooth, Zigbee, Wi-Fi, and Z-Wave for communication. They are easier to install and reconfigure, making them ideal for residential and small to medium-sized commercial applications. Moreover, the ability of wireless technology to control lighting through smartphones and voice assistants is strengthening the market growth. 

Breakup by Installation Type:

• New Installation
• Retrofit Installation
   

New installation represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the installation type. This includes new installation and retrofit installation. According to the report, new installation represented the largest segment.

New installation holds the largest market share, driven by the increasing construction of smart homes, commercial buildings, and urban infrastructure projects. Smart lighting systems are incorporated into the initial design and construction phase, allowing for optimal integration with the building's architecture and electrical systems. New installation facilitates the use of advanced lighting technologies, such as integrated sensors and IoT connectivity, from the outset, ensuring a more seamless and efficient lighting solution. Moreover, the rising smart city initiatives across the globe, boosting the demand for smart lighting solutions in new public infrastructure projects for energy efficiency and improved public safety, is favoring the market growth.

Retrofit installation in the smart lighting market involves upgrading existing lighting systems with smart lighting technologies. It provides an opportunity to enhance energy efficiency and introduce smart controls without the need for extensive modifications to existing electrical systems. Moreover, the availability of easy-to-install smart bulbs and wireless control systems, making retrofitting a popular choice to upgrade to smart lighting with minimal disruption, is supporting the market growth.

Breakup by Light Source:

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

LED lamps exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the light source has also been provided in the report. This includes LED lamps, fluorescent lamps, compact fluorescent lamps, high intensity discharge lamps, and others. According to the report, LED lamps accounted for the largest market share.

Light-emitting diode (LED) lamps dominate the market, attributed to their superior energy efficiency, versatility, and longer lifespan compared to other light sources. Additionally, the rising popularity of LEDs, owing to their durability, small size, and ability to produce various color temperatures and brightness levels, is stimulating the market growth. Moreover, the widespread adoption of lamps for smart lighting applications in residential ambient lighting and large-scale commercial and industrial installations is catalyzing the market growth. Besides this, they are highly compatible with digital controls and sensors, allowing for advanced features like dimming, color changing, and integration with IoT devices.

Fluorescent lamps are widely employed in commercial and industrial lighting due to their energy efficiency compared to traditional incandescent lamps. Moreover, they are utilized in spaces where high levels of uniform light are required over large areas, such as offices or warehouses. Besides this, the increasing adoption of fluorescent lamps, due to their cost-effectiveness in certain applications, is enhancing the market growth.

Compact fluorescent lamps (CFLs) are a more compact version of traditional fluorescent lamps and find application in residential and commercial settings, owing to their energy efficiency and longer lifespan. Moreover, they offer a middle ground between the older incandescent technology and more advanced LED solutions, with features like energy efficiency and cost-effectiveness. 

High-intensity discharge (HID) lamps are known for their high light output and efficiency and are commonly used in large public areas, industrial settings, and outdoor applications like street lighting. Moreover, rapid advancements in smart lighting technology, facilitating the integration of HID lamps into more controlled and energy-efficient systems, are supporting the market growth. 

Breakup by Application:

• Commercial
• Residential
• Public Infrastructure
• Others
   

Commercial dominates the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes commercial, residential, public infrastructure, and others. According to the report, commercial represented the largest segment.

The commercial sector dominates the smart lighting market, driven by the growing adoption of advanced lighting solutions in offices, retail spaces, hospitality venues, and healthcare facilities. Moreover, the increasing application of smart light solutions in commercial settings for enhancing aesthetics, improving energy efficiency, and creating adaptable environments is favoring the market growth. Besides this, the widespread integration of smart lighting in commercial buildings, as it offers significant benefits, such as reduced energy costs, improved employee productivity, and the ability to create dynamic spaces that can change according to different needs or events, is contributing to the market growth.

The residential sector utilizes smart lighting systems due to its convenience, enhanced security, and energy-saving potential. Moreover, the ability of the system to control lighting remotely via smartphones or voice-activated devices is favoring the market growth. Along with this, the increasing capability to schedule lighting changes and integrate smart lighting with other smart home systems like security and entertainment is strengthening the market growth.

The public infrastructure sector employs smart lighting for various applications, such as street lighting, public parks, and municipal buildings. They aid in enhancing public safety, reducing energy consumption, and improving the aesthetics of public spaces. Moreover, the increasing investment by municipalities in smart lighting due to its ability to be remotely monitored and controlled is fostering the market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe leads the market, accounting for the largest smart lighting market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe accounted for the largest market share.

Europe holds the largest share due to its early adoption of smart lighting technologies and strong regulatory support for energy-efficient solutions. Moreover, the implementation of various energy-saving regulations in the region, boosting the application of LED lighting and intelligent lighting systems in public and private sectors, is catalyzing the market growth. Along with this, the rising interest in smart city projects with integrated lighting solutions to enhance energy efficiency and urban living, is supporting the market growth. Besides this, the high level of consumer awareness about the benefits of smart lighting in terms of energy conservation and home automation is favoring the market growth.

The Asia Pacific region is witnessing rapid growth in the smart lighting market, fueled by the expanding urbanization and smart city initiatives in the region. Furthermore, the large population base and growing middle class in the region, driving the demand for smart home technologies, including smart lighting, is enhancing the market growth. 

In North America, the smart lighting market is driven by the heightened adoption of smart home devices and the increasing focus on energy-efficient lighting solutions. Moreover, the widespread integration of smart lighting systems into residential, commercial, and public infrastructure is favoring the market growth. Additionally, rapid technological advancements, combined with a high consumer inclination towards automation and connected living, are contributing to the market growth. 

The smart lighting market in Latin America is gradually growing, driven by rapid urbanization and the increasing adoption of smart city solutions. Additionally, the growing interest in energy-efficient lighting technologies, particularly in urban areas is stimulating the market growth. Along with this, the imposition of various government initiatives aimed at reducing energy consumption and improving public lighting infrastructure is catalyzing the market growth.

The Middle East and Africa (MEA) region is witnessing steady growth in the smart lighting market, driven by the development of smart city projects in the region and a strong focus on building sustainable and technologically advanced urban infrastructures. Moreover, the increasing investment in infrastructure development, along with rising awareness about energy conservation, is boosting the market growth.

Leading Key Players in the Smart Lighting Industry:

The major players are engaged in various strategic activities to strengthen their market positions and cater to the growing demand for innovative lighting solutions. They are investing in research and development (R&D) to introduce advanced products that are more energy-efficient, have longer lifespans, and offer enhanced connectivity and integration with other smart home devices. Furthermore, some companies are forming strategic partnerships and collaborations with technology companies, software developers, and several other industry players to increase their product offerings and expand their market reach. Additionally, they are focusing on expanding their geographic presence in emerging markets where the adoption of smart lighting is accelerating.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Philips Lighting
• Acuity Brands
• Osram
• Cree
• General Electric Company
• Eaton
• Honeywell
• Legrand
• Hubbell Lighting
• Zumtobel Group
• Hafele Group
• Lutron Electronics
• Wipro Consumer Care and Lighting
• Streetlight.Vision
• Virtual Extension
• Syska LED
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• In January 2022, Acuity Brands, Inc. announced the expansion of its collaboration with Microsoft to bring new capabilities to Acuity Brands' smart lighting, lighting controls, and building automation solutions.
• In January 2024, Honeywell and Signify announced a strategic alliance to deploy integrated, smart lighting solutions for commercial buildings.
• In January 2024, GE Lighting launched the Cync Reveal HD+ Full Color Undercabinet Fixtures and Pucks, which is the first and only full color and edge-lit smart undercabinet lights available in the North American market.

Smart Lighting Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the smart lighting market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global smart lighting market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart lighting industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.