Lighting Control System Market Size, Trends, Demand, Forecast 2025

Name: Lighting Control System Market Size, Trends, Demand, Forecast 2025 – 2030
Creator: Mordor Intelligence
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Lighting Control System Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 45.43 Billion
Market Size (2030)	USD 82.94 Billion
Growth Rate (2025 - 2030)	12.79% CAGR
Fastest Growing Market	Middle East and Africa
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Lighting Control System Market (2025 - 2030) — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Lighting Control System Market Analysis by Mordor Intelligence

The lighting control system market size reached USD 45.43 billion in 2025 and is forecast to advance to USD 82.94 billion by 2030, translating into a solid 12.79% CAGR. Accelerated growth reflects mandated energy-efficiency requirements, the spread of smart city programs, and wider use of IoT-enabled building automation that turns luminaires into data sources. Governments now anchor automatic shut-off, daylight-responsive dimming, and occupancy sensing in building standards, which creates non-discretionary demand. Price erosion in LED components has shortened payback periods, making comprehensive controls economically viable even for smaller facilities. Wireless mesh protocols have reduced installation complexity, opening retrofit opportunities in stock built before 2020. At the same time, escalating cybersecurity threats and lingering semiconductor supply bottlenecks present near-term operational risks for suppliers and facility owners.

Key Report Takeaways

By offering, hardware held 57.4% of the lighting control system market share in 2024; services are projected to grow at a 12.9% CAGR through 2030.
By communication protocol, wired systems led with 64.2% revenue share in 2024, while wireless Bluetooth Mesh solutions are expected to expand at a 15.3% CAGR to 2030.
By installation type, new construction represented 69.1% of the lighting control system market size in 2024, whereas retrofit applications are forecast to rise at 14.7% CAGR.
By application, indoor environments commanded 59.3% revenue share in 2024; outdoor smart street lighting is projected to grow at 13.5% CAGR.
By geography, North America accounted for 34.5% of 2024 revenue, while the Middle East and Africa region is poised for a 12.8% CAGR to 2030.

Global Lighting Control System Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Growing demand for energy-efficient lighting systems	+3.20%	Global, with concentration in North America and EU	Medium term (2-4 years)
Stringent building-energy codes and green certification mandates	+2.80%	North America and EU, expanding to APAC	Short term (≤ 2 years)
Rapid LED price erosion expanding ROI	+2.10%	Global, particularly emerging markets	Short term (≤ 2 years)
Smart-city programs using adaptive street lighting	+1.90%	Global urban centers, led by North America and Aisa-Pacific	Long term (≥ 4 years)
ESG-linked finance accelerating smart retrofits	+1.70%	North America and EU, emerging in Asia-Pacific	Medium term (2-4 years)
Li-Fi readiness unlocking new revenue streams	+1.20%	North America and EU early adoption	Long term (≥ 4 years)

Source: Mordor Intelligence

Growing Demand for Energy-Efficient Lighting Systems

Facilities worldwide pursue lower operating costs and carbon footprints by pairing LEDs with intelligent controls that trim lighting energy as much as 80% compared with legacy fluorescent installations.^{[1]LEDCity AG, “Why Smart Lighting Saves up to 80% Energy,” ledcity.io} Documented industrial projects have reached 87% lighting-energy savings in the first twelve months, underscoring quick payback even in large plants. Occupancy sensing, daylight harvesting, and scheduling allow continuous optimisation without impacting workflow, which makes capital approval easier when utility prices keep rising. Building owners value that many projects now return cash within a single fiscal year, creating momentum that sustains demand when other construction outlays are under scrutiny.

Stringent Building-Energy Codes and Green Certification Mandates

The International Energy Conservation Code 2021 requires automatic shut-off and daylight-responsive controls in commercial spaces, converting optional upgrades into mandatory scope. California Title 24 (2022) pushes demand-responsive dimming on projects above 4 kW, guaranteeing control deployment in virtually every large build. LEED rating systems award points for advanced lighting controls, aligning regulatory pressure with capital markets that now prioritise ESG-ready assets. Because compliance is non-negotiable, the lighting control system market gains a defensive growth pillar that softens macro-economic swings.

Rapid LED Price Erosion Expanding ROI

Supply-chain learning has trimmed LED luminaire manufacturing costs while maintaining quality, widening economic headroom for controls that once overstretched budgets.^{[2]US Department of Energy, “2023 Solid-State Lighting R&D Opportunities Update,” energy.gov}Lower hardware outlays shrink retrofit payback windows below two years in many warehouses, illustrated by North American plants saving 6.5 million kWh and nearly USD 900,000 annually after system upgrades. The economic case now extends to secondary schools, healthcare facilities, and mid-size retail sites that previously deferred investment, broadening the addressable base across geographies.

Smart-City Programs Using Adaptive Street Lighting

Municipal leaders treat connected street lighting as the backbone for urban IoT. Copenhagen’s deployment cut lighting energy 70% and supplied real-time data for traffic optimisation. In Chatou, France, Signify installed luminaires that double as public Wi-Fi transmitters, avoiding costly fibre runs and lowering city connectivity expenses. Adaptive dimming driven by weather, traffic, or safety analytics improves service levels while securing steady utility savings, which encourages other cities to copy proven templates.

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
High upfront installation and integration cost	-2.10%	Global, particularly emerging markets	Short term (≤ 2 years)
Interoperability issues across multi-vendor ecosystems	-1.80%	Global, acute in complex commercial installations	Medium term (2-4 years)
Cyber-security and data-privacy risks	-1.40%	Global, heightened in critical infrastructure	Medium term (2-4 years)
Shortage of qualified commissioning professionals	-1.10%	Global, severe in emerging markets	Long term (≥ 4 years)

Source: Mordor Intelligence

High Upfront Installation and Integration Cost

Comprehensive control retrofits still command two- to three-times the capital of basic LED lamp swaps, which discourages smaller businesses. Complex projects rely on skilled commissioning engineers whose limited availability inflates labour fees, especially outside mature regions.^{[3]Pacific Northwest National Laboratory, “Cost Barriers to Smart Lighting Retrofits,” pnnl.gov}Even high-profile hotel retrofits that now yield USD 100,831 annual savings required sizeable capital and a 1.62-year payback, highlighting the cash hurdle that smaller enterprises face. Financing gaps remain widest in emerging markets where energy loans are scarce.

Interoperability Issues Across Multi-Vendor Ecosystems

Although DALI-2 and the Matter framework aim for open communication, many buildings still assemble a mix of Bluetooth Mesh, Zigbee, or proprietary protocols that seldom integrate seamlessly. Work-arounds add labour hours during commissioning and raise risks of future vendor lock-in. Documented cyber incidents show attackers exploiting weak points in permission layers, taking lighting zones offline and delivering unwanted disruption. Escalating complexity can elongate timelines and inflate budgets, reducing investor confidence in large smart-building programmes.

Segment Analysis

By Offering: Hardware Dominance Meets Service Innovation

Hardware captured 57.4% revenue in 2024 as drivers, sensors, and gateways form the backbone of any intelligent upgrade. Services are poised for the fastest 12.9% CAGR because every significant deployment requires design consultation, site commissioning, and periodic optimisation. The lighting control system market size for services is projected to gain momentum as AI-based analytics demand continuous tuning. Global roll-outs such as Energy Management Collaborative’s Bluetooth Mesh project, which involved 3,685 controllers in 43 areas, illustrate service-heavy complexity and recurring revenue potential.

Professional services secure long-term contracts that convert one-time capital projects into predictable cash flows. Firmware updates, fault analytics, and energy reporting increasingly fall under managed-service agreements that enterprises outsource. As a result, hardware vendors bundle lifecycle contracts, pushing the lighting control system market toward solution ecosystems rather than component sales. This strategic shift raises entry barriers for firms that lack design and support resources.

Lighting Control System Market: Market Share by Offering — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By Communication Protocol: Wired Reliability Versus Wireless Flexibility

Wired protocols preserved 64.2% share in 2024, valued for EMI immunity and stable latency that mission-critical factories demand. The lighting control system market size tied to wired DALI-2 installations remains considerable among hospitals and data centres where network downtime is unacceptable. Engineers favour deterministic performance and inherent physical security of dedicated cabling.

Wireless deployments are closing the gap at a 15.3% CAGR. Bluetooth Mesh offers self-healing paths and smartphone-based commissioning that slash labour costs. Integration into the Matter ecosystem aligns residential and commercial devices under common management shells, which accelerates specifier acceptance. Thread 1.4 upgrades planned by 2026 will add border-router flexibility, allowing facility teams to scale networks without rewiring. Reduced disruption is compelling for heritage sites and live retail stores where shutdown time is limited.

By Installation Type: New Construction Leadership Faces Retrofit Acceleration

New builds owned 69.1% of 2024 revenue because designing controls alongside HVAC and security systems minimises integration friction. Architects embed sensors in ceilings and feed data directly into building management software at handover, ensuring performance from day one. Retrofit demand, however, is rising fastest at 14.7% CAGR. ESG-driven financing rewards owners that retrofit pre-2020 assets with intelligent lighting to demonstrate immediate carbon cuts, swelling the retrofit lighting control system market.

Wireless luminaires such as Casambi-enabled modules let installers reuse existing circuits, avoiding cable chases behind drywall. Case studies like the Sundvolden Hotel saving 1 GWh annually underline economic rewards that motivate further rollouts. Municipal incentives covering up to 40% of retrofit capital are another accelerant

Lighting Control System Market: Market Share by Installation Type — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By Application: Indoor Stability Versus Outdoor Innovation

Indoor settings retained 59.3% share during 2024 by serving offices, factories, and homes where lighting affects comfort and task efficiency. Occupancy sensors combined with daylight harvesting can trim office lighting energy 40% while raising occupant satisfaction. Distribution centres pair high-bay LEDs with zone-based dimming to improve pick accuracy and safety at lower energy cost.

Outdoor segments are expanding at a 13.5% CAGR as city councils digitise street poles for adaptive dimming and IoT hosting. London’s programme of 28,000 smart lamps stands as a proof point that lighting assets can double as air-quality and traffic sensors. Stadiums and facades adopt dynamic colour-tuning to enrich spectator and visitor experiences while halving electricity use during off-peak hours. Continuous remote monitoring keeps maintenance predictable and reduces truck rolls.

Geography Analysis

North America commanded 34.5% revenue in 2024 due to strict energy codes and early smart-city adoption. The lighting control system market benefits from federal efficiency programmes and tax incentives that improve investment payback. Utility rebate schemes covering sensor packages further sweeten economics for commercial retrofits. Canadian provinces mirror United States standards, while Mexico’s industrial corridors integrate lighting controls into maquiladora expansions to minimise operational spend.

Europe maintains momentum with firm decarbonisation targets set for 2030. Germany, France, and the United Kingdom embed intelligent lighting in public-sector procurement rules. EU taxonomy disclosures oblige property owners to prove energy intensity reductions, which steers capital toward sensor-rich upgrades. Standardisation efforts through DALI-2 and the emerging ETSI EN 303 645 security framework make multi-vendor deployments less risky, reinforcing uptake across the single market.

The Middle East and Africa post the fastest 12.8% CAGR through 2030. Mega-cities under construction in Saudi Arabia and the UAE incorporate control-ready luminaires into master plans from the start. Government budgets earmarked for smart infrastructure keep project pipelines robust even when oil revenues fluctuate. In sub-Saharan Africa, grid instability motivates adoption of sensors that dim loads during voltage dips, protecting equipment and extending luminaire life. Financing backed by development banks helps bridge initial cost hurdles, ensuring sustained volume growth.

Lighting Control System Market CAGR (%), Growth Rate by Region — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

The lighting control system market hosts a moderately fragmented field where the top tier blends hardware, software, and services. Signify, Acuity Brands, and Lutron keep leadership by owning driver technology, fixture brands, and cloud platforms. Vertical integration means faster product cycles and end-to-end warranties that large clients prefer. Acuity’s pending USD 1.215 billion QSC acquisition adds audio-visual control, rounding out a unified space management stack.

Challenger firms differentiate through software-defined features and wireless expertise. Enlighted, recently allied with Siemens and Zumtobel, packages multi-sensor nodes that feed building analytics and can be pre-installed at the factory, shrinking site labour. Patent filings around Li-Fi, context-aware colour tuning, and AI optimisation highlight a pivot toward data-centric value. Global semiconductor shortages have encouraged some players to form direct foundry relationships to secure driver IC supply.

Lighting Control System Industry Leaders

Signify (Philips Lighting)
Acuity Brands
Legrand
Lutron Electronics
ams OSRAM
*Disclaimer: Major Players sorted in no particular order

General Electric Company, Philips Lighting NV, Eaton Corporation PL, Honeywell International Inc., Acuity Brands Inc., Cree Inc., Lutron Electronics Co. Inc., Leviton Manufacturing Company Inc. — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

January 2025: Acuity Brands reported USD 951.6 million Q1 FY2025 net sales, with Intelligent Spaces Group up 14.5% and QSC acquisition on track.
January 2025: Eaton and Lunar Energy linked AbleEdge smart breakers with home storage to lengthen battery life.
December 2024: Siemens agreed to acquire Altair Engineering for USD 10.6 billion, adding Toggled LED controls to its portfolio.
November 2024: Eaton partnered with Treehouse to bundle AbleEdge and Green Motion EV chargers for end-to-end home electrification.

Table of Contents for Lighting Control System Industry Report

1. INTRODUCTION

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Growing demand for energy-efficient lighting systems
- 4.2.2 Stringent building-energy codes and green certification mandates
- 4.2.3 Rapid LED price erosion expanding ROI
- 4.2.4 Smart-city programs using adaptive street lighting
- 4.2.5 ESG-linked finance accelerating smart retrofits
- 4.2.6 Li-Fi readiness unlocking new revenue streams
4.3 Market Restraints
- 4.3.1 High upfront installation and integration cost
- 4.3.2 Interoperability issues across multi-vendor ecosystems
- 4.3.3 Cyber-security and data-privacy risks
- 4.3.4 Shortage of qualified commissioning professionals
4.4 Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook (IoT-edge controls, AI, Li-Fi)
4.7 Porter's Five Forces
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitutes
- 4.7.5 Intensity of Competitive Rivalry
4.8 Assesment of Macroeconomic Factors on the market

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Offering
- 5.1.1 Hardware
- 5.1.1.1 LED Drivers
- 5.1.1.2 Sensors
- 5.1.1.3 Switches and Dimmers
- 5.1.1.4 Relay Units
- 5.1.1.5 Gateways and Control Panels
- 5.1.2 Software
- 5.1.3 Services
5.2 By Communication Protocol
- 5.2.1 Wired
- 5.2.2 Wireless
5.3 By Installation Type
- 5.3.1 New Construction
- 5.3.2 Retrofit
5.4 By Application
- 5.4.1 Indoor
- 5.4.1.1 Commercial Offices
- 5.4.1.2 Industrial and Warehousing
- 5.4.1.3 Residential
- 5.4.1.4 Hospitality and Leisure
- 5.4.1.5 Others
- 5.4.2 Outdoor
- 5.4.2.1 Roadway and Street
- 5.4.2.2 Architectural and Facade
- 5.4.2.3 Sports and Stadium
- 5.4.2.4 Others
5.5 Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 Germany
- 5.5.3.2 United Kingdom
- 5.5.3.3 France
- 5.5.3.4 Italy
- 5.5.3.5 Spain
- 5.5.3.6 Rest of Europe
- 5.5.4 Asia-Pacific
- 5.5.4.1 China
- 5.5.4.2 Japan
- 5.5.4.3 India
- 5.5.4.4 South Korea
- 5.5.4.5 Southeast Asia
- 5.5.4.6 Rest of Asia-Pacific
- 5.5.5 Middle East and Africa
- 5.5.5.1 Middle East
- 5.5.5.1.1 Saudi Arabia
- 5.5.5.1.2 United Arab Emirates
- 5.5.5.1.3 Turkey
- 5.5.5.1.4 Rest of Middle East
- 5.5.5.2 Africa
- 5.5.5.2.1 South Africa
- 5.5.5.2.2 Nigeria
- 5.5.5.2.3 Egypt
- 5.5.5.2.4 Rest of Africa
- 5.5.5.2.5 Egypt

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Market Share Analysis
6.3 Strategic Moves
6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)}
- 6.4.1 Signify (Philips Lighting)
- 6.4.2 Acuity Brands
- 6.4.3 Legrand
- 6.4.4 Lutron Electronics
- 6.4.5 ams OSRAM
- 6.4.6 Schneider Electric
- 6.4.7 Eaton (Cooper Lighting)
- 6.4.8 Hubbell Lighting
- 6.4.9 Honeywell
- 6.4.10 Cisco Systems
- 6.4.11 Siemens (Enlighted)
- 6.4.12 Delta Electronics
- 6.4.13 Panasonic
- 6.4.14 Zumtobel Group
- 6.4.15 Helvar
- 6.4.16 Synapse Wireless
- 6.4.17 WAGO
- 6.4.18 Cree Lighting
- 6.4.19 Leviton Manufacturing
- 6.4.20 Digital Lumens
- 6.4.21 ABB

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-space and Unmet-need Assessment

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Global Lighting Control System Market Report Scope

Smart lighting control systems improve energy efficiency and performance. These systems have countless applications across diverse verticals, like aircraft, automobiles, home appliances, etc. Smart lighting controls have been increasingly adopted in an effort to reduce energy consumption.

By Offering	Hardware	LED Drivers
		Sensors
		Switches and Dimmers
		Relay Units
		Gateways and Control Panels
	Software
	Services
By Communication Protocol	Wired
	Wireless
By Installation Type	New Construction
	Retrofit

By Application	Indoor	Commercial Offices
		Industrial and Warehousing
		Residential
		Hospitality and Leisure
		Others

	Outdoor	Roadway and Street
		Architectural and Facade
		Sports and Stadium
		Others

Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Rest of South America

	Europe	Germany
		United Kingdom
		France
		Italy
		Spain
		Rest of Europe

	Asia-Pacific	China
		Japan
		India
		South Korea
		Southeast Asia
		Rest of Asia-Pacific

	Middle East and Africa	Middle East	Saudi Arabia
			United Arab Emirates
			Turkey
			Rest of Middle East

		Africa	South Africa
			Nigeria
			Egypt
			Rest of Africa
			Egypt

By Offering

Hardware	LED Drivers
	Sensors
	Switches and Dimmers
	Relay Units
	Gateways and Control Panels
Software
Services

By Communication Protocol

Wired

Wireless

By Installation Type

New Construction

Retrofit

By Application

Indoor	Commercial Offices
	Industrial and Warehousing
	Residential
	Hospitality and Leisure
	Others
Outdoor	Roadway and Street
	Architectural and Facade
	Sports and Stadium
	Others

Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Rest of South America
Europe	Germany
	United Kingdom
	France
	Italy
	Spain
	Rest of Europe
Asia-Pacific	China
	Japan
	India
	South Korea
	Southeast Asia
	Rest of Asia-Pacific

Middle East and Africa	Middle East	Saudi Arabia
		United Arab Emirates
		Turkey
		Rest of Middle East

	Africa	South Africa
		Nigeria
		Egypt
		Rest of Africa
		Egypt

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Key Questions Answered in the Report

What is the current size of the lighting control system market?

The lighting control system market size reached USD 45.43 billion in 2025 and is projected to climb to USD 82.94 billion by 2030.

Which segment is expanding fastest within the lighting control system market?

Services are growing at a 12.9% CAGR due to rising demand for design, commissioning, and analytics support across large deployments.

Why are wireless protocols gaining traction in lighting controls?

Bluetooth Mesh and similar standards reduce wiring labour, enable easier commissioning, and now offer network resilience that rivals wired systems, fuelling a 15.3% CAGR for wireless solutions.

How do energy regulations influence market growth?

Codes such as IECC 2021 and California Title 24 make occupancy sensing and daylight dimming mandatory, driving steady product adoption regardless of broader economic cycles.

Page last updated on: July 7, 2025