Smart Lighting Market Size
|Study Period||2018 - 2028|
|Market Size (2023)||USD 19.42 Billion|
|Market Size (2028)||USD 49.37 Billion|
|CAGR (2023 - 2028)||20.52 %|
|Fastest Growing Market||Asia-Pacific|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and its growth?
Smart Lighting Market Analysis
The Smart Lighting Market size is estimated at USD 19.42 billion in 2023, and is expected to reach USD 49.37 billion by 2028, growing at a CAGR of 20.52% during the forecast period (2023-2028).
Due to its societal benefits, consumers might adopt energy-efficient LED technology more rapidly, so replacing the inferior compact fluorescent or halogen lighting technologies could be accelerated.
- The popularity and demand for lights have grown in both commercial and residential spaces due to their ability to connect with IoT devices and generate a variety of ambient lighting using only smartphones or tablets. Smart lights can be dimmed with different color tones depending on the situation, schedule their on/off times, track their energy consumption, and connect to other devices via Wi-Fi, Bluetooth, SmartThings, Z-Wave, or ZigBee.
- Office spaces are also emerging as one of the common smart lighting applications. In today's business world, owners and managers are placing more emphasis on the overall well-being of their employees. By switching to smart lighting, offices can provide bright light for their employees. This helps them see better and experience less eye fatigue. Additionally, the color of the light can help brighten moods and provide comfort.
- Furthermore, favorable government regulations regarding conventional lighting and energy consumption across the United States, the European Union, China, and India are anticipated to favor the market demand for connected LED lighting.
- However, the slow growth of the smart-lighting market may result in entrepreneurial challenges. The consequences of a market entry failure for producers of smart-lighting products comprise significant sunk investments and reputational damage. To address these concerns, manufacturers are finding the need to consider consumer views of smart-home technologies in general and smart-lighting products in particular.
- The emergence of COVID-19 caused a halt in production and disruption throughout the supply chain, impairing industrial output growth and reducing the capacity for light manufacturing across important manufacturing hubs. However, as people spent more time at home, they became more inclined to upgrade the interiors, which positively impacted the market. Additionally, it is anticipated that the growing use of LEDs in homes and the penetration of smart home technology will further fuel market growth in the coming years.
Smart Lighting Market Trends
Government Regulations Mandating the Use of LEDs to Drive the Market
Government regulations mandating the use of LEDs are boosting the market demand in several regions. For instance, in the United States, as the law mandates energy savings to be 45 lumens per watt for the most common types of light bulbs, a typical 60-watt incandescent light bulb puts out about 15 lumens per watt, a halogen incandescent bulb offers about 20 lumens per watt, CFL bulb offers 65 lumens per watt, and LEDs put out 80-100 lumens per watt with a fraction of energy. In addition, the price drop in LEDs has led to a further increase in smart lighting adoption.
Through performance standards, labeling, and incentive programs, many governments worldwide are moving quickly to phase out inefficient light sources, as in Europe, where the switch to LED technology began more than 10 years ago. Recent updates to the Ecodesign Directive and the Restriction of Hazardous Substances Directive by the European Union will effectively phase out all fluorescent lighting by 2023.
A regionally harmonized lighting standard has been adopted by 16 African nations that make up the Southern African Development Community (SADC). This standard’s market will transition entirely to LED in the coming years.
The East African Community (EAC) is also phasing out fluorescent lighting in six member nations. Other jurisdictions, including Southeast Asian nations, are implementing similar regulations. This is expected to drive the growth of the market studied.
To understand key trends, Download Sample Report
Asia-Pacific to Witness Fastest Growth
- The increasing adoption of the Internet of Things (IoT) is expected to brighten the development of the lighting market in China, thereby increasing the growth of connected smart lighting systems in the country. GSMA estimates that China may account for around 4.1 billion IoT connections, which is almost one-third of the worldwide IoT connections, by 2025. Smart lighting systems are expected to be the biggest beneficiary of the trend during the forecast period.
- The Japanese market has witnessed the launch of a series of smart home products tailored for them from global tech giants, such as Google and Amazon. Amid the gloom surrounding the reduced penetration rate of traditional home appliances Y-o-Y in the country, the smart home industry promises unlimited potential in the future, owing to the rising integration of AI-empowered products and services in homes.
- The market for smart lighting in the country is also driven by the increased adoption of smart devices, including smartphones, due to their ability to connect conveniently to IoT devices. Japan Smartphone Security Association (JSSEC) estimates that the number of smartphone users in the country may reach 68.8 million by 2022.
- The demand for smart lighting in India is expected to grow owing to the increasing demand for features such as voice recognition or remote operation and the exceptional experience of smart home automation. Rising adoption of LED lights in various sectors such as residential, healthcare, and commercial spaces like hotels and workspaces, as well as rising disposable income, are other factors that may drive the growth of these devices in the future.
- Under the Asia-Pacific region, other countries like South Korea, Thailand, Singapore, Malaysia, Sri Lanka, Bangladesh, Australia, Indonesia, etc., also have a high potential for gaining a considerable share in the smart lighting market.
To understand geography trends, Download Sample Report
Smart Lighting Industry Overview
The smart lighting market is highly competitive and consists of several major players. However, many companies are increasing their market presence with smart lighting by securing new contracts and acquiring other companies. Signify Holding, Control4 Corp. (Snap One LLC), Wyze Labs Inc., Eaton Corporation, and Savant are key players.
- February 2023 - Signify helped the German municipality of Eichenzell become a future-proof smart city through intelligent street lighting. Its BrightSites solution brings fast, wireless broadband connectivity to the city, allowing Eichenzell to cater to next-generation IoT applications and future 5G densification. Signify installed LED lighting, which is managed by the Interact City System. Eichenzell can continuously monitor and manage all lights from a single dashboard.
- January 2023 - Savant company GE Lighting announced the expansion of its smart home ecosystem, Cync. Cync unveiled its entire Dynamic Effects entertainment lineup, which includes 16 million colors, pre-set and custom light shows, on-device music syncing, and other features. In addition, following a successful launch last year, Cync has expanded its Wafer light fixture line.
Smart Lighting Market Leaders
Control4 Corp. (Snap One LLC)
Lutron Electronics Co. Inc
Wyze Labs Inc.
*Disclaimer: Major Players sorted in no particular order
Smart Lighting Market News
- February 2023 - Signify supplied LED street lighting, intelligent poles, and a connected lighting system to the industrial parks in Huanggang City in Hubei Province, China. The city opted for Signify’s BrightSites smart poles, PhilipsLED streetlights, and Interact connected lighting system. This combination provides high-quality, energy-efficient LED lighting and two-way communication on a cloud-based platform.
- January 2023 - Lutron plans to provide new solutions and upgrade existing products that enable AV professionals to offer high-quality, future-ready lighting control while allowing clients to achieve their interior design dreams, removing the need to choose between aesthetics and experience.
Smart Lighting Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Degree of Competition
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Smart Lighting Industry
4.5 PESTLE Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Energy Saving at Homes
5.1.2 Government Regulations Mandating the Use of LEDs
5.2 Market Challenges
5.2.1 Lack of Awareness Regarding Selection and Installation of Products
5.3 Market Opportunities
5.3.1 Increasing Adoption of IoT in Emerging Economies
6. WIRELESS CONNECTIVITY STANDARD TYPES USED IN RESIDENTIAL SMART LIGHTING PRODUCTS
7. MARKET SEGMENTATION
7.1 By Product Type
7.1.1 Control System
7.1.2 Smart Lamps and Fixtures
7.2 By Geography
7.2.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
7.2.4 Latin America
7.2.5 Middle East and Africa
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Control4 Corp. (Snap One LLC)
8.1.2 Lutron Electronics Co. Inc.
8.1.3 Signify Holding
8.1.4 Wyze Labs Inc.
8.1.6 GE Lighting (Savant Systems Inc .)
8.1.7 Inter IKEA Holding BV
8.1.8 Acuity Brands Inc.
8.1.9 Hubbell Incorporated
8.1.10 Crestron Electronics Inc.
8.1.11 Insteon (Smartlabs Inc.)
8.1.12 EGLO Leuchten GmbH
8.1.13 Eve Systems GmbH
8.1.14 LG Electronics Inc.
8.1.15 Wiz Connected Lighting Co. Ltd
8.1.16 Wipro Lighting Limited
8.1.17 Xiaomi Corporation
8.1.18 LIFX (Feit Electric)
- *List Not Exhaustive
9. VENDOR MARKET SHARE ANALYSIS FOR CONTROL SYSTEMS
10. INVESTMENT ANALYSIS
11. FUTURE OF THE MARKET
Smart Lighting Market Research FAQs
How big is the Smart Lighting Market?
The Smart Lighting Market size is expected to reach USD 19.42 billion in 2023 and grow at a CAGR of 20.52% to reach USD 49.37 billion by 2028.
What is the current Smart Lighting Market size?
In 2023, the Smart Lighting Market size is expected to reach USD 19.42 billion.
Who are the key players in Smart Lighting Market?
Signify Holding, Control4 Corp. (Snap One LLC), Lutron Electronics Co. Inc, Wyze Labs Inc. and Sengled are the major companies operating in the Smart Lighting Market.
Which is the fastest growing region in Smart Lighting Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Smart Lighting Market?
In 2023, the Europe accounts for the largest market share in the Smart Lighting Market.
Smart Lighting System Industry Report
Statistics for the 2023 Smart Lighting System market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Smart Lighting System analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.