Smart Lighting Market

Market Definition

The Smart Lighting Market size was valued at USD 17.10 billion in 2023 and is predicted to reach USD 66.37 billion by 2030 with a CAGR of 21.4% from 2024-2030.

Smart lighting refers to lighting technology that is designed to be controllable, programmable, and connected to other devices or networks for enhanced functionality and energy efficiency. Smart lighting systems typically utilize LED bulbs or fixtures that can be controlled remotely via smartphone apps, voice commands, or automation schedules. These systems often offer features such as dimming, color changing, motion sensing, and integration with smart home platforms such as Amazon Alexa, Google Assistant, or Apple HomeKit. Smart lighting can enhance convenience, comfort, and energy savings by allowing users to customize their lighting environment according to their preferences and needs.

Market Dynamics and Trends

The smart lighting market is experiencing significant growth due to the focus on energy efficiency and sustainability, as smart lighting solutions allow for better control of energy consumption. The ability to control and automate lighting based on occupancy, daylight levels, and time of day helps reduce energy consumption, making them attractive for both residential and commercial applications.

Governments and businesses worldwide are increasingly focusing on sustainability, contributing to the adoption of smart lighting solution. For instance, the Energy Star program, managed jointly by the U.S. Environmental Protection Agency (EPA) and the Department of Energy (DOE), evaluates and promotes energy-efficient lighting technologies, including smart lighting solutions.

Moreover, the growing urbanization across the globe is driving the demand for smart solutions in infrastructure development including smart lighting. According to a report published by the Central Intelligence Agency, the urban population is growing significantly across the globe, reaching 92% in Japan, 84.6% in the UK, and 83.3% in the U.S., thereby driving the demand for smart lighting, as they play a major role in energy efficiency, contributing toward the development of smart cities by creating intelligent, connected urban environments.

Moreover, ongoing technological advancement such as improvements in sensor technology, connectivity protocols, and the development of more sophisticated lighting control systems, continue to drive innovation in the smart lighting industry. For instance, in September 2023, signify launched new Philips Hue Secure Smart Lighting Options. This product features a clear 1080p HD video with night vision to monitor home in real time and trigger instant motion notifications.

However, risk of data security and privacy concerns are the major factors restraining the growth of the market. On the other hand, the integration of cutting-edge technologies such as Artificial Intelligence and Augmented Reality by software developers and IT companies enables the development of more sophisticated and intelligent lighting solutions by interactive and adaptive lighting experiences, real-time to optimize lighting patterns and this is anticipated to generate significant growth opportunities for the market in the forthcoming years.

Market Segmentation and Scope of Study

The smart lighting market is segmented on the basis of type, technology, Sensor, offering, installation, application, end-user and region. On the basis of type, the market is categorized into smart light bulbs, smart lights connected with hubs, and motion sensing lights. On the basis of technology, the market is sub- divided into bluetooth, wi-fi, zig bee and others. On the basis of sensor the market is classified into motion sensor, light sensor, occupancy sensor, proximity sensor, audio sensor and others. On the basis of offering the market is classified into Hardware, Software, and Services. On the basis of installation, the market is bifurcated into new installation and retrofit installation. On the basis of application, the market is divided into Indoor and Outdoor. On the basis of end -user the market can be divided into residential, commercial and industrial. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific dominates the global smart lighting market and is expected to remain dominant throughout the forecast period. With rapid growth of urbanization in this region more people are migrating to cities and growing demand for energy efficient and sustainable lighting infrastructure.

According to recent report published by Central Intelligence Agency, urbanization is on the rise, with Japan having the highest urban population at 92%, followed by South Korea at 81.8%. China and India follow with urban populations of 64.6% and 34.6% respectively. With such surge in urbanization, smart city initiatives are mostly adopted in these countries and driving the demand for smart lighting solutions.

Moreover, energy efficiency initiatives implemented by regulatory bodies contribute significantly to driving market growth, particularly in the Asia-Pacific region. For instance, in India, schemes such as the UJALA Scheme, also known as the Domestic Efficient Lighting Programme (DELP), aim to promote the efficient usage of energy at the residential level.

By distributing approximately 368 million LED bulbs and tube lights by June 2023, these initiatives play a crucial role in reducing energy consumption and driving the adoption of energy-efficient lighting solutions thereby propelling the growth of smart lighting market.

On the other hand, in North America, municipalities and urban developers are increasingly adopting IoT-enabled lighting systems to improve energy efficiency, reduce operational costs, and enhance the overall quality of urban living.

For instance, RealTerm Energy collaborated with Ubicquia to complete 25 smart street lighting projects and is conducting trials in five additional cities in U.S and Canada. These projects involve converting streetlights to LED lights with integrated control features, allowing for dimming and scheduling.This initiative is expected to reduce energy consumption by approximately 67% annually.

Furthermore, various manufacturers such as Signify Holding and Honeywell International Inc are investing in innovations and new product launches with improved features in this region which accelerates the growth of smart lighting market.

For instance, in March 2023, Signify Holding acquired Intelligent Lighting Control, Inc. expanding its connected portfolio. Through this acquisition, the company aims to expand its Intelligent Lighting Control portfolio and energy saving control system.

Competitive Landscape

The smart lighting market includes several market players such as Signify, General Electric Company, Osram Gmbh, Acuity Brands Lighting Inc., Wipro Lighting, Honeywell International Inc., Sengled Optoelectronics Co.Ltd., Signify Holding, Legrand S.A and Yeelight among others. These market players are adopting various strategies such as innovation and collaboration to maintain their dominance in the global smart appliances market.

For instance, on October 2023 OSRAM GmbH expanded its renowned series of LED retrofit lamps. With the street-approved LED, drivers can legally, easily and cost-effectively upgrade their conventional H1 halogen low-beam and high-beam head-lights to LED technology.

Moreover, in January 2023, GE Lighting expanded its smart home ecosystem, it introduced Dynamic Effects entertainment line-up with 16 million colours and on-device music syncing. It Offers control without any hub or bridge for unparalleled entertainment and gaming experience.

Key Benefits

• The report provides quantitative analysis and estimations of the smart lighting market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the smart lighting market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the smart lighting market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Type

• Smart Light Bulbs

• Smart Lights connected with Hubs

• Motion Sensing Lights

By Technology

• Bluetooth

• Wi-Fi

• Zig bee

• Others

By Sensor

• Motion Sensor

• Light Sensor

• Occupancy Sensor

• Proximity Sensor

• Audio Sensor 

• Others

By Offering

• Hardware

• Software 

• Services

By Installation 

• New Installation 

• Retrofit Installation

By Application 

• Indoor 

• Outdoor 

By End-User 

• Residential

• Commercial 

• Industrial

By Region 

• North America

  • The U.S

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand 

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 17.10 Billion
Revenue Forecast in 2030	USD 66.37 Billion
Growth Rate	CAGR of 21.4% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Focus on energy efficient and sustainable technology drives the market. Significant rise of urbanization across the globe boosts the market. Technological advancement drives the market growth.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Signify

• General Electric Company

• Osram Gmbh

• Acuity Brands Lighting Inc.

• Wipro Lighting

• Honeywell International Inc.

• Sengled Optoelectronics Co.Ltd.

• Signify Holding

• Legrand S.A 

• Yeelight