Smart Lighting Market by Offering (Hardware, Software, Services), Connectivity Mode (Wired, Wireless [Bluetooth, Wi-Fi, Other], Hybrid), Application (Indoor [Residential, Commercial and Industrial], Outdoor) and Geography - Global Forecast to 2029

The Smart Lighting Market is expected to reach $39.91 billion by 2029, at a CAGR of 12.2% during the forecast period of 2022–2029.

The rapid growth of this market is attributed to the rising demand for IoT-enabled lighting fixtures and smart lighting solutions, the growing need for energy-efficient lighting systems, and increasing smart home penetration. In addition, the rapid transition from traditional lighting to connected lighting solutions and the growing proliferation of smart cities are expected to offer significant opportunities for the growth of this market. However, the high initial costs of smart lighting equipment and accessories can somewhat restrain the market growth.

Impact of COVID-19 on the Smart Lighting Market

The COVID-19 pandemic emerged in Wuhan, China, in December 2019. By March 2020, the virus had spread to most countries, with the WHO declaring COVID-19 a global pandemic. Governments worldwide imposed countrywide lockdowns to control the spread of the infection. The restrictions impacted manufacturing operations, with production facilities either completely shutting down or running at reduced capacities to ensure social distancing and employee safety. Most industries came to a standstill due to raw material & workforce shortages, supply chain disruptions, and restrictions on international trade. The pandemic impacted many businesses, including smart lighting.

With travel bans in place and logistics suspensions, the import of lighting supplies becomes quite challenging. Moreover, lighting production outlets came near a halt as their workforce could not resume their duties due to social distancing norms. The impact on the supply chain did not just slow down the lighting projects but also ongoing installations. For safety reasons, many energy efficiency agencies suspended residential and commercial lighting programs that helped homeowners and businessmen pay for retrofits and new installations. Even if the agencies would provide lighting services, customers did not undertake new lighting installations because of the uncertain future.

Furthermore, the Department of Energy encouraged non-profit grantees to limit low-income weatherization projects. The COVID-19 impact on the lighting industry pushed demand to its lowest.

In the later part of the COVID-19 pandemic, the smart lighting market witnessed steady growth, with businesses starting to function normally and residential requirements. The demand for smart lighting increased as it could be operated with minimal to low touch through voice commands and motion, reducing the chances of surface touching and contracting COVID-19 among users. Office spaces and homes exhibited a high preference for smart lighting, which is expected to persist in the coming years.

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The rising need for energy-efficient lighting systems is expected to drive market growth

Technological advancements and lifestyle changes have increased daily energy consumption since the industrial revolution. With scares resources and growing energy costs, it becomes imperative for everyone to save energy or use the available energy judiciously.

The idea of smart lighting has emerged over the years in residential, commercial and industrial environments, with a focus on energy saving. With technological advancements, smart lighting can offer opportunities and energy savings in home environments to provide a comfortable atmosphere and maintain user well-being. Smart energy-efficient lighting products use less electricity while offering the same light output.

Using smart lights at home ensures that lights turn on only when someone enters a room. Using connected lights and IoT control systems that can be remotely controlled can also help curb energy wastage by up to 80%. Smart bulbs don't generate as much heat as traditional incandescent bulbs and therefore use less energy. They also last about 25 times longer than traditional bulbs. CFL light bulbs are only 25-30% more efficient than incandescent bulbs. In both scenarios, smart LEDs use less electricity and waste less energy as heat while providing the same light quality. According to Eric Rondolat, CEO of Philips Lighting, this technology's energy and greenhouse gas saving potential are huge, with the potential to reduce by half the energy demand from lighting - representing 15% of total electricity consumption and 5% of greenhouse gas emissions.

People are increasingly being made aware of the importance of switching to energy-efficient smart lighting, and the global market is expected to witness a boom over the coming years.

Key Findings in the Smart Lighting Market Study:

In 2022, the Hardware Segment is Expected to Dominate the Smart Lighting Market

Based on offering, the smart lighting market is segmented into hardware, software, and services. In 2022, the hardware segment is expected to account for the largest share of the global smart lighting market. The large market share of this segment is mainly attributed to factors such as rising penetration of smart lights, rising demand for intelligent streetlights in developing countries and rising popularity of connected lighting bulbs and fixtures that can change hues, dim lights, and switch on/off using a controlling device such as a smartphone or tablet.

However, the software segment is expected to register the highest CAGR during the forecast period. The software application is required to facilitate the controlling of lights using smartphones or tablets. The apps also help connect smart lights with smart platforms such as Alexa, Crotona, and Siri to control using voice commands. The immense popularity of creating an ambient atmosphere and aiding in data collection in smart cities is expected to boost segment growth over the forecast period.

In 2022, the Outdoor Segment is Expected to Dominate the Smart Lighting Market

the smart lighting market is segmented into indoor and outdoor. In 2022, the outdoor segment is expected to account for the largest share of the global smart lighting market and is expected to register the highest CAGR over the forecast period. The large market share of this segment is mainly attributed to factors such as increasing adoption of energy-efficient lighting solutions, growing government initiatives toward energy efficiency, modernization and development of infrastructures such as smart cities that lead to the implementation of lighting systems, reduction in the prices of LEDs, and penetration of LEDs as a light source in outdoor lighting applications, such as architectural, highways & roadways, and public places.

Asia-Pacific to be the Fastest Growing Regional Market

Based on geography, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The Asia-Pacific region saw significant growth in the smart lighting market in recent years and is expected to register the highest CAGR during the forecast period. A surge in government initiatives to promote energy-efficient lighting systems, an increasing number of smart city projects, and increasing investments by the government in public infrastructure are increasing the growth of the market in the region.

Key Players

The report also includes an extensive assessment of the key growth strategies adopted by the leading market participants between 2020 and 2022. The key players operating in the smart lighting market are Signify Holding (Netherlands) [formerly known as Philips Lighting N.V, Legrand (France)], Acuity Brands, Inc. (U.S.), Lutron Electronics Co., Inc (U.S.), Leviton Manufacturing Co., Inc. (U.S.), Zumtobel Group (Austria), Honeywell International Inc. (U.S.), Hubbell Incorporated (U.S.), GE Current (U.S.), Dialight plc (U.K.), Cree Lighting (U.S.), [a subsidiary of Ideal Industries, Inc. (U.S.)], Enlighted Inc. (U.S.) [a subsidiary of Simens AG (Germany)], Panasonic Holdings (Japan), LightwaveRF PLC (U.K.), RAB Lighting Inc. (U.S.), Synapse Wireless (U.S.), Syska LED (India), Wipro Enterprises (India), LG Electronics (South Korea), and ABB Ltd (Switzerland).

Scope of the report:

Smart Lighting Market by Offering

• Hardware
• Software
• Services

Smart Lighting Market, by Connectivity Mode

• Single Connectivity       
  • RFID
  • Bluetooth
  • Wi-Fi
  • Other Single Connectivity Modes
• Multi Connectivity         

Smart Lighting Market, by Application

• Indoor
  • Residential
  • Commercial and Industrial
• Outdoor
  • Highways & roadways
  • Public places
  • Bridges & tunnels
  • Other Outdoor Applications

Smart Lighting Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Denmark
  • Netherlands
  • Sweden
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Singapore
  • Australia & New Zealand
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Key questions answered in the report: