Smart Lighting Industry Overview

The global smart lighting market size was valued at USD 15.05 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 22.1% from 2023 to 2030.

The ability of lights to connect with IoT devices and create a variety of ambient lighting using just smartphones or tablets has increased its popularity and demand across commercial and residential spaces. Smart lights are dimmable with various color tones as per requirement, can be scheduled to turn on/off, monitor lighting’s energy usage, and be connected via Wi-Fi, Bluetooth, SmartThings, Z-Wave, or ZigBee. Additionally, smart lights can be voice-controlled by integration with the platform, such as Google Assistant, Amazon’s Alexa, Apple’s Siri, or Microsoft’s Cortana. These wide ranges of features apart from illumination coupled with the growing adoption of IoT devices and smart assistant platforms have created market growth avenues for smart lighting.

Gather more insights about the market drivers, restrains and growth of the Smart Lighting Market

Smart lighting is also termed connected lighting as it can be seamlessly integrated into the IT network in a building or city infrastructure to share information regarding the status of the operation. For instance, smart street lights in city parking or roads ensure safety by offering wide coverage, environmental monitoring, parking and traffic management information, and city surveillance by connecting with IoT devices. Smart lights are often integrated with sensors, which turn them into a point of intelligence device to gather information on activity patterns, daylight levels, occupancy, changes in temperature, or humidity. This information proves to be vital for government departments to take appropriate actions and monitor the city for unwarranted activity.

Government policies encouraging energy conservation and environment protection coupled with stringent regulations discourage the usage of incandescent lamps, which is anticipated to bolster the demand for LED smart lighting. The global lighting industry consumes approximately 19% of the total electricity and is responsible for around 6% of the total greenhouse gas emissions. On the contrary, LED smart lights are highly efficient. They consume almost 70% less energy and connect devices to collect information for future processes. They have significantly longer life spans and are free from any mercury content. Similarly, there are no harmful greenhouse gas emissions associated with LED lights. Thus, LED technology has potentially revolutionized the entire lighting industry and infiltrated the smart lighting segment wherein LED is a preferable choice among vendors and consumers.

The penetration of smart lights is expected to increase owing to benefits such as controlled power usage, longer life, multiple light settings in a single lamp/luminaire, and availability of a wide range of modern decorative lighting products. The adoption of smart lighting in the residential, commercial, and industrial sectors is yet to reach its full potential. Hence, various government initiatives to promote the use of LED-based smart lights are expected to boost their demand over the forecast period.. Moreover, countries such as China, Brazil, Colombia, Mexico, France, Spain, and Germany have imposed a complete ban on the sale of incandescent lamps to encourage the adoption of LED lights; wherein high-income groups are leaning towards LED-based smart lights. Furthermore, many smart lighting companies had reported a negative impact of the COVID-19 pandemic due to the lockdown, disrupting construction activity, and raw material supply. The decline in consumer purchasing capacity, and delay in completing construction projects due to the COVID-19 pandemic pushed the smart lights purchase order quantity, timeline, and payment.

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• The global Internet of Things (IoT) market size was valued at USD 1.18 billion in 2023 and is projected to grow at a CAGR of 11.4% from 2024 to 2030.
• The global smart cities market size was valued at USD 748.7 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 25.8% from 2023 to 2030.

Smart Lighting Market Segmentation

Grand View Research has segmented the global smart lighting market based on component, connectivity, application, region:

Smart Lighting Component Outlook (Revenue, USD Million, 2018 - 2030)

• Hardware
  • Lamp
  • Luminaire
• Software
• Services

Smart Lighting Connectivity Outlook (Revenue, USD Million, 2018 - 2030)

• Wired
• Wireless

Smart Lighting Application Outlook (Revenue, USD Million, 2018 - 2030)

• Indoor
  • Residential
  • Commercial
• Outdoor
  • Highways and Roadways
  • Architectural
  • Others

Smart Lighting Regional Outlook (Revenue in USD Million, 2018 - 2030)

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE

Key Companies profiled:

• Acuity Brands Lighting, Inc.
• Signify Holding
• Honeywell International Inc.
• Itron Inc.
• IDEAL INDUSTRIES, INC.
• Häfele America Co.
• Wipro Lighting
• Sengled Optoelectronics Co., Ltd.
• Verizon
• Schneider Electric

Key Smart Lighting Company Insights

The leading players in the market are undertaking strategies such as product developments, mergers and acquisitions, strategic partnerships, and business expansions to maintain their stronghold on the market. For instance, in May 2023, Cyclone Lighting, a manufacturer of outdoor lighting fixtures released a new luminaire called Elencia. Elencia features high-performance optics and a modern lantern design, making it a stylish and functional choice for outdoor lighting. Cyclone Lighting is a brand of Acuity Brands Lighting, Inc.

Recent Developments

• In March 2023, Itron, Inc. signed a contract with Duquesne Light Company (DLC) to improve operational efficiency, update infrastructure, and enable smart city applications. Itron plans to supply DLC with its smart street lighting solution, which includes LED lights, sensors, and software for dimming, collecting data, and controlling traffic. The solution is expected to assist DLC in conserving energy, improving safety, and better understanding how its consumers use its services.
• In January 2023, YEELIGHT, a smart lighting manufacturer unveiled a new range of products including the Cube Smart Lamp, an Automatic Curtain Opener, and a Smart Scene Panel. These products work with the new smart home standard, Matter, which is expected to be released later this year.

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