Smart Lighting Market by Offering (Hardware, Software, Services), By Communication Technology (Wired, Wireless), By Installation Type (New Installations, Retrofit Installations), By Application (Indoor, Outdoor), By Region, Competition, 2018-2028

Market Overview

The projected market size for the global smart lighting market is expected to reach USD 14.38 billion by the end of 2022, with a compound annual growth rate (CAGR) of 19.79% during the forecast period. The global smart lighting market has experienced remarkable growth driven by technological advancements, energy efficiency awareness, and the proliferation of IoT solutions. This market expansion is evident across residential, commercial, and urban sectors. Smart lighting systems offer not only energy savings through remote control and automation but also the convenience of personalized lighting experiences. The integration with smart homes and buildings further fuels adoption. In commercial settings, smart lighting contributes to data-driven insights for better productivity and customer experiences. However, challenges like data security and interoperability need addressing. In essence, the smart lighting market continues to evolve as a transformative force in modern illumination, enhancing sustainability and connectivity on a global scale.

Key Market Drivers

Technological Advancements and Connectivity

Technological advancements have emerged as a primary driver propelling the global smart lighting market. The convergence of cutting-edge technologies, such as the Internet of Things (IoT), artificial intelligence (AI), and wireless communication, has revolutionized the lighting industry. Smart lighting systems are no longer limited to traditional switches; they encompass sophisticated sensors, smart bulbs, and centralized control platforms. This synergy of technology allows users to remotely manage and customize their lighting environments, adjusting brightness, color temperature, and even ambience with ease. The integration of voice assistants and mobile applications further enhances user experience, enabling seamless control from anywhere.

Furthermore, the interconnectivity of smart lighting systems with other smart devices and appliances has created a holistic smart ecosystem within homes, offices, and urban spaces. This connectivity not only simplifies daily tasks but also lays the foundation for smart homes and smart cities, where lighting is a pivotal component of the larger technological landscape.

Energy Efficiency and Sustainability Imperatives

The global emphasis on energy efficiency and sustainability has acted as a strong catalyst for the growth of the smart lighting market. With traditional lighting systems accounting for a significant portion of global energy consumption, the adoption of smart lighting solutions presents a compelling avenue to reduce energy usage and carbon emissions. Smart lighting systems can automatically adjust lighting levels based on occupancy, natural light availability, and user preferences, ensuring that lights are only active when needed.

Moreover, the capability to fine-tune lighting settings to match specific tasks or activities not only enhances comfort but also contributes to energy savings. This aligns with the increasing focus on green building practices and energy-efficient solutions in both residential and commercial spaces. Governments and regulatory bodies advocating for energy conservation have further fueled the adoption of smart lighting technologies, encouraging manufacturers and users to invest in sustainable lighting solutions.

Rise of Smart Homes and Building Automation

The rapid ascent of smart homes and building automation has significantly driven the global smart lighting market. The desire for convenience, comfort, and enhanced security has led consumers to seek integrated solutions that simplify their daily routines. Smart lighting, as an integral component of these systems, allows users to create personalized lighting scenarios, control lights remotely, and even synchronize lighting with other smart devices. This amalgamation of technologies transforms living spaces into responsive environments that adapt to occupants' preferences and needs. In the commercial sector, building automation systems leverage smart lighting for optimal space utilization, energy efficiency, and employee well-being. Data collected from sensors in smart lighting systems provide valuable insights for facility managers to optimize layouts, enhance productivity, and reduce operational costs. The seamless integration of smart lighting with other building systems like HVAC and security elevates the overall efficiency of commercial spaces.

Urbanization and Smart City Initiatives

The ongoing global trend of urbanization and the proliferation of smart city initiatives have spurred the adoption of smart lighting solutions in urban areas. As cities strive to become more efficient, sustainable, and livable, smart lighting plays a pivotal role in reshaping urban landscapes. Intelligent street lighting, equipped with sensors and communication technology, not only ensures adequate illumination but also enhances safety by detecting movement and monitoring traffic flow. Smart lighting contributes to energy savings as well, with dimming capabilities during low-traffic hours. Moreover, these systems can be remotely controlled and monitored, streamlining maintenance processes and reducing operational costs for city authorities. The integration of smart lighting within smart city frameworks also paves the way for data-driven decision-making, allowing urban planners to analyze trends and make informed choices for urban development and resource allocation.

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Key Market Challenges

Interoperability and Standardization

As the global smart lighting market continues to expand, one of the significant challenges it faces is interoperability and standardization. The proliferation of various smart lighting products, platforms, and technologies from different manufacturers has led to a fragmented ecosystem. This lack of interoperability can result in compatibility issues between devices and systems, making it difficult for consumers to create integrated smart lighting solutions that work seamlessly together.

Interoperability challenges can manifest in different ways. For instance, a smart lighting system from one manufacturer might not be able to communicate effectively with a central home automation hub from another brand, limiting the user's ability to control all their devices from a single interface. This not only frustrates consumers but also hampers the growth of the smart lighting market. A lack of common communication protocols and standards can hinder innovation and deter potential customers from investing in smart lighting due to concerns about future compatibility. To address this challenge, industry players, standards organizations, and regulatory bodies must collaborate to establish and promote widely accepted interoperability standards. These standards should encompass communication protocols, data formats, and security measures to ensure that different smart lighting devices and systems can seamlessly communicate and work together. The adoption of such standards would simplify the integration of various smart lighting components, enhance user experience, and drive the growth of the market as a whole.

Data Security and Privacy Concerns

Data security and privacy concerns represent another critical challenge facing the global smart lighting market. Smart lighting systems, equipped with sensors and connected to the internet, collect and transmit data about user behaviors, preferences, and occupancy patterns. This data is invaluable for optimizing lighting efficiency and creating personalized experiences, but it also raises concerns about potential misuse and unauthorized access. Unauthorized access to smart lighting systems can have serious implications. Hackers gaining control of these systems could potentially disrupt lighting settings, invade users' privacy by monitoring their activities, or use compromised devices as entry points into larger networks. The sensitivity of user data collected by smart lighting systems necessitates robust security measures to prevent data breaches and protect user privacy.

To mitigate these challenges, manufacturers and developers must prioritize robust security features in their smart lighting products. This includes implementing encryption, secure authentication mechanisms, and regular security updates to safeguard against vulnerabilities. Additionally, educating users about the importance of strong passwords, regular software updates, and other security best practices is crucial to prevent potential breaches. Regulatory bodies and industry associations also play a pivotal role in addressing data security and privacy concerns. Developing and enforcing guidelines for secure smart lighting design, data collection, and data storage can help create a safer environment for users. As the smart lighting market continues to evolve, collaboration among stakeholders is essential to strike a balance between innovation and safeguarding user data.

Key Market Trends

Human-Centric Lighting for Well-Being and Productivity

A prominent trend shaping the global smart lighting market is the growing emphasis on human-centric lighting. This trend acknowledges the profound impact that lighting has on human well-being, mood, and productivity. As our understanding of circadian rhythms and their influence on health evolves, smart lighting systems are being designed to mimic natural lighting conditions throughout the day. This includes adjusting color temperature and intensity to align with the body's internal clock, promoting better sleep patterns and overall wellness. In workplaces, human-centric lighting has gained traction due to its potential to improve employee focus and productivity. Smart lighting systems can dynamically adjust lighting levels based on task requirements, contributing to reduced eye strain and enhanced comfort. In educational settings, such lighting solutions can help create stimulating environments that support learning. As research continues to underscore the connection between lighting and human health, the adoption of human-centric lighting is expected to surge across residential, commercial, and institutional spaces.

Integration of Li-Fi Technology for Data Communication

An emerging trend in the global smart lighting market is the integration of Li-Fi (Light Fidelity) technology. Li-Fi leverages visible light communication (VLC) to transmit data at high speeds through modulating LED light signals. This technology offers several advantages over traditional radio frequency-based communication methods, including higher data transfer rates, improved security, and reduced electromagnetic interference. As the demand for faster and more reliable data communication intensifies, Li-Fi presents a compelling solution, especially in environments where radio frequency interference is a concern. The integration of Li-Fi with smart lighting systems holds great potential in various applications. In retail environments, Li-Fi can enhance the customer shopping experience by providing real-time product information or personalized offers through shoppers' smartphones. In offices, Li-Fi-enabled smart lighting can facilitate seamless data transfer between devices, improving collaboration and productivity. Furthermore, the combination of Li-Fi and smart lighting can contribute to the development of smart cities, enabling data communication through public lighting infrastructure.

Edge Computing and AI for Enhanced Smart Lighting

Edge computing and artificial intelligence (AI) are driving a significant trend in the global smart lighting market by enhancing the capabilities of smart lighting systems. Edge computing involves processing data closer to the source of generation, reducing latency and improving real-time responsiveness. Smart lighting systems are leveraging edge computing to analyze data collected from sensors within lighting fixtures. This enables quicker decision-making and facilitates rapid adjustments to lighting settings based on occupancy, daylight levels, and user preferences. The integration of AI further elevates the intelligence of smart lighting systems. AI algorithms can analyze historical data to predict usage patterns and optimize lighting schedules. For instance, AI can learn the lighting preferences of occupants over time and automatically adjust lighting accordingly. AI-driven analytics also enable facility managers to gain deeper insights into space utilization, helping optimize layouts and energy consumption. As AI technology continues to advance, it is expected to play an increasingly vital role in shaping the future of smart lighting.

Segmental Insights

Installation Type Insights

Based on installation type, the new installations segment emerges as the predominant segment, exhibiting unwavering dominance projected throughout the forecast period. This segment encapsulates the implementation of smart lighting systems in newly constructed or renovated spaces, encompassing a diverse spectrum from residential buildings to commercial complexes. The ascendancy of the new installations segment can be attributed to the increasing incorporation of smart lighting solutions from the initial stages of architectural design, driven by heightened awareness of energy efficiency, automation benefits, and modern aesthetic considerations. With the momentum of this trend anticipated to endure, the new installations segment is poised to maintain its prominent stance, shaping the direction of the global smart lighting market with an unwavering influence.

Application Insights

Based on application, the indoor segment emerges as a formidable frontrunner, exerting its dominance and shaping the market's trajectory throughout the forecast period. The indoor application of smart lighting solutions encompasses a wide array of environments, including residential, commercial, industrial, and institutional spaces. This segment's prominence is attributed to the rising demand for energy-efficient lighting solutions, enhanced user experiences, and the integration of smart lighting with building automation systems. As consumers seek personalized lighting experiences and businesses aim to optimize operations and employee well-being, the indoor smart lighting segment is poised to maintain its formidable frontrunner position, driving innovation and propelling the global smart lighting market forward.

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Regional Insights

Asia Pacific stands resolutely as a dominant force within the global smart lighting market, solidifying its preeminent position and underscoring its pivotal role in steering the industry's trajectory. With a burgeoning population, rapid urbanization, and increasing technological adoption, Asia Pacific has emerged as a key driver of smart lighting's growth. Countries within the region, such as China, India, Japan, and South Korea, are witnessing surging demand for energy-efficient lighting solutions in both residential and commercial sectors. Moreover, government initiatives promoting smart city development and sustainability further accentuate Asia Pacific's dominance. As innovation continues and urban landscapes evolve, the region's influence is poised to remain steadfast, exerting a considerable impact on the ongoing evolution of the global Smart Lighting market.

Recent Developments

• In April 2023, in a significant move within the realm of technology collaboration, Kontakt.io announced its strategic partnership with Signify, envisioning a convergence of smart lighting, indoor Internet of Things (IoT), and real-time location services. This collaboration marks a pivotal step in the evolution of connected environments, promising to revolutionize how spaces are illuminated, monitored, and optimized for enhanced user experiences. The partnership capitalizes on Kontakt.io's expertise in indoor IoT solutions and real-time location services, dovetailing seamlessly with Signify's stature as a global leader in lighting innovation. The combined prowess of the tswo companies is expected to yield comprehensive solutions that extend beyond illumination, permeating various domains such as retail, healthcare, logistics, and smart buildings.
• In November 2022, in a significant milestone for the smart lighting industry, the WiZ smart lighting platform achieved a groundbreaking feat by becoming the first platform to embrace and support the Matter standard. This achievement marks a pivotal advancement in the world of smart technology interoperability, underlining WiZ's commitment to seamless integration and user-centric experiences. The Matter standard, formerly known as Project CHIP (Connected Home over IP), is a collaborative effort by major technology players aimed at establishing a universal standard for smart devices' connectivity and communication. By aligning with the Matter standard, WiZ has positioned itself at the forefront of innovation, enabling its smart lighting solutions to seamlessly interact with a wide array of other Matter-compatible devices and platforms.

Key Market Players

• Control4 Corp. (Snap One LLC)
• Crestron Electronics Inc.
• Hubbell Incorporated
• Lutron Electronics Co. Inc.
• Inter IKEA Holding BV
• Signify Holding
• Wyze Labs Inc.
• EGLO Leuchten GmbH
• GE Lighting (Savant Systems Inc.)
• Acuity Brands Inc.

Report Scope:

In this report, the global smart lighting market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Global Smart Lighting Market, By Offering:

o   Hardware

o   Software

o   Services

• Global Smart Lighting Market, By Communication Technology:

o   Wired

o   Wireless

• Global Smart Lighting Market, By Installation Type:

o   New Installations

o   Retrofit Installations

• Global Smart Lighting Market, By Application:

o   Indoor

o   Outdoor

• Global Smart Lighting Market, By Region:

o   North America

o   Europe

o   South America

o   Middle East & Africa

o   Asia Pacific

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Smart Lighting Market.

Available Customizations:

Global Smart Lighting market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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