Smart Lighting Market Size, Share & Growth Report 2031

Report Description

The global smart lighting market size was USD 9.3 Bn in 2022 and is likely to reach USD 11.7 Bn by 2031, expanding at a CAGR of 20.5 % during 2023–2031. The market growth is fueled by ­­the rising adoption of LED-based energy efficient, safe, and intelligent lighting systems in commercial and residential setups.

The sole objective of building digital infrastructure in public and private spaces is to provide seamless and fine-tuned intelligent solutions to offer convenience and value for money to consumers. Smart lighting solutions provide a type of intelligent solution that uses sensors, digital connectivity, and data analysis to cater to the diverse requirements of lighting arrangements in various environments and applications. These systems can be operated with the help of laptops, tablets, or smartphones remotely.

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The brightness, luminosity, and contrast of these lighting systems can be remotely controlled and adjusted as per the application. Smart lighting systems can be controlled through Bluetooth, Wi-Fi, Z-Wave, SmartThings, or Zigbee to track energy consumption and dim the lights with different luminosity and colors.

In commercial and industrial setups, smart lighting solutions provide perfectly calibrated brightness to the occupants such as workers and employees so that they can experience enhanced visibility and reduced fatigue to the eyes. The sensor-based lighting solutions adjust the brightness and energy consumption of smart lighting systems with the help of programmable interfaces in accordance with the occupancy and applications in the environment

The smart lighting system provides enhanced visibility in the parking lots so that drivers and pedestrians can avoid mishaps in poorly lit areas. These systems contain the spread of infection in the healthcare setup by controlling the lighting settings as per the environment.

The supply chain disruption caused by the pandemic-induced lockdowns hampered the growth of the market during the COVID-19 pandemic period. The economic slowdown in the major economies limited the capital flow in the lighting solution provider and manufacturing industry.

Smart Lighting Market Dynamics

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Drivers

Rising adoption of LED technology in lighting applications is expected to drive the market. LED lighting has some advantages over conventional lighting such as high luminosity, energy efficiency, and longevity. LED lightings are 5-6 times more efficient than standard lighting and generate a luminosity of approximately 70-100 lumen per watt. LEDs are increasingly used in commercial and residential setups due to improved ambiance and perfectly calibrated brightness provided by LEDs.

According to Warehouselighting.com, a supplier of industrial, commercial, and residential lighting solutions provider, LEDs are anticipated to constitute up to 87% of lighting arrangements worldwide while the revenue of the LED industry is likely to be doubled by the year 2030.

Rising efforts by public and private institutions to achieve sustainability goals and subsequent supportive government policies are anticipated to drive the market. The digital transformation of lighting systems helps public and private organizations to achieve sustainability goals by regulating energy consumption.

Restraints

High cost of smart lighting systems is likely to hinder the market. The purchase and integration cost of smart lighting systems is high due to the integration of high-quality control systems, embedded algorithms, and hardware systems. Moreover, smart lighting solutions are exposed to cyber networks as they are operated through internet connectivity remotely. This factor restrains the market.

Opportunities

Rising development of digital infrastructure in the public and private ecosystems is expected to create significant opportunities for the market. The development of smart cities acts as a catalyst for the market. The policymakers leverage technology to improve the city’s operations with the help of integrated services to address issues related to population growth, sustainability, and infrastructural challenges. Smart lighting solutions help city administrators to improve safety and security in modern urban environments with the help of intelligent lighting solutions.

Scope of the Smart Lighting Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Component Segment Analysis

Based on component, the smart lighting market is divided into service, hardware, and software. The hardware segment is expected to expand at a significant growth rate during the projection period due to the high rate of adoption of hardware components due to the improved energy efficiency and cost-effectivity. The hardware components used in the smart lighting solutions provide improved energy efficiency, lower heat emissions, and cost-effectivity to the consumers.

The software segment is anticipated to grow significantly during the forecast period owing to enhanced functionality and operability provided by the software systems embedded in the smart lighting systems. The smart lighting systems are equipped with embedded algorithms to perfectly adjust the brightness and luminosity remotely with the help of digital devices such as smartphones, tabs, and laptops.   

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Technology Segment Analysis

On the basis of technology, the market is bifurcated into wireless and wired. The wireless segment is projected to register a considerable CAGR during the forecast period owing to improved functionality and operability. The user can operate the smart lighting systems remotely to dim the lights with different color tones and luminosity. The convenience and functionality offered to the consumers enable them to track energy consumption by scheduling on-off time as per the requirement.

Application segment Analysis

Based on application, the smart lighting market is segmented into indoor and outdoor. The indoor segment is further bifurcated into residential and commercial. The outdoor segment is sub-segregated into highways, bridges, tunnels, and public places. The indoor segment is expected to register a robust growth rate during the forecast period owing to enhanced aesthetics and functionality to control the lighting intensity in indoor applications. Indoor applications such as commercial setups such as manufacturing setups, the IT industry, and banks adopt smart lighting solutions to provide a pleasant and productive atmosphere for the workers by controlling the light settings.

The outdoor segment is anticipated to grow significantly during the forecast period owing to the rising need for smart lighting systems in stadiums, highways, and parking spaces. The smart lighting systems detect poorly lit areas in outdoor spaces and adjust the brightness accordingly. Smart lighting systems enhance the security of individuals by improving visibility in outdoor spaces.

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Regional Outlook

In terms of region, the global smart lighting market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe is expected to dominate the market during the projection period due to rising urbanization and industrialization in the region. Modern urban environments incorporate smart solutions in the infrastructure to offer improved quality of life to the citizens. Smart lighting solutions provide improved visibility and energy efficiency.

The market in Asia Pacific is anticipated to grow at a significant rate due to rising industrialization and urbanization in the region. Supportive government policies, availability of cheap labor, and industrial infrastructure accelerate the growth of the market significantly. Industrial and commercial spaces in urban centers rely on smart lighting systems for efficient and cost-effective light settings.

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