Smart Lighting Market by Component (Service, Hardware, and Software), Technology (Wireless and Wired), Application (Indoor [Residential and Commercial] and Outdoor [Highways, Bridges, Tunnels, and Public Places]), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
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.
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
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.
Attributes |
Details |
Report Title |
Smart Lighting Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2022 |
Historic Data |
2016–2021 |
Forecast Period |
2023–2031 |
Segmentation |
Component (Service, Hardware, and Software), Technology (Wireless and Wired), and Application (Indoor [Residential and Commercial] and Outdoor [Highways, Bridges, Tunnels, and Public Places]) |
Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
Key Players Covered in the Report |
Honeywell International Inc.; Signify Holding; ACUITY BRANDS, INC.; IDEAL INDUSTRIES, INC.; Häfele; Itron Inc.; YEELIGHT; Verizon; Sengled Optoelectronics Co., Ltd.; and Schneider Electric |
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.
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.
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.
2. Assumptions and Acronyms Used
3. Research Methodology
4. Smart Lighting Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Smart Lighting Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Smart Lighting Market - Supply Chain
4.5. Global Smart Lighting Market Forecast
4.5.1. Smart Lighting Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Smart Lighting Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Smart Lighting Market Absolute $ Opportunity
5. Global Smart Lighting Market Analysis and Forecast by Applications
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Applications
5.2.2. Y-o-Y Growth Projections by Applications
5.3. Smart Lighting Market Size and Volume Forecast by Applications
5.3.1. Indoor
5.3.2. Outdoor
5.4. Absolute $ Opportunity Assessment by Applications
5.5. Market Attractiveness/Growth Potential Analysis by Applications
6. Global Smart Lighting Market Analysis and Forecast by Region
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Region
6.2.2. Y-o-Y Growth Projections by Region
6.3. Smart Lighting Market Size and Volume Forecast by Region
6.3.1. North America
6.3.2. Latin America
6.3.3. Europe
6.3.4. Asia Pacific
6.3.5. Middle East and Africa (MEA)
6.4. Absolute $ Opportunity Assessment by Region
6.5. Market Attractiveness/Growth Potential Analysis by Region
6.6. Global Smart Lighting Demand Share Forecast, 2019-2026
7. North America Smart Lighting Market Analysis and Forecast
7.1. Introduction
7.1.1. Basis Point Share (BPS) Analysis by Country
7.1.2. Y-o-Y Growth Projections by Country
7.2. North America Smart Lighting Market Size and Volume Forecast by Country
7.2.1. U.S.
7.2.2. Canada
7.3. Absolute $ Opportunity Assessment by Country
7.4. North America Smart Lighting Market Size and Volume Forecast by Applications
7.4.1. Indoor
7.4.2. Outdoor
7.5. Basis Point Share (BPS) Analysis by Applications
7.6. Y-o-Y Growth Projections by Applications
7.7. Market Attractiveness/Growth Potential Analysis
7.7.1. By Country
7.7.2. By Product Type
7.7.3. By Application
7.8. North America Smart Lighting Demand Share Forecast, 2019-2026
8. Latin America Smart Lighting Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.1.3. Latin America Average Pricing Analysis
8.2. Latin America Smart Lighting Market Size and Volume Forecast by Country
8.2.1. Brazil
8.2.2. Mexico
8.2.3. Rest of Latin America
8.3. Absolute $ Opportunity Assessment by Country
8.4. Latin America Smart Lighting Market Size and Volume Forecast by Applications
8.4.1. Indoor
8.4.2. Outdoor
8.5. Basis Point Share (BPS) Analysis by Applications
8.6. Y-o-Y Growth Projections by Applications
8.7. Market Attractiveness/Growth Potential Analysis
8.7.1. By Country
8.7.2. By Product Type
8.7.3. By Application
8.8. Latin America Smart Lighting Demand Share Forecast, 2019-2026
9. Europe Smart Lighting Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Europe Average Pricing Analysis
9.2. Europe Smart Lighting Market Size and Volume Forecast by Country
9.2.1. Germany
9.2.2. France
9.2.3. Italy
9.2.4. U.K.
9.2.5. Spain
9.2.6. Russia
9.2.7. Rest of Europe
9.3. Absolute $ Opportunity Assessment by Country
9.4. Europe Smart Lighting Market Size and Volume Forecast by Applications
9.4.1. Indoor
9.4.2. Outdoor
9.5. Basis Point Share (BPS) Analysis by Applications
9.6. Y-o-Y Growth Projections by Applications
9.7. Market Attractiveness/Growth Potential Analysis
9.7.1. By Country
9.7.2. By Product Type
9.7.3. By Application
9.8. Europe Smart Lighting Demand Share Forecast, 2019-2026
10. Asia Pacific Smart Lighting Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Asia Pacific Average Pricing Analysis
10.2. Asia Pacific Smart Lighting Market Size and Volume Forecast by Country
10.2.1. China
10.2.2. Japan
10.2.3. South Korea
10.2.4. India
10.2.5. Australia
10.2.6. Rest of Asia Pacific (APAC)
10.3. Absolute $ Opportunity Assessment by Country
10.4. Asia Pacific Smart Lighting Market Size and Volume Forecast by Applications
10.4.1. Indoor
10.4.2. Outdoor
10.5. Basis Point Share (BPS) Analysis by Applications
10.6. Y-o-Y Growth Projections by Applications
10.7. Market Attractiveness/Growth Potential Analysis
10.7.1. By Country
10.7.2. By Product Type
10.7.3. By Application
10.8. Asia Pacific Smart Lighting Demand Share Forecast, 2019-2026
11. Middle East & Africa Smart Lighting Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Middle East & Africa Average Pricing Analysis
11.2. Middle East & Africa Smart Lighting Market Size and Volume Forecast by Country
11.2.1. Saudi Arabia
11.2.2. South Africa
11.2.3. UAE
11.2.4. Rest of Middle East & Africa (MEA)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Middle East & Africa Smart Lighting Market Size and Volume Forecast by Applications
11.4.1. Indoor
11.4.2. Outdoor
11.5. Basis Point Share (BPS) Analysis by Applications
11.6. Y-o-Y Growth Projections by Applications
11.7. Market Attractiveness/Growth Potential Analysis
11.7.1. By Country
11.7.2. By Product Type
11.7.3. By Application
11.8. Middle East & Africa Smart Lighting Demand Share Forecast, 2019-2026
12. Competition Landscape
12.1. Global Smart Lighting Market: Market Share Analysis
12.2. Smart Lighting Distributors and Customers
12.3. Smart Lighting Market: Competitive Dashboard
12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
12.4.1. Honeywell International Inc.
12.4.2. Signify Holding
12.4.3. ACUITY BRANDS, INC.
12.4.4. IDEAL INDUSTRIES, INC.
12.4.5. Häfele
12.4.6. Itron Inc.
12.4.7. YEELIGHT
12.4.8. Verizon
12.4.9. Sengled Optoelectronics Co., Ltd.
12.4.10. Schneider Electric