Global Smart Lighting Market Outlook, 2028

Global Smart Lighting Market Outlook, 2028

Bonafide Research 31-05-2023 216 Pages Figures : 38 Tables : 139
Region : Global Category : Energy & Utility Lighting & Luminaires

1. Eaton Corporation

2. General Electric Company

3. Havells India Limited

4. Honeywell International Inc.

5. Osram Lighting Private Limited


In recent years, the market for smart lighting has experienced significant growth, owing primarily to ongoing and upcoming smart city projects in developing economies, improved acceptance of standard protocols for lighting control systems, and the introduction of new features such as data analytics and API event generation. These factors will drive market growth through the projected period's conclusion. Furthermore, the increase in demand for IoT-enabled lighting fixtures and smart lighting solutions, as well as the increasing use of LED lights and luminaires in outdoor lighting, will boost smart lighting demand in the near future. 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 can be dimmed with various colour tones, scheduled to turn on/off, monitored for energy usage, and connected by Wi-Fi, Bluetooth, SmartThings, Z-Wave, or ZigBee. Furthermore, smart lights can be voice-controlled through platform integration, such as Google Assistant, Amazon's Alexa, Apple's Siri, or Microsoft's Cortana. These diverse characteristics, in addition to illumination, have offered market growth opportunities for smart lightings, as has the increased usage of IoT devices and smart assistant platforms. Smart lighting is also known as connected lighting because it may be smoothly incorporated into an IT network in a building or civic infrastructure to transmit information about the operation's state. Smart street lights in city parking lots or roadways, for example, enhance safety by providing wide coverage, environmental monitoring, parking and traffic management data, and city surveillance by integrating with IoT devices. Smart lights are frequently equipped with sensors, transforming them into a point of intelligence device capable of gathering data on activity patterns, daylight levels, occupancy, temperature changes, and humidity. This information is critical for government agencies to take necessary action and monitor the city for suspicious behaviour.

According to the research report, “Global Smart Lighting Market Outlook, 2028” published by Bonafide Research, the market is anticipated to cross USD 45 Billion market size by 2028, increasing from USD 15.67 Billion in 2022. The market is projected to grow with 20.02% CAGR by 2023-28. The concept of smart houses has become a reality as a result of modern technical breakthroughs likes as Bluetooth, IoT, and cloud computing. With smart home features being adopted in more and more common households, there is a growing need for smart LED lighting systems that can be connected to other electrical devices and controlled remotely. Smart lighting systems driven by LED lights are also projected to provide attractive potential for LED applications in commercial and industrial settings. In today's lighting market, the smart lighting system is one of the most modern lighting technologies and energy management systems. Every luminaire in the smart lighting system has sensors and automatic control functions that monitor and react to occupancy, pre-selected light levels, and changes in ambient daylight levels. One of the important characteristics that include reducing energy usage and boosting controls factor in conformity with consumers' expectations is automated sensing functionality. As a result, smart lighting systems are extremely efficient, intelligent, and quickly reconfigurable to react to changes in the environment or the needs of users. Whatever the application, the smart lighting system may provide automated energy savings as well as exceptional flexibility to improve the user experience. Smart lights are made up of multiple networked components, including lighting fixtures that collect data about their surroundings and allow users to control or alter equipment based on their needs. Furthermore, technological breakthroughs that enable the simple integration of functionalities such as environmental sensing and voice control in lighting systems have broadened and diversified the spectrum of smart lighting applications.

Smart Lighting market

In addition to that, office spaces are becoming popular smart lighting applications. In today's business world, owners and managers place a greater premium on their employees' general well-being. Offices can provide bright illumination for their employees by switching to smart lighting. This improves their vision and reduces eye fatigue. Furthermore, the colour of the light might aid to lift spirits and bring comfort. Furthermore, beneficial government restrictions surrounding traditional lighting and energy use are expected to promote market demand for connected LED lighting in the United States, the European Union, China, and India. The slow expansion of the smart-lighting business, on the other hand, may provide entrepreneurial hurdles. For smart-lighting product manufacturers, the implications of a failed market launch include large sunk costs and reputational damage. To address these concerns, manufacturers are discovering the need of taking into account customer perceptions of smart-home technology in general, and smart-lighting products in particular. The development of COVID-19 prompted a halt in production and disruption throughout the supply chain, decreasing industrial output growth and the capability for light manufacturing throughout key manufacturing centres. However, as people spent more time at home, they became more likely to renovate the interiors, which boosted the market. Furthermore, the increasing use of LEDs in houses and the spread of smart home technology are expected to fuel market expansion in the future years.

According to the report, the global market is segmented into five major regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them, Europe is dominating the market with more than 35% share in 2022 as it is the leading region for lighting system technology and human centric lighting. Various lighting associations in Europe are currently working hard to implement smart lighting controls in public and private spaces. Lighting Europe is one of Europe's leading lighting associations, producing 400 scientific articles and hosting more than 20 smart lighting events. However, North America is regarded as one of the most promising markets for smart lighting solutions in the lighting industry. The operational costs of lighting in commercial buildings in North America are anticipated to be extremely high, and smart lighting provides an efficient and cost effective alternative. Furthermore, energy rules and regulations to control energy usage are being implemented effectively in North America, promoting the development and implementation of smart lighting solutions in the region. Smart lighting systems are also gaining popularity in developing countries. The smart lighting industry's fastest expanding economy is Asia Pacific, followed by South America, the Middle East, and Africa. Furthermore, the increasing usage of this lighting in rural areas of India contributes to significant changes in the day-to-day lives of the people who live nearby, making the living environment safer and allowing them to continue commercial activity after dusk and engage in more (outside) social activities. LED lights also help to minimise carbon emissions when compared to traditional lights, which helps to reduce pollution.

Smart light penetration is predicted to grow as a result of benefits such as reduced power usage, longer life and numerous light settings in a single lamp/luminaire, and the availability of a diverse selection of current decorative lighting items. Smart lighting usage in the residential, commercial, and industrial sectors has yet to realise its full potential. As a result, several government programmes to promote the adoption of LED-based smart lights are projected to enhance demand over the projection period. For example, in January 2019, the New York Power Authority awarded a USD 7.5 Million fund to towns across the state for the installation of new smart LED street lights. Furthermore, nations such as China, Brazil, Colombia, Mexico, France, Spain, and Germany have banned the sale of incandescent lamps in order to encourage the adoption of LED lights, with high-income groups favouring LED-based smart lights. Advanced lighting control systems have become more common in recent years. With the development of complex and advanced automation and lighting control systems utilising smart lights and electronic equipment, market participants in the global smart lighting domain have several opportunities. Lighting controls save energy and money by ensuring that lights are turned off when not in use or by limiting the quantity of illumination by sensing the surroundings and brightness. The energy and cost savings realised by smart lighting controls are dependent on the facility's applications and utilisation rates. Through quick breakthroughs and improvements in occupancy/vacancy sensors, plug-and-play lighting systems, personal dimming, brightening controls, and lighting control circuit breakers, intelligent and building-wide control systems reduce energy waste. Furthermore, they are expected to bring this opportunity to the forefront and generate significant growth opportunities for the global smart lighting market over the forecast period.

The smart lighting market is divided into three parts including hardware, software, and services. In 2022, the hardware sector topped the market with a revenue share of more than 55%.The popularity of connected lighting bulbs and fixtures that can change colours, dim lights, and turn on/off using a controlling device such as a smartphone or tablet is related to the hardware segment demand. The software segment is expected to grow at the fastest rate over the projection period. The growing usage of smart lighting for data-driven purposes in crucial locations is driving demand for smart lighting. In addition, each brand requires a software application to provide light control via smartphones or tablets. The apps also assist in connecting smart lights to smart platforms such as Alexa, Crotona, and Siri for voice control. The growing popularity of creating ambient environments and assisting in data collecting in smart cities is likely to drive segment expansion during the forecast period. Under the hardware segment, the market is sus-segmented into lights & luminaires and lighting controls. During the projected period, the Lighting controls segment is expected to grow at a faster rate with more than 20% CAGR. Lighting controls are the foundation of the entire smart lighting system and hence play a significant role in the smart lighting industry. The increasing technological innovation and ever-changing controls in smart lighting systems can be credited to the segment's rise. Lighting controllers offer sophisticated lighting functionality through the use of standard protocols and distributed control systems. Intelligent lighting products, such as LEDs and HIDs, are made possible by these controls. LED drivers and ballasts, sensors, switches, dimmers, relay units, and gateways are all part of lighting controls.

Based on the smart lighting applications, the interior lighting application segment dominated the market and emerged as the greatest revenue generator. Indoor applications are further classified as residential, commercial, and industrial. Because of the growing popularity of smart lighting bulbs and fixtures that can be controlled by the user to set different lighting moods, the residential segment is predicted to rise at a rapid pace over the forecast period. Furthermore, demand in commercial and industrial space is driven by the requirement to control lighting consumption because office spaces or warehouses are operational 24x7 and require consistent power supply throughout the day and night. Installing smart lighting with built-in sensors guarantees that lights are only used in the required areas based on the movement of persons detected by the sensors. Furthermore, the light setting can be configured to dim automatically based on outside lighting inside the premises. The outdoor segment is predicted to grow at the fastest rate during the projection period. Outdoor is further subdivided into roads and roadways, architecture, and others. Lighting for patios, gardens, outside walls, and outdoor premises of a home or commercial area is included in the outdoor architectural application. The growing demand for smart lighting in outdoor applications is being driven by the desire to deliver energy-efficient illumination while also monitoring outside activity. This phenomenon is being used specifically for smart street lighting. The government has spent money to install LED-based smart lighting that is linked to a camera and sensors to gather and exchange data on outdoor activity. For the networking of necessary components, smart lighting systems use wired and wireless communication protocols such as Bluetooth, Wi-Fi, ZigBee, DALI, EnOcean, and Sigfox. Lighting control modules receive real-time information such as the lighting environment and send signals to the lighting system or luminaires to perform actions such as turning on or off lights and adjusting brightness. For example, Philips' Hue Lighting is a smart home lighting system that includes a variety of lights that can be controlled via the Hue app on smartphones. The introduction of such integrated lighting systems has increased demand for smart lamps and fixtures.

Over the projection period, the wireless technology segment is expected to experience very high revenue growth. Wireless technology speeds up installation and removes the need for extra control wires, enhancing preference and demand and driving category revenue growth. Smart LEDs that employ Bluetooth Mesh technology do not require any wires, hubs, or electrical boards and can be controlled remotely via a smartphone app. Improved data connectivity result in faster information flow both within corporations and between clients and businesses. Furthermore, train stations, airport departure lounges, cafes, hotels, and restaurants have established Wi-Fi services to allow mobile users to connect to their homes and offices while travelling by using hot spots. One of the important aspects that can drive the smart lighting industry is the scalability of smart lighting systems via wireless technology. Wireless technology makes it simple to add or remove lights, sensors, and other smart lighting system components without the need for extra wiring or infrastructure. This simplifies the process of expanding or adjusting the system to meet changing needs and requirements. Wireless technology also facilitates interaction with other smart home or building automation systems, such as security, HVAC, and entertainment systems. This enables customers to develop a more comprehensive solution that can enhance the overall functionality and efficiency of their homes or buildings. Wireless technology's scalability is especially relevant in commercial contexts such as office buildings, hotels, and retail spaces, where lighting requirements can change greatly depending on occupancy, time of day, and other factors. The lighting system may be easily adjusted to match changing demands and requirements thanks to wireless technology, giving it a more flexible and adaptable option.

The latest trend in the general lighting sector is the adoption of a Li-fi (Light Fidelity) network. Li-Fi is a wireless optical networking system that transmits data using light-emitting diodes (LEDs). Li-fi bulbs have a tiny chip that adjusts the light used for data transfer. Common LED light bulbs are employed to provide data transfer rates of up to 224 gigabits per second. In keeping with the trend, Light Rider Inc., a quantum Li-Fi firm, announced the release of two quantum encryption algorithms in 2020. The business is the first to integrate Li-Fi, a wireless communication technology that sends data between devices using light, and quantum technology. Growing environmental concerns have a big impact on the smart lighting business. Energy conservation is seen as a critical issue on every continent, and effective or smart lighting contributes significantly to energy savings. Europe is the global leader in human-centric lighting and lighting systems. Several European lighting groups are working hard to develop intelligent lighting controls in public and private places. Smart streetlights linked to IoT devices, for example, enhance safety by offering comprehensive coverage, environmental monitoring, parking and traffic management data, and municipal surveillance. Because smart lights generally include sensors, they can be used to collect data on activity patterns, sunlight intensity, occupancy, temperature fluctuations, and humidity. Government agencies require this information to monitor the city in order to respond effectively and keep an eye out for suspicious activity. Lighting Europe, one of Europe's largest lighting organisations, has organised 19 smart lighting events, published 400 scholarly articles, and manufactured 400.

Based on the installation type, the market is segmented into new and retrofit. The installation of new lighting systems, which include new-generation LED drivers and ballasts, sensors, switches, dimmers, and gateways, is referred to as a new installation. New installations, as opposed to retrofit installations, totally replace a traditional lighting system after completely replacing the lamp and its related controls and fixtures with new lamps and associated controls and fixtures. The entire system is altered and updated with new and newest technology with a completely new setup with a fresh installation. New installations are most likely to be employed in new commercial, industrial, and residential buildings. It can also be used in outdoor areas where traditional lighting systems were previously installed. Due to increased demand for energy-efficient lighting solutions across various commercial, industrial, and residential buildings, the new installation segment is likely to achieve a significantly high revenue growth rate over the forecast period. Growth in the commercial and industrial sectors, as well as new construction activities in developing countries, is driving up the use of smart LED lighting. Furthermore, the necessity to minimise energy consumption and expenses in order to promote public safety with expanding smart city projects is leading to an increase in the installation of smart LED lighting, which is driving revenue growth in the market.

Recent Developments
• In February 2023, The world leader in lighting, Signify provided connected lighting systems, smart poles, and LED street lighting to the industrial parks in Huanggang City, Hubei Province, China. With the help of this massive smart pole project, the province will be able to reduce energy use and emissions while also modernizing the city's infrastructure.
• In February 2023, Honeywell Carbon Capture Technology to be Used by ExxonMobil.
• In February 2023, Signify helped the German municipality of Eichenzell become a future-proof smart city through intelligent street lighting. Its BrightSites solution brings fast, wireless broadband connectivity to the city, allowing Eichenzell to cater to next-generation IoT applications and future 5G densification. Signify installed LED lighting, which is managed by the Interact City System. Eichenzell can continuously monitor and manage all lights from a single dashboard.
• In January 2023, Savant Company GE Lighting announced the expansion of its smart home ecosystem, Cync. Cync unveiled its entire Dynamic Effects entertainment lineup, which includes 16 million colors, pre-set and custom light shows, on-device music syncing, and other features. In addition, following a successful launch last year, Cync has expanded its Wafer light fixture line.
• In February 2023, Signify supplied LED street lighting, intelligent poles, and a connected lighting system to the industrial parks in Huanggang City in Hubei Province, China. The city opted for Signify’s BrightSites smart poles, PhilipsLED streetlights, and Interact connected lighting system. This combination provides high-quality, energy-efficient LED lighting and two-way communication on a cloud-based platform.
• January 2023 - Lutron plans to provide new solutions and upgrade existing products that enable AV professionals to offer high-quality, future-ready lighting control while allowing clients to achieve their interior design dreams, removing the need to choose between aesthetics and experience.

Covid-19 Impacts:

The COVID-19 pandemic has had a significant impact on various industries, and the global smart lighting market is no exception. Here are some of the key impacts of COVID-19 on the global smart lighting market. The pandemic led to disruptions in the global supply chain, affecting the production and distribution of smart lighting products. Factory closures, lockdown measures, and restrictions on international trade impacted the availability of raw materials and components required for manufacturing smart lighting systems. Economic uncertainty, job losses, and reduced disposable incomes due to the pandemic led to a decline in consumer spending overall. This impacted the sales of smart lighting products, as consumers were more cautious about their purchases. During the pandemic, consumers focused more on essential items and basic necessities rather than discretionary spending. Smart lighting, being a non-essential product category, experienced a decline in demand as consumers prioritized other essential purchases. As countries gradually recover from the pandemic and vaccination efforts progress, the smart lighting market is expected to rebound. The growing focus on energy efficiency, sustainability, and the increasing adoption of smart home technologies are factors that could drive the market's recovery and future growth.

Considered in this report
• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico

• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)

• Asia-Pacific (China, Japan, India, Australia, South Korea)

• South America (Brazil, Argentina, Colombia)

• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

Aspects covered in this report

• Global Smart Lighting market with its value and forecast along with its segments
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offerings:

• Hardware (Lights and Luminaires and Lighting Controls)
• Software
• Services

By Application:

• Indoor
• Outdoor

By Indoor Application:

• Commercial
• Residential
• Industrial
• Others

By Outdoor Application:

• Highways & Roadways
• Architectural Lighting
• Light for public places

By Installation Type:

• New
• Retrofit

By Communication Technology

• Wired Technology
• Wireless Technology

By Wired Technology

• Digital Addressable Lighting Interface (DALI)
• Power Over Ethernet (POE)
• Power Line Communications (PLC)
• DMX (Digital Multiplex)
• Wired Hybrid Protocols

By Wireless Technology

• ZigBee
• Bluetooth/BLE
• Wi-Fi
• Z-Wave
• Others ( EnOcean, Wireless Hybrid Protocols, LoRaWAN, Sigfox, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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