Smart Lighting Market Regional Insights And Global Expansion

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.

Smart lights consist of several networked components, including lighting fixtures that collect information about the physical environment and allow users to control or adjust devices based on their requirements. The advent of the Internet of Things (IoT) and its rising set of applications in lighting systems has contributed to the growth of the market. Moreover, advancements in technologies that allow the easy integration of functions such as ambient sensing and voice control in lighting systems have widened and diversified the scope of smart lighting applications.

Smart lighting systems use wired and wireless communication protocols such as Bluetooth, Wi-Fi, ZigBee, DALI, EnOcean, and Sigfox for the networking of necessary components. Lighting control modules receive real-time information such as the lighting environment and transmit signals to the lighting system or luminaires to undertake actions such as switching on or switching off lights and adjusting brightness. For instance, Hue Lighting by Philips is a smart home lighting system, which provides an entire range of lights that can be controlled using the Hue app on smartphones. The emergence of such integrated lighting systems has boosted the demand for smart lamps and smart fixtures.

LED prices have been plummeting over the past years owing to various factors, including overproduction of LED chips and packages and a comparatively slower rise in the demand for LED lamps from the backlight segment. The trend has led to the introduction of low-priced LED chips and packages in the general household lamp segment. Several governments have been promoting the use of LED lights owing to benefits such as energy efficiency, cost-effectiveness, and a longer lifespan when compared to other lighting.

Moreover, concerns regarding the rising consumption of non-renewable power, which is a major contributor to greenhouse emissions and environmental deterioration, are rising among consumers and enterprises. Lighting is an indispensable requirement in daily activities and accounts for around 15% of global electricity consumption and around 5% of global greenhouse gas emissions. Conserving the energy utilized in lighting can significantly limit carbon emissions and improve environmental health. Increasing pressure to make changes on this front has encouraged several policymakers and governments to implement sustainable policies to promote energy-saving lighting products. Additionally, several governments are promoting and providing education on sustainable energy-saving practices to end consumers. Increased awareness related to the quality of health and energy conservation practices could drive the demand for energy-saving products in the near future.

However, the total cost of ownership of smart lighting includes the direct and indirect expenses incurred during the complete life cycle of owning or using a smart lighting product. It includes the cost of equipment, cost of installation, deployment, operation, upgrading, production, and maintenance. Moreover, smart lights consist of various components such as sensors, control systems, dimmers, switches, and software. As a result, the initial costs of smart lights are higher than conventional lights, which may compel several residential owners and low-budget end-users to select alternate or conventional energy-saving lighting. This could limit the adoption of smart lights to a certain extent. Also, smart lights are sometimes incompatible with conventional infrastructures and fittings due to the difference in their form factor and circuitry, which means the switches may have to be replaced at times. Similarly, all the smart lighting fixtures associated with conventional or existing fittings cannot be used with all lighting sources as an enclosed fixture does not allow the heat to dissipate from the bulb. LED bulbs dissipate less heat as compared to incandescent bulbs because of the heat sink installed at the base of the LED bulb. However, if the LED bulb is enclosed in a closed housing, it would not be able to dissipate the generated heat effectively and the overall lifespan of an LED lamp may be reduced. Such compatibility concerns could restrain the growth of the market.

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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
o Lamp
o Luminaire
• Software
• Services

Smart Lighting Connectivity Outlook (Revenue, USD Million, 2018 – 2030)
• Wired
• Wireless

Smart Lighting Application Outlook (Revenue, USD Million, 2018 – 2030)
• Indoor
o Residential
o Commercial
• Outdoor
o Highways and Roadways
o Architectural
o Others

Smart Lighting Regional Outlook (Revenue in USD Million, 2018 – 2030)
• North America
o U.S.
o Canada
• Europe
o UK
o Germany
o France
• Asia Pacific
o China
o Japan
o India
o Australia
o South Korea
• Latin America
o Brazil
o Mexico
• Middle East and Africa
o Saudi Arabia
o South Africa
o UAE

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.

• In October 2022,IDEAL INDUSTRIES, INC. announced the sale of Casella, its occupational and environmental monitoring equipment business, to TSI Instruments Ltd., a subsidiary of TSI Incorporated. This strategic divestiture allows IDEAL to focus on its core business and growth ambitions in the professional electrician products, high power density connections, and superior charging solutions markets.

• In September 2022, Alcorcón, a city in Spain, launched a smart city pilot project with Itron’s intelligent street lighting solution. The project includes upgrading existing streetlights to LEDs and adding Networked Lighting Controllers (NLCs) from Itron. The NLCs provide the ability to dim and control lights, as well as collect health status data and provide advanced configuration options.

• In August 2022, Häfele America Co. launched the Loox Illuminated Wireless Adjustable Shelf System, a new LED lighting innovation. This system is meant for frameless cabinets such as closets, entertainment centers, kitchens, and pantries. It comes with wireless controllers, adjustable shelves, and a variety of lighting options to suit the user’s needs.

• In July 2022, Signify Holdings. introduced a new line of smart WiZ lighting solutions designed to improve daily comfort and convenience. The new collection adds to the existing line-up with table and floor lamps, a portable light switch, and new ceiling lights and lamps.

 

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

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