Global Smart Lighting Market by Connectivity (Wired, Wireless), by Application (Indoor, Outdoor) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global smart lighting market was valued at USD 10.85 Billion in 2020. It is expected to grow at a compound annual rate (CAGR of 20.4%) between 2021 and 2028. Smart lighting has gained popularity and increased demand in commercial and residential areas due to its ability to be connected with IoT devices, creating a variety ambient lighting using only smartphones and tablets. Smart lights can be dimmable and have different color tones depending on the requirement. They can also be programmed to turn on/off, monitor lighting energy consumption, and connect via Wi-Fi or Bluetooth, SmartThings (Z-Wave), ZigBee, SmartThings (SmartThings), Z-Wave, ZigBee, and Wi-Fi. Integration with the platform allows smart lights to be voice controlled, including via Google Assistant, Amazon Alexa, Apple Siri and Microsoft Cortana. Smart lighting is seeing a lot of growth due to the wide variety of features, other than illumination, and growing adoption of IoT devices as well as smart assistant platforms.

Connected lighting is also known as smart lighting. It can seamlessly integrate into an IT network within a building or city infrastructure in order to share information about the operation's status. Smart street lights installed on city streets or parking lots can provide safety and environmental monitoring. They also offer traffic management information and surveillance via IoT devices. Many smart lights have sensors that can be used to collect information about activity patterns, daylight levels and occupancy as well as temperature changes. These data are vital to government departments in order to monitor the city and take necessary actions.

Incandescent lamps are discouraged by government policies that encourage energy conservation and environmental protection. This will increase demand for LED smart lighting. Globally, the lighting industry is responsible for approximately 19% of total electricity consumption and 6% of total greenhouse gas emissions. LED smart lights, on the other hand, are extremely efficient. They use 70% less energy, and can connect to other devices to gather information for future processes. They are much more durable and have no mercury content. The LED lights also emit no harmful greenhouse gases. The LED technology has the potential to revolutionize the lighting industry. It has also infiltrated smart lighting segments where LED is preferred by both vendors and consumers.

Smart lights are expected to become more popular due to their many benefits, including reduced power consumption, longer life, multiple lighting settings in one lamp/luminaire, and the availability of a variety of modern decorative lighting products. Smart lighting is still being adopted in all sectors, including residential, commercial, as well as industrial. Many government initiatives are being taken to encourage the use of LED-based smart lighting. This will increase their demand in the future. In January 2019, the N.Y. Power Authority provided a USD 7.5million fund to localities across the state for new smart LED street lighting. To encourage adoption of LED lighting, countries like Brazil, Colombia and Mexico have banned the sale of incandescent lamps. This is a sign that high-income individuals are turning to LED-based smart light sources. Many smart lighting companies reported negative effects of the COVID-19 epidemic due to lockdowns, which disrupt construction activity and supply. Due to the COVID-19 pandemic, the decline in consumer purchasing power and delays in completing construction projects caused by lockdown, smart lighting companies saw an increase in their purchase orders, timelines, and payments.

Component Insights

The market for smart lighting is divided into three segments: hardware, software and services. With a market share of over 57%, the hardware segment led in 2020. The smart lighting hardware can be further divided into luminaires and lamps. However, the smart lamp segment has high growth potential for the 2021-2028 period. This is due to the increasing popularity of connected lighting fixtures and bulbs that can dim, change colors, or switch on/off via a control device like a smartphone or tablet.

Software is expected to experience the greatest CAGR during the forecast period. Smart Lighting is being driven by increasing adoption of smart lighting in critical areas. Each brand must have a software application to allow for the control of lights via smartphones and tablets. These apps allow smart lights to be connected with smart platforms like Crotona and Alexa. They can also be controlled using voice commands. This segment is expected to grow due to the huge popularity of creating an ambient atmosphere and data collection in smart cities.

Connectivity Insights

Wireless connectivity is expected to grow at a CAGR of more than 20% during the forecast period. Consumers who need connectivity within a limited range are highly inclined to use wireless connectivity in smart lighting environments. This segment is expected to be the fastest growing over the forecast period. Wi-Fi, Bluetooth and SmartThings are all wireless technologies that allow light bulbs to be controlled by smartphones. Wireless technology is being used in the residential sector to control luminaire colors and other aesthetic functions within a small space.

In 2020, the wired connectivity segment was the largest revenue contributor and will likely continue to be the dominant over the forecast period. For distances exceeding 30 feet, wired connections are necessary. Ethernet can be used to facilitate wired connections within 100 meters. DALI, DSI and DLVP are able to connect over 1000 feet. There is a growing demand for wired connectivity in smart lighting.

Application Insights

Indoor lighting applications dominated the market, and they were the largest revenue contributors to the market. Further sub-segments of indoor lighting applications are residential, commercial, and industrial. Due to increasing popularity of smart lighting fixtures and bulbs that can be controlled by users for different lighting moods, the residential segment will see a significant growth rate during the forecast period. The need to manage lighting consumption in commercial and industrial spaces is driving demand. Warehouses and offices are open 24x7, and require constant power supply. Smart lighting that incorporates sensors to detect movement and adjust the light intensity can be used in areas where people are moving. The light settings can also be adjusted to adjust for outside lighting.

Over the forecast period, the outdoor segment will see the greatest CAGR. Further sub-segments of the outdoor segment include highways & roads, architecture, and other. Lighting for outdoor spaces such as patios, gardens, exterior walls and commercial premises is an outdoor architectural application. Smart lighting is becoming increasingly popular in outdoor spaces. This is due to the increasing demand for energy-efficient lights that can monitor outdoor activity. This is a particularly useful phenomenon for smart street lighting. The government has invested in LED-based smart lighting that is connected to sensors and cameras to collect and share information on outdoor activity.

Regional Insights

Europe leads the way in developing safety and uniform performance standards to ensure indoor smart lighting for parking, roads, and garages. In line with LED technology's continued development, dedicated LED luminaires as well as LED replacement smart lamps are becoming the main growth areas of the lighting industry. Existing smart lighting manufacturers continue to update their product lines, but existing manufacturers are diversifying their product ranges in order to enter the market. There is a surplus of smart luminaires vendors that are dedicated to specific applications such as task lighting, downlighting, landscape lighting, general illumination, outdoor general area lighting, and general ambient lighting.

Due to rising demand from both residential and commercial applications, Asia Pacific will be a major region. China will be the biggest revenue contributor and hold the largest global market share. Due to their growing economies and increased investments in smart cities projects, countries like South Korea, India and Japan are expected to lead smart lighting adoption. The changing lighting landscape across all commercial sectors is an important factor in smart lighting demand in Asia Pacific. There is a growing demand for smart lighting due to the increasing construction of commercial buildings for office, retail and entertainment. The COVID-19 pandemic, which impacted construction activities in the early days of construction, will likely slow down the anticipated growth in smart lighting demand.

Market Share Insights & Key Companies

Companies are competing for the best distribution network in order to be leaders of the market. Both the traditional players and the newer players are well aware of the importance distribution networks. Companies are investing heavily in expanding their distribution networks. Kokilanje Philips N. V., for example, has successfully used its well-established distribution network in order to distribute its LED products around the world. For increased smart lighting sales, the company is trying to attract more distributors and retail outlets.

Manufacturers are increasingly using forwarding and backward Integration. Changfang, Honglitronics and others are moving from smart light packaging to downstream products to reduce costs and increase their investment in distribution networks. Strong distribution networks allow for rapid replacement of traditional lighting with LED smart lights. To reduce the cost of smart lighting products, market leaders are focused on making affordable products that can be used in mass production. The rapid reduction in product prices and the increased penetration of smart lighting on global markets has been made possible by technological innovation. Smart lighting products will be in high demand due to their low prices and strong distribution networks. These are some of the major players in the global smart lighting market:

• Acuity Brands

• Signify Holding

• Honeywell International Inc.

• Itron Inc (Streetlight Vision).

• Ideal Industries, Inc.

• Hafele GmbH & Co KG

• Wipro Consumer Lighting

• YEELIGHT

• Sengled Optoelectronics Co., Ltd.

• Verizon

• Schneider Electric SA

Up Market Research published a new report titled “Smart Lighting Market research report which is segmented by Connectivity (Wired, Wireless), by Application (Indoor, Outdoor), By Players/Companies Signify Holding, YEELIGHT, Verizon, Schneider Electric SA, Sengled Optoelectronics Co Ltd, Ideal Industries Inc, Honeywell International Inc, H¤fele GmbH & Co KG, Acuity Brands, Itron Inc (Streetlight Vision), Wipro Consumer Lighting”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Smart Lighting Market Report Segments:

The market is segmented by Connectivity (Wired, Wireless), by Application (Indoor, Outdoor).

Smart Lighting Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Smart Lighting Market

Overview of the regional outlook of the Smart Lighting Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Smart Lighting Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Smart Lighting Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Wired

                2. Wireless

                1. Indoor

                2. Outdoor

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Smart Lighting Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
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• Understanding Competition Scenario
• Product & Brand Management
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• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Smart Lighting Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.