SMART LIGHTING MARKET ANALYSIS

Smart Lighting Market Size and Trends

The Global Smart Lighting Market is estimated to be valued at US$ 18.95 Bn in 2024 and is expected to reach US$ 59.86 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 17.9% from 2024 to 2031.

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Factors such as increasing adoption of LED lights, advancements in wireless communication technologies, and rising need for energy efficiency will contribute to the market's growth over the forecast period.

Advancements in wireless communication technologies

With each passing year, wireless communication technologies have become more advanced, offering higher bandwidth capabilities and lower power consumptions. This has enabled the proliferation of wireless connectivity in many new devices and led to novel applications. In the arena of smart lighting, wireless connectivity is playing a pivotal role by allowing lights, switches and other control points to connect and communicate without the need for wired infrastructure. Wireless standards like Wi-Fi, Bluetooth, Zigbee, and other proprietary protocols are offering lighting manufacturers convenient and cost-effective ways to make their products 'smart'.

Advancements in low-power wireless technologies have allowed switches and motion sensors to operate for years on small coin cell batteries. All these advancements are helping drive broader adoption of smart lighting as they address key barriers like installation complexity and reliability. Looking ahead, emerging wireless protocols focused on Internet of Things (IoT) like NB-IoT and LTE-M are poised to unlock more exciting smart lighting use cases relying on outdoor and large-area connectivity.

Growing Popularity of IoT based Smart Home Automation Systems

Across the world, there is growing interest among homeowners to automate different aspects of their living spaces for added convenience and efficiency. A key area where automation is gaining traction is smart home lighting. Today, various smart home platforms equipped with intelligent virtual assistants, smart hubs and app-based controls allow users to set up different lighting scenes, schedules, and automations with relative ease. Some popular uses include voice-controlled lighting, automatic activation of lights when motion is detected, gradual dimming/brightening of lights during sunset/sunrise, and illumination of specific rooms based on user presence. Lighting forms an important backbone of smart home ecosystems since it can be easily integrated with other devices like door/window sensors, security cameras and thermostats to create sophisticated automations.

System integrators and lighting manufacturers have recognized this growing demand for integrated smart home experiences and are offering bundled solutions. Many smart home platforms now natively support popular lighting protocols like Zigbee, Wi-Fi etc., allowing installation of a wide range of third-party smart bulbs and fixtures with minimum configuration. This is triggering the development of multifunctional bulbs that can double up as Bluetooth or Wi-Fi speakers, air quality monitors and more. Overall, the proliferation of smart home platforms centered on voice assistants and emerging standards like Matter is pulling more homeowners towards IoT-enabled smart lighting for automating day-to-day activities based on schedules, user preferences and environmental triggers. This rising popularity of intelligent lighting as an integral part of smart homes bodes well for continued growth of the market.