Global Smart Lighting Market is Estimated to Witness High Growth Owing to Rapid Urbanization & Rising Infrastructure Development Projects
The Global Smart Lighting Market is estimated to be valued at US$ 18.95 Bn in 2024 and exhibit a CAGR of 17.9% over the forecast period 2023-2031. Rapid urbanization along with growing adoption of smart connected devices are major trends driving demand in the global market. Furthermore, several government-led infrastructure development projects especially in developing nations are also expected to propel market growth.
Market Dynamics:
Rapid urbanization along with rising infrastructure investment spearheaded by governments worldwide has been a key driver for adoption of smart lighting solutions over the last few years. Additionally, growing focus on energy efficiency and cost savings are prompting end users to increasingly invest in connected lighting systems with integrated controls and sensors. Also, emergence of IoT based technologies have enabled development of innovative lighting solutions with features such as remote monitoring and management. Major players are actively focused on incorporation of advanced technologies to gain competitive edge.
Two Key Market Drivers Pushing Growth of Global Smart Lighting Market
Increased Adoption of LED Lights and Luminaires
One of the primary drivers fueling the growth of the global smart lighting market is the increased adoption of LED lights and luminaires across both residential and commercial sectors. LED lights offer various advantages such as high energy efficiency, lower maintenance and replacement costs, longer lifespan, and compact designs. This has encouraged more consumers and businesses to replace traditional incandescent and CFL bulbs with smarter and more eco-friendly LED alternatives. The solid-state lighting technology has transformed the entire lighting industry and accelerated the demand for connected, controllable and customizable smart lighting solutions.
Rising Focus on Energy Conservation and Cost Savings
Another major factor propelling the smart lighting industry is the growing focus on energy conservation and cost savings globally. Smart lighting systems equipped with advanced sensors and network capabilities allow remote monitoring and management of lighting infrastructure. This enables organizations and households to efficiently optimize lighting usage based on occupancy and daylight levels. Smart controls can help reduce energy consumption from lighting by around 20-30% and lower maintenance expenses over time. The ability of these systems to deliver tangible energy and financial benefits is compelling more end-users to adopt smart lighting controls and services for their indoor and outdoor lighting needs.
Two Key Market Restraints Hindering Growth of Global Smart Lighting Market
High Initial Capital Investments
One of the key challenges currently restraining the mass adoption of smart lighting solutions is their higher upfront installation and component costs compared to traditional lighting systems. While LED bulbs have become more affordable over the years, fully integrated smart lighting controls require compatible luminaires, sensors, network switches, gateways and management software - significantly inflating initial capital expenditures. This high cost of ownership prevents price-sensitive end-users, especially in developing nations, from making the switch to smarter lighting immediately.
Interoperability and Standardization Issues
The lack of common communication protocols and interoperability standards in the fragmented smart lighting market is another major barrier undermining its growth potential currently. The inability of different vendors' products and management platforms to communicate seamlessly often leads to compatibility issues, especially in large and complex lighting deployments. The absence of universally accepted guidelines for data formats and interfaces has also discouraged certain organizations from investing in proprietary smart lighting technologies that may become obsolete quickly. This has limited the overall uptake of smart lighting systems to some extent.
Two Key Market Opportunities for Growth of Global Smart Lighting Market
Integration with IoT Platforms and Smart Cities Initiatives
One of the prominent opportunities for smart lighting companies lies in deeper integration of their solutions with broader IoT platforms and smart city infrastructure projects. As more cities globally undertaking smart city transformations, there is a growing emphasis on deploying intelligent and connected public lighting systems. Integrating smart poles, sidewalk lights and street lamps with other IoT sensors and smart city management dashboards provides an opportunity to deliver advanced location-based services. This will drive the demand for specialized smart city lighting projects and networks.
Expansion into Outdoor and Horticultural Lighting Applications
Another key area offering growth potential is the application of smart lighting technology in outdoor and horticultural settings. Traditional outdoor lighting remains mostly inefficient and offers limited controls. The market is now more receptive towards intelligent and sensor-based lighting for applications like smart street lights, landscape illumination, outdoor advertising, stadium lighting and greenhouse farming. This emerging outdoor sector presents lucrative prospects for smart lighting providers to expand their product portfolios and offerings to serve new verticals.
Link: https://www.coherentmarketinsights.com/market-insight/smart-lighting-market-5351
Key Developments:
- In February 2023, Signify, a global leader in lighting solutions, provided Huanggang City in Hubei Province, China, with LED street lighting, intelligent poles, and a connected lighting system. The city selected Signify’s BrightSites smart poles, Philips LED streetlights, and the Interact connected lighting system, which together deliver high-quality, energy-efficient LED illumination and two-way communication via a cloud-based platform.
- In January 2023, Lutron Electronics, a leading provider of lighting control systems, announced plans to introduce new solutions and enhance existing products. These innovations will enable AV professionals to deliver high-quality, future-ready lighting control, allowing clients to achieve their interior design goals without compromising on aesthetics or experience.
- In January 2023, GE Lighting, a company under the Savant brand, announced an expansion of its Cync smart home ecosystem. The Cync lineup now features Dynamic Effects for entertainment, including 16 million colors, pre-set and custom light shows, on-device music syncing, and more. Additionally, following a successful launch the previous year, Cync has expanded its Wafer light fixture line.
Key Players:
Acuity Brands, Airthings, Crestron Electronics, Eaton Corporation, General Electric (GE), Honeywell International, Legrand, Lutron Electronics, Osram Licht AG, Philips Lighting (Signify), Samsung Electronics, Schneider Electric, Siemens AG, Syska LED, and Toshiba Corporation
