Smart Lighting Market Size – By Component, By Technology, By Application– Global Forecast, 2025 – 2034

Smart Lighting Market Size

The global smart lighting market size was valued at USD 15.8 billion in 2024 and is estimated to grow at 19.3% CAGR from 2025 to 2034. The smart lighting industry is growing because of smart city initiatives, rapid growth in smart home technologies, and technological innovations in smart lighting solutions.
 

Governments across the world are heavily investing in smart city projects which is increasing demand for smart lighting solutions as it helps in energy saving and enhancing public safety, which is a major factor expected to contribute to the market growth.
 

Consumer inclination towards the adoption of smart home technologies is anticipated to create demand for smart lighting solution that have features such as wireless connectivity & voice assistance. These features aid in controlling the light remotely further enhancing the user experience. According to Statista report, smart home market is expected to reach USD 250 Bn in 2025.
 

Rapid technological advancements in wireless technology, sensor, and approach towards integration of AI & ML is resulting in development of smart lighting solution with improved functionality. Smart lighting having features such as adaptive lighting, human-centric lighting is anticipated to increase its adoption among commercial & Industrial sector, further supporting the target market growth.
 

Lighting manufactures should focus on developing AI-driven lighting solution and IoT-enabled wireless control system. This is expected to create new opportunities for players as the introduction of new advanced lighting systems will increasing its adoption among commercial spaces and help them differentiate their product offering.
 

Strict regulations on energy consumption and green building certifications are propelling the market for smart lighting. According to GDS LIGHTING, smart lighting systems can save up to 35%-70% overall lighting costs, leading to increased demand for smart lighting solutions.
 

The demand for smart lighting is growing because of increasing need for connected infrastructure in commercial and industrial buildings. Companies are investing in advanced smart lighting systems that provide better control over lighting for optimal productivity and lower operational expenses.
 

Smart Lighting Market Trends

• Recent trend observed in the market is AI integration in smart lighting for adaptive brightness, remote control, and occupancy based lighting is gaining traction in the market. These AI-driven adaptive lighting system learn from human behavior & external conditions further adjusting the brightness, color temperature & power consumption dynamically.
   
• This AI integration is expected to create new opportunities for manufacturers. Players can focus on investing in embedded AI and edge computing in order to develop self-learning lighting systems. This development and introduction of a new lighting system can help the company to acquire new customer base and strengthen its company in market. For instance, in April 2024, Lepro announced the introduction of new AI generated lighting technology, LightGPM. This technology allows smart lights to response to commands and emotional cues which offers personalized user experience.
   
• Another trend witnessed in the market is Lighting as a Service (LaaS) model in the smart lighting market is growing. This model benefits companies and residential owners by allowing them to pay subscriptions and access advanced technologies without having to invest heavily in advance. This financial flexibility allows small and medium-sized enterprises to implement smart lighting solutions through subscription models.
   
• High consumer emphasis on adoption of energy efficient lighting solution is expected to create new opportunities for manufacturers. Players shift towards adoption of Lighting as a Service (LaaS) model can aid them in capturing long term revenue stream and increase customer retention through subscription based offerings.
   

Smart Lighting Market Analysis

Based on component, the smart lighting industry is divided hardware, software, and services.
 

• The software market is expected to register at a significant rate of over CAGR 18.6% over the forecast period. This growth is attributed to increased integration of cloud based management solution, automation, and predictive analytics in lighting systems. Further, voice control interface and mobile apps are enhancing the user experience, also boosting the market for software.  
   
• The hardware market was valued at USD 12.5 billion in 2024. Changing consumer preferences for lighting and manufactures approach towards enhancing the automation and adaptive lighting capabilities is expected to increase demand for motion, temperature & occupancy sensor, further responsible to support the market growth.
   
• Services market in the market is estimated to reach USD 9.9 billion in the year 2034. Service market is poised to grow due to increasing need for installation, maintenance and repair, and consulting as the adoption of the smart lighting increases. Increasing construction of new buildings in emerging economies are fueling the growth of services, while cybersecurity and data analytics services are in demand in developed regions.
   

According to technology, the smart lighting market is divided into wired technology and wireless technology.
 

• The wired technology market accounted for 69.8% of the market in 2024. The demand for technologies such as power over Ethernet, DALI, and power line communication is growing because of increased need for centralized control, reduced maintenance costs, and long term stability.
   
• The wireless technology market accounted for 30.2% of the market in 2024. The market growth can be attributed to increasing consumer demand for remote control & automation and manufacturers approach towards eliminating the complex wiring is expected to support the growth of target market.
   

Based on application, the smart lighting market is divided into indoor lighting and outdoor lighting.
 

• The indoor lighting market is projected to register a CAGR of 18.9% during the forecast period. The market growth can be attributed to increasing demand for energy-efficient lighting solution across residential, commercial, and industrial spaces.
   
• The outdoor lighting segment accounted for a market share of 23.5% in 2024. The market for outdoor smart lighting is expected to grow due to increased demand for smart infrastructure, security and reduced costs. Governments and municipalities are installing intelligent lighting systems with motion detection, remote control and automated spatial lighting functions to reduce costs and improve safety.
   

The North America smart lighting market held a market share of 25% in 2024. The growth of smart lighting in the North America is attributed to adoption of smart home technology, energy efficiency policies and investment in sustainable infrastructure. Continuous development in the Internet of Things, AI automation, and increasing smart city projects also drives the market.
 

• The U.S. market is valued at USD 3.9 billion in 2024. The market in U.S. is growing due to government regulations on energy consumption, green building standards and increasing adoption of smart homes in the country. U.S. is an early adopter of new technologies because of major companies in the market such as Honeywell International and Acuity Brands is headquartered in the country which help to adopt new technology.
   
• Canada market is projected to grow at 21.9% during the forecast period, because of rising investment in smart city initiatives and energy efficient public infrastructure. Cities such as Toronto and Vancouver are experiencing the increasing demand for housing, which also contributes to the growth of smart lighting.
   

The Europe smart lighting market is valued at USD 5.2 billion in 2024. Smart lighting industry in Europe is growing because of stringent regulations for energy efficiency, high adoption of smart cities, and green building certifications. IoT-enabled and AI-driven technologies also increase demand for smart lighting in the European market.
 

• Germany market is estimated to reach USD 10.3 billion by 2034. The growth of smart lighting industry in Germany is attributed to adoption of industrial automation, industry 4.0 initiatives and growth of commercial real estate. Germany companies are investing in smart factories which contributes to the growth of market.
   
• UK market is projected to grow at a CAGR of 19.6%. UK market is expanding because of adoption of smart home technologies and increasing demand for IoT enabled smart lighting solutions in residential and commercial buildings. According to a report by GreenMath, more than 50% of households in UK are expected to have smart home products by 2027, further driving the market for smart lighting.
   
• France market was valued at 500 million in 2024. smart lighting industry is growing in France due to government investment in intelligent street lighting and sustainable urban planning, as well as rising consumer awareness about energy savings and smart home integration.
   
• Italy smart lighting market is projected to grow at a CAGR of 14.6% during the forecast period. Rising demand for aesthetic and human-centric lighting in homes, hotels, and offices has led to market growth in Italy. Strong tourism and hospitality sector is adopting smart lighting for improved ambiance and energy saving, also boosts the market in both residential and commercial segments.
   
• Spain market is estimated to grow at a CAGR of 9.1%. The adoption of smart lighting in Spain is attributed to the increasing deployment of public infrastructure projects and commercial real estate modernization. The favorable regulations for the integration of solar energy with smart lighting systems also supports growth in market.
   

The Asia Pacific smart lighting market is expected grow significantly to reach to USD 34.9 billion by 2034. Rapid urbanization, infrastructure development, and increasing IoT adoption in residential and commercial sectors. China, India, and Southeast Asian countries are investing in smart city projects which further propel the market for smart lighting in Asia Pacific region.
 

• India market is anticipated to register a CAGR of 24.9% during 2025-2034. The market growth is attributed to rapid growth in residential & commercial construction activities, coupled with increasing government emphasis on deployment of energy efficient lighting solution is responsible in increasing demand for smart bulbs and luminaries.
   
• China market is expected to reach at USD 19.7 billion by 2034, because of rapid urbanization and government initiatives for smart cities and sustainability. Chinese cities such as Shanghai, Beijing are investing in smart building technologies to improve energy efficiency, which has created strong demand for smart lighting solutions.
   
• Japan smart lighting market is projected to grow at a CAGR of 16.1% during the forecast period. The growth of market in Japan is attributed to government’s focus on energy conservation and technological advancements in the smart lightings.
   
• South Korea market was valued at USD 900 million in 2024. The market in South Korea is fueled by stringent government energy regulations & carbon neutral goals which encourage consumers in adoption of energy efficient solutions.
   
• Australia market is projected to reach at USD 2.8 billion by 2034. Smart lighting industry in Australia is growing because of strict regulations regarding energy efficiency and increasing climate change awareness are driving investments in energy-efficient lighting in commercial and residential buildings. In addition, government incentives for smart technologies are further boosting the market growth.
  
   

Latin America smart lighting market is anticipated to register a CAGR of 9.3% during the forecast period. The growth of the market in Latin America is attributed to the increasing urbanization and smart city development projects. Moreover, rising electricity costs are driving the adoption of lighting solutions that reduces energy consumptions. 
 

• Brazil market is projected to grow at a CAGR of 9.9% during the forecast period. Brazil's smart lighting industry is growing with commercial real estate development, especially in cities like Sao Paulo and Rio de Janeiro. Office buildings, shopping malls, and corporate hubs are embracing smart lighting technologies which is driving the market.
   
• Mexico market is anticipated to reach USD 300 million by 2034. The market in Mexico is growing because of investments in smart cities, rapid urbanization, and increasing adoption of smart home technologies. Additionally, industrial sector is adopting the smart factory technologies, which also contribute to the growth of the market.
   

MEA smart lighting market was valued at USD 800 million in 2024. The smart lighting industry in MEA is growing because of rapid expansion of commercial real estate, increasing adoption of IoT technology, and government policies for sustainability. Furthermore, rising investment in smart city projects driving the demand for connected and energy efficient lighting solutions.
 

• Saudi Arabia market is projected to grow at a CAGR of 14.2% during the forecast period. The rapid expansion of mega projects such as NEOM, The Red Sea Project, and Qiddiya is driving the demand for advanced lighting solutions in Saudi Arabia.
   
• South Africa market is estimated to grow at a CAGR of 12.6% during the forecast period, because of businesses and households are investing in automated, low-power LED lighting with motion sensors and off-grid capabilities. In addition, growing urbanization is driving municipalities to install smart street lighting to enhance security and lower maintenance costs.
   

• UAE market is estimated to reach USD 1.1 billion by 2034. Initiatives such as the UAE Energy Strategy 2050 are driving the market.  The rise of luxury real estate developments in cities like Dubai and Abu Dhabi is fuelling demand for high-end, customizable lighting solutions integrated with home automation and IoT-based controls.
   

Smart Lighting Market Share

The smart lighting industry is highly competitive. Top 5 key players in the market are Signify, ams-OSRAM, Hubbell, Legrand, and Cooper Lighting. These companies collectively hold a market share of over 20% in the market. Companies in the market compete over technological innovations, price, and distribution. Companies are investing in innovative products with advanced features such as AI-driven automation, human centric lighting, and Li-Fi technology.
 

Key players take advantages of their broad product offerings and strong distribution network to maintain and gain competitive advantage. Companies are developing customizable lighting products that can easily integrates with smart home ecosystems such as Google Assistant, Amazon Alexa, and Apple HomeKit. This integration enhances the home automation and offers centralized control over lighting.  
 

Companies are focusing on collaboration and partnership for innovation in technology, with technology providers and smart home ecosystems. Major companies are actively acquiring small technology businesses to improve their technology base and offer innovative solutions. To expand their market reach companies are investing in distribution networks in emerging economies.
 

Signify is a major company in the smart lighting market. The company leverage its strong distribution network and strategic partnerships to expand its market share. Company is expanding its manufacturing in Asia Pacific and Middle East to cater the increasing demand from these regions. For instance, in July 2024, Signify and GILA AI Tawakol Electric announced a joint venture, Signify GILA Lighting Technologies, aiming to develop regional manufacturing base in Egypt.  
 

Legrand specializes in automation-driven lighting controls, which are easy to integrate into the smart home ecosystem. Legrand is an established player in industrial and commercial lighting markets. The company is expanding with collaboration and partnerships. For instance, in September 2023, Legrand collaborated with Microsoft to create a new hybrid conferencing space featuring Signature Microsoft Teams Rooms.
 

Smart Lighting Market Companies

Some of the eminent market participants operating in the smart lighting industry include:

• Acuity Brands
• AMS OSRAM
• Cooper Lighting
• Cree Lighting
• General Electric
• Havells
• Helvar
• Honeywell
• Hubbell
• Itron
• Legrand
• LIFX
• Lutron Electronics
• RAB Lighting
• Schneider Electric
• Sengled
• Signify
• Synapse Wireless
• Syska
• Verizon
• Wipro
   

Smart Lighting Industry News

• In January 2025, Signify (Philips Hue) introduced next-gen AI-powered smart lighting. The new features include an AI assistant, smart home security options, and integration with LG TVs.
   
• In April 2024, Govee launched two smart floor lamps, Floor Lamp 2 and Floor Lamp Pro.  Floor Lamp 2 produces brighter illumination with matter compatibility and customizable lighting effects. On the other hand, Floor Lamp Pro carries 324 color and white light beads for complete illumination, the light bar 300-degree rotation, and in-built Bluetooth speakers.
   
• In October 2023, Signify acquired key assets from bankrupt lighting companies Universal Lighting Technologies (ULT) and Douglas Lighting Controls, including patents, product designs and trade names. This bolsters Signify's intellectual property portfolio, especially in LED lights.
   

The smart lighting market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Component

• Hardware
  • Smart bulb
  • Luminaire
  • Light controls
• Software
  • On-premises
  • Cloud
• Services
  • Pre-sales
  • Post-sales

Market, By Technology

• Wired technology
  • Power line communication
  • Power over ethernet
  • DALI
  • Hybrid
• Wireless technology
  • Bluetooth
  • Zigbee
  • Wi-Fi
  • Enocean
  • LPWAN
  • Hybrid

Market, By Application

• Indoor lighting
  • Residential
  • Commercial
    • Hospitality
      • Restaurants
        • Bars/pubs
        • Cafes
        • Bistro
        • Others
      • Hotel
    • Recreation
    • Travel & tourism
    • Others
  • Industrial
• Outdoor lighting
  • Highways & roadways
  • Public places
  • Bridges & tunnels

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE