Smart Lighting Market, By Component (Hardware, Software, Services), By Technology (Wired, Wireless), By Application (Indoor Lighting, Outdoor Lighting) & Forecast, 2024 - 2032

Smart Lighting Market Size

Smart Lighting Market was valued at over USD 14 billion in 2023 and is estimated to register a CAGR of over 15% between 2024 and 2032. The proliferation of smart city projects across the globe has contributed significantly to the growth of the market.
 

Smart lighting is a key component of smart city projects as it provides many benefits in terms of energy efficiency, sustainable development and social improvement The integration of smart lighting into urban infrastructure enable smart cities to achieve sustainability goals and contribute to global efforts to reduce carbon emissions. Nations around the globe are focusing on installing smart street lighting, driving market growth. For instance, in June 2024, an article published by Cities Today, states that, Switzerland’s Bellinzona city has installed more than 2,600 smart streetlights which resulted in 50% of reduced energy consumption.
 

Smart lighting entails incorporation of the IoT in the lighting systems to incorporate more capabilities such as control, automation, and monitoring. Smart lighting is growing rapidly because standards in wireless communication such as Zigbee, Z-Wave and Bluetooth have advanced measurably, and smart home devices are becoming more popular. Integration and compatibility with other smart gadgets that control the lighting systems deliver more effective and easier to use smart solutions. Companies are continuously developing connected lighting products that leverage the latest advancements in IoT and connectivity technologies. For instance, in November 2023, Laser an Australian based tech firm has introduced its new range of AmbiColour fashionable Smart LED lighting solutions for home adornment. The smart lights, namely the AmbiColour is quite a creative and customizable concept, which, further, adds a colourful facet into the existing branding schemes and is affordable for brightening up spaces.
 

The initial cost of acquiring smart lighting including smart bulbs, fixtures, and controllers is often high compared to traditional lighting options. This upfront investment can be a deterrent for consumers if they want a hesitant price to switch to smart lighting. With smart lighting technology, retrofitting an existing lighting system can be expensive. Many consumers and businesses already have conventional lighting systems, and the cost of upgrading fixtures or wiring to install smart lighting can be a deterrent to smart lighting in addition to own expenses, the cost of lighting can be included in the overall investment. The cost of installing smart lights can be high because professional electricians or technicians can install the devices and repair the Wiring, alignment testing, and connectivity to existing fixtures of can increase the overall cost of installation.
 

Smart Lighting Market Trends

The growing trend towards smart homes is driving the smart lighting industry. As more consumers embrace home automation and connectivity, smart lighting is becoming an integral part of smart personal living spaces. Smart lighting accounts for more than 15 - 20% of smart home appliances. As customers invest in home automation solutions, they demand smart lighting as infrastructure products mature.
 

Smart lighting products are designed to integrate with the wider smart home ecosystem. In line with popular smart home platforms, voice assistants (such as Amazon Alexa, Google Assistant and Apple HomeKit) enhance the overall smart home experience. Consumers often invest in smart lighting that integrates seamlessly with their existing or planned indoor smart home systems. Smart lighting systems can be easily integrated into the wider smart home ecosystem. This ecosystem includes other connected devices such as smart thermostats, security cameras, voice assistants and home entertainment systems. This integration enhances the overall smart home and encourages consumers to use more smart devices.
 

Smart lighting allows homeowners to remotely control and manage their lighting systems, allowing users to adjust lighting on/off via mobile apps or voice commands. You can plan, increase overall comfort & automate space. The intelligent lighting systems are customized. Users can create lighting maps based on specific preferences or activities. The ability to adapt lighting to different rooms and seasons enhances the overall ambience of a smart home.
 

Smart Lighting Market Analysis

Based on application, the smart lighting market is divided into indoor lighting and outdoor lighting. The indoor lighting segment dominated the global market with a share of over 70% in 2023.
 

• The growing trend towards smart homes, where various devices & systems are connected and controlled through smart technology is driving the demand for smart indoor lighting. Consumers are increasingly adopting smart lighting solutions to improve comfort, energy efficiency and overall home automation. Indoor smart lighting systems are designed to seamlessly integrate with popular smart home ecosystems like Amazon Alexa, Google Assistant and Apple HomeKit. This integration allows users to control interior lighting via voice commands or a centralized smart home platform, helping to grow segments.
   
• Smart room lighting systems allow users to personalize and personalize their lighting experiences. This includes adjusting light levels, changing colors, and creating lighting conditions for different activities (e.g. reading, relaxing, or entertaining). An emphasis on an enhanced user experience supports lighting smart indoor controls play a big role.
   

Based on component, the market is divided into hardware, software, and services. The hardware segment is expected to register a CAGR of over 15% during the forecast period.
 

• The integration of smart lighting systems with the Internet of Things (IoT) is a key factor driving the hardware segment growth. Smart bulbs, luminaires, and light controls are equipped with connectivity features, enabling users to control & monitor lighting remotely through smartphones, tablets, or other IoT devices.
   
• Smart bulbs are becoming more technologically advanced, offering features such as color-changing capabilities, tunable white light, and compatibility with voice assistants & smart home ecosystems. These advancements make smart bulbs more appealing to consumers, contributing to increased sales and segment growth.
   

Asia Pacific smart lighting market is expected to grow at a CAGR of over 17% till 2032. Many countries in Asia Pacific are experiencing rapid urbanization and industrialization as cities expand and modernize energy efficient, safe, urban areas whole life And to increase demand smart lighting solutions are on the rise Many cities in the Asia-Pacific region are investing in smart city initiatives to improve urban infrastructure and services. Smart lighting is an integral part of these systems, helping to save energy, improve public safety and improve quality of life.
 

The market in China is developing at increasing rates fostered by urbanization processes, the introduction of advanced technologies and an increase in the number of smart homes. Smart lighting systems will benefit the Chinese government since efficiency is one of the objectives of its energy policy. For instance, in August 2023, Signify, a world leader in lighting, inaugurated its biggest LED lighting manufacturing site in the world in Jiujiang, Jiangxi Province, China. Large-scale smart city projects, coupled with the increasing demand for intelligent and connected living spaces, contribute to the flourishing smart lighting industry in China. Key players in the industry are actively innovating to cater to the diverse needs of the Chinese consumer base.
 

The Japan smart lighting market is defined by technological and cultural characteristics which celebrates efficiency. Smart lighting that focuses on energy conservation and is eco-friendly is gaining popularity in both the residential uses and C&I customers. For instance, in January 2023, Nichia, a Japanese-based and world’s largest LED manufacturer & inventor of high-brightness blue and white LEDs, announced the addition of the NVSW719AC and NVSW219C-V2 to its industry-standard ceramic, high-power 3535 size portfolio of LEDs. Japan's technological leadership, coupled with a high standard of living, positions it as a key market for innovative smart lighting solutions.
 

Further, the smart lighting industry in the U. S. is growing at significant rate, owing to innovation and an increased awareness of energy conservation. More so, due to the rising popularity of smart home solutions and the incorporation of IoT into homes, consumers in the U. S. are taking up smart lighting systems for homes and offices amongst other things. For instance, in July 2023, Lumileds, a world leader in LED innovation and manufacturing, announced that it produces LUXEON Matrix products and custom-integrated LED solutions for the lighting industry in the U.S. This allows Lumileds to provide improved support for North American customers, reduce transportation costs, time & environmental impacts, eliminate tariffs, and simplify the entire supply chain. The market benefits from a supportive regulatory environment including government initiatives promoting energy conservation and sustainability.
 

Smart Lighting Market Share

Signify Holding and Acuity Brands Lighting Inc. hold a significant share of over 15% in the market. Major companies like Signify Holding, Acuity Brands Lighting Inc., OSRAM Licht Group, and Schneider Electric Software LLC dominate the market, due to their extensive product portfolios, strong brand recognition and global reach. These industry leaders leverage advanced R&D capabilities to introduce cutting-edge smart lighting solutions. They integrate IoT technologies energy-efficient systems and seamless connectivity. Strategic partnerships allow them to capture significant market share and maintain a competitive edge.
 

Moreover, the smart lighting sector is witnessing substantial contributions from emerging companies and niche players focused on specialized solutions. These companies are driving innovation through unique product offerings. Examples include advanced lighting controls, personalized lighting environments and integrated smart home ecosystems. Competitive dynamics are further intensified by strategic mergers, acquisitions and collaborations, such strategies enable companies to expand their technological capabilities and market presence.
 

Smart Lighting Market Companies

Major players operating in the smart lighting industry are:

• Signify Holding
• Acuity Brands Lighting Inc.
• OSRAM Licht Group
• Schneider Electric Software LLC
• Honeywell International Inc.
• Lutron Electronics Co. Inc.
• Cooper Industries Inc. (Eaton)
   

Smart Lighting Industry News

• In April 2024, Govee announced the launch of two new smart floor lamps - the Floor Lamp 2 and Floor Lamp Pro. The Floor Lamp 2 offers brighter illumination, Matter compatibility, and customizable lighting effects. The Floor Lamp Pro features 324 color and white light beads for optimal illumination, a 300-degree rotatable light bar, and an integrated Bluetooth speaker.
   
• 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 drivers.
   

The smart lighting market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2018 to 2032, 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
  • Italy
  • Spain
  • Netherlands
  • Sweden
  • Finland
  • Norway
  • Denmark
  • Benelux
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA