Smart Lighting Market Size

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.

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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.