Smart Lighting Market Size By Component (Hardware [Smart Bulb, Luminaire, Light Control], Software [On-premise, Cloud], Service [Pre-sales, Post-sales]), By Technology (Wired [PLC (Power Line Control), PoE (Power over Ethernet), DALI (Digital Addressable Lighting Interface), Hybrid], Wireless [Bluetooth, Zigbee, Wi-Fi, EnOcean, Hybrid]), By Application (Indoor Lighting [Residential, Commercial, Industrial], Outdoor Lighting [Highways & Roadways, Public Places, Bridges & Tunnels]), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 - 2025

Published Date: Aug 2019  |  Report ID: GMI413  |  Authors: Ankita Bhutani, Preeti Wadhwani

Report Format: PDF   |   Pages: 435   |   Base Year: 2018




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Smart Lighting Market size exceeded USD 7.5 billion in 2018 and is anticipated to grow at more than 15% CAGR from 2021 to 2027. Stringent government regulations across the globe to restrict the use of inefficient lighting technologies is likely to drive the industry growth. The government across the globe are constantly working to phase out inefficient lamps such as incandescent and halogen lamps, promoting the use of environmental lighting lamps. Recently, the European Union (EU) announced new regulations to phase out the tungsten halogen and compact fluorescent lamps by 2020.
 

Smart Lighting Market

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The new regulations under the new Ecodesign Law state that the maximum standby power of 0.5W and a minimum energy requirement of 85 lumens for lamps. This will encourage the sale of more energy-efficient lamps across the region. The government authorities are also offering tax rebates and subsidies to promote the use of more efficient lighting technologies across the globe.
 

The rapid surge in the number of smart city development initiatives and investments has further accelerated the adoption of smart lighting solutions. As industrialization and urbanization are increasing, the energy consumption across the cities is also rising. To reduce energy consumption and effectively manage resources, governments are leveraging on advanced technology solutions to manage assets and resources more effectively. This is encouraging the development of smart city initiatives globally, which will support the smart lighting market demand.
 

However, the high cost of smart lighting solutions as compared to traditional lighting alternatives is acting as a major constraint in the industry growth. The security issues associated with the use of connected lighting and smart lighting systems will also hinder the demand.
 

Market, By Component

Hardware segment is leading the component landscape with over 80% of the smart lighting market share in 2018 driven by the wide adoption of smart bulbs and connected luminaire among residential & commercial sectors. The integration of advanced technologies, such as Bluetooth, ZigBee, and Wi-Fi, into lighting solutions is one of the major factors driving the market demand. This allows the smart bulb to be controlled through mobile apps or home/building automation hubs and individual bulbs can be programmed to change the output as per the requirements. Moreover, the cost-effective nature and the energy efficiency of smart bulbs are augmenting their demand in the market. It is expected that the above 250 million-unit smart bulbs will be sold by 2025.
 

The software market is likely to witness 22% CAGR through 2025 owing to growing adoption of smart home and business automation solutions across the globe. Over the past five years, there has been a sudden increase in the integration of the IoT devices into residential & commercial sectors.
 

The consumers are using connected devices to reduce energy consumption and remotely manage their appliances from remote locations. This software allows users to control the intensity of lamps and luminaires as per the infrastructure, ambiance, and intensity of the light. Additionally, the advent of lighting as a service solution along with the proliferation of mobile apps to control the lighting is also serving as a major driver for the growth of the software segment.
 

Market, By Technology

Germany Smart Lighting Industry

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Wired technology captures the major share in the smart lighting market, accounting for more than 70% in 2018. Increasing usage of wired communication technology in the outdoor lighting space is driving the segment demand. The robust nature of the wired technology coupled with high reliability and control over the lighting solutions makes it an ideal solution for outdoor lighting applications.
 

The large-scale adoption of the PLC technology in the outdoor lighting application and DALI in indoor lighting application also helps the market to grow.  The superior properties, such as susceptibility to electromagnetic interference and high reliability in extreme environmental conditions, also fuel the demand for the technology. However, the inflexibility and limited extensibility of the wired solution act as major constraints in the industry growth. 
 

The wireless technology is set to observe around 21% CAGR till 2025 propelled by the growing adoption of wireless connectivity for lighting applications. The lighting manufacturers are shifting from traditional lighting control protocols to sophisticated wireless lighting control systems. Wireless technology offers a natural grid for connectivity and enhances operational efficiency and assists in developing new business avenues.
 

Market, By Application

Japan Smart Lighting Market

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Indoor lighting segment accounts for over 78% of the smart lighting market share led by the growing demand for energy-efficient lighting solutions across residential and commercial sectors. The businesses and homes are leveraging smart lighting solutions to reduce energy consumption. Smart lighting solutions save energy by using need-based light management systems. The systems detect and collect real-time data about the occupants, light-field sensing, and sunlight to optimize the required light output.
 

Outdoor lighting is projected to register approximately 20% growth rate through 2025 due to the growing smart city development initiatives worldwide. The smart lighting solutions are widely used across highways & roadways, bridges & tunnels, and public places to reduce energy consumption. The rising need among the government authorities to optimize the use of energy and remotely manage lighting resources has further accelerated the adoption of smart lighting solutions.
 

Regional Insights

Europe is dominating the smart lighting market with more than 35% share in 2018. The stringent government regulations in the region restrict the use of inefficient lighting technologies. The government in the region has announced a multiple phase-out plan for inefficient lamps. The governments in the region have also promoted the use of LED lamps by conducting free distribution of LED lamps along with tax rebates and subsidies. This is encouraging the adoption of smart lighting solutions in the region. The smart city development initiatives in the region along with the stable macroeconomic condition in the region will foster the regional market revenue.
 

Asia Pacific is poised to attain an annual growth rate of about 19% till 2025 on account of the large-scale adoption of LED lamps in the region. The decline in the price of LED lamps along with supportive government initiatives is the major factor acting as a catalyst in aggregating the demand for LED lamps in the region. The growing adoption of smart & connected lamps in the region is developing numerous opportunities for market growth.  The increasing industrialization and urbanization in the region will also drive the demand for smart lighting.
 

Competitive Market Share

The key vendors in the smart lighting market are Philips Lighting, Osram, GE Lighting, Cree, Schneider Electric, Echelon Corporation, Acuity Brands, Silver Spring Networks, Deako, and Tvilight. These players are leveraging both organic and inorganic growth strategies to gain market share and strengthen their position in the market.  
 

New product developments are the most commonly used strategies among market players. The companies are constantly working on enhancing their product capabilities and features with the integration of advanced technologies and wireless connectivity. Companies are also focusing on strategic alliances to expand their customer base and global footprints.
 

The global smart lighting market research report includes in-depth coverage of the industry with estimates & forecast revenue in USD from 2014 to 2025, for the following segments:

Market, By Component

  • Hardware
    • Smart bulb
    • Luminaire
    • Light controls
  • Software
    • On-premise
    • Cloud
  • Service
    • Pre-sales
    • Post-sales

 

Market, By Technology

  • Wired
    • Power Line Communication (PLC)
    • Power over Ethernet (PoE)
    • DALI
    • Hybrid
  • Wireless
    • Bluetooth
    • Zigbee
    • Wi-Fi
    • EnOcean
    • LPWAN
    • Hybrid

Market, By Application

  • Indoor lighting
    • Residential
    • Commercial
    • Industrial
  • Outdoor lighting
    • Highways & roadways
    • Public places
    • Bridges & tunnels

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Netherlands
  • Asia Pacific
    • Australia & New Zealand (ANZ)
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa

 

Frequently Asked Questions (FAQ) :

The market size of smart lighting was USD 7.5 billion in 2018.
The industry share of smart lighting is projected to witness more than 15% growth rate during 2019 to 2025.
According to the analysts at GMI, Asia Pacific industry will attain an annual growth rate of more than 19% during the forecast period.
Outdoor lighting segment will grow at a CAGR of approx. 20% till 2025 as growing public infrastructure development is creating the need for lighting solutions across areas like bridges, tunnels, and roadways & highways.
Residential and commercial sectors are widely adopting connected luminaire and smart bulbs that can be programmed to alter the output as per need, inducing the demand for robust hardware components.
A wired connection is strong and offers high control and reliability over the lighting solutions in case of unavailability of internet, making it ideal for deployment in outdoor lighting applications.

Premium Report Details

  • Published Date: Aug 2019
  • Pages: 435
  • Tables: 709
  • Charts / Figures: 29
  • Companies covered: 18
  • Countries covered: 20

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