Smart Lighting Global Market Report 2024

The smart lighting market size has grown rapidly in recent years. It will grow from $15.55 billion in 2023 to $18.37 billion in 2024 at a compound annual growth rate (CAGR) of 18.1%. The historical period's growth can be credited to the rise in voice assistant device usage, robust economic expansion in emerging markets, a low-interest-rate environment, an increase in internet penetration, and substantial investments.

The smart lighting market size is expected to see exponential growth in the next few years. It will grow to $38.55 billion in 2028 at a compound annual growth rate (CAGR) of 20.4%. The anticipated growth in the forecast period can be ascribed to the increasing investments in energy-efficient infrastructure, the evolution of smart cities, favorable government initiatives, and the rising implementation of the Internet of Things (IoT). Major trends expected in the forecast period include the production of Wi-Fi-enabled LED bulbs, the adoption of LiFi technology for high-speed two-way wireless communications in the workplace, investments in Human-Centric Lighting (HCL) to optimize building efficiency for resident protection and safety, the incorporation of IoT smart lighting technologies to enhance user experience and safety, the pursuit of mergers and acquisitions to expand product portfolios and geographical presence, and a focus on new product launches to meet market demand.

The growth of the smart lighting market is fueled by government support in both developed and developing economies. In emerging markets, the expansion of the smart lighting market is further driven by the rise in disposable incomes, regulatory backing for energy-efficient lighting, and the integration of advanced technologies. Smart lighting systems ensure significant cost savings and lower energy consumption. For example, in December 2021, the Government of India, Ministry of Power, announced the approval of projects worth $4.12 billion (Rs. 30,904 crore) under the Integrated Power Development Scheme (IPDS). This highlights how supportive government initiatives boost the demand for smart lighting, contributing to the market's growth.

The increasing prevalence of smart city projects is expected to propel the smart lighting market's growth in the future. Smart cities leverage digital technology and data-driven solutions to improve performance, well-being, and cost efficiency while reducing resource consumption. The emphasis on energy efficiency, data-driven control, and sustainable urban development in smart cities encourages the adoption of smart lighting, leading to the implementation of more intelligent and environmentally friendly lighting solutions. According to the IMD Smart City Index Report in 2023, the number of smart cities has increased from 118 in 2021 to 141 in 2023. Therefore, the rise in smart city projects significantly contributes to the growth of the smart lighting market.

The adoption of Li-Fi (Light Fidelity) networks represents the latest trend in the smart lighting market. Li-Fi is a wireless optical networking technology that utilizes light-emitting diodes (LEDs) for data transmission. Li-Fi bulbs contain a small chip that modulates the light for data transfer. Common household LED light bulbs can be used to facilitate data transfer at speeds of up to 224 gigabits per second. In line with this trend, PureLiFi launched Light Antenna ONE in February 2023, a Li-Fi module designed for mass integration into billions of devices. It serves as the first wireless communications antenna enabling Li-Fi connectivity at scale, with a size smaller than a dime and ready for integration into connected devices.

Major companies in the smart lighting market are increasingly focusing on introducing environmentally friendly LED bulbs, exemplified by products such as Philips Ultra Efficient LED bulbs, to enhance revenue. Philips Ultra Efficient LED bulbs comprise an energy-saving light bulb range that delivers significant energy consumption benefits. For example, Signify N.V., a Netherlands-based lighting company, introduced Philips Ultra Efficient LED bulbs in April 2023. These bulbs are up to 60% more energy-efficient than standard Philips LED bulbs and boast a lifespan of up to 50,000 hours. Available in various shapes and sizes, including A19, A21, and BR30, and featuring multiple color temperatures such as warm white, cool white, and daylight.

In March 2021, Glamox, a US-based lighting company, acquired LiteIP Limited for an undisclosed amount, aiming to expand its smart lighting solutions portfolio and reinforce its presence in the smart lighting market. LiteIP Limited, based in the UK, specializes in the manufacturing of wireless lighting control systems.

Major companies operating in the smart lighting market report are Schneider Electric SA, Cisco Systems Inc., Honeywell Inc., Signify Holding, Eaton, Legrand S.A, Acuity Brands Inc., Wipro, Zumtobel Group AG, OSRAM GmbH, Philips Investment Co. Ltd., Cree company china, SSK Group, Halonix, Param LED Products, MLS Lighting, NVC International Holdings Limited, OPPLE Lighting, San’an Optoelectronics Co., Ltd., Meka Electric Corporation, YEELIGHT, Odeer Lighting, Longhorn Intelligent Tech Co., Ltd., Contrac Lighting, PULSAR, Apollo Lighting Ltd., LED Light Vision, FLUX LIGHTING, Eleti Lighting Germany, ELEKTRA GMBH, NEONICA POLSKA, ART META, Altavola Design, Lumines Lighting, TREVOS, Varton, GE Lighting, Acuity Brands, LSI Industries Inc., Energy Focus, Inc., Lumileds, Deco Lighting, Frederico Lopes Leal, Light Tool Industries E Comercio Ltd., Studio dois emme iluminação, Veta Energia, Idoler Iluminacion, Ledolas, Lutron, Hafele.

North America was the largest region in the smart lighting market in 2023. Western Europe was the second-largest region in the global smart lighting market share. The regions covered in the smart lighting market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart lighting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Diverse types of smart lighting are available, including smart bulbs, fixtures, and lighting controls, utilizing various light sources such as LED, HID, and others. Smart bulbs, for instance, can be controlled via a smartphone app for convenient on/off toggling. Smart lighting systems utilize both wired and wireless communication technologies and find applications across commercial, governmental, residential, and other sectors.

The smart lighting market research report is one of a series of new reports that provides smart lighting market statistics, including smart lighting industry global market size, regional shares, competitors with a smart lighting market share, detailed smart lighting market segments, market trends and opportunities, and any further data you may need to thrive in the smart lighting industry. This smart lighting market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The smart lighting market consists of sales of smart bulbs, smart light fixtures, smart lighting controls, and other smart lighting. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.