Smart Lighting Global Market Opportunities and Strategies to 2030: COVID-19 Implications and Growth

This report describes and explains the global smart lighting market and covers 2015 to 2020, termed the historic period, and 2020 to 2025 termed the forecast period, along with further forecasts for the period 2025-2030. The report evaluates the market across each region and for the major economies within each region.

The global smart lighting market reached a value of nearly $11,065.3 million in 2020, having increased at a compound annual growth rate (CAGR) of 12.1% since 2015. The market is expected to grow from $11,065.3 million in 2020 to $22,569.7 million in 2025 at a rate of 15.3%. The market is then expected to grow at a CAGR of 14.3% from 2025 and reach $43,978.9 million in 2030.

Growth in the historic period resulted from increase in voice assistant devices, strong economic growth in emerging markets, low interest rate environment, increase in internet penetration, high investments. Factors that could hinder the growth of the smart lighting market in the historic period include high costs, fluctuating prices of metals, shortage in electronic components supply.

Going forward impact of coronavirus, rising investments in energy efficient infrastructure, evolving smart cities, favorable government initiatives, increasing IoT will drive the growth. Factors that could hinder the growth of the smart lighting market in the future include the harmful effects of LED lights and coronavirus pandemic.

The smart lighting market is segmented by product into smart bulbs, fixtures and lighting controls. The lighting controls market was the largest segment of the smart lighting market segmented by product type, accounting for 48.7% of the total in 2020. Going forward, the smart bulbs segment is expected to be the fastest growing segment in the smart lighting market segmented by product type, at a CAGR of 16.3% during 2020-2025.

The smart lighting market is segmented by light source into LED, HID, and other light sources. The LED market was the largest segment of the smart lighting market segmented by light source, accounting for 76.5% of the total in 2020. Going forward, the LED segment is expected to be the fastest growing segment in the smart lighting market segmented by light source, at a CAGR of 17.2% during 2020-2025.

The smart lighting market is segmented by communication technology into wired, and wireless. The wired market was the largest segment of the smart lighting market segmented by communication technology, accounting for 71.6% of the total in 2020. Going forward, the wireless segment is expected to be the fastest growing segment in the smart lighting market segmented by communication technology, at a CAGR of 18.2% during 2020-2025

The smart lighting market is segmented by application into commercial, government, residential and others. The commercial market was the largest segment of the smart lighting market segmented by application, accounting for 47.4% of the total in 2020. Going forward, the residential segment is expected to be the fastest growing segment in the smart lighting market segmented by application, at a CAGR of 17.5% during 2020-2025

North America was the largest region in the global smart lighting market, accounting for 36.7% of the total in 2020. It was followed by Western Europe, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the smart lighting market will be Eastern Europe and Africa, where growth will be at CAGRs of 29.1% and 27.1% respectively. These will be followed by South America and Middle East where the markets are expected to grow at CAGRs of 25.9% and 21.7% respectively.

The Coronavirus rapidly impacted the performance of various industries, the smart lighting market included. Many countries have shut down business operations and implemented social distancing measures to limit people’s movements and interactions at public spaces in cities. Covid-19-19 had uncovered the importance of urban parks and green spaces, during the lockdown period, parks were essential for recreation, social interaction and maintaining social relations. For example, in cities in northern Europe, outdoor spaces were important sources for people’s daily dose of natural light. Moreover, good weather during lockdown meant that more people than usual were in urban green spaces. Increasing or decreasing brightness in public spaces depends on the detected footfall and can help residents feel safer and encourage locals to roam around even in the evening. Companies such as Signify and Luci association are looking for smart lighting solutions as parks are not lit and therefore not accessible at night. The desirability of illuminating green spaces at night had always been an ongoing requirement, but now, with greater importance being given to green spaces in cities, the development of smart lighting solutions in open public spaces might change in the future of open public spaces.

The smart lighting market is fairly fragmented with large number of global players operating in the market. The key players in the market are focusing on developing innovative products to meet the demand from customers. The companies are also focusing on expanding its business presence in the market through strategic acquisition of emerging companies in the industry. The top 10 companies in the market occupied 52.26% of market share in the global smart lightings market. Major players in the market includes Schneider Electric SA, Cisco Systems Inc., Honeywell Inc., Signify Holding (Philips), and Eaton.

The top opportunities in the smart lighting market segmented by type will arise in the lighting controls segment, which will gain $5,282.1 million of global annual sales by 2025. The top opportunities in segment by application will arise in the residential segment, which will gain $5,190.9 million of global annual sales by 2025. The top opportunities in segment by light source will arise in the LED segment, which will gain $10,275.1 million of global annual sales by 2025. The top opportunities in segment by communication technology will arise in the wired segment, which will gain $7,394.6 million of global annual sales by 2025The smart lighting market size will gain the most in the USA at $2,464.5 million.

Market-trend-based strategies for the smart lighting market include manufacturing Wi-Fi enabled LED bulbs, adopting LiFi technology to employ high speed two-way wireless communications for the workplace, investing in human-centric lighting (HCL) to optimize building efficiency for resident protection and safety, adopting IoT smart lighting technologies to enhance user experience and safety, adopting mergers and acquisitions to expand their existing product portfolio and geographical presence, focusing on new product launches to meet the market demand.

Player-adopted strategies in the smart lighting market include business expansion with increased investments in modernization, expanding the business presence in smart lighting market through partnerships and collaborations, expanding presence through collaborations and new product launches, expanding international presence through mergers and acquisitions and business expansion through partnerships and collaborations to deliver connected solutions for outdoor LED lighting and related smart city applications.

To take advantage of the opportunities, the publisher recommends the smart lighting companies to focus on development of Wi-Fi enabled led bulbs, emergence of IoT technology for smart lightning, increasing focus on Li-Fi technology, expand in emerging markets, scale up through merger and acquisition activity, market-based pricing, increase in sales through e-commerce, participate in trade shows and events, focus on smart lighting customers and invest in human-centric led lighting.