Smart LED Bulbs Global Market Report 2024

The smart led bulbs market size has grown exponentially in recent years. It will grow from $13.8 billion in 2023 to $17.2 billion in 2024 at a compound annual growth rate (CAGR) of 24.6%. The expansion observed in the historical period can be credited to the increasing emphasis on energy efficiency and cost savings, integration with smart home systems, a focus on environmental sustainability, convenience and automation features, and the reduced cost of LED technology.

The smart led bulbs market size is expected to see rapid growth in the next few years. It will grow to $34.57 billion in 2028 at a compound annual growth rate (CAGR) of 19.1%. The anticipated growth in the forecast period can be attributed to factors such as the integration with voice assistants, the introduction of health and wellness lighting features, the expanding presence of smart lighting in commercial spaces, advancements in connected lighting technologies, and government initiatives promoting energy efficiency. Key trends expected in the forecast period involve the incorporation of circadian rhythms and human-centric lighting, the adoption of the thread protocol for connectivity, the integration of advanced sensors, the proliferation of smart LED strips and panels, and an increased adoption of Bluetooth mesh networking.

The growth of the smart LED bulb market is significantly influenced by the development of smart cities. The illumination of smart cities is anticipated to be a pivotal factor in future growth, with LED lighting networks expected to dominate the future of street lighting systems in these cities. The rise of smart cities is poised to drive the lighting controls industry, leading to a revolution in light management. For example, in March 2021, the Indian government, as reported by the Indian Brand Equity Foundation (IBEF), allocated an investment of $28.31 billion for the "Smart City Mission" in 2020, with a substantial portion earmarked for completing projects.

The surge in urbanization is another driving force behind the smart LED bulbs market. Urbanization, marked by the growth and expansion of cities accompanied by population migration from rural to urban areas, fuels the demand for energy-efficient and sustainable lighting solutions. Smart LED bulbs address this need by reducing energy consumption, lowering costs, and enhancing public safety in urban environments. As of April 2022, over 4.3 billion people, accounting for 55% of the world's population, lived in urban settings, with projections indicating an increase to 80% by 2050, according to the World Economic Forum.

The higher installation cost of smart LED bulbs poses a significant challenge to the market's growth. The initial expenses associated with integrating or replacing lighting systems, especially in small and medium-sized industries, can be considerable. Renowned brands of smart LED bulbs, such as Philips Hue and LIFX, may charge up to $60 per bulb, depending on factors such as form, size, and color capabilities. Consequently, the elevated installation cost is anticipated to impede the growth of the smart LED bulbs market.

A noteworthy trend in the smart LED bulbs market is the prevalence of Wi-Fi-enabled LED bulbs. These bulbs establish a connection to the home router, eliminating the need for a separate network and simplifying the setup. Wi-Fi-enabled lights can be easily controlled through dedicated applications provided by the brand and are compatible with popular smart assistants such as Alexa and Google, facilitating convenient light management. An emerging player in the Wi-Fi LED lights sector is Lifx, recognized as a top competitor to Philips. While Lifx lights may come with a higher price tag compared to Philips products, they offer brighter illumination, extended lifespan, and emit infrared light in darkness, making them suitable for outdoor fixtures near security cameras.

Leading companies in the smart LED bulbs market are strategically focusing on introducing environmentally friendly LED bulbs to enhance their market revenue. Philips Ultra Efficient LED bulbs, launched by Signify N.V. in April 2023, represent a range of energy-saving light bulbs with substantial advantages in terms of energy efficiency. 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, including A19, A21, and BR30, and offering multiple color temperatures such as warm white, cool white, and daylight, Philips Ultra Efficient LED bulbs cater to consumers aiming to reduce both energy bills and environmental impact.

In March 2021, SMART Global Holdings, Inc., a US-based company specializing in LED lighting solutions, acquired Cree, Inc. for a deal valued at $300 million. This acquisition aligns with SMART Global Holdings, Inc.'s diversification strategy in the LED lighting market, with Cree, Inc. being a well-established US-based manufacturer of LED products.

Major companies operating in the smart led bulbs market report are General Electric Company, Panasonic Corporation, LG Electronics Inc., Schneider Electric SE, Honeywell International Inc., ABB Ltd., Eaton Corporation PLC, Koninklijke Philips N.V., Wipro Enterprises Ltd., Legrand S.A., Signify N.V., SELC Ireland Limited, OSRAM Licht AG, Hubbell Incorporated, Acuity Brands Lighting Inc., Dialight PLC, Zumtobel Group AG, Cree Inc., Lutron Electronics Co. Inc., Ideal Industries Inc., Leviton Manufacturing Company Inc., Helvar Ltd., Synapse Wireless Inc., Enlighted Inc., LightwaveRF PLC, Syska Hennessy Group Inc., TVILIGHT B.V, Adesto Technologies Corporation, RAB Lighting Inc., Silver Spring Networks Inc. Asia-Pacific was the largest region in the smart LED bulbs market in 2023. Western Europe was the second-largest region in the global smart LED bulbs market share. The regions covered in the smart led bulbs market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Smart LED bulbs utilize both wired and wireless technologies. Wired technology involves connecting smart LED bulbs through physical wires, suitable for both indoor and outdoor lighting installations, whether as part of new installations or retrofits.

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

The countries covered in the smart led bulbs market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart LED bulbs market consists of sales of wired smart LED bulbs and wireless smart LED bulbs. 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.