Connected Lighting Market Report 2026

The connected lighting market size has grown rapidly in recent years. It will grow from $10.45 billion in 2025 to $12.04 billion in 2026 at a compound annual growth rate (CAGR) of 15.2%. The growth in the historic period can be attributed to rising adoption of energy efficient lighting technologies, increasing urbanization and smart city development, growth in commercial construction activities, declining cost of led lighting systems, early adoption of building automation systems in developed regions.

The connected lighting market size is expected to see rapid growth in the next few years. It will grow to $21.41 billion by 2030 at a compound annual growth rate (CAGR) of 15.5%. The growth in the forecast period can be attributed to increasing demand for net zero and green buildings, expansion of smart city infrastructure projects, rising integration of iot-enabled building systems, growing focus on energy optimization and carbon reduction targets, increasing adoption of ai-driven facility management systems. Major trends in the forecast period include increasing adoption of human-centric lighting systems for enhanced occupant well-being and productivity, rising deployment of energy-efficient smart lighting in commercial buildings to reduce operational costs, growing integration of lighting systems with building automation platforms for centralized control, expansion of wireless connected lighting solutions enabling flexible retrofitting in existing infrastructure, increasing use of occupancy and daylight sensors for adaptive lighting optimization.

The growing penetration of smart home systems is expected to propel the growth of the connected lighting market going forward. A smart home system is a network of connected devices and appliances that can be remotely controlled and automated to improve convenience, security, and energy efficiency. The expansion of smart home systems is primarily contributing to market growth due to increasing consumer preference for greater convenience, allowing users to control and automate household devices remotely, which saves time and simplifies daily routines. Connected lighting supports smart home systems by integrating with sensors and voice assistants to automatically adjust lighting based on occupancy, time of day, or user commands, thereby enhancing comfort and energy savings. For instance, in August 2024, according to GreenMatch, a UK-based online services provider, as of 2023, around 5.3 million households in the UK, roughly 19.7% of all homes, utilize smart home products, and it is projected to increase sharply, with nearly all homes, 98.8%, expected to adopt smart devices by 2027. Therefore, the growing penetration of smart home systems is supporting and propelling the growth of the connected lighting market.

Leading companies operating in the connected lighting market are focusing on developing innovative solutions, such as cloud-based lighting management, to enable centralized control, monitoring, and automation of lighting systems to improve operational efficiency, safety, and regulatory compliance. Cloud-based lighting management is a system that uses cloud computing to remotely monitor, control, and optimize lighting networks through internet-connected devices and software platforms. For example, in June 2025, Signify N. V., a Netherlands-based lighting company, launched the Interact emergency lighting system, a wireless solution that enables building managers to control, monitor, and test emergency lighting through a secure cloud-based dashboard. Integrated with the Interact building manager platform, the system automates function and duration testing, delivers health status alerts, and generates detailed compliance reports while supporting multiple testing schedules. These capabilities allow building operators to reduce manual intervention, minimize operational costs, enhance system reliability, and ensure adherence to safety regulations while enabling seamless management of both general and emergency lighting within a unified connected infrastructure.

In March 2023, Signify N. V., a Netherlands-based lighting company, acquired Intelligent Lighting Controls Inc. (ILC) for an undisclosed amount. With this acquisition, Signify N. V. intended to expand its connected lighting portfolio by strengthening its wired control systems offering, enhancing its energy-saving lighting solutions portfolio, and increasing opportunities to deliver efficient LED lighting products. Intelligent Lighting Controls Inc. (ILC) is a US-based manufacturing company that provides connected lighting solutions.

Major companies operating in the connected lighting market are Signify N. V., Schneider Electric SE, Acuity Inc., Legrand SA, Eaton Corporation plc, Lutron Electronics Co. Inc., Honeywell International Inc., Samsung Electronics Co. Ltd., Panasonic Holdings Corporation, Hubbell Incorporated, Delta Electronics Inc., Zumtobel Group AG, Fagerhult Group AB, Helvar Oy Ab, Trilliant Networks Inc., Bajaj Electricals Limited, Leviton Manufacturing Co. Inc., Havells India Limited, Wipro Lighting Limited, Syska LED Lights Pvt. Ltd., Ubicquia Inc., Enlighted Inc., Schréder S. A., Dimonoff Inc., Flashnet S. A., CIMCON Lighting Inc.

North America was the largest region in the connected lighting market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the connected lighting market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the connected lighting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The connected lighting market consists of revenues earned by entities by providing services such as energy usage tracking and optimization analytics, predictive maintenance and fault detection alerts, and remote lighting control and monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected lighting market also includes sales of smart ceiling lights, lighting control hubs, and smart lamps. 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.

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