North America Residential Lighting Control System - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The North America Residential Lighting Control System Market size is estimated at USD 6.91 billion in 2024, and is expected to reach USD 14.20 billion by 2029, growing at a CAGR of 15.5% during the forecast period (2024-2029).

A lighting control system integrates communication between different inputs and outputs for lighting control, typically through one or more central computing devices. These systems find extensive application in illuminating indoor and outdoor spaces in commercial, industrial, and residential settings.

Key Highlights

• LED lighting and its control systems represent a highly energy-efficient technology poised to revolutionize the lighting landscape in the United States. Residential LEDs, particularly those with ENERGY STAR ratings, consume at least 75% less energy and boast a lifespan of up to 25 times longer than traditional incandescent lighting. The widespread adoption of LED lighting and control systems holds significant promise for energy conservation in the United States.
• North America's LED and smart lighting sector is witnessing robust growth, with a promising trajectory ahead. Government initiatives aimed at curbing energy consumption and greenhouse gas emissions have spurred the adoption of energy-efficient lighting solutions, notably smart lighting systems, through incentive programs.
• According to David Buerer, director of Product Management for Controls, Leviton, in 2024, key trends in the lighting controls market encompass deeper integration with smart building systems, a heightened emphasis on user-friendly solutions, escalating demands for lighting controls in energy codes, and a persistent drive for energy efficiency and sustainability. Notably, rebates for networked lighting controls play a pivotal role in spurring retrofits, bolstering awareness, enhancing ROI, boosting adoption rates, and fortifying energy efficiency through advanced lighting controls.
• Lighting significantly contributes to energy consumption in buildings. According to the US Department of Energy, ENERGY STAR-rated products consume at least 75% less energy and have a lifespan of up to 25 times longer than traditional incandescent lighting in homes. LEDs, as a highly energy-efficient lighting technology, hold the promise of reshaping the lighting landscape in the United States.
• Amid the current economic climate, many semiconductor firms are scaling back their capital investments. The US market is proving distinct, with challenges that set it apart from other global regions. Notably, semiconductor projects face setbacks, with delays attributed to labor and material scarcities. Fluctuating prices of raw material commodities add an extra layer of unpredictability to the industry. Historically, chip production has been concentrated in Southeast Asia and China. However, the United States now only contributes roughly 12% to the global semiconductor output.

North America Residential Lighting Control System Market Trends

Hardware Holds Major Share

• Residential lighting fixtures, like LED bulbs, downlights, track lights, and under-cabinet lights, rely on LED drivers. These drivers supply power and regulate current, ensuring LEDs function optimally and deliver the desired brightness. In decorative lighting, strip, rope, and LED tape lights with LED drivers enable color customization, dimming, and dynamic lighting effects.
• According to the World Bank, more than 80% of Canada's total population currently resides in urban areas. In recent years, Canada's rate of urbanization has been on the rise, with advancements in technology reducing the need for labor in the agriculture and energy sectors, and the service industries in Canada experiencing growth of urban population, along with increasing building permits, and new home constructions are expected to drive the growth of indoor lighting products across the region,
• Moreover, Daylight sensors are pivotal in adhering to building codes and standards set by prominent organizations, including ASHRAE 90.1, IECC, the Lighting Controls Association (LCA), and LEED. These sensors automatically modulate artificial lighting in response to natural daylight, effectively curbing energy consumption.
• Notably, ASHRAE 90.1 and IECC mandates underscore the adoption of daylight harvesting techniques for energy reduction. Buildings can readily align with these stringent codes by seamlessly integrating these sensors into lighting systems. The Lighting Controls Association (LCA) actively advocates leveraging advanced controls, such as daylight sensors, to bolster energy conservation efforts. The above instances are expected to create more demand for Indoor LEDs in the coming years.
• From roughly 1.4 billion units installed in 2017 to over 7.9 billion units in 2035, the number of LED light installations in the United States is rising. By 2025, 56% of residential are expected to have LED lighting installed. Dimmers play a crucial role in reducing energy consumption, as dimmer switches offer a significant benefit: energy savings. Consumers have a higher chance to save up to 25% on their energy costs by dimming their lights by just 25%.

Wireless Segment to Witness Major Growth

• Wireless controls, utilizing radio waves or other wireless methods, eliminate the need for control wiring. This feature is especially appealing when integrating advanced controls into pre-existing structures. Control input devices can draw power from an internal battery or harness energy from sources like ambient light, temperature variations, or even the mechanical energy generated by a switch being toggled. These devices transmit control signals wirelessly from a transmitter to a receiver in a lighting controller. The controller is typically situated at the luminaire, a junction box, or a panel.
• Wireless lighting control technology encompasses Zigbee, Z-Wave, and Bluetooth Mesh. While Z-Wave and Bluetooth Mesh find their niche in home automation, Zigbee is carving a path in residential building markets. Its appeal lies in its resilience and scalability, boasting the ability to accommodate a virtually limitless number of control nodes across a lighting setup.
• The primary allure of wireless systems lies in their straightforward installation, potentially leading to reduced labor costs. This advantage shines, particularly in retrofit scenarios, where replacing an existing wired system would prove both time-consuming and cost-prohibitive.
• With the increase in residential and multifamily housing sector construction, smart home technology seamlessly integrates wireless lighting control. This integration offers landlords and tenants convenience and energy savings and allows for personalized lighting catering to individual lifestyles. Such adaptability positions wireless lighting control systems as invaluable assets, enhancing functionality, aesthetics, and the overall user experience across various industries. According to the US Census Bureau, as of 2023, private residential housing construction has reached a value of 862.45 billion USD in the United States.

North America Residential Lighting Control System Industry Overview

The residential lighting control system market in North America is fragmented owing to the presence of large and small players. Some of the players are General Electric Lighting (SAVANT TECHNOLOGIES LLC.), Philips Lighting NV (Signify NV), Eaton Corporation PLC, Honeywell International Inc., and Acuity Brands Inc.

In July 2024, Lutron Electronics, a prominent figure in lighting control and automated shading solutions, unveiled new products under its Caseta lineup. These include a Diva smart dimmer featuring ELV+ technology and Pico paddle remotes, which are now available in five additional colors. These releases cater specifically to professional installers, aiming to streamline the completion of projects involving diverse load types. The company provides clients with an expanded selection, all in the popular paddle-style design.

In March 2024, Legrand's Vantage Lighting Controls unveiled 'Vantage Voice.' This feature integrates voice control into the Vantage InFusionTM System, leveraging Amazon Alexa. It is part of the latest software update, Design Center 4.8. Vantage Voice, now accessible from Design Center 4.8 onwards, enables users to execute scenes using voice commands. Essentially, it emulates a button press to activate and complete a task.

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