PUBLISHER: The Business Research Company | PRODUCT CODE: 1673984
PUBLISHER: The Business Research Company | PRODUCT CODE: 1673984
Smart lighting refers to lighting technology integrated with the internet in smart homes. It incorporates features such as sensor-based functionalities, allowing for automatic light dimming and adjusting brightness based on the user's mood. This technology not only ensures cost savings but also promotes lower energy usage.
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 from The Business Research Company 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 size has grown rapidly in recent years. It will grow from $18.09 billion in 2024 to $21.23 billion in 2025 at a compound annual growth rate (CAGR) of 17.4%. The growth in the historic period can be attributed to increase in voice assistant devices, strong economic growth in emerging markets, low interest rate environment, increase in internet penetration, high investments.
The smart lighting market size is expected to see exponential growth in the next few years. It will grow to $45.9 billion in 2029 at a compound annual growth rate (CAGR) of 21.3%. The growth in the forecast period can be attributed to rising investments in energy efficient infrastructure, evolving smart cities, favorable government initiatives, increasing IoT. Major trends in the forecast period include manufacturing wi-fi enabled led bulbs, adopting Li-Fi 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.
Government support in both developed and developing economies is driving the growth of the smart lighting market. In emerging markets, this growth is bolstered by rising disposable incomes, regulatory backing for energy-efficient lighting, and the adoption of advanced technologies. Smart lighting systems offer significant cost savings and reduced energy consumption. For instance, in March 2024, the U.S. Department of Energy (DOE) released its FY 2025 Congressional Budget Justification, proposing a budget of approximately $18.06 billion, which marks a 4.1% increase from FY 2023 levels. The DOE's initiatives frequently focus on promoting technologies that enhance energy efficiency across various sectors, including residential and commercial lighting. Thus, supportive government policies are increasing the demand for smart lighting, propelling market 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 harmful effects of smart lights, particularly LEDs, on health may hinder the growth of the smart lighting market. Smart lights, such as LEDs, emit shortwave light often referred to as cool in color, and prolonged exposure to this type of light can potentially harm vision. For example, in July 2024, an article published by Harvard Health, a consumer health education division of Harvard Medical School, highlighted that blue light exposure at night can disrupt the body's biological clock, leading to circadian rhythm disturbances and difficulties in falling asleep and staying asleep. This disruption is primarily attributed to blue light's more significant suppression of melatonin production compared to other light types.
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 November 2022, LMPG Inc., a Canada-based global LED lighting company, acquired Lumca Inc. for approximately $36 million. This acquisition aims to enhance LMPG's market position and expand its portfolio through strategic acquisitions, including the recent purchase of Lumca. The company's goal is to leverage these acquisitions to strengthen its presence in the architectural lighting sector, improve operational efficiencies, and foster innovation across its nine brands, while allowing each brand to maintain its autonomy to encourage growth and creativity. Lumca is a Canadian lighting manufacturer specializing in the design and development of outdoor and landscape lighting products.
Major companies operating in the smart lighting market include 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, LSI Industries Inc., Energy Focus, Inc., Lumileds, Deco Lighting, Light Tool Industries E Comercio Ltd., Studio dois emme iluminacao, Veta Energia, Idoler Iluminacion, Ledolas, Lutron, Hafele
North America was the largest region in the smart lighting market in 2024. 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
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.
Smart Lighting Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on smart lighting market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for smart lighting ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The smart lighting market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.