Smart Lighting Market, By Offering, By Technology, By Light Source, By End User, By Country, and By Region – Global Industry Analysis, Market Size, Market Share & Forecast from 2025-2032

REPORT HIGHLIGHT

Smart Lighting Market size was valued at US$ 19,210.09 Million in 2024, expanding at a CAGR of 21.09% from 2025 to 2032.

The smart lighting market focuses on lighting systems that combine LED fixtures with connectivity, sensors, and software-based controls to enable automated and remote management of lighting. These systems support functions such as dimming, scheduling, occupancy and daylight sensing, scene setting, and centralized monitoring through apps or building platforms. Adoption is growing because smart lighting delivers practical outcomes that are easy to measure, including lower energy use, reduced maintenance needs, and better lighting quality across different environments. As LED has become the default choice in many projects, smart controls are increasingly viewed as the next step that helps capture additional savings and improves overall building performance.

Market growth is strongly linked to energy-efficiency policies, sustainability targets, and modernization of existing buildings and outdoor infrastructure. Commercial spaces such as offices, retail, hospitality, and healthcare represent major demand due to clear payback from occupancy-based control and daylight harvesting. Industrial facilities adopt smart lighting to improve safety, visibility, and operational reliability, especially in large areas where maintenance and downtime are costly. Residential demand is supported by convenience features and integration with broader smart home ecosystems. Outdoor applications, including street lighting and parking areas, are expanding due to the benefits of remote monitoring, adaptive dimming, fault detection, and improved public safety.

Smart Lighting Market- Market Dynamics
Rising Electricity Costs and Efficiency Rules Speeding Up Smart Lighting Adoption

Rising electricity costs and stronger energy-efficiency rules are a key driver pushing smart lighting projects in offices, retail spaces, campuses, warehouses, and municipal streetlighting. Higher power prices make the savings from LED retrofits more valuable, and smart controls like occupancy sensing, daylight dimming, and scheduling are often added because they can reduce wasted lighting hours and provide monitoring with relatively low disruption. According to the U.S. Energy Information Administration (EIA), the average U.S. retail electricity price moved up from 10.66 cents per kWh (2020) to 12.55 cents per kWh (2022) and stayed elevated at 12.29 cents per kWh (2023), which improves the payback math for lighting control investments. Policy pressure supports the same direction; According to the U.S. Department of Energy (DOE), federal efficiency actions expanded the coverage for general service lamps beginning in 2022, which accelerated replacement of older, less efficient lamps and strengthened demand for LED products that are compatible with controls and connected systems. On the public and institutional side, financing structures are also helping projects move forward; According to the U.S. General Services Administration (GSA), federal agencies have reported $12.1 billion in energy cost savings from performance contracting activity (ESPC and UESC combined) as reported in the early 2020s, and lighting plus controls are common measures because savings are easy to measure and maintenance benefits are immediate. Overall, the combination of higher electricity prices, tighter efficiency requirements, and proven public-sector contracting models is making smart lighting a practical investment that supports both cost reduction and operational visibility.

Smart Lighting Market- Segmentation Analysis:

Higher electricity costs and policy-driven efficiency upgrades are making smart lighting projects easier to justify, especially when a retrofit can combine efficient luminaires with connected controls that cut wasted operating hours. The cost backdrop is clear in pricing data; According to the U.S. Energy Information Administration (EIA), the average U.S. retail electricity price increased from 10.66 cents per kWh in 2020 to 12.55 cents per kWh in 2022 and remained elevated at 12.29 cents per kWh in 2023, which improves the payback for upgrades that reduce kWh and peak demand. Regulations are also pushing product replacement cycles; According to the U.S. Department of Energy (DOE), federal efficiency actions that expanded coverage for general service lamps began taking effect in 2022, accelerating movement away from older lamp types and encouraging adoption of modern, control-ready lighting setups.

Investment capacity in buildings remains supportive for these upgrades; According to the U.S. Census Bureau (Construction Spending), total U.S. construction spending stayed above $1.8 trillion in 2023 on a seasonally adjusted annual basis, keeping a steady pipeline for new build and renovation work where automated lighting control is increasingly specified to manage operating costs. In parallel, public and institutional buyers continue to use structured funding models for energy projects; According to the U.S. General Services Administration (GSA), federal agencies have reported $12.1 billion in energy cost savings from performance contracting activity (ESPC and UESC combined) as tracked in the early 2020s, and lighting combined with controls is commonly included due to clear measurement and fast operational impact.

Smart Lighting Market- Geographical Insights

Smart lighting demand is generally strongest in places where energy costs are high, efficiency policies are actively enforced, and building owners are spending on modernization, since the value of controls becomes easier to prove with payback. Electricity pricing is one of the clearest signals; According to the U.S. Energy Information Administration (EIA), the average U.S. retail electricity price increased from 10.66 cents/kWh (2020) to 12.55 cents/kWh (2022) and stayed elevated at 12.29 cents/kWh (2023), which raises the financial impact of cutting lighting hours through occupancy sensing and scheduling. Policy trends also reinforce upgrades; According to the U.S. Department of Energy (DOE), federal efficiency actions that expanded coverage for general service lamps began taking effect in 2022, supporting faster replacement of older lamps and accelerating adoption of efficient, control-ready solutions. Public infrastructure budgets also matter for outdoor and street lighting, since long operating hours make monitoring and adaptive dimming valuable; According to the Federal Highway Administration (FHWA), federal-aid highway program funding levels stayed high in the post-2021 infrastructure period, supporting broader corridor and streetscape improvement activity where lighting upgrades are often included.

United States Smart Lighting Market- Country Insights

The United States is a strong country market because the retrofit base is large and the spending environment supports continuous projects across commercial buildings and public infrastructure. Construction activity provides a steady pipeline for lighting and controls in both new projects and renovations; According to the U.S. Census Bureau (Construction Spending), total U.S. construction spending remained above $1.8 trillion in 2023 on a seasonally adjusted annual rate basis. Energy project execution is also supported by established contracting models; According to the U.S. General Services Administration (GSA), federal agencies reported $12.1 billion in energy cost savings from performance contracting activity (ESPC and UESC combined) as tracked in the early 2020s, and lighting upgrades with controls are commonly included because savings can be measured, and maintenance improvements are easy to document. This combination of price pressure, funding pathways, and consistent building activity creates conditions were connected lighting rollouts can scale across multiple sites instead of staying limited to pilot projects.

Smart Lighting Market- Competitive Landscape:

Competition is led by global lighting manufacturers, building automation companies, and control specialists, with vendors differentiated by system breadth, integration capability, and service support. Signify N.V. and Acuity Brands, Inc. are typically associated with large, connected lighting portfolios and strong reach in commercial projects, especially where a single supplier is preferred for fixtures and controls. Schneider Electric SE, Siemens AG, ABB Ltd, Legrand SA, and Eaton Corporation plc are often positioned well when buyers want lighting tied into broader building energy management and electrical infrastructure, which is common in enterprise facilities. Lutron Electronics Co., Inc. is frequently referenced for deep controls expertise and reliability in dimming and commissioning, while Honeywell International Inc. and Johnson Controls International plc are commonly linked with building platforms where lighting becomes part of a wider smart building stack. OSRAM GmbH and Zumtobel Group AG are regularly mentioned for professional-grade lighting and performance-driven applications, including outdoor, architectural, and industrial use cases. Buying decisions in this space usually come down to interoperability, ease of retrofit installation, cybersecurity readiness for connected devices, and the ability to provide ongoing monitoring and support, since these factors drive total cost of ownership beyond the initial hardware price.

Recent Developments:

In December 2025, Signify, a global lighting solutions company, expanded its retail presence in India by launching three Philips Smart Light Hubs in Bengaluru to serve rising demand for smart and decorative lighting, showcasing connected lighting products for consumers as well as architects and interior designers across key city locations.
In September 2025, Signify, a global lighting solutions company, launched Philips LightTheatre in India, a smart home entertainment lighting system that uses an HDMI sync box to analyze video and audio from HDMI-connected devices and drive real-time lighting effects through Wi‑Fi/Bluetooth compatible Philips smart color lights, with control through the WiZ app and support for voice assistants including Google Assistant, Alexa, and Siri Shortcuts.
In April 2025, PATRIZIA, a real assets investment manager, launched CiviSmart in Italy by combining three smart public lighting operators into an independent national platform managing over 380,000 light points across 200 municipalities, with expansion plans beyond lighting into broader smart city services such as traffic management, IoT networks (including LoRaWAN and fiber), video analytics, and public-building energy monitoring.
In March 2025, Enlighted (owned by Siemens), a property technology company, introduced Enlighted Eazy, a smart lighting controls solution for small and mid-sized businesses focused on faster deployment, featuring laser-based commissioning claimed to be up to 30% faster than traditional Bluetooth commissioning, app-based setup and management without a gateway, and energy-saving features including daylight harvesting and occupancy-based dimming.

SCOPE OF THE REPORT

The scope of this report covers the market by its major segments, which include as follows:

GLOBAL SMART LIGHTING MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS

ABB Ltd
Acuity Brands, Inc.
Cree Lighting USA LLC
Eaton Corporation plc
Honeywell International Inc.
Hubbell Incorporated
Ideal Industries, Inc.
Johnson Controls International plc
Legrand SA
LG Electronics Inc.
Lutron Electronics Co., Inc.
OSRAM GmbH
Panasonic Corporation
Samsung Electronics Co., Ltd.
Savant Systems, Inc.
Schneider Electric SE
Siemens AG
Signify N.V.
Wipro Lighting Ltd
Zumtobel Group AG
Others

GLOBAL SMART LIGHTING MARKET, BY OFFERING- MARKET ANALYSIS, 2019 - 2032

Hardware
Software
Services

GLOBAL SMART LIGHTING MARKET, BY TECHNOLOGY- MARKET ANALYSIS, 2019 - 2032

Wired
Wireless

GLOBAL SMART LIGHTING MARKET, BY LIGHT SOURCE- MARKET ANALYSIS, 2019 - 2032

LED
Fluorescent
HID
Others

GLOBAL SMART LIGHTING MARKET, BY END USER- MARKET ANALYSIS, 2019 - 2032

Residential
Commercial
Industrial
Public Infrastructure (Municipal)

GLOBAL SMART LIGHTING MARKET, BY REGION- MARKET ANALYSIS, 2019 - 2032

North America
U.S.
Canada
Europe
Germany
UK
France
Italy
Spain
The Netherlands
Sweden
Russia
Poland
Rest of Europe
Asia Pacific
China
India
Japan
South Korea
Australia
Indonesia
Thailand
Philippines
Rest of APAC
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of LATAM
The Middle East and Africa
Saudi Arabia
UAE
Israel
Turkey
Algeria
Egypt
Rest of MEA Show more