Smart Lighting Market Size, Share & Trends Analysis Report By Component, By Connectivity (Wired, Wireless), By Application (Indoor, Outdoor), By Region, And Segment Forecasts, 2021 - 2028

Smart Lighting Market Growth & Trends

The global smart lighting market size is expected to reach USD 46.90 billion by 2028, registering a CAGR of 20.4%, from 2021 to 2028, according to a new study conducted by Grand View Research, Inc. The market growth is attributable to the development of smart cities, the rising trend of smart homes, intelligent street lighting systems, and the need for implementing energy-efficient lighting systems. Although smart lights are expensive compared to general lights, their advantages outweigh the overall installation cost. However, the high price of smart lights restricted market growth as the purchasing capacity of the middle-class income group declined during the COVID-19 pandemic.

The new trend of home automation is penetrating houses with middle and high-income group consumers. The trend is further fueled by constantly evolving IoT technology for smart homes; wherein smart lights can be connected to control the functions of electronic devices. Moreover, personal assistants such as Alexa, Crotona, and Siri can be synced with a smart light app to control lighting hue, brightness, on/off time, and other functions using only voice commands. Similar transformation using smart lights has also penetrated the commercial spaces. Retail has emerged as the top beneficiary of smart lighting. Apart from energy efficiency, the “smart” lighting systems installed in retail stores are leveraging Bluetooth Low Energy (BLE) and Visible Light Communication (VLC) technology which allows LED light fixtures to communicate wirelessly with the antennas and cameras in smartphones. Thus smart lighting technology helps retailers reach customers visiting the shop premises to send offers and product availability information based on their purchasing pattern. Similar add-on integrated functions are expected to augment the market growth in the upcoming years.

The residential, commercial, and industrial sector is slowly making in-roads with the integration of Artificial Intelligence (AI), Internet of Things (IoT), and other technologies to extend the capability of smart lights. With aid from AI in the local network, the smart light creates safe and sustainable lighting solutions while safeguarding users' privacy as the data is not uploaded to the cloud. Data privacy has been one of the main concerns when smart lighting is connected via Wi-Fi and other wireless methods to electronic appliances. It serves as a way for hackers to infiltrate the premise network to access personal information. Moreover, the incidence of hacking has increased during COVID-19 across the internet-connected infrastructure. Hence, building a robust security infrastructure to provide internet-free offline connectivity can restrict the hacker and improve efficiency and adoption of smart lighting over the forecast period.

Smart Lighting Market Report Highlights

• The wireless segment in the market is anticipated to witness the fastest growth over the forecast period. The growth is attributed to demand for quick connectivity in the confined area using Z-wave, ZigBee, Wi-Fi, and Bluetooth
• The hardware segment is expected to attain the highest revenue contribution in 2020 as lamps and fixtures are an inseparable component of smart lighting. The lamp and luminaire are integrated with sensors, dimmers, and other electronic components to perform controllable functions such as changing hues, dimming based on outside weather, and switching on/off as per set time
• The Asia Pacific region is expected to witness the highest growth rate over the forecast period owing to the large-scale development of smart city projects in China, Japan, and South Korea. Moreover, increasing investment from India, Singapore, Thailand, and Malaysia to install energy-efficient smart lighting will bolster the market growth across Asian countries
• Some of the major players operating in the market are Acuity Brands; Signify Holding; Honeywell International Inc.; Ideal Industries, Inc.; Häfele GmbH & Co KG; Wipro Consumer Lighting; YEELIGHT; Schneider Electric SA; and Honeywell Inc. These vendors are dominant players in the market owing to their extensive product portfolio offering a smart lighting lamp and luminaires