Smart Lighting Market

Smart Lighting Market Outlook (2022 - 2025)

Demand for Smart Lighting witnessed a CAGR of 12.9% between 2012 and 2021. The global Smart Lighting Market is expected to scale through at a rate of 29.6% CAGR between 2022 and 2025. In 2022, the global Smart Lighting Market size is worth US$ 10,900 Mn, which is projected to reach US$ 23,700 million by the year 2025.

Smart Lighting Market Demand Analysis (2012-2020) v/s Market Outlook (2022-2025)

Linking of lights with IoT devices has resulted in a range of ambient lighting using smartphones or tablets, which has raised their appeal and demand in commercial and residential areas. Smart lights can be adjusted with multiple color tones, scheduled to turn on/off, monitored for energy use, and connected through Wi-Fi and Bluetooth. Furthermore, smart lights can also be voice-controlled through various IoT-based platform integrations. These diverse characteristics, in addition to lighting, have provided market development opportunities for smart lighting.

What is expected to keep the Hopes High for Smart Lighting Market?

• The rise of IoT and AI technology for smart lighting

Wireless technology advancements and a boom in IoT technology enabling hyper-connectivity between devices in smart infrastructure are likely to drive the demand for smart lighting internationally. Integration of AI technology and IoT in lighting systems delivers operational savings such as auto-dimming and smart illumination as needed in diverse applications such as modern agriculture, car interiors, and smart homes.

• Smart city initiatives in emerging economies

Various smart city projects are underway across the globe, rendering a big potential for technology businesses, service providers, utility suppliers, etc. The primary goal of smart city infrastructure is to use power more economically. Smart cities are viewed as key factors for a country's long-term economic progress and fast urbanization. Cities are rapidly being transformed into smart cities, which is a developing trend. Energy efficiency, resource sustainability, and developments in digital technology have all contributed to the creation of the smart-city model. The smart lighting solution is projected to play a key role in attaining sustainability and energy savings.

• Increased need for energy-efficient lighting solutions

In today's market, there is a great need for technologies that use less electricity. The majority of systems are electronic or electrical and therefore rely on electricity sources. Because of the depletion of these power sources, the need for energy-efficient technologies has accelerated. Smart lighting consumes far less energy than traditional lighting, creating a potential smart lighting business opportunity.

What restraints is the Smart Lighting Market subject to?

“High initial costs of smart equipment and accessories”

Despite the fact that smart lighting systems are energy-efficient and can help in reducing costs in the long term, the initial cost is significantly high due to the cost of the equipment as well as the cost of integration and installation. This is mostly due to the high cost of software, control systems, and LED light sources. These aspects make smart lighting control systems difficult to implement. However, the decreasing prices of LED and energy savings through the installation of energy-efficient lighting management systems are projected to minimize the effects of this restraint soon.

How has Covid-19 affected the Smart Lighting Market?

“Disruption in the supply chain for smart lighting”

The COVID-19 pandemic has had a significant impact on a wide range of sectors and industries. Since the pandemic began in 2020, significant disruptions have had rippling effects in economies throughout the world. COVID-19's impact on the smart lighting sector will be long-lasting. Smart lighting companies, like most of the industrial industry, rely on China for a substantial portion of the components utilized. The global lockdowns affected the manufacturing of LEDs and other components, leaving an indelible mark on the supply chain of the smart lighting sector. Many regions saw a full halt in manufacturing due to lack of required components. However, the situation improved in the second half of 2021, when supplier firms began working with reduced capacity.

Competitive Landscape

The market participants are utilizing both organic and inorganic growth tactics to obtain market share and enhance their position.

New product creation is the most typical strategy employed by market players. With the integration of new technologies and wireless communication, the firms are continuously trying to improve their product features and capabilities. Companies are also focused on strategic alliances to broaden their client base and worldwide reach.

• Kemin Industries, in February 2021, did come up with a new-fangled product called “KemTRACE Chromium-OR”. It comes across as one of the organic compliant chromium propionate feed ingredients for cattle, swine, horse, and broiler diets.
• Hubbell Control Solutions introduced a new and improved NX Distributed Intelligence Lighting Control Panel (NXP2 Series) in March 2021, which centralizes connection points in an enclosure and provides an installer-friendly solution that reduces time and costs to deploy code-compliant lighting control.
• LIFX (Buddy Technologies) announced the new Lifx Clean LED in North America in September 2020. This smart light was the world's first antibacterial, germicidal smart light with multiple colors that also functioned as a disinfectant and included a voice control feature.
• AWOX (Cabasse Group) unveiled the SmartLight Color GU10 in February 2020. It is a smart health-connected LED spot lightbulb with Bluetooth for wirelessly connecting to a smartphone or tablet, from which one can adjust its brightness intensity, color broadcast, etc.

Smart Lighting Industry Report Scope

Smart Lighting Market Categorization

Smart Lighting Market by Offering

• Hardware
• Software
• Services

Smart Lighting Market by Technology

• Wired
• Wireless

Smart Lighting Market by Region

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)