Smart Lighting Market Worth Over USD 23 Bn by 2025

The smart lighting market demand is driven by increasing adoption of LED lamps across the globe. The energy-efficient nature and durability of the LED lamps are driving their adoption across multiple lighting applications.

Currently, LED lighting accounts for more than 40% share in the general lighting market. The number is estimated to cross the 80% mark by 2025. Supportive government initiatives to promote the adoption of energy-efficient lighting technologies are driving the adoption of LED lamps across the globe. Moreover, the declining average selling price of the LED lamps across the globe is also serving as a major force accelerating the adoption of LED lamps.

The proliferation of IoT devices has further paved a way for the growth of the smart lighting market. Due to the advancements in the IoT technology along with wireless communication technology, the lighting component manufacturers have started focusing on enabling wireless connectivity into lighting fixtures. These manufacturers are collaborating with technology solution providers to integrate their solutions into the product. Furthermore, the advancements in IoT technology are also presenting huge opportunities for the lighting management systems to remotely control lighting fixtures and lamps.

The luminaire market will grow at a CAGR of over 16% during the projected timeline. Regulatory restrictions on the use of inefficient lighting technologies are propelling the growth of the smart lighting market. The adoption of energy-efficiency code and smart controls also acts as a major force driving the adoption of the connected luminaire market. Furthermore, the superior properties of luminaire such as durability and energy-efficiency are also accelerating their adoption across multiple lighting applications.

Wireless technology will grow significantly with a CAGR of more than 21% during the forecast period. The growth of the smart lighting market is credited to the integration of advanced technologies, such as Bluetooth, ZigBee, and Wi-Fi, into the lighting solutions. This allows lamps to be controlled through mobile apps or a home/building automation hubs and individual bulbs can be programmed to change the output as per requirements. Furthermore, the lamp's internet connectivity makes it possible for vendors to use edge computing and equip smart bulbs with additional features such as built-in cameras, built-in speakers, and occupancy-sensing capability.