Smart Lighting Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Global Smart Lighting Industry Outlooks

Smart lighting is advanced lighting systems that can be controlled remotely and adjusted according to specific preferences, schedules, or environmental factors. The systems use energy-efficient LED bulbs and are integrated with smart home technologies such as voice assistants (e.g., Alexa, Google Assistant) or smartphone apps. Features include dimming, color-changing capabilities, motion sensing, and the ability to set lighting schedules. Smart lighting can also be integrated with other smart home devices for enhanced convenience and automation.

Consumers are increasingly looking for energy-efficient solutions that help reduce electricity consumption and lower utility bills. In addition, the convenience of controlling lighting remotely, whether at home or while on vacation, appeals to modern lifestyles. As smart homes become more mainstream, the demand for connected and customizable lighting systems is rising. Its popularity is further fueled by integration of smart lighting with the rest of the intelligent devices, such as security cameras and thermostats. This smart lighting has become an integral part of modern living spaces.

Driving Factors for Growth in Smart Lighting Market

Increasing Demand for Energy Efficient Solutions

As awareness about environmental issues increases, and energy costs continue to escalate, there is a growing demand for energy-efficient solutions. Smart lighting systems typically use LEDs to conserve energy and save resources, making them attractive to consumers and businesses alike looking to make reductions in their energy consumption. Further energy saving features include turning off lights when not in use through features such as dimming and using motion sensors and similar devices, thus increasing the adoption of smart lighting solutions in response to increased notions of conservation on these respective products. August 2023, Philips launched new smart LED lighting under the brand launched with advanced connectivity and energy-saving features. Users can control them through a mobile app for maximum efficiency.

Smart Homes and IoT Adoption

Other key drivers for the smart lighting market include the rising adoption of smart homes and the Internet of Things (IoT). More consumers now include smart lighting in their home automation and convenience trends. They can control them remotely through applications on their smart phones, through voice assistants or even automated scheduling, thanks to IoT connectivity. That adds to the complete appeal and functionality of smart lighting systems, integrating smoothly with other devices such as security systems and thermostats in a smart home. Oct 2024, Deako™ launches the first ever modular smart lighting system compatible with Home Assistant. This integration provides home automation to the users of Deako and supports the open smart home ecosystem. The company also integrates with Alarm.com, Alexa, Google, Samsung SmartThings, Control4, and Clare Controls.

Improvements in Smart Lighting Technologies

Technological innovations have significantly enhanced the functionality and performance of smart lighting solutions. In the area of innovations, app-controlled lighting, color-changing LEDs, and motion sensors provide consumers with more control and personalization. Wireless technology continues to advance: Zigbee and Bluetooth have made installation and use easier. The expansion in smart lighting, voice assistant, and home automation integration has made it more appealing to the tech-savvy consumer. Improvements in technology, therefore, drive growth in the smart lighting market. Oct. 11, 2023, Halonix Technologies, one of India’s fastest-growing electrical companies, launched India’s first 'UP-DOWN GLOW' LED Bulb. This innovative bulb features both the upper (Dome) and lower (stem) parts glowing in different colors, allowing consumers to create unique lighting effects through three switch-enabled modes.

Challenges in the Smart Lighting Market

High Initial Installation Costs

One of the primary challenges in the smart lighting market is the high initial cost of installation. While smart lighting systems offer long-term savings through energy efficiency, the upfront costs of purchasing smart bulbs, hubs, and controllers can be prohibitive for some consumers. The cost of upgrading an entire lighting system, particularly for larger homes or commercial spaces, can deter widespread adoption, particularly in price-sensitive markets. In addition, since it is comparably cheaper and, in some respects, may be perceived to be more value-for-money to those budget-sensitive customers, competition remains a strong challenge to smart lighting technology.

Incompatibility/Compatibility Issues in the Market

Smart lighting technology integration compatibility remains one of the greatest challenges to entering the market. Compatibility and integratability may create problems between multiple brands, with technologies that often require different and diverse interfaces or ways of handling or communicating in systems. For instance, there are smart lighting systems that don't support particular voice assistants or security systems. This lack of standardization may lead to confusion on the part of consumers and reduce adoption of smart lighting solutions because users would be hesitant to invest in a product that may not provide complete compatibility with their other devices.

Smart Lighting Software Market

The smart lighting software market is expanding as software solutions are necessary for the effective management and control of smart lighting systems. These software platforms allow users to create lighting schedules, automate light settings, and monitor energy consumption. Smart lighting software can also offer insights into performance and help optimize energy use in residential and commercial environments. As the demand for smart lighting systems is increasing, the demand for sophisticated software to further enhance their functionality is also rising, thereby giving users better control and customization options.

Wireless Smart Lighting Market

The wireless smart lighting market is expanding as wireless technology simplifies the installation and control of lighting systems. Wireless smart lighting solutions, based on technologies such as Zigbee, Bluetooth, and Wi-Fi, are convenient and flexible since they do not require complex wiring. They are used in retrofit installations, where users want to upgrade their lighting systems without requiring extensive rewiring. Wireless smart lighting is becoming more popular because of its ease of use, the ability to remotely control it, and its compatibility with other smart home devices.

LED Smart Lighting Market

The LED smart lighting market is one of the fastest-growing segments within the broader smart lighting industry. LED lights are energy-efficient, have a longer lifespan, and provide greater customization options, making them ideal for smart lighting applications. Consumers and businesses are increasingly choosing LED-based smart lighting solutions due to their cost-effectiveness and environmental benefits. LEDs combined with smart controls that include motion sensing, dimming, and color change enhance the functionalities of lighting systems, driving growth in the LED smart lighting market.

Indoor Smart Lighting Market

Indoor smart lighting is a very fast-growing market for consumers and businesses to seek solutions which provide both energy saving and improved user experience. The most common installations of indoor smart lighting systems include homes, offices, and retail. Energy efficiency, as well as the ability to control lighting either remotely or automatically, is highly valued in these installations. Smart bulbs, app-controlled lights, and integration with voice assistants and automation systems are what drive the growth of indoor smart lighting, as it improves comfort and convenience.

Commercial Smart Lighting Market

The commercial smart lighting market is rising as more business entities become aware of the opportunities and benefits smart lighting can provide: increased energy efficiency, lower operational cost, and even increased workplace productivity. Commercial smart lighting systems may feature automated dimming, motion detection, and daylight harvesting to prevent excessive energy wastage. In turn, such commercial smart lighting also improves the ambient work environment through individualized lighting schemes. The commercial spaces have a significant need for sustainable and cost-cutting solutions; thus, an upward trend is anticipated in the commercial smart lighting market.

Smart Lighting Market Overview by Regions

United States Smart Lighting Market

In the United States, there is a substantial growth in the smart lighting market on account of higher consumer demand for energy-efficient and automated solutions. With a surge in the adoption of home automation and IoT, the demand for smart lighting systems that could be controlled via smartphone apps and voice assistants is gaining momentum quickly. In addition, the energy consumption reduction and sustainability improvement initiatives taken by the U.S. government have driven more growth in the market. Consumers in both residential and commercial sectors are increasingly adopting smart lighting solutions for convenience, saving energy, and enhancing lifestyles. June 2023, URC, an automation leader, launches the URC Lighting LT-3300 as an all-in-one smart lighting solution. Installers can opt for dimmer or switch configurations with easy programming that can create any atmosphere for both entertainment and family gatherings.

United Kingdom Smart Lighting Market

The United Kingdom smart lighting market is growing, as consumers and businesses look to minimize energy consumption while maximizing efficiency. As of late, increased popularity for energy-efficient LED lighting, together with smart home technology, boosts demand in the smart lighting market. Apart from this, high consumer awareness and education toward sustainable utilization of energy create massive demand in this segment within residences as well as across commercial entities. The UK government's vision towards sustainable smart cities, in itself, is fuelling the expansion in smart lighting market across the nation. July 2022: Signify a leading lighting company, a maker of WiZ smart lighting, has launched a set of smart lighting products to make users' daily life a little more convenient. This expanded lineup includes a table and floor lamp, a portable light switch, and new ceiling lights that customers can use for smart lighting in their homes.

India Smart Lighting Market

India’s smart lighting market is experiencing rapid growth, driven by urbanization, increasing disposable incomes, and rising energy consumption. As more consumers adopt smart homes, the demand for connected and energy-efficient lighting solutions is rising. Additionally, government initiatives such as the Smart Cities Mission are fueling the adoption of smart lighting in public spaces and commercial buildings. The growing popularity of IoT devices is also a factor in the market, as consumers are looking for more automation, convenience, and control over their lighting systems. October 2024: xSignify, the world's leading lighting company, launched India's largest store, the Philips Smart Light Hub, in Lucknow. Covering over 3000 square feet, the store offers more than 450 SKUs, making it a one-stop destination for all lighting needs.

Saudi Arabia Smart Lighting Market

The Saudi Arabian smart lighting market is increasing due to urbanization, increased disposable incomes, and the government's efforts to push for smart city developments. Under the Vision 2030 initiative, Saudi Arabia is focusing on sustainability and energy efficiency, which is driving the adoption of smart lighting solutions. Commercial and residential sectors alike are turning to smart lighting systems to reduce energy costs and enhance convenience. The rising trend of home automation and IoT technologies enhances the growth rate of the smart lighting market in Saudi Arabia. In November 2024, Flashnet, in partnership with Saudi Delta Group, started a smart street lighting project in Jeddah, Saudi Arabia. The deployment of 3,700 inteliLIGHT® controllers with LoRaWAN technology has been implemented in order to provide energy efficiency and reduce maintenance costs while ensuring continued operation with the solar-powered backup system.

Smart Lighting Market Segments

Component – Market breakup in 3 viewpoints:

1. Hardware
2. Software
3. Services

Communication Technology – Market breakup in 2 viewpoints:

1. Wired Technology
2. Wireless Technology

Light Source – Market breakup in 5 viewpoints:

1. LED Lamps
2. Fluorescent Lamps
3. Compact Fluorescent Lamps
4. High Intensity Discharge Lamps
5. Others

Application – Market breakup in 3 viewpoints:

1. Commercial
2. Residential
3. Others

Countries – Market breakup of 25 Countries covered in the Report:

North America

1. United States
2. Canada

Europe

1. France
2. Germany
3. Italy
4. Spain
5. United Kingdom
6. Belgium
7. Netherlands
8. Turkey

Asia Pacific

1. China
2. Japan
3. India
4. Australia
5. South Korea
6. Thailand
7. Malaysia
8. Indonesia
9. New Zealand

Latin America

1. Brazil
2. Mexico
3. Argentina

Middle East & Africa

1. South Africa
2. Saudi Arabia
3. UAE

All the Key players have been covered from 4 Viewpoints:

• Overview
• Key Person
• Recent Development
• Revenue

Key Players Analysis

1. Acuity Brands Lighting, Inc.
2. Signify Holding
3. Honeywell International Inc.
4. Itron Inc.
5. Wipro Lighting.
6. Verizon
7. Schneider Electric
8. Zumtobel Group

Report Details: