Global smart lighting market poised for bright future

Smart lighting market poised for bright future

Thursday, July 13, 2023

The global market for smart lighting is projected to reach USD $45 billion in sales by 2028, representing a compound annual growth rate of more than 20 per cent over the next five years. New market research identifies growth potential in the commercial/industrial, residential and urban/institutional sectors as energy-saving technologies become fully commercialized and the rollout of the Internet of Things (IoT) continues.

The meshing of LED luminaires, advanced lighting controls and wireless technology underpins projected gains in market share. LEDs are steadily becoming the standard lighting choice due to energy efficiency and other environmental considerations, while controls and wireless technology now provide more flexibility for tailoring lighting to operational needs and integrating it with other key building systems. As well, it presents opportunities for local governments to cut energy costs for streetlighting and collect data on traffic, parking and other patterns of activity.

“The ability of lights to connect with IoT devices and create a variety of ambient lighting using just smartphones or tablets has increased its popularity and demand across commercial and residential spaces,” the analysis from Bonafide Research states. “One of the important aspects that can drive the smart lighting industry is the scalability of smart lighting systems via wireless technology. Wireless technology makes it simple to add or remove lights, sensors and other smart lighting system components without the need for extra wiring or infrastructure.”

In 2022, global smart lighting sales were pegged at about USD $15.7 billion. Europe accounted for the largest share by global region (35 per cent); interior lighting surpassed outdoor applications; and about 55 per cent of total revenue was derived from hardware, such as bulbs, fixtures, sensors and switches.

However, demand for software is expected to accelerate over the next five years, with a growth rate exceeding the 20 per cent projection for smart lighting in general. “The growing popularity of creating ambient environments and assisting in data collecting in smart cities is likely to drive segment expansion during the forecast period,” the market research advises.

Exterior lighting sales are likewise expected to pick up in both the street/road lighting and outdoor architectural lighting categories. Meanwhile, other global regions are catching up with Europe’s earlier start.

“The smart lighting industry’s fastest expanding economy is Asia Pacific, followed by South America, the Middle East and Africa,” the market research states. “North America is regarded as one of the most promising markets for smart lighting solutions in the lighting industry. The operational costs of lighting in commercial buildings in North America are anticipated to be extremely high, and smart lighting provides an efficient and cost effective alternative.”

Looking to emerging technologies, the market research highlights efforts to transmit data via light. Based on quantum technology, it is known as light fidelity or the Li-Fi network. Early applications, which incorporate a chip for data transfer into an LED bulb, have recorded transmission rates of up to 224 gigabits per second.

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