SMART LIGHT/LIGHTNING CONTROL MARKET ANALYSIS

The Global Smart Light/Lightning Control Market size was valued at US$ 21.03 billion in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 22.2% from 2023 to 2030. The growing government investments in the construction and development of smart infrastructure are expected to boost the growth of the global smart light/lightning control market. Also, the growing number of commercial buildings around the world is likely to spur the growth of the market. Advancements in wireless technology are expected to spur the market for smart lighting systems globally. Moreover, the integration of IoT and artificial intelligence into lighting systems can lead to operational efficiencies.

Global Smart Light/Lightning Control Market: Regional Insights

• The global smart light/lightning control market is regionally divided into North America, Latin America, Asia Pacific, Europe, and Middle East & Africa.
• The dominance of Smart Light/Lighting Control in Europe can be attributed to several factors. European nations have been early adopters of smart technologies, creating a robust infrastructure for implementation. Stringent energy efficiency regulations have further driven the adoption of smart lighting solutions. Collaborative efforts between governments, industries, and research institutions have facilitated innovation and market growth. Additionally, the emphasis on sustainable and environmentally-friendly practices has led to increased demand for intelligent lighting systems, solidifying Europe's leading position in this domain.
• Asia Pacific is also projected to witness strong growth in the global smart light/lightning control market over the forecast period. The growth of this region can attributed to growing adoption of advanced technology such as Artificial Intelligence, and Internet of Things, leading to rising demand for the smart home market in emerging countries such as China and India in the region. For instance, recently, the State Council of China detailed strategy of the country to become the top AI superpower by 2030, by developing US$ 150 billion national AI industry.

Figure 1: Global Smart Light/Lightning Control Market Share (%), By Region, 2023

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Global Smart Light/Lightning Control Market Drivers:

Increasing Demand for smart homes

• Smart light/lightning control systems allow homeowners to seamlessly integrate lighting with other smart devices such as thermostats, security systems, and voice assistants. This integration offers centralized control and the convenience of managing various aspects of the home through a single interface, and thus, boosting appeal of smart homes.
• Smart light/lightning control enables precise management of lighting schedules, dimming levels, and occupancy sensing. This leads to substantial energy savings and reduced electricity costs for homeowners who value sustainability and wish to lower their energy bills. For instance, according to Independent Electricity System Operator, an electric power transmission company, smart bulbs uses LED that last at least 15 times longer than traditional incandescent bulbs, and use about 70-90% less energy.
• Smart lighting allows homeowners to create personalized lighting scenarios, adjust color temperatures, and set mood lighting. Smart lighting control systems offer security features such as automated lighting schedules to mimic occupancy, remote control while away from home, and integration with security systems.
• According to a report published by Techarc, a technology analytics company, in December 2022, 32% of Indian consumers may spend $ 240 to 600 on smart connected devices in 2023 growing use of internet to boost the market growth

Growing Awareness of Smart Home Concepts

• The increasing awareness and acceptance of smart home concepts among consumers have fueled the demand for smart lighting control systems. Homeowners are looking for ways to integrate various aspects of their living environment, such as lighting, security, and climate control, into a unified and convenient system.
• The surge in awareness and embrace of smart home concepts among consumers has become a major catalyst behind the surging demand for smart lighting control systems. Homeowners are actively seeking avenues to seamlessly integrate diverse elements of their living spaces, spanning from lighting and security to climate control, into a unified and effortlessly manageable ecosystem. This evolving trend is steering individuals towards opting for smart lighting control solutions, as they endeavor to create homes that offer both advanced technological convenience and enhanced living experiences. The allure of orchestrating their living environment with the touch of a button or a voice command aligns perfectly with the contemporary desire for a more intuitive and interconnected lifestyle. As this awareness continues to expand, the smart lighting control market is poised to grow, catering to the aspirations of consumers who seek smarter and more streamlined ways of managing their homes. For instance, In June 2020, Lutron Electronics Co. Inc. announced the launch of Athena commercial lighting solution. The new solution offers superior control, advanced LED lighting technology along with simple app-based setup.

Global Smart Light/Lightning Control Market Opportunities:

• Increasing Number of Government Initiatives for smart cities: As countries invest in creating sustainable, efficient, and technologically advanced urban environments, smart lighting systems are becoming integral components of these ambitious smart city plans.The implementation of energy-efficient and connected lighting solutions not only contributes to reduced energy consumption and lower operational costs but also enhances overall urban livability and safety. For instance, ‘Smart Cities Mission’ that started in 2015 in India promotes the adoption of smart technologies, including intelligent lighting, to transform cities into citizen-friendly and sustainable hubs. The Government of India has accumulated funds of US$ 87,029 Million till 2022.
• Health and Well-being Focus: A compelling opportunity has emerged within the global smart lighting control market, centered around the profound impact of lighting on human health and well-being. Extensive research has illuminated the intricate relationship between lighting and various physiological processes, highlighting the potential to harness smart lighting systems for the betterment of individuals' overall comfort and quality of life. This opportunity is epitomized by the concept of circadian lighting, a groundbreaking approach that seeks to mimic the natural progression of light throughout the day to regulate sleep-wake cycles and positively influence mood and alertness.

Global Smart Light/Lightning Control Market Trends:

Increasing use of LED and Luminaries in outdoor lighting

• Highways, roadways, public spaces, and stadiums are the most common locations for outdoor lighting applications. In outdoor lighting applications, LED are replacing traditional light sources such as incandescent, fluorescent, high-intensity discharge (HIS), and high-pressure sodium lamps. The growing usage of LED and luminaries in outdoor lighting is propelling the worldwide smart light/lightning control market upward. For instance, according to the U.S. Department of Energy, LED lighting will account for 86% of all lighting sales by 2035 due to the advantages that LED lights have over their conventional substitutes.
• Moreover, in March 2022, Zumtobel Group AG, a lighting company, participated in the data center world 2022 exhibition in the U.K. The firm demonstrated its outdoor lighting solutions for data centers as well as forthcoming smart lighting advancements, therefore contributing to the market development.

Voice Control Integration

• Voice control integration has emerged as a dominant trend within the global smart lighting control market, revolutionizing the way users interact with their lighting systems. With the integration of popular voice assistants such as Amazon Alexa, Google Assistant, and Apple Siri, the landscape of lighting control has been reshaped. This trend has rapidly gained traction due to its ability to provide users with effortless and intuitive control over their lighting environments. By issuing simple voice commands, individuals can adjust light levels, switch between different lighting scenes, and even change color temperatures without the need to physically interact with switches or devices.
• Furthermore, voice control integration is democratizing the use of smart lighting systems, making them more user-friendly and accessible to individuals of all ages and technological backgrounds. This trend not only enhances convenience but also showcases the potential for innovative synergies between lighting technology and voice-driven interfaces. As this trend continues to evolve, the integration of voice control is likely to remain a central driver of user adoption and engagement within the smart lighting control market, redefining the way people interact with and experience their living spaces.

Global Smart Light/Lightning Control Market Restraints:

High initial cost of smart lightning systems

• Smart lighting systems offer long-term energy savings and operational benefits but the upfront expenses associated with purchasing and installing these technologies can be a deterrent for potential adopters. The cost of smart lighting components including sensors, controllers, and connectivity devices along with installation and integration expenses can pose financial challenges for both residential and commercial users. For instance, a business aiming to retrofit an entire office building with smart lighting control may face substantial initial investments in equipment and professional services. Similarly, homeowners considering a comprehensive smart lighting upgrade may be discouraged by the upfront expenditure. As a result, despite the potential for long-term cost savings and enhanced functionality, the high initial costs of smart lighting systems can limit its widespread adoption and impede the market’s growth.

Limited Awareness and Education

• One of the significant challenges facing the global smart lighting control market is the limited awareness and education surrounding the benefits and functionalities of these advanced systems. While the awareness of smart home technologies is on the rise, there exists a notable gap in understanding when it comes to the potential of smart lighting control systems. This lack of awareness extends to both residential and commercial sectors, where potential users are often unaware of the transformative advantages these systems can offer.
• In conclusion, while the potential of smart lighting control systems is immense, the challenge lies in enlightening consumers about these possibilities. By dedicating efforts to education, simplification of messaging, and collaborative initiatives, the market can overcome the constraint of limited awareness, thereby accelerating the adoption of smart lighting control systems and realizing their significant benefits.

Covid-19 Impact Analysis:

• Like many industries, the smart light/lightning market experienced disruptions in supply chains due to factory closures and transportation restrictions. This led to delays in the production and delivery of smart lighting components and systems.
• However, with lockdowns and remote working, there was a surge in demand for home automation solutions, including smart lighting. People spent more time at home and sought to enhance comfort, productivity, and energy efficiency. This led to an increased interest in the adoption of smart lighting control systems for residential spaces. There was also a growing interest in smart lighting solutions that offer features such as circadian lighting, which can mimic natural light patterns to support sleep and overall illness.
• Facility managers and building operators turned to smart lighting systems to remotely monitor and control lighting in commercial spaces. This was especially relevant in offices and public areas, where lighting settings could be adjusted to optimize energy usage in vacant or partially occupied spaces.
• Moreover, economic uncertainties surging the pandemic prompted businesses and individuals to prioritize cost savings. Smart lighting solutions, known for their energy efficiency features, gained attention as a way to reduce electricity bills and operational expenses.      

Figure 2: Global Smart Light/Lightning Control Market Share (%), in terms of Value, By Application, 2023

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Global Smart Light/Lightning Control Market Segmentation:

• The global smart light/lighting market report is segmented into Component, Technology, and Application.
• On the basis of component, the global smart light/lightning control market is segmented into hardware, software, and services. Hardware segment accounted for the largest share in 2023. The segment is expected to generate US$ 12,934.6 Mn in 2023, and is expected to generate a revenue of US$ 51,134.2 Mn by 2030. This segment is expected to exhibit a CAGR of 21.7% over the forecast period (2023 to 2030).
• On the basis of technology, the global smart light/lightning control market is segmented into wired and wireless. Wired segment accounted for the largest share in 2023. The segment is expected to generate US$ 13,621.9 Mn in 2023, and is expected to generate revenue of US$ 54,239.2 Mn by 2030. This segment is expected to exhibit a CAGR of 21.8% over the forecast period (2023 to 2030).
• On the basis of application, the global smart light/lightning control market is segmented into indoor lighting and outdoor lighting
• Indoor lighting segment accounted for the largest share in 2023. The segment is expected to generate US$ 15,879.7 Mn in 2023, and is expected to generate revenue of US$ 63,913.5 Mn by 2030.This segment is expected to exhibit a CAGR of 22.0% over the forecast period (2023 to 2030).The company mainly focuses on providing a plethora of techniques to turn indoors into a smarter asset, and thus, ensuring energy efficient. Such as technical advancement in indoor lighting for residential, commercial, industrial applications is expected to drive the segment growth. Outdoor lighting are basically used in highways and roadways, parking lots, bridges and tunnels, parks, public places, and other public places

Global Smart Light/Lightning Control Market: Key Developments

• For instance in Feb 2023, Schneider Electric, leader in Energy Management and Industrial Automation announced creating a dedicated group of 400 engineers with over 5,600 research and development software engineers to drive innovation and digitization of power management.
• For instance, in June 2021, Wipro consumer lighting offers Smart & Connected led Lighting solutions, best led lighting manufacturer company in India has partnered with Internet of Things (IoT) Solutions Enlighted to deliver smart work places manufacturing smart lights which can be accessed by Ethernet or wirelessly.
• In March 2021, Honeywell International Inc. announced that it had signed a agreement to acquire majority stake in Fiplex Communications, Inc., a U.S.-based company that develops in-building communications systems including bi-directional amplifiers (BDAs) that provide continuous and critical in-building radio coverage in challenging environments to improve the safety of first responders and building occupants.
• In April 2023, Inventronics Inc., a global leader in reliable and innovative LED driver products, announced the successful acquisition of the relevant digital systems business in Europe and Asia Pacific from ams-OSRAM AG, a global leader in optical solutions. This acquisition demonstrates Inventronics Inc.’ commitment to provide exceptional technology and value to its global customer base while leading the transformation to cost-effective, intelligent, connected lighting.

Global Smart Light/Lightning Control Market: Key Companies Insights

• Cisco System Inc.,
• Schneider electric,
• Wipro Consumer  Lighting,
•  Avnet Inc.,
• Crestron Electronic Inc.,
• Honeywell International Inc.,
• Inventronics Inc.,
• Philips Lighting Holding B.V.(Signify  Holding),
• Legrand,
• Jaquar India.

*Definition: A smart light/lighting system includes sensors, motion detectors, and lighting controls that can be controlled remotely. Many of these systems also integrate with other smart home systems. A smart light typically includes a microprocessor and LED module. It is also equipped with a constant-current LED driver that regulates the load of the LED array.