The Global Smart Lighting Market is estimated to be valued at USD 34,430.6 Mn in 2025 and is expected to reach USD 127,455.2 Mn by 2032, exhibiting a compound annual growth rate (CAGR) of 20.6% from 2025 to 2032.
Smart lighting is in high demand as more individuals are moving to cities, greater people are using energy-efficient systems, and smart city projects are growing around the world. Smart lighting systems use sensors, wireless controls, and IoT platforms to change the lighting based depending on how numerous people are in the room and what quantity of light enters in from outside. This saves energy and money. More and more businesses, factories, and homes are using these systems to make things easier for users and automate tasks. The market is growing faster since the introduction of new connected lighting technologies like voice-controlled interfaces and cloud-based management. Government regulations that support these technologies and sustainability requirements also help.
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Current Events |
Description and its impact |
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Global Energy Crisis and Rising Electricity Costs |
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US-China Technology Trade Tensions and Supply Chain Disruptions
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AI and IoT Technology Revolution |
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Artificial Intelligence plays a crucial role in smart lighting by enabling systems to adapt intelligently to users' needs and environments. AI can analyze patterns in user behavior, time of day, and ambient conditions to automatically adjust lighting for optimal comfort, energy efficiency, and mood enhancement. Through voice commands or app-based controls, users can personalize lighting scenes, while AI learns preferences over time for improved automation.
In January 2025, Philips Hue launched its first generative AI assistant within the Hue app, offering customized lighting scenes tailored to users’ moods, events, or aesthetic preferences. The assistant allows users to create their ideal ambiance by typing or speaking commands, with built-in feedback tools to support ongoing enhancement.
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Category |
Features |
Price Range (INR) |
Price Range (USD) |
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Basic Home-Use |
Remote control, scheduling |
₹800 – ₹1,600 |
$10 – $20 |
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Mid-Tier Products |
Color-changing, voice assistant compatibility, better ecosystem integration |
₹1,600 – ₹4,000 |
$20 – $50 |
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High-End Systems |
Centralized hubs, motion sensors, dimmable LEDs, smart city/commercial use |
₹40,000 – ₹3,00,000 |
$500 – $3,500 |
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The control systems segment, which includes lighting management software, smart switches, sensors, and connected control hubs, accounted for a dominant 53.1% of the market in 2025. These systems are increasingly favored for their ability to enable automated schedules, occupancy sensing, daylight harvesting, and remote access, enhancing energy savings, flexibility, and user convenience across residential and commercial installations.
For instance, in November 2024, Ubicquia released its UbiCell Utility-Grade Universal lighting controller, which uses AI-driven diagnostics and real-time monitoring to make managing smart streetlights easier. The device works with different types of streetlights and has features like pole tilt detection, power quality analysis, and over-the-air updates. Its goal is to make cities smarter, save energy, and lower maintenance costs.
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Europe dominates the smart lighting market with an estimated 36.6% share in 2025, driven by strict energy-efficiency regulations, widespread smart city initiatives, and growing consumer demand for IoT-integrated residential and commercial lighting systems. European governments' sustainability mandates such as the EU Green Deal and the Energy Performance of Buildings Directive have accelerated adoption of connected lighting that offers features like automated dimming, daylight harvesting, and remote management.
For instance, the European Commission launched the Smart Readiness Indicator (SRI) test phase in Italy in March 2025. This initiative, part of the Energy Performance of Buildings Directive (EPBD), assesses buildings' capabilities to utilize smart technologies for optimizing energy efficiency, adapting operations to occupants' needs, and responding to grid signals. The SRI focuses on integrating smart lighting systems, among other technologies, to enhance building performance and energy management.
North America holds about 30.5% of the global smart lighting market share in 2025, owing to the growing penetration for smart home gadgets, commercial building automation, and smart city projects. The region benefits from advanced technology infrastructure and a high level of consumer awareness around energy savings and sustainability. Cities across the U.S. and Canada are rolling out smart street lighting systems that not only cut electricity costs but also improve safety and connectivity. With major lighting manufacturers headquartered here, North America continues to lead innovation and adoption in smart lighting solutions.
For instance, Feit Electric and LIFX unveiled next-generation smart lighting innovations at CES 2025, focusing on energy efficiency and seamless smart home integration. Their collaboration aims to provide homeowners with customizable lighting solutions that not only enhance user experience but also contribute to reduced energy consumption. This aligns with the growing demand for eco-friendly and energy-efficient lighting solutions in North America.
The United States accounted for 27.6% of the global smart lighting market share in 2025, making it one of the most influential players in the space. This growth is largely driven by widespread adoption of smart home technologies, city-wide smart street lighting projects, and strong support for energy-efficient infrastructure. Major urban areas like New York, Los Angeles, and Chicago are investing heavily in connected lighting systems to improve public safety, reduce power usage, and support environmental goals.
For instance, San Diego has implemented smart streetlights equipped with sensors that adjust brightness based on human presence and ambient conditions. This adaptive lighting system not only enhances public safety but also significantly reduces energy consumption, aligning with the city's sustainability goals.
China held 9.7% of the global market in 2025, reflecting its growing focus on integrating smart technologies into urban planning and residential development. The country’s rapid expansion of smart cities, particularly in regions like Guangdong, Shanghai, and Shenzhen has created significant demand for intelligent lighting systems that improve efficiency and reduce energy costs. Government-backed infrastructure projects and domestic tech innovations are fueling the shift, with Chinese companies actively developing IoT-enabled lighting that’s compatible with national energy goals and digital transformation plans.
For instance, in Chengdu, Sichuan province, over 2,500 intelligent street lamps were utilized during the Beijing Winter Olympics. These lamps, developed by Chengdu-based Sichuan Huati Lighting Technology Co Ltd, not only provide lighting services but are also equipped with WiFi, LED panels, charging piles, photovoltaic power generation, and energy-storing devices. They serve multiple functions, including 5G communication, environmental monitoring, and intelligent transportation, showcasing China's commitment to integrating smart lighting into its urban infrastructure.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 34,430.6 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 20.6% | 2032 Value Projection: | USD 127,455.2 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Signify (Philips Lighting) (Netherlands), Legrand S.A. (France), Acuity Brands, Inc. (US), Lutron Electronics (US), Leviton Manufacturing Company, Inc. (US) |
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| Growth Drivers: |
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| Restraints & Challenges: |
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New wireless communication technologies like Zigbee, Bluetooth Mesh, and Wi-Fi 6 are changing smart lighting by making it possible to connect to it from anywhere, control it from anywhere, and automate it in real time. These new ideas are making it easier for both homes and businesses to use them, which is making the smart lighting market size significantly larger because they are more scalable, flexible, and energy-efficient.
For instance, in April 2025, Signify and Cornerstone teamed up to build a citywide wireless network that works with streetlights and other connected infrastructure. The project turns streetlights into digital nodes, which improves 4G and 5G coverage and makes IoT connections easier. This breakthrough shows how smart lighting can help improve wireless communication in cities and support the growth of smart cities.
The smart lighting market demand is growing considering more people are seeking IoT-based smart home automation systems. People want smart lighting that works well with voice assistants, mobile apps, and home networks. This trend makes it easier for people to use connected bulbs, sensors, and dimmers, which makes lighting more energy-efficient, convenient, and tailored to their needs.
For instance, in April 2025, Panasonic opened its Smart Home Experience Center in India, where it's displaying IoT-enabled solutions that focus on health, safety, and ease of use. The center has smart lighting systems that work together and respond to user preferences and environmental cues. This shows how connected lighting is becoming more important in-home automation and living in a way that saves energy.
One of the major global smart lighting market forecasts lies in further integration of smart lighting solutions with artificial intelligence voice assistants. As AI-powered virtual assistants like Amazon Alexa and Google Assistant become more mainstream in smart homes, their integration with smart lights can deliver enhanced user experience and drive greater demand. Commands given through voice can make light control even more effortless and intuitive for users. Lighting manufacturers can leverage open protocols to enable native voice compatibility of their products with most popular AI assistants. This could encourage new smart home users to upgrade lighting since it can be controlled with simple voice commands. Over time, as AI assistants advance further, new lighting automation scenarios based on user presence detection and activity recognition could also emerge to make homes even smarter.
The market for smart lighting is growing exponentially as connected lighting evolves from being a simple way to save energy to being a key part of smart buildings and cities. The growing IoT ecosystem has a big impact on adoption. By 2024, there has been18 billion connected devices around the world, and that number will keep growing. This scale has brought down the prices of sensors, controllers, and connectivity modules, making it easier for businesses, homes, and cities to add networked lighting.
Operational data continues to show the economic case: LED systems with advanced controls usually save about 30% of energy, and occupancy- and daylight-adaptive systems have saved more than 60% in places where they are not utilized much. Cities are also speeding up the process of putting up smart streetlights. There are already tens of millions of them around the world, and they turn lighting poles into multi-service platforms that support traffic analytics, air-quality monitoring, and public communication networks.
Improvements in interoperability, like the wider use of common standards that make it easier to integrate systems from different vendors, help demand grow. But there are still barriers to adoption, such as high upfront costs, broken wireless protocols, and more scrutiny of network-connected fixtures for cybersecurity.
Smart lighting is becoming a strategic investment area as it can save money, automate tasks, and make building and city operations more data-rich. It also lays the groundwork for the growth of the Internet of Things (IoT) in other areas.
Definition: The global smart lighting market refers to the worldwide industry and business activity surrounding the development, manufacturing, and sales of connected and intelligent lighting solutions. This includes Wi-Fi lights, lighting control systems, hardware such as switches and sensors, and software platforms that allow lights to be automated, controlled remotely, and integrated with other smart home technologies and virtual assistants. The smart lighting market seeks to provide lighting solutions for both residential and commercial applications that enhance energy efficiency, convenience, and experience through connectivity.
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About Author
As an accomplished Senior Consultant with 7+ years of experience, Pooja Tayade has a proven track record in devising and implementing data and strategy consulting across various industries. She specializes in market research, competitive analysis, primary insights, and market estimation. She excels in strategic advisory, delivering data-driven insights to help clients navigate market complexities, optimize entry strategies, and achieve sustainable growth.
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