The smart lighting market is projected to witness a compound annual growth rate of 15.02% to grow to US$21.791 billion by 2026, from US$8.182 billion in 2019. The market is expected to surge in the coming years due to the growing IoT penetration, increasing trend of smart homes, and surging enhancement and advancement in LED technology. The rising urban population is also expected to play a major role in the market growth. According to the data given by the World Bank, 68% of the global population is expected to reside in urban areas by 2050, up from 55% in 2018. The increasing electricity consumption is also expected to enhance the market growth, as consumers and other users have been looking at more affordable and energy-saving solutions. The International Energy Agency had stated in its New Policies Scenario that in all regions and fields, the annual electricity demand is expected to increase by around 2%, till 2040. The report had also stated that the global electricity consumption is expected to increase from 25,679 billion kWh to around 40,443 billion kWh. Moreover, the rising investment in the development of smart homes and cities is also expected to play a major role in the market growth. Moreover, the increase in social and cultural events, such as concerts, sports matches, and other related events are also expected to have a positive impact on the market. These developments are expected to enhance investments in the smart lighting market.
The rising construction of smart cities and smart buildings provides the robust potential for the smart lighting market.
The market is expected to surge in the coming years, due to the rise in the demand for smart cities and homes, worldwide. Smart cities include smart lighting systems, for various applications and end-users, such as smart streetlights. China has been making significant developments in the market. According to the USCC, the country’s smart city solutions market has been more than US$1.1 trillion in 2019 and is growing at a significant rate. The country has also been developing around 500 smart city projects. India is also making a significant impact in the market. According to the country’s Ministry of Housing Affairs, projects worth INR 183,428 Crores have been tendered and around 100 smart cities have been on the planning stage. In Europe, in August 2021, Tipperary County Council in Ireland announced that it had pilot a smart lighting system in three locations of Clonoulty, Drangan, and Thurles. The novel deployments had been part of the Interreg Northwest Europe Smart-Space project. This development is expected to have a positive impact on the market. Major companies have been making significant developments in the market. For instance, Legrand, a specialist in network and electrical solutions, announced the expansion of its designer outlets and switches to include smart lighting solutions that have been featuring and containing Netatmo smart home technology. These developments are expected to play a major role in the market growth, in the coming years.
Major companies have been making significant developments in the market. For instance, Philips Hue, a key smart light producer, has announced a novel smart light system for the house, which also contains built-in Spotify integration within its Hue app. The company’s novel products consist of a new ceiling and four gradient-enabled smart lights. There are also two brighter smart bulbs in the company’s product lineup. These developments are expected to enhance the market growth, in the coming years.
The smart lighting market had been growing at a healthy pace before the outbreak of the COVID-19 pandemic. However, the COVID-19 pandemic harmed the market growth as the lockdowns were implemented in most parts of the world which disrupted the supply chain and hence had a negative impact on production. Furthermore, the government of countries such as China and India postponed the residential projects in their countries, which is further estimated to have a negative impact on the smart lighting market. Also, China, which is a major supplier of electrical components shut down its manufacturing facilities in the initial months of the outbreak as a measure to curb the spread of the coronavirus, and hence the lack of electrical components’ supply from China harmed the smart lighting market in various countries. Moreover, the decline of end-user industries such as automotive during the pandemic further broke the back of the smart lighting market.
|Market size value in 2019||US$8.182 billion|
|Market size value in 2026||US$21.791 billion|
|Growth Rate||CAGR of 15.02% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Acuity Brands Lighting, Lutron Electronics, Johnson Controls, Osram, Daintree Networks, General Electric, Honeywell International, Philips, The Smart Lighting Company, Svarochi|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What will be the smart lighting market size by 2026?
A1. The smart lighting market is projected to reach a market size of US$21.791 billion in 2026.
Q2. What is the size of global smart lighting market?
A2. Smart Lighting Market was valued at US$8.182 billion in 2019.
Q3. What are the growth prospects for the smart lighting market?
A3. The global smart lighting market is projected to grow at a CAGR of 15.02% over the forecast period.
Q4. How is the global smart lighting market segmented?
A4. The smart lighting market has been segmented by type, application, and geography.
Q5. What factors are anticipated to drive the smart lighting market growth?
A5. The smart lighting market is expected to surge in the coming years due to the growing IoT penetration, increasing trend of smart homes, and surging enhancement and advancement in LED technology.