Smart Lighting Market size is set to grow by USD 26.56 billion from 2024-2028, Emergence of smart lighting to boost the market growth, Technavio

NEW YORK, June 6, 2024 /PRNewswire/ -- The global smart lighting market size is estimated to grow by USD 26.56 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 20.85% during the forecast period. The Internet of Things (IoT) is transforming the way we manage lighting systems for both consumers and organizations. IoT technology is driving the adoption of smart lighting solutions, such as smart bulbs and luminaires, which provide enhanced control and interactivity. These solutions generate valuable data, enabling energy savings and insights into building occupancy and usage patterns. Vendors like TVILIGHT Projects BV are leading the way with IoT-based smart lighting solutions, such as their RGBW smart street lighting project in Monheim (completed in 2022). The market for smart lighting is expected to grow significantly due to the increased efficiency and management capabilities offered by IoT technology. 

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Key Market Trends Fueling Growth

The Smart Lighting Market is experiencing significant growth due to the integration of technology in lighting systems. Mercury sensors, long-life LEDs, and connectivity controls are trending in this industry. These technologies enable energy savings, improved lighting quality, and remote control capabilities. Producers are focusing on developing carbon footprint reduction strategies and cost-effective solutions.

The use of digital interfaces and apps for controlling lighting systems is also increasing. Additionally, dimmers and color temperature controls are becoming popular for creating customized lighting environments. The market is expected to continue growing with the increasing demand for energy-efficient and smart solutions. 

Market Challenges

• The LED market in industrial and outdoor applications faces challenges such as color variations, thermal degradation, moisture intrusion, installation issues, heat constraints, and sensitivity to voltage fluctuations. These challenges limit the adoption of LEDs and may impact the growth of the global smart lighting market. Proper voltage regulation and temperature management are crucial for optimal LED performance and longevity. Addressing these challenges will be essential for expanding the use of LEDs in industrial and outdoor settings.
• The Smart Lighting Market faces several challenges in its implementation and growth. Technological difficulties in integrating various systems and devices are a significant hurdle. Compatibility issues between different brands and protocols hinder the seamless operation of smart lighting systems. Additionally, high initial investment costs and the need for regular updates and maintenance add to the challenges.
• However, the potential benefits of energy savings, improved comfort, and enhanced security make it a promising market for innovation and growth. The LED industry, in particular, is driving the smart lighting market forward with advancements in technology and cost reduction strategies. The market is expected to grow significantly in the coming years, with a focus on developing user-friendly and cost-effective solutions.

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Segment Overview 

1. Application 
• 1.1 Commercial
• 1.2 Residential
• 1.3 Public infrastructure
• 1.4 Others
2. Component 
• 2.1 Hardware
• 2.2 Software
• 2.3 Services
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Commercial- The Smart Lighting Market is experiencing significant growth due to increasing energy efficiency and cost savings. Businesses are adopting smart lighting solutions to automate lighting systems and reduce energy consumption. Smart lighting systems use sensors to detect occupancy and adjust lighting levels accordingly, saving energy and lowering utility bills. Additionally, smart lighting can be integrated with other building automation systems, providing businesses with centralized control and management of their lighting infrastructure. Overall, the adoption of smart lighting is a cost-effective and energy-efficient solution for businesses looking to modernize their lighting systems.

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Research Analysis

The Smart Lighting Market encompasses advanced lighting solutions for both commercial and residential applications. These include LED lights, luminaires, and digital workspaces, which can be controlled through lighting controls, dimmers, and relay units. Energy conservation is a significant driver in this market, with the adoption of PoE lighting solutions and LED drivers becoming increasingly popular. Outdoor lighting is another growing segment, with smart home technology and smart home automation enabling remote operation.

The Ecodesign Directive has led to the phase-out of traditional lighting technologies such as compact fluorescent and incandescent light bulbs, with halogen incandescent bulbs and halogen lighting technologies also facing regulatory pressure. The healthcare sector is a key end-user, with the need for energy-efficient and controllable lighting essential for patient comfort and safety. The Smart Lighting Market is expected to grow significantly due to these trends and the increasing demand for energy-efficient and intelligent lighting solutions.

Market Research Overview

The Smart Lighting Market encompasses the production, installation, and management of intelligent lighting systems. These systems utilize sensors and connectivity to optimize energy usage and enhance user experience. The market is driven by the increasing adoption of IoT technology and the growing demand for energy efficiency.

Smart lighting solutions offer features such as dimming, color temperature control, and scheduling, making them a popular choice for both residential and commercial applications. Additionally, the integration of AI and machine learning algorithms enables these systems to learn user preferences and adapt lighting accordingly. Overall, the Smart Lighting Market is poised for significant growth due to its energy savings potential and advanced functionalities.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Commercial
• Residential
• Public Infrastructure
• Others
• Component
• Hardware
• Software
• Services
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio