Smart Lighting Market Forecast
The global smart lighting market is projected to reach $67.83 billion by 2031, growing at a compound annual rate of 19.77%, according to Mordor Intelligence. The growth is driven by a focus on energy efficiency, smart city initiatives, and connected buildings. The Asia-Pacific region currently leads the market with a 37.38% revenue share.
- The European Union's updated Energy Performance of Buildings Directive (EPBD) and the "Fit for 55" package are significant drivers for smart lighting adoption, mandating greater energy efficiency and smart technologies in buildings to achieve a 55% reduction in greenhouse gas emissions by 2030. Building automation and control systems, including smart lighting, will be mandatory for large non-residential buildings starting in 2026. - In the Netherlands, municipalities like Helmond have been early adopters of smart street lighting, reporting energy savings of up to 70% and maintenance efficiency improvements of up to 50% by using motion-based "light on demand" systems. Similarly, the municipality of Renkum expects 60% energy savings by replacing 6,000 luminaires with smart LED technology. - The Association of Netherlands Municipalities (VNG) provides guidelines for digital city initiatives, including smart lighting tenders, emphasizing that digital infrastructure must be accessible, secure, and contribute to a livable, healthy, and safe city. - Circular economy principles are being integrated into the lighting market, with a focus on modular design for easier repairs and upgrades, recycling of materials like aluminum, and new business models such as "light-as-a-service" where the function is sold rather than the product. - Privacy is a significant concern in the deployment of smart lighting that incorporates additional sensors. The Dutch Data Protection Authority has raised alarms about smart traffic lights collecting personal data from mobile phones without adequate consideration for privacy risks, leading Amsterdam to halt a related project. In Eindhoven, smart lighting with cameras and microphones is used to detect aggression, raising questions about public surveillance. - Digital twin technology is emerging as a key tool for urban planners to integrate and analyze data from smart systems, including lighting. In cities like Enschede, digital twins are used to simulate the environmental effects of urban development, such as heat island effects, allowing for more informed planning decisions. - Citizen engagement is a key aspect of successful smart lighting projects in the Netherlands. In Utrecht's Kanaleneiland-Zuid district, residents co-designed a luminescent pedestrian crossing as part of the European IRIS Smart Cities project, which also includes 50 smart light poles that monitor air quality and traffic. - The application of AI is being tested in "living labs" in Dutch cities like The Hague to manage public spaces more effectively. These real-world environments allow for testing AI-powered devices and predictive models for crowd management before wider deployment.
