Smart Lighting Market Forecast to Surge
The global smart lighting market is projected to reach $67.83 billion by 2031, growing at a compound annual growth rate of 19.77%, according to a new report from Mordor Intelligence. The growth is driven by a rising focus on energy efficiency, the development of smart cities, and the increasing adoption of IoT controls in connected buildings. The Asia-Pacific region is expected to lead the market with a 37.38% revenue share in 2025.
- The smart lighting market is currently led by a few established global players, including Signify Holding, Acuity Brands, Legrand, and Osram, who collectively held over 50% of the market share in 2024. - A significant challenge holding back wider adoption is the high initial cost of advanced smart lighting systems and the complexity of installation and maintenance. Another key issue is the lack of universal protocols across different devices and platforms, creating compatibility challenges. - The commercial sector was the largest application for smart lighting in 2019, valued at $6.2 billion, while the outdoor segment is projected to be the fastest-growing. Hardware, such as smart bulbs and controls, represented the largest component of the market in 2024 at $12.5 billion. - Artificial intelligence and machine learning are increasingly being integrated into smart lighting to analyze usage patterns, learn user preferences, and automatically adjust lighting for a more personalized experience. This can include adapting color temperature and intensity based on the time of day or the task at hand. - In smart city initiatives, intelligent streetlights do more than provide light; they serve as a foundation for broader IoT networks. These streetlights can be equipped with sensors to collect real-time data on traffic, air quality, and public safety. - For instance, the city of Bellinzona, Switzerland, reduced its energy consumption by 50% after installing over 2,600 smart streetlights. Street lighting can account for up to 50% of a city's electricity usage, and switching to LED technology can reduce that by up to 75%. - Beyond energy savings, smart streetlights can enhance public safety by automatically brightening when pedestrians are detected and can even flash or change color to guide people during emergencies. - The evolution of wireless technologies like Zigbee, Z-Wave, and Bluetooth has been a major driver for the market. The wireless segment of the smart lighting market is expected to grow at a compound annual growth rate of 20.3% through 2034.
