Global Smart Lighting Market Forecast to Reach $67.8B by 2031
A Mordor Intelligence report predicts the global smart lighting market will grow to $67.83 billion by 2031, with a compound annual growth rate of 19.77%. The growth is driven by a focus on energy efficiency, the development of smart cities, and the adoption of IoT controls in connected buildings.
- The Asia-Pacific region holds the largest share of the smart lighting market, accounting for over 37% of revenue in 2025, with the Middle East projected to have the fastest growth rate. Key players in the competitive landscape include Signify Holding, Acuity Brands, Legrand, and Osram, who collectively held nearly 51% of the market share in 2024. - The adoption of the Matter protocol is a significant driver for the smart lighting market, as it aims to unify communication standards across smart home devices from different manufacturers, simplifying integration for consumers. This open-source standard is backed by major tech companies like Apple, Google, and Amazon. - Smart lighting systems can reduce electricity consumption for lighting by up to 80% when switching from traditional incandescent bulbs to LED smart bulbs. Additional energy savings of 20-40% can be achieved through automated features like motion sensors and scheduling. - The hardware component, which includes smart bulbs, fixtures, and controls, represents the largest segment of the market, valued at $12.5 billion in 2024. However, the software segment is expected to grow at the fastest rate. - Smart city initiatives are a major catalyst for market growth, with cities like Los Angeles reducing energy consumption by over 60% by retrofitting more than 200,000 streetlights with LED technology and sensors. Similarly, Paris saw a 70% reduction in annual streetlight energy costs by implementing a connected streetlight system. - While new construction is a growing segment, retrofitting existing buildings and infrastructure currently dominates the market, accounting for nearly 63% of the market share in 2025. - Beyond basic illumination, emerging trends in smart lighting include health-centric features that mimic natural daylight to regulate circadian rhythms and systems that integrate with home security to deter intruders. Future advancements are expected to incorporate AI-driven personalization and swarm intelligence, where lights work together autonomously. - A significant restraint on market growth is the high initial cost of smart lighting solutions compared to conventional lighting. For example, a standard incandescent bulb can cost $1-$2, while a smart bulb can average around $42.
