U.S. demand for smart lighting (lighting sources, fixtures and controls) is forecast to total US$945 million by the end of 2018, and the figure is predicted to grow to US$4.4 billion by 2025, according to research company The Freedonia Group.
As a relatively undeveloped market, smart lighting presents ample opportunity for gains as it is rapidly adopted in all major lighting markets – including smart homes, smart commercial buildings, and smart cities.
Consumers are more interested in features of smart lighting, such as wireless connectivity, away mode, voice control and energy conservation.
In the years to come, we will witness rapid growth in the broader smart tech and IoT device market, while non-residential building automation and smart city infrastructure will also become more common.
Smart lighting controls accounted for 63% of smart lighting sales in 2017. Smart lighting controls include lighting-specific control devices, such as centralized lighting system control boxes, lighting-specific smart home hubs and bridges, and smart light switches and dimmers.
Lighting is among the most common applications that consumers and professionals upgrade to try smart tech – along with security and HVAC control.
While consumers can appreciate the energy-saving potential of smart lighting, their electrical expenses generally are not so high as to make reducing lighting consumption a top priority.
Rather, smart lighting appeals to consumers primarily as a convenient, new way to interact with their home lighting. As such, by emphasizing smart lighting’s advanced control capabilities, companies may capitalize on consumers’ view that smart lighting is a great convenience and novelty.
Companies should also emphasize their products’ compatibility with smart home speakers, hubs and smartphone apps.
Consumers will be drawn to color temperature and light color options that can be customized to suit different activities (e.g., watching a movie, settling down for sleep, getting out of bed).
For nonresidential users, smart lighting primarily represents an opportunity for reducing energy consumption. While upgrading to standard LED lighting goes far to save energy, smart lighting can cut costs even further by monitoring and reporting energy use statistics and by automating lighting settings based on occupancy or daylight availability.
As smart lighting’s AI and analytics capabilities continue to improve, this will drive further adoption in such applications as commercial buildings and roadway lighting, Freedonia says.
Among connectivity type, wireless segment dominates the market during the forecast period due to value added features, flexibility and better scalability, according to ResearchandMarkets.
By Light Source, Light Emitting Diode (LED) has a remarkable impact on energy savings in the developed regions. In addition, it is also used for numerous non-conventional lighting purposes as in automobile lighting permits them for usage in aesthetic and architectural lighting purposes.
By geography, Asia Pacific is anticipated to dominate the maximum market share during the forecast period owing to the low price of customer equipment in this region. Moreover, the increasing trend of smart homes in this region is also sustaining the growth of the market.