The Smart Lighting Market Market was valued at USD 16. 2 billion in 2020 and is expected to reach USD 74. 30 billion by 2026, at a CAGR of 29. 30% over the forecast period 2021 - 2026. With the increase in sustainable green building initiatives, owing to environmental concerns and penetration of technology in day to day life, there is rise in the growth of adoption rate.
New York, March 05, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Smart Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06030477/?utm_source=GNW
Green buildings are the buildings which majorly focus on efficiency, effective lifecycle, and performance of the buildings. The rising trend of integrating the technology with the lighting system is gaining momentum.
- The development of smart buildings and increase in government initiatives for smart city projects are boosting the adoption of smart lighting, thereby impacting the market’s growth positively. For instance, the Chinese government has begun to adopt and implement various smart city initiatives. There is a robust financial and institutional support from the central and local government for making smart city initiative. The country aims to encourage 100 new smart cities from 2016 to 2020 to lead the country’s urban planning and development. Over 1,000 smart city pilot projects, across the world, are ready for and are under construction, and China is home to about 500 of them, covering small and big cities.
- The increasing adoption and decreasing cost of LEDs are driving the market. The high luminous efficacy, reduced energy use, greater lifespan, and decreasing average selling price (ASP) of the LED lighting products compel the consumers to switch to LED technology. As smart lighting is expected to be the future of lighting, various companies, such as Philips, Magiclight, and Xiaom are investing in the technology to reduce the producing cost.
- Higher cost of installation is restraining the market to grow. The initial cost required to integrate or replace the lighting system into industrial facilities is a costly affair, especially for small and medium industries. The preference traditionally has been given to compact fluorescent lamps (CFL), LFL, and HIDs as certain end-users prefer the use of traditional lighting sources over new and emerging LEDs, as they have a lower initial cost.
- Amidst the outbreak of COVID-19, the market is witnessing halting of production and disruption in the supply chain, leading to weakened growth of industrial output and the decline of light-manufacturing output across significant manufacturing hubs.??Many lighting events were canceled and postponed across the globe due to the COVID-19 outbreak.?
Key Market Trends
Indoor Segment is Expected to Witness a Significant Growth through LED penetration
- The indoor application has seen significant growth in the smart lighting market and is estimated to have substantial growth over the forecast period. The indoor use of smart lighting includes residential, commercial, and industrial uses. The high adoption of connected lighting systems for residential and commercial purposes resulted in a significant share for indoor application.
- The increasing growth in the use of LED lamps inside building premises for lighting provides enormous opportunities for smart lighting-based applications by using the functions of high-speed wireless data communication and indoor lighting infrastructure, which is very cost-effective to be widely utilized across smart buildings.
- The power consumption of lights is expected to account for nearly 40% of the total energy consumption of cities. As an important part of smart cites, smart lighting has advantages in terms of access point number in the Internet of Things. The governments are also actively supporting the construction of smart cities. The changing lifestyle and increasing disposal income of people are boosting the demand for interior lighting, especially in hotels, restaurants, and office buildings. The availability of LEDs in various shapes, colors, and brightness is an opening way for new lighting designs.
- Since buildings can consume up to one-third of the global energy, they offer one of the most significant opportunities for emission reduction activities. Organizations, like The Capital Group and Philips, are collaborating for seeking to drive primary goals for indoor smart lights after achieving considerable success in replacing all outdoor lights with LED smart lightings by 2025.
- Moreover, the growing adoption of smart LEDs in offices is driving the commercial segment in a cost-effective manner, where installing an energy management system is costly, harnessing the intelligence in every LED fixture unit can create smart, and tunable endpoints.
Asia-Pacific Witnessed to Hold the Fastest Growing Market
- In recent years, the Asia-Pacific region saw significant growth in the smart lighting market, and over the forecast period, it is expected to have the highest growth. Creating and developing smart infrastructure in the region, scaled establishment of smart lighting framework over the private and commercial sectors, and increasing investments by the government on public infrastructure are increasing the growth of the market in the region.
- GSMA estimates that China may account for approximately 4.1 billion IoT connections, which is almost one-third of the global IoT connections, by 2025. Smart lighting systems are expected to be the biggest beneficiary of the trend, during the forecast period. Technology giants in the country, like Tencent, Baidu, JD, and Alibaba, are introducing their smart system solutions. Majority of the Chinese market share is distributed among these giants. These domestic brands are trendy and are expected to drive the market growth.
- The Indian housing industry is one of the quickest growing sectors of India. Smart City Mission for 100 cities in the country is driving the market for smart lightings. With a new initiative undertaken in Chandigarh, India plans to convert 3,800 street lights into sensor-based intelligent lighting system, under the Smart City Mission. Initiatives like these, taken by other states as well, could drive the market growth during the forecast period.
- The Indian government has launched UJALA program, with a target to distribute 770 million LEDs by March 2019. This program aims to rectify the high cost of electrification and the increased emissions from inefficient lighting in the country, amidst the backdrop of electricity demand witnessing a five-fold increase, over the years.
The smart lighting market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with smart lightings, many of the companies are increasing their market presence by securing new contracts and acquiring other companies. Key players are Koninklijke Philips NV, Cree Inc., Eaton Corporation, etc. Recent developments in the market are -
- May 2019 - Signify and Silicon Labs announced collaboration on an extension of the Friends of Hue program, enabling ecosystem partners to develop smart light switches for Philips Hue systems. Silicon Labs is offering the Zigbee cluster libraries, software tools, reference application, and technical expertise to help participating companies certified by the Friends of Hue program quickly design and produce light switch products guaranteed to work flawlessly with the Philips Hue smart lighting system.
- May 2019 - Eaton Corporation introduced an advanced connected lighting platform designed to drive efficient, effective decision-making for building operations called “Trellix”. The platform is designed to cater the consumers in healthcare, manufacturing, commercial offices, education, hospitality, and retail industry to improve operational efficiency and occupant experience.
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