The global smart lighting market is projected to reach $38.68 billion (approximately R715-billion) by 2026, driven by increasing demand for energy-efficient solutions, widespread LED adoption, and the rise of smart infrastructure.
According to Allied Market Research, North America dominated the market in 2019 with a 33% share, with Europe following closely behind. The Asia-Pacific region, led by China, is expected to experience the fastest growth during the forecast period, spurred by government initiatives for sustainable development and the adoption of autonomous infrastructure.
Smart lighting technology has gained traction due to its ability to improve energy efficiency while offering significant cost savings. These systems, which include automated controls, can adjust based on occupancy or external lighting conditions. They cater to residential, commercial, and industrial applications, helping to reduce energy consumption and costs. The use of technologies such as Zigbee, which integrates with Internet of Things (IoT) devices, is a key driver in the market’s expansion. Zigbee allows for user-friendly control of lighting systems, offering flexibility in both residential and commercial settings.
Digital Addressable Lighting Interface (DALI) systems have also seen growing demand in large spaces, offering the ability to reconfigure lighting remotely. This technology supports the wider adoption of smart lighting, particularly in commercial and industrial environments.
The market’s key players, including Philips, General Electric, Honeywell, and Cisco Systems, are focusing on product development, partnerships, and innovation to maintain a competitive edge. North America is expected to continue leading the market due to its early adoption of automation technologies. However, Asia-Pacific is projected to emerge as a dominant force, thanks to its growing economies and strong governmental support for energy-efficient infrastructure.
The smart lighting market is divided into various segments, including hardware and software offerings, connectivity technologies like Bluetooth, WiFi, Zigbee, and DALI, and lighting technologies such as LED and fluorescent. Its applications range from indoor to outdoor lighting across sectors such as residential, commercial, automotive, and industrial. With rapid advancements in automation, the smart lighting industry is well-positioned for substantial growth in the coming years.
