The smart lighting market is expected to grow at a CAGR of 17.5% for the years spanning 2019 and 2026. smart lighting market is expected to be valued at USD 30,658.36 billion by 2026. Smart lighting coincides with smart homes. Smart lighting is the type of lighting that turns on by clapping one’s hands or by making a verbal command for the lights to turn on.
Homes that use smart lighting technologies and capabilities are becoming the norm now thanks to the advent of smart cities.
COVID-19 plagued the world last year. It proved to be more than just another nuisance virus when it made many people very sick last year and this year. COVID-19 was even responsible for some deaths. Governments realized that this was a dangerous disease and sought to contain it with temporary quarantines and lockdowns. This had limited success.
Many markets and industries suffered because they were forced to temporarily halt or drastically slow operations. The global smart lighting market was not one of these. It was one of the few markets that saw phenomenal success in 2020 and 2021. The reason was that people were forced to work indoors - they didn’t want to risk getting COVID-19. This created unprecedented demand for smart lighting technologies.
Smart cities have mushroomed around the world in recent years. Since these cities use state-of-the-art technology to operate it would make sense that they would require only the latest in terms of lighting technologies. Smart lighting is this technology. Another huge driver of growth is the fact that smart lighting pays for itself over the years. It may cost more to install initially. However, this initial high cost is more than recuperated in the form of lower energy bills over the years of usage.
Many companies are enticed and lured by the high CAGR of the global smart lighting market. They realize that they have the opportunity to make a lot of money. This is the reason why they’re investing heavily in research and development to develop and market the technologies that will take smart lighting to ‘new technological heights!’
These companies are having some success. For example, companies like the Dutch Philips Lighting and the American General Electric have developed new smart lighting technologies with many more and innovative uses and applications. One of these new technological developments is the usage of the Zigbee chip in smart lighting devices and light bulbs.
Smart lighting technologies are more expensive than conventional technologies that use the traditional incandescent light bulb. This is one key factor that is holding back growth in the smart lighting market.
Perhaps the biggest challenges that manufacturers of smart lighting technologies face in the future lies in continuing to develop more advanced products that use better and more efficient technologies and result in less usage of energy more efficiently while keeping the price of these technologies in the affordable range for the end consumer.
Cumulative growth analysis
The CAGR for the global smart lighting market is 17.5%. The market is expected to be valued at USD 30,658.36 billion by the end of 2026.
General Electric is a major American company in the global smart lighting market. It has managed to become an industry leader by creating a sustainable competitive advantage. It invested heavily in research and development over the years. This allowed it to develop newer smart lighting technologies and devices with far more diverse uses. This also allowed them to justify charging the end consumers higher prices for its products.
The global smart lighting market can be grouped into the following based on the component:
By product type
The global smart lighting market can be grouped into many products.
By light source
The global smart lighting market can be grouped into the following based on light source:
This segment is perhaps the most important of all of the segments because it has the highest CAGR of all segments until at least 2027. People are increasingly preferring to use these light sources because they end up paying much less for their monthly energy bills. They are also easier and cheaper to maintain than traditional light sources.
The global smart lighting market can be separated into the following geographic regions:
The European Union is perhaps the most important region of all of the regions in the world because the masses increasingly clamor for energy-efficient products and technologies. The key nations in the European Union include Germany, France, and the United Kingdom. Also, many governments in European countries are passing laws that require companies and residents to burn cleaner, greener, and more efficient sources of energy. This is a key reason why the European Union has such a high CAGR.
The European Union also has developed infrastructure. This supports a high CAGR in the global smart lighting market. The well-developed infrastructure plays a large role in supporting the high growth rate that the European Union has in the global smart lighting market. The advanced infrastructure makes implementing the advanced technologies that characterize and support smart lighting products quick and easy.
The North American region has the second-highest CAGR of all of the regions in the world. What accounts for this is the fact that there is a growing demand for homes that are built and powered (in terms of light energy) by smart products.
The Asia-Pacific region is also expected to have a high CAGR for the projected time period. What accounts for this is the fact that alternative energy is starting to take off in this region. India and China are prime examples of this Many manufacturing companies are entering the smart lighting market as a result of this.
Also, India and China are the two heavyweights in Asia both in terms of the size of the national economy and population. Smart lighting technologies and products are starting to become popular in these two nations. This is one key reason that is driving demand in the entire Asia-Pacific region. It also accounts for Asia-Pacific’s extremely high CAGR!
The global smart lighting market is very competitive. There are many factors that explain this. One is that the overall global CAGR is high. It creates incentives for many more companies to enter into what they (rightly) perceive to be a very lucrative industry and market. The competitive nature of smart lighting market means that companies must do one or more of the following to remain competitive and hence continue to make a real economic profit.
Companies invest in their future when they engage in heavy and intensive research and development. It allows them to develop the products and technologies that ‘will move the entire market forward’ in terms of overall technological development. It also helps to ensure that smart lighting technologies are products that will be ‘here to stay!’ Finally, companies can justify charging much more for these products and technologies by making the valid claim that these products and technologies are far superior in engineering, performance, and quality than their predecessors.
Companies increase their overall resource pools when they enter into strategic partnerships (joint ventures) with other companies. They end up being in a better position to do the types of research and development that will allow them to make the superior products and technologies that will make them the leaders in their respective industries. They also have the resources and manpower to undertake extensive marketing and digital marketing that will help them enter into new markets with ease. These companies can also do the necessary marketing and digital marketing to help them strengthen their position in existing markets and expand their customer base.
Companies that engage in mergers and acquisitions with other successful companies are in the same situation as those that enter into strategic partnerships are.
Acuity Brands Lighting Inc is a major American company in the smart lighting market. It has managed to retain its superior market position by investing heavily in research and development. This has allowed it to develop technologies that light smart homes easily.
List of companies
The CAGR for the smart lighting market is expected to be 17.5% by 2026. The market is expected to be worth USD 30,658.36 billion by 2026. The largest market for smart lighting technologies and products is in the European Union. This is followed by the North American and then the Asia-Pacific regions, Incidentally, the Asia-Pacific region has the highest CAGR. it’s mainly attributed to the fact that India and China have rapidly growing economies and regional smart lighting markets.
|Market Size||USD 30,658.36 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Product Type, Light Source, Communication Technology, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Philips Lighting Holding B.V. (The Netherlands), Acuity Brands Lighting, Inc. (U.S.), General Electric Company (U.S.), Osram Licht AG (Germany), Honeywell International Inc. (U.S.), Legrand S.A. (France), Schneider Electric SE (France), CREE, Inc. (U.S.), Cooper Industries, Inc. (Ireland), Digital Lumens, Inc. (U.S.)|
|Key Market Opportunities||Technical advancements and increasing investments in infrastructure modernization projects.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
USD 30,658.36 billion
The fact that smart offices and homes are popular and the fact that smart lighting saves people and businesses money in the long term.
The European Union
● Osram Licht AG, ● Cooper Industries, Inc., ● Honeywell International Inc., ● Philips Lighting Holding B.V., ● General Electric Company, ● AcuityBrands Lighting, Inc., ● Schneider Electric SE, ● Digital Lumens, Inc., ● CREE, Inc., and ● Legrand S.