As per MRFR Analysis, the Global Smart Lighting Market was valued at USD 16,679.86 Million in 2024 and is projected to reach USD 90,892.64 Million by 2035, growing at a CAGR of 18.5% from 2025 to 2035. Key drivers include the rise of smart city projects, advancements in integrated lighting control systems, and government regulations promoting LED usage. The market is segmented into new installations, which dominate with 68.19% market share, and retrofit installations. The hardware segment, particularly lights and luminaires, is expected to see significant growth due to the popularity of energy-efficient LED technology. North America leads the market with a 41.5% share in 2024, driven by early adoption and strong industry presence.
Key trends driving the Smart Lighting Market include technological advancements and regulatory support.
Control4 Corp. (Snap One LLC), Lutron Electronics Co. Inc., Signify Holding, Wyze Labs Inc., Sengled, Inter IKEA Holding, Acuity Brands Inc., Hubbell Incorporated, Crestron Electronics Inc.
Growing smart city projects in developing nations and advancement in the integrated lighting control system are the key market drivers enhancing market growth. Government regulations mandating the use of LEDS and Growing popularity of IOT Based Smart home Automation are driving the growth of the market.
FIGURE 1: SMART LIGHTING MARKET VALUE (2019-2035) USD Million
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The major reasons for installing LEDs over conventional lights include energy and price savings. LEDs are replacing conventional light sources, including incandescent, fluorescent, high-intensity discharge (HID), and high-pressure sodium lamps in outdoor lighting applications. Outdoor lighting applications majorly include highways, roadways, public places, and stadiums. As per the US DOE, LED lighting would represent 86% of all lighting sales by 2035 due to the benefits offered by LED lights over their conventional counterparts.
Further, technological advancements and developments in various countries have revolutionized outdoor luminescence from on & off systems to smart luminescence. The adoption of loT and Al technology in the lighting industry has increased the demand for smart lighting for city streets. This leads to the rise in the need for luminescence systems that provide automated operations. Additionally, Government policies encouraging energy conservation and environmental protection, along with stringent regulations, discourage the usage of incandescent lamps, which is expected to bolster the demand for LED smart lighting. The global lighting industry consumes around 19% of the total electricity and is accountable for around 6% of the total greenhouse gas emissions. On the contrary, LED smart lights are positively efficient.
They customer almost 70% lesser energy and connect devices to collect details for future processes. They have extremely longer life spans and are free from any mercury content. Similarly, there are no dangerous greenhouse gas emissions associated with LED lights. Thus, LED technology has potentially revolutionized the entire lighting industry and infiltrated the smart lighting segment, wherein LED is a preferable choice among vendors and consumers, which has enhanced the smart lighting market CAGR across the globe in recent years.
The Smart Lighting Market segmentation, based on installation type includes new installation and retrofit installations. The new installation segment held the majority share of the Smart Lighting Market revenue. The demand for smart lighting is driven by the growing adoption of smart lighting for data-driven causes in crucial areas. The New Installation segment dominates the market with 68.19% and a CAGR of 18.9%. The new installation segment is anticipated to show considerably higher revenues over the forecast period due to growing awareness of energy-saving lighting solutions across various commercial, industrial, and residential buildings.
Smart LED lighting is being installed owing to the growth that is being realized in the commercial and industrial sectors and new constructional activities in the developing nations. In addition, the pressure to cut operational costs for energy to enhance public safety through promoting smart city projects is leading to installation of smart LED lighting thus driving segment’s revenue.
FIGURE 2: SMART LIGHTING MARKET SHARE BY TYPE 2024 and 2035 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on offering, the Smart Lighting Market has been segmented into hardware, software and services. Smart lighting hardware has been further categorized into Lights and Luminaires and Lighting Controls, wherein the lights and luminaires segment is exhibiting high growth potential during the period 2024 to 2035. The popularity of connected lighting bulbs and fixtures that can change colors, dim lights, and turn on/off using a controlling device such as a smartphone or tablet is driving demand in the hardware category.
LED lights are the most popular choice in smart lighting systems due to their energy efficiency, extended lifespan, and interoperability with smart technologies. Luminaires, or fixtures that hold these lights, are meant to allow smart functions such as dimming, color change, and motion detection. Modern luminaires include sensors and wireless communication modules, allowing them to communicate with smart home ecosystems and modify illumination in real time based on factors such as occupancy or ambient light
Based on end use applications, the Smart Lighting Market has been segmented into indoor and outdoor. The indoor application is further sub-segmented into residential, commercial, and industrial. The residential segment is predicted to increase rapidly over the forecast period due to the increasing popularity of smart lighting bulbs and fixtures that can be controlled by the user to create different lighting moods.
Furthermore, demand for commercial and industrial space is driven by the need to control lighting consumption because office spaces or warehouses are operational 24 hours a day, seven days a week and require consistent power supply throughout the day and night. Installing smart lighting with built-in sensors guarantees that lights are only used in appropriate areas based on people's movement, which is detected by the sensors.
Based on communication technology, the Smart Lighting Market has been segmented into wired and wireless. Wired technology dominates the market since the systems that fall under this category include ethernet, digital addressable lighting interface (DALI), and power over ethernet (PoE) technologies of communication and control. Furthermore, growth in wired technology with respect to reliability and stability of technology, which is crucial in massive and commercial lighting fixtures, is propelling the market.
Further, wired systems are more immune to interference and security problems than wireless systems and therefore recommended for the places where smooth and continuous operation of the lighting system is essential such as healthcare and industrial buildings or high-end commercial complexes.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. North America dominates the Smart Lighting Market with an 41.5 % share of the market in 2024. This can be due to strong industry presence and early adoption of smart lighting technology in both the commercial and residential areas. Major communities in the United States and Canada are rapidly implementing smart street lighting systems to reap benefits such as energy savings and remote administration. The presence of significant technology companies and smart lighting manufacturers such as Philips, GE, and Acuity Brands has enhanced regional R&D efforts.
Europe is in the forefront of developing safety and standardized performance standards for specific indoor commercial smart lighting applications for garages, highways, and parking. Dedicated LED luminaires and LED replacement smart bulbs are emerging as significant development areas in the lighting industry, as LED designs and technology continue to advance.
The APAC region consists of China, India, Japan, South Korea, Malaysia, Indonesia, Thailand and rest of APAC. Asia Pacific is expected to grow at the fastest CAGR of 23.7% during the forecast period owing to the surging demand from the commercial and residential application segments. China is expected to be the largest revenue generator, with the highest global market share.
The Middle East and Africa consist of GCC countries, South Africa, and the rest of the MEA. Smart lighting is slowly and gradually gaining traction in the MEA region primarily owing to the establishment of smart city ventures and an increasing emphasis on constructing eco-friendly smart and intelligent city structures. In addition, the investment raised in infrastructure development and the customers’ growing concern with energy conservation, is boosting market growth.
FIGURE 3: SMART LIGHTING MARKET VALUE BY REGION 2024 and 2035 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the countries considered in the scope of the Smart Lighting Market are the US, Canada, Mexico, UK, Germany, France, Italy, Spain, Switzerland, Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Romania, Ireland, China, Japan, Singapore, Malaysia, Indonesia, Philippines, South Korea, Hong Kong, Macau, Singapore, Brunei, India, Australia & New Zealand, South Africa, Egypt, Nigeria, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman, Brazil, Argentina, Chile, and others.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the smart lighting market grow even more. Market participants are also taking a range of strategic initiatives to grow their footprint globally, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the smart lighting industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
In the competitive smart lighting industry, companies are driving innovation by developing integrated smart lighting solutions with strong compatibility and scalable connectivity options. According to MRFR analysis, the key players in the smart lighting sector include Control4 Corp. (Snap One LLC), Lutron Electronics Co. Inc., Signify Holding, Wyze Labs Inc., Sengled, Inter IKEA Holding, Acuity Brands Inc., Hubbell Incorporated, Crestron Electronics Inc., Insteon, EGLO Leuchten GmbH, Eve Systems GmbH, LG Electronics Inc., Wiz Connected Lighting Co. Ltd, and Wipro Lighting Limited.
These companies continue to shape the market by innovating and expanding their product offerings which include smart bulbs, Lightstrips, smart home Apps, controllers etc. Established companies like Signify Holdings , Acuity Brands Lighting Inc, Legrand and others have significant competitive advantages due to their strong brand recognition, extensive distribution networks, and substantial investments in technology and innovation.
Control4 is a smart home automation company that provides a customizable system for controlling connected devices in home.Control4 is a leading global provider of automation and networking systems for homes and businesses, offering personalized control of lighting, music, video, comfort, security, communications, unified smart home system. Control4 is delivering intelligent solutions for consumers, major consumer electronics companies, hotels, and businesses around the world. Their Control4 platform interoperates with more than 12,500 third-party consumer electronics products, operational in over 100 countries, and currently deployed in approximately 475,000 homes, managing more than 15 million connected devices globally. Installation is facilitated through a network of nearly 6,000 authorized dealers. Control4 was acquired by Snap One. In 2021, SnapAV and Control4 rebranded as Snap One, with Control4 as its primary smart home automation brand. The company maintains offices in multiple locations, including Austin, Chicago, Frankfurt, and Shanghai, to support its global operations and dealer network.
February 2025: Samsung's SmartThings and IKEA have announced an integration via the Matter Bridge, enhancing smart home experiences by enabling seamless connectivity between their ecosystems. Users can easily connect IKEA devices to SmartThings, benefiting from advanced automation and control features.
July 2025: Wipro has launched its Smart and Connected IoT Experience Centre in Pune, showcasing advanced IoT applications and innovative lighting solutions. The centre aims to support modern businesses by demonstrating how smart technology can enhance productivity and well-being
Intended Audience
| Attribute/Metric | Details |
| Market Size 2024 | USD 16,679.86 Million |
| Market Size 2025 | USD 19,015.90 Million |
| Market Size 2035 | USD 90,892.64 Million |
| Compound Annual Growth Rate (CAGR) | 18.5 % (2018-2035) |
| Base Year | 2024 |
| Forecast Period | 2025-2035 |
| Historical Data | 2019-2023 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Revenue Mode, Component, Genre, Target User Age Group, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | The U.S, Canada, Mexico, Germany, France, UK, China, Japan, India, Australia, South Korea, UAE, and Brazil |
| Key Companies Profiled | Control4 Corp. (Snap One LLC), Lutron Electronics Co. Inc., Signify Holding, Wyze Labs Inc., Sengled, Inter IKEA Holding, Acuity Brands Inc., Hubbell Incorporated, Crestron Electronics Inc., Insteon ,EGLO Leuchten GmbH, Eve Systems GmbH, LG Electronics Inc., Wiz Connected Lighting Co. Ltd, and Wipro Lighting Limited. |
| Key Market Opportunities | · Integration Of Innovation Technologies · Ongoing Internet & Smartphone Penetration Across The World |
| Key Market Dynamics | · The Smart Lighting Market is reflecting growth due to increasing demand for energy efficiency · Expanding Number Of Commercial Gaming Facilities |
Smart Lighting Market Highlights:
Frequently Asked Questions (FAQ) :
USD 16,679.86 Million in 2024
18.5 %
North America
Control4 Corp. (Snap One LLC), Lutron Electronics Co. Inc., Signify Holding, Wyze Labs Inc., Sengled, Inter IKEA Holding, Acuity Brands Inc., Hubbell Incorporated, Crestron Electronics Inc., Insteon ,EGLO Leuchten GmbH, Eve Systems GmbH, LG Electronics Inc., Wiz Connected Lighting Co. Ltd, and Wipro Lighting Limited.
The New Installations dominated the market in 2024
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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