Smart Indoor Lighting Market

• Ability to connect with IoT devices is driving the market growth

The popularity and demand for lights have grown in both commercial and residential spaces due to their ability to connect with IoT devices and generate a variety of ambient lighting using only smartphones or tablets. Smart lights can be dimmed with different color tones depending on the situation, schedule their on/off times, track their energy consumption, and connect to other devices via Wi-Fi, Bluetooth, SmartThings, Z-Wave, or ZigBee.

Office spaces are also emerging as one of the common smart lighting applications. In today's business world, owners and managers are placing more emphasis on the overall well-being of their employees. By switching to smart lighting, offices can provide bright light for their employees. This helps them see better and experience less eye fatigue. Additionally, the color of the light can help brighten moods and provide comfort. The use of smart lighting in offices is also becoming more widespread. The general well-being of their employees is becoming more important to owners and managers in today's business environment.

Offices can give their employees bright light by switching to smart lighting. They can see more clearly and have less eye fatigue as a result. The color of the light can also uplift and comfort people.

The market demand for connected LED lighting is also anticipated to benefit from favorable government regulations regarding conventional lighting and energy consumption in the United States, the European Union, China, and India.

Entrepreneurial difficulties could arise, though, from the smart lighting market's sluggish growth. Significant sunk investments and reputational harm are the effects of a market entry failure for manufacturers of smart lighting products. Manufacturers are realizing the need to consider consumer opinions of smart home technologies in general and smart lighting products in particular to address these concerns. Thus, driving the smart indoor lighting market revenue.

The Global Smart Indoor Lighting Market Industry experiences a notable surge in demand for energy-efficient solutions. As energy costs continue to rise, consumers and businesses alike seek ways to reduce their energy consumption. Smart indoor lighting systems, which utilize LED technology and intelligent controls, can reduce energy usage by up to 80 percent compared to traditional lighting. This shift not only lowers utility bills but also contributes to environmental sustainability. The market is projected to reach 9.6 USD Billion in 2024, reflecting a growing awareness of energy efficiency benefits among consumers and businesses globally.

Government initiatives aimed at promoting energy efficiency and sustainability significantly impact the Global Smart Indoor Lighting Market Industry. Many countries implement regulations that encourage the adoption of energy-efficient lighting solutions, including tax incentives and rebates for consumers and businesses. These initiatives are designed to reduce carbon footprints and promote environmental stewardship. For instance, various governments have set ambitious targets for reducing greenhouse gas emissions, which indirectly boosts the demand for smart lighting solutions. As regulatory frameworks evolve, they are likely to further stimulate market growth and adoption of smart indoor lighting technologies.

There is an increasing recognition of the impact of lighting on health and well-being, which influences the Global Smart Indoor Lighting Market Industry. Research indicates that appropriate lighting can enhance mood, productivity, and overall quality of life. Smart indoor lighting systems allow users to adjust color temperatures and brightness levels, creating environments that promote well-being. This awareness is particularly relevant in workplaces and educational institutions, where lighting can affect performance and comfort. As more individuals and organizations prioritize health-oriented lighting solutions, the market is expected to expand, driven by this growing focus on well-being.

The trend towards smart homes and buildings is a driving force behind the Global Smart Indoor Lighting Market Industry. As consumers increasingly adopt smart home technologies, the demand for integrated lighting solutions rises correspondingly. Smart indoor lighting systems can seamlessly connect with other smart devices, such as thermostats and security systems, creating a cohesive smart environment. This integration not only enhances convenience but also improves energy management. The growing popularity of smart homes is likely to propel the market forward, contributing to a compound annual growth rate of 18.78 percent from 2025 to 2035.

Technological innovations play a pivotal role in the expansion of the Global Smart Indoor Lighting Market Industry. The integration of Internet of Things (IoT) technology into lighting systems enables users to control lighting remotely through smartphones and other devices. This level of control enhances user convenience and personalization, allowing for tailored lighting experiences. Furthermore, advancements in sensor technology facilitate automated adjustments based on occupancy and ambient light levels, optimizing energy use. As these technologies evolve, the market is expected to grow significantly, with projections indicating a rise to 63.7 USD Billion by 2035.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American smart indoor lighting market will dominate this market, the regional market's expansion is aided by rising smart indoor lighting system adoption and supportive government policies. The market is expanding due to the rising demand from the automotive and transportation industries for smart indoor lighting systems. Increased investments in wireless technology and technological advancements support the region's market share.

The market is expanding as a result of expanding applications for smart indoor lighting, including connected streetlights, sizable commercial buildings, and manufacturing automation. The US currently controls most of the North American market for smart indoor lighting due to its growing demand for safety and comfort features in household applications.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Smart Indoor Lighting Market SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s smart indoor lighting market accounts for the second-largest market share. Due to the increased use of smart indoor lighting systems as an energy-efficient indoor lighting solution, the market in this region is expanding. The region's recovering economy has increased consumer purchasing power, contributing to market growth. Notable advancements also aid the expansion of the regional market in technical infrastructure, sensing technology, and healthcare standards. Further, the German smart indoor lighting market held the largest market share, and the UK smart indoor lighting market was the fastest-growing market in the European region.

The Asia-Pacific Smart Indoor Lighting Market is expected to grow at the fastest CAGR from 2023 to 2032. The main factors affecting the region's smart indoor lighting market are the advantage of raw materials and the accessibility of a workforce with competitive wages. Additionally, government initiatives to improve infrastructure and the growing adoption of smart LED streetlights contribute to regional market growth. Moreover, China’s smart indoor lighting market held the largest market share, and the Indian smart indoor lighting market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the smart indoor lighting market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The smart indoor lighting industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global smart indoor lighting industry to benefit clients and increase the market sector. The smart indoor lighting industry has offered some of the most significant advantages in recent years.

Major smart indoor lighting market players, including Acuity Brands Lighting Inc. (U.S.), Philips Lighting (The Netherlands), General Electric Company (U.S.), Honeywell International (U.S.), Cooper Industries, OSRAM Licht AG (Germany) Inc. (Ireland), Legrand S.A. (France), OSRAM Licht AG (Germany), Schneider Electric SE (France), Lutron Electronics Company Inc. (U.S.) and others, are attempting to increase market demand by investing in research and development operations.

OSRAM Licht AG (Germany), German electric light manufacturer OSRAM Licht AG has offices in Munich and Premstätten, Austria. OSRAM markets itself as a high-tech photonics business concentrating more on sensor technology, visualization, and light-based treatment. The business serves customers of consumers, automotive, healthcare, and industrial technology. OSRAM GmbH is OSRAM's operating company.

General Electric Company (U.S.), GE's diverse and committed workforce, operates with the utmost integrity and dedication to fulfill its mission and satisfy its clients. The Board and our leadership team are dedicated to achieving this goal. GE brings cutting-edge solutions to the market, providing vital infrastructure for the energy, healthcare, and transportation sectors. We strive to operate with the highest standards of integrity, compliance culture, and respect for human rights while minimizing our technology's negative effects on the environment. In this unprecedented period, we still do everything possible to support our clients and staff.

We are extremely proud of how GE employees responded to the challenge globally.