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Smart Indoor Lighting Market Trends

ID: MRFR//2507-CR | 110 Pages | Author: Aarti Dhapte| November 2022

Global Smart Indoor Lighting Market Overview:


Smart Indoor Lighting Market Size was valued at USD 7.9 billion in 2023. The smart indoor lighting market industry is projected to grow from USD 9.6 Billion in 2024 to USD 38.0652 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.75% during the forecast period (2024 - 2032). Their ability to connect with IoT devices and generate a variety of ambient lighting using only smartphones or tablets are the key market drivers enhancing the market growth.


Smart Indoor Lighting Market


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


Smart Indoor Lighting Market Trends




  • 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.


Smart Indoor Lighting Market Segment Insights:


Smart Indoor Lighting Component Insights


Based on components, the Smart Indoor Lighting Market segmentation includes hardware, software, and services. The hardware segment dominated the market, as a phone or voice assistant can operate smart lightbulbs and light strips. Lights can be controlled, and energy conservation can be done using smart light switches. Businesses like Signify provide homes and businesses lighting systems, products, and services. Ring provides remote-controllable smart LED lightbulbs. Smart under-cabinet lighting with remote control is available from Lowes.


Figure 1: Smart Indoor Lighting Market, by Components, 2022 & 2032 (USD billion)


Smart Indoor Lighting Market, by Components


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


Smart Indoor Lighting Communication Technology Insights


Based on communication technology, the Smart Indoor Lighting Market segmentation includes wired communication technology and wireless communication technology. The wireless communication technology category generated the most income. The technology is intended to be more straightforward and less expensive than other wireless network protocols. It is a low power, low data rate, proximity wireless mesh network protocol. The popularity of smart homes will probably increase demand for the ZigBee protocol. To meet the special requirements of low-cost, low-power, wireless loT networks, ZigBee is a wireless technology that was created as an open, global standard.


Smart Indoor Lighting Light Source Insights


Based on light sources, the Smart Indoor Lighting Market segmentation includes fluorescent lamps, light-emitting diodes (LED), and high-density discharge lamps. The light-emitting diodes (LED) segment dominated the market, LEDs are a kind of intelligent indoor lighting that emits light from semiconductor materials. Since they frequently use less energy and have a longer lifespan than other smart indoor lighting options, LEDs are preferred in places like homes and businesses.


Smart Indoor Lighting Application Insights


Based on application, the Smart Indoor Lighting Market segmentation includes residential, commercial, and industrial. The commercial category generated the most income. Due to growing public awareness of energy-efficient products and government programs like The Lighting Association's (TLA) Lighting Achieves Energy Efficient (LASE) certification program. Additionally, producers are introducing new products with features like dimming ability and a variety of other choices that customers can select based on their needs. Global demand is anticipated to be driven during the forecast period by the growing adoption of smart lighting in commercial and industrial applications to increase operational efficiency.


Smart Indoor Lighting Product Type Insights


Based on product type, the Smart Indoor Lighting Market segmentation includes smart bulbs, ballasts, fixtures, relay units, and gateways. The smart bulbs segment dominated the market, using a smartphone app. Thanks to their compatibility with voice assistants like Amazon Alexa and Google Assistant, you can command many smart bulbs with your voice. Smart bulbs can be scheduled to turn on or off at particular times, which can be helpful for energy conservation or setting a particular mood.


Smart Indoor Lighting Regional Insights


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 (%)


Smart Indoor Lighting Market SHARE BY REGION


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.


Smart Indoor Lighting Key Market Players & Competitive Insights


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.


Key Companies in the smart indoor lighting market include



  • 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)

  • Legrand S.A. (France)

  • OSRAM Licht AG (Germany)

  • Schneider Electric SE (France)

  • Lutron Electronics Company Inc. (U.S.)


Smart Indoor Lighting Industry Developments


March 2022: At HITEC 2018 in Houston, Texas, Honeywell unveiled its newest energy management software, smart indoor lighting, voice controls, and safe cloud communication systems. Through Honeywell technology, the hospitality sector can completely integrate energy management, safety and security systems, property management, and brand network operations for world-class guestrooms and building automation, which leads to market expansion.


Smart Indoor Lighting Market Segmentation:


Smart Indoor Lighting Components Outlook




  • Hardware




  • Software




  • Services




Smart Indoor Lighting Communication Technology Outlook




  • Wired Communication Technology




  • Wireless Communication Technology




Smart Indoor Lighting Light Source Outlook




  • Fluorescent Lamps, Light Emitting Diodes (LED)




  • High-Density Discharge Lamps




Smart Indoor Lighting Application Outlook




  • Residential




  • Commercial




  • Industrial




Smart Indoor Lighting Product Type Outlook




  • Smart Bulbs




  • Ballasts




  • Fixtures




  • Relay Units




  • Gateways




Smart Indoor Lighting Regional Outlook




  • North America








    • US




    • Canada








  • Europe








    • Germany




    • France




    • UK




    • Italy




    • Spain




    • Rest of Europe








  • Asia-Pacific




    • China




    • Japan




    • India




    • Australia




    • South Korea




    • Australia




    • Rest of Asia-Pacific






  • Rest of the World




    • Middle East




    • Africa




    • Latin America





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