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    US Smart Indoor Lighting Market

    ID: MRFR/SEM/11696-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US Smart Indoor Lighting Market Research Report By Component (Hardware, Software, Services), By Communication Technology (Wired Communication Technology, Wireless Communication Technology), By Light Source (Fluorescent Lamps, Light Emitting Diodes (LED), High-Density Discharge Lamps), By Application (Residential, Commercial, Industrial) and By Product Type (Smart Bulbs, Ballasts, Fixtures, Relay Units, Gateways) - Forecast to 2035

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    US Smart Indoor Lighting Market Infographic
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    US Smart Indoor Lighting Market Summary

    As per MRFR analysis, the US smart indoor-lighting market size was estimated at 2160.0 USD Million in 2024. The US smart indoor-lighting market is projected to grow from 2621.16 USD Million in 2025 to 18150.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 21.35% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US smart indoor-lighting market is poised for substantial growth driven by technological advancements and increasing consumer demand for energy-efficient solutions.

    • Energy efficiency and sustainability remain pivotal trends, influencing consumer choices in the smart indoor-lighting market.
    • Integration with smart home systems is becoming increasingly prevalent, enhancing user experience and convenience.
    • Personalization and aesthetic appeal are gaining traction, as consumers seek lighting solutions that reflect their individual styles.
    • Technological advancements in lighting solutions and growing demand for energy conservation are key drivers propelling market expansion.

    Market Size & Forecast

    2024 Market Size 2160.0 (USD Million)
    2035 Market Size 18150.0 (USD Million)

    Major Players

    Philips (NL), Signify (NL), Osram (DE), Cree (US), GE Lighting (US), Lutron (US), Honeywell (US), Legrand (FR), Schneider Electric (FR)

    US Smart Indoor Lighting Market Trends

    the smart indoor-lighting market is experiencing a notable transformation, driven by advancements in technology and increasing consumer demand for energy-efficient solutions. As individuals become more conscious of their environmental impact, the adoption of smart lighting systems that offer enhanced control and customization is on the rise. These systems not only provide convenience through automation and remote access but also contribute to energy savings, which is a crucial factor for many households. Furthermore, the integration of smart home ecosystems is facilitating the growth of this market, as consumers seek seamless connectivity between devices. In addition to energy efficiency, the smart indoor-lighting market is experiencing a shift towards aesthetic appeal and personalization.. Manufacturers are increasingly focusing on design elements that cater to diverse consumer preferences, allowing for greater integration into home decor. The rise of smart lighting solutions that can change colors and adjust brightness levels according to mood or activity is particularly appealing. This trend indicates a broader movement towards creating personalized living spaces that enhance comfort and well-being. As technology continues to evolve, the market is poised for further growth, with innovations likely to emerge that will redefine how individuals interact with their indoor environments.

    Energy Efficiency and Sustainability

    The emphasis on energy efficiency is a driving force in the smart indoor-lighting market. Consumers are increasingly seeking solutions that reduce energy consumption while maintaining functionality. This trend aligns with broader sustainability goals, as households aim to lower their carbon footprints. Smart lighting systems that utilize LED technology and offer features such as dimming and scheduling are particularly appealing, as they contribute to significant energy savings.

    Integration with Smart Home Systems

    The integration of smart indoor-lighting solutions with existing smart home systems is becoming more prevalent. Consumers are looking for products that can seamlessly connect with other devices, such as smart speakers and home automation systems. This trend enhances user experience by allowing for centralized control and automation, making it easier for individuals to manage their indoor environments.

    Personalization and Aesthetic Appeal

    Personalization is emerging as a key trend in the smart indoor-lighting market. Consumers are increasingly interested in lighting solutions that can be tailored to their specific preferences and lifestyles. This includes the ability to adjust colors and brightness levels to create desired atmospheres. Manufacturers are responding by offering a wider range of designs and features that cater to individual tastes, thereby enhancing the overall aesthetic appeal of living spaces.

    US Smart Indoor Lighting Market Drivers

    Growing Demand for Energy Conservation

    The growing emphasis on energy conservation is a pivotal driver for the smart indoor-lighting market. As energy costs continue to rise, consumers and businesses alike are seeking solutions that reduce energy consumption. Smart lighting systems, which can adjust brightness and color temperature based on occupancy and time of day, are particularly appealing. Reports indicate that smart lighting can reduce energy usage by up to 30%, making it an attractive option for environmentally conscious consumers. This trend aligns with broader sustainability goals, as more individuals and organizations aim to minimize their carbon footprint. Consequently, the demand for energy-efficient lighting solutions is likely to propel the smart indoor-lighting market forward.

    Increased Awareness of Health and Well-being

    There is a growing awareness of the impact of lighting on health and well-being, which is influencing the smart indoor-lighting market. Research suggests that proper lighting can enhance mood, productivity, and overall health. As a result, consumers are increasingly interested in smart lighting solutions that can mimic natural light patterns, thereby promoting better sleep and reducing eye strain. This trend is particularly relevant in workspaces and homes where individuals spend significant amounts of time. The market is likely to benefit from this heightened awareness, as more consumers seek to invest in lighting systems that contribute positively to their health and lifestyle.

    Rising Urbanization and Smart City Initiatives

    The trend of rising urbanization and the implementation of smart city initiatives are significantly impacting the smart indoor-lighting market. As urban areas expand, there is an increasing need for efficient and intelligent lighting solutions that can adapt to the dynamic needs of urban environments. Smart city projects often incorporate advanced lighting systems that enhance public safety and reduce energy consumption. In the US, cities are investing heavily in smart infrastructure, which includes smart lighting as a key component. This trend is expected to drive substantial growth in the smart indoor-lighting market, as municipalities seek to modernize their lighting systems and improve the quality of life for residents.

    Technological Advancements in Lighting Solutions

    The smart indoor-lighting market is experiencing a surge due to rapid technological advancements in lighting solutions. Innovations such as LED technology and smart sensors are enhancing energy efficiency and user experience. The integration of IoT (Internet of Things) capabilities allows for remote control and automation, making lighting systems more user-friendly. In 2025, the market is projected to reach a valuation of approximately $10 billion, driven by these advancements. Furthermore, the ability to customize lighting settings based on user preferences is becoming increasingly popular, indicating a shift towards more personalized lighting solutions. This trend suggests that consumers are willing to invest in smart lighting systems that offer both functionality and convenience.

    Regulatory Support for Energy-efficient Solutions

    Regulatory support for energy-efficient solutions is a crucial driver for the smart indoor-lighting market. Government initiatives aimed at promoting energy conservation and reducing greenhouse gas emissions are encouraging the adoption of smart lighting technologies. Incentives such as tax credits and rebates for energy-efficient upgrades are making smart lighting systems more financially accessible to consumers. In 2025, it is anticipated that these regulatory measures will contribute to a market growth rate of approximately 15% annually. This supportive environment not only fosters innovation but also encourages manufacturers to develop more advanced and efficient lighting solutions, further propelling the smart indoor-lighting market.

    Market Segment Insights

    By Components: Hardware (Largest) vs. Software (Fastest-Growing)

    In the US smart indoor-lighting market, the Components segment is comprised of Hardware, Software, and Services, with Hardware holding the largest market share. The proliferation of smart devices and the demand for efficient, automated lighting solutions have solidified Hardware's dominance. Meanwhile, Software is rapidly gaining traction, benefiting from trends toward integration, user-friendly interfaces, and enhanced functionalities, making it a critical element of the overall market. Looking ahead, growth trends in the Components segment are driven by technological advancements and increasing consumer awareness. The shift towards energy-efficient lighting and smart home integration positions Software as the fastest-growing component, as consumers seek customizable and efficient solutions. Furthermore, the rise in service-oriented offerings adds to the segment's potential, catering to a market increasingly focused on support and maintenance services.

    Hardware (Dominant) vs. Software (Emerging)

    Hardware remains the dominant force within the US smart indoor-lighting market, characterized by robust sales of lighting fixtures, smart bulbs, and electronic components that facilitate connectivity and automation. Its established presence is complemented by constant innovations driving enhanced performance and energy efficiency. Conversely, Software is emerging as a pivotal element, focusing on applications that offer connectivity, user interface designs, and data management capabilities. This shift is propelled by smart home adoption trends, where consumers seek integrated solutions that allow for seamless control and customization of lighting systems. Together, Hardware and Software create a synergistic relationship that enhances the overall user experience, making them essential components in the evolution of smart indoor lighting.

    By Communication Technology: Wired Communication Technology (Largest) vs. Wireless Communication Technology (Fastest-Growing)

    In the smart indoor-lighting market, the market share is predominantly held by wired communication technology, which benefits from its reliability and consistent performance. This segment is integral in commercial applications where continuous connectivity is paramount. Conversely, wireless communication technology, while currently smaller in market share, is quickly gaining traction among consumers seeking flexibility and ease of installation. Products leveraging wireless technology are increasingly being favored for residential settings due to their convenience and the growing adoption of smart home systems. The growth of wireless communication technology is largely driven by innovations in connectivity solutions, such as Wi-Fi and Bluetooth, making them more accessible for various applications. Consumers are drawn to the increased functionality and integration capabilities offered by wireless systems. Additionally, the shift towards IoT and smart home environments further fuels demand, as people prefer lighting solutions that seamlessly integrate with other connected devices. The trend indicates that while wired technology remains essential, the future points towards a rapidly expanding wireless segment that will shape consumer preferences.

    Communication Technology: Wired (Dominant) vs. Wireless (Emerging)

    Wired communication technology remains the dominant force in the smart indoor-lighting market, characterized by its established infrastructure and reliability. It caters predominantly to commercial clients requiring stable connections for integrated lighting solutions. In contrast, wireless communication technology represents an emerging segment, appealing to more tech-savvy residential consumers who prioritize flexibility and easy setup. This segment is gaining popularity with the rise of smart home devices that demand seamless integration with lighting systems. The distinct characteristics of each segment highlight the shifting landscape of consumer preferences, as users increasingly seek the convenience offered by wireless solutions while also recognizing the reliability that comes with wired options.

    By Light Source: Light Emitting Diodes (LED) (Largest) vs. High-Density Discharge Lamps (Fastest-Growing)

    In the US smart indoor-lighting market, Light Emitting Diodes (LED) hold a prominent share due to their energy efficiency and long lifespan, appealing to both residential and commercial sectors. Fluorescent lamps continue to maintain a market presence due to their affordability, though their share is gradually shrinking as more consumers shift towards LED technology. Meanwhile, High-Density Discharge Lamps are gaining traction in specific applications, contributing to the diversification of the market. The growth trends for this segment are largely driven by advancements in LED technology, which enhance performance and reduce costs. Increasing awareness of energy efficiency and sustainability is propelling the adoption of smart lighting solutions, particularly those integrating smart controls with LED systems. Additionally, regulatory support and growing demand for energy-efficient products are fostering a robust competitive landscape, benefiting the overall US smart indoor-lighting market.

    Fluorescent Lamps (Dominant) vs. High-Density Discharge Lamps (Emerging)

    Fluorescent Lamps have traditionally been a dominant force in the indoor lighting segment due to their affordability and wide availability, serving a variety of applications from homes to offices. Their lower initial cost makes them attractive despite their gradually declining market share in favor of more efficient technologies. In contrast, High-Density Discharge Lamps are emerging as a flexible choice, particularly for industrial and large commercial spaces that require high-intensity light with improved efficiency. As technology evolves, these lamps are seeing innovative applications in smart lighting systems, thus presenting growth opportunities driven by efficiency and sustainability demands.

    By Application: Residential (Largest) vs. Commercial (Fastest-Growing)

    The application segment of the US smart indoor-lighting market is primarily dominated by the residential sector, which holds a significant share due to the increasing demand for energy-efficient solutions and enhanced user experience. The commercial sector, however, is rapidly gaining traction, driven by a growing focus on sustainability and smart building technologies that optimize energy consumption. These two application segments are pivotal in shaping the overall market landscape as they cater to different user needs and preferences. Rapid advancements in technology and increasing awareness about the benefits of smart lighting systems are propelling growth in both residential and commercial applications. The residential segment is bolstered by urbanization and the rise in smart home systems, while the commercial segment is supported by businesses seeking to reduce operational costs and enhance productivity. As these trends continue, the market is anticipated to experience dynamic growth in both sectors, with commercial applications emerging as a key driver of innovation and adoption.

    Residential (Dominant) vs. Commercial (Emerging)

    The residential segment is characterized by its focus on enhancing user convenience and comfort through intelligent lighting solutions. With features such as automation, remote control, and energy monitoring, residential smart indoor lighting appeals to homeowners seeking energy savings and personalization in their living spaces. On the other hand, the commercial segment is emerging as a significant player, driven by the need for efficiency and sustainability in business operations. LED technology adoption, along with integrated smart systems that support facility management, positions commercial smart lighting as a vital component in modern architectural designs. Both segments are critical for the future growth of the market, each catering to specific consumer demands and contributing to the overall evolution of smart lighting technology.

    By Product Type: Smart Bulbs (Largest) vs. Fixtures (Fastest-Growing)

    In the US smart indoor-lighting market, the distribution of market share among product types highlights the dominance of smart bulbs, capturing a significant portion of the market. Smart bulbs are widely preferred due to their ease of installation and user-friendly features. In contrast, fixtures, though currently holding a smaller share, are emerging rapidly as they integrate advanced technologies and aesthetics into home design, appealing to a broader consumer base. The growth trends reveal an increasing demand for energy-efficient and smart lighting solutions, and fixtures are being recognized for their ability to blend technology with interior decor. Factors driving this growth include the rising popularity of home automation systems, increased consumer awareness about energy savings, and the desire for customizable lighting experiences. As more households adopt smart technologies, the growth potential for fixtures appears robust, fostering competition among product types.

    Smart Bulbs (Dominant) vs. Fixtures (Emerging)

    Smart bulbs represent a dominant force in the product type segment, well-known for their innovative features like remote control and scheduling capabilities. Their convenience and ability to be retrofitted into existing fixtures make them highly appealing to consumers looking to upgrade their homes with smart technology. In contrast, fixtures are carving out their niche, emerging as a fashionable choice among design-conscious consumers. With options that incorporate modern aesthetics and functionality, fixtures are becoming increasingly attractive, offering seamless integration into smart home systems. As awareness of both energy efficiency and smart solutions grows, both segments will continue to evolve, but the immediate focus remains on the user-friendly nature of smart bulbs.

    Get more detailed insights about US Smart Indoor Lighting Market

    Key Players and Competitive Insights

    The smart indoor-lighting market is currently characterized by a dynamic competitive landscape, driven by technological advancements and increasing consumer demand for energy-efficient solutions. Key players such as Philips (NL), Cree (US), and GE Lighting (US) are strategically positioned to leverage innovation and sustainability as core components of their operational focus. Philips (NL) emphasizes smart technology integration, while Cree (US) is known for its commitment to high-performance LED solutions. GE Lighting (US) has been actively expanding its product portfolio to include smart lighting systems that cater to both residential and commercial sectors. Collectively, these strategies foster a competitive environment that prioritizes innovation and responsiveness to market trends.

    In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance efficiency and reduce costs. The market structure appears moderately fragmented, with several key players exerting considerable influence. This fragmentation allows for a diverse range of products and solutions, catering to varying consumer preferences and needs. The collective actions of these companies contribute to a competitive atmosphere where agility and adaptability are paramount.

    In October 2025, Philips (NL) announced the launch of its latest smart lighting system, which integrates advanced AI capabilities to optimize energy consumption based on user behavior. This strategic move not only reinforces Philips' commitment to sustainability but also positions the company as a leader in the integration of smart technology within the lighting sector. The introduction of AI-driven solutions is likely to enhance user experience and drive further adoption of smart lighting products.

    In September 2025, Cree (US) unveiled a new line of smart LED fixtures designed specifically for commercial applications, featuring enhanced connectivity options and energy-saving features. This initiative reflects Cree's focus on meeting the growing demand for smart solutions in the commercial sector, where energy efficiency and operational cost savings are critical. By expanding its product offerings, Cree aims to capture a larger market share and solidify its position as a key player in the smart indoor-lighting market.

    In August 2025, GE Lighting (US) entered into a strategic partnership with a leading technology firm to develop IoT-enabled lighting solutions. This collaboration is expected to enhance GE's product capabilities and accelerate the development of smart lighting systems that can be seamlessly integrated into smart home ecosystems. Such partnerships are indicative of a broader trend towards collaboration in the industry, as companies seek to combine expertise and resources to drive innovation.

    As of November 2025, current competitive trends in the smart indoor-lighting market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, enabling companies to pool resources and expertise to enhance product offerings. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition towards a focus on innovation, technological advancement, and supply chain reliability. This shift underscores the importance of adaptability and forward-thinking strategies in maintaining a competitive edge in the rapidly evolving market.

    Key Companies in the US Smart Indoor Lighting Market market include

    Industry Developments

    The US Smart Indoor Lighting Market has recently experienced notable developments. In September 2023, Lutron Electronics launched a new line of smart light control systems that integrates seamlessly with existing home automation systems, enhancing user convenience and energy savings. Signify, in August 2023, reported a significant growth in its revenue, indicating strong consumer demand for their innovative smart lighting solutions. Ecobee introduced new features in its smart thermostat systems in July 2023 that optimize indoor lighting and energy efficiency settings based on user habits. 

    In terms of mergers and acquisitions, Philips acquired a stake in Cree in June 2023, strengthening its position in the LED lighting segment. Additionally, General Electric announced a strategic partnership with Ring in May 2023 to enhance home security solutions through integrated smart lighting features. The market is showing increased growth potential, driven by advancements in technology and consumer preferences for smart, energy-efficient lighting options. Notably, Honeywell has been investing heavily in its smart home offerings, responding to the rising trend of automation in residential spaces over the past few years.

    Future Outlook

    US Smart Indoor Lighting Market Future Outlook

    the smart indoor-lighting market is expected to grow at a 21.35% CAGR from 2024 to 2035., driven by technological advancements, energy efficiency demands, and increasing consumer awareness.

    New opportunities lie in:

    • Development of integrated smart home lighting systems
    • Expansion into commercial sectors with tailored solutions
    • Partnerships with IoT platforms for enhanced connectivity

    By 2035, the market is expected to achieve substantial growth, driven by innovation and strategic partnerships.

    Market Segmentation

    US Smart Indoor Lighting Market Components Outlook

    • Hardware
    • Software
    • Services

    US Smart Indoor Lighting Market Application Outlook

    • Residential
    • Commercial
    • Industrial

    US Smart Indoor Lighting Market Light Source Outlook

    • Fluorescent Lamps
    • Light Emitting Diodes (LED)
    • High-Density Discharge Lamps

    US Smart Indoor Lighting Market Product Type Outlook

    • Smart Bulbs
    • Ballasts
    • Fixtures
    • Relay Units
    • Gateways

    US Smart Indoor Lighting Market Communication Technology Outlook

    • Wired Communication Technology
    • Wireless Communication Technology

    Report Scope

    MARKET SIZE 2024 2160.0(USD Million)
    MARKET SIZE 2025 2621.16(USD Million)
    MARKET SIZE 2035 18150.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 21.35% (2024 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Million
    Key Companies Profiled Philips (NL), Signify (NL), Osram (DE), Cree (US), GE Lighting (US), Lutron (US), Honeywell (US), Legrand (FR), Schneider Electric (FR)
    Segments Covered Components, Communication Technology, Light Source, Application, Product Type
    Key Market Opportunities Integration of energy-efficient technologies and smart home systems drives growth in the smart indoor-lighting market.
    Key Market Dynamics Growing consumer demand for energy-efficient solutions drives innovation in smart indoor-lighting technologies and applications.
    Countries Covered US

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    FAQs

    What is the expected market size of the US Smart Indoor Lighting Market in 2024?

    The US Smart Indoor Lighting Market is expected to be valued at 2.05 billion USD in 2024.

    What will be the market value of the US Smart Indoor Lighting Market by 2035?

    By 2035, the market is projected to reach a value of 15.87 billion USD.

    What is the compound annual growth rate (CAGR) for the US Smart Indoor Lighting Market from 2025 to 2035?

    The expected CAGR for the market during this period is 20.461%.

    Which component segment is expected to dominate the market share in 2024?

    The hardware segment is anticipated to hold the largest share with a value of 0.85 billion USD in 2024.

    What is the projected market value of the software component by 2035?

    The software segment is expected to grow to a market value of 5.27 billion USD by 2035.

    Who are the key players in the US Smart Indoor Lighting Market?

    Major players include Signify, Lutron Electronics, Philips, and Samsung among others.

    What are the expected market growth figures for the services segment by 2035?

    The services segment is projected to be valued at approximately 3.48 billion USD by 2035.

    What trends are driving the growth of the US Smart Indoor Lighting Market?

    Emerging trends include increased energy efficiency, technological advancements, and consumer demand for automation.

    How does the current economic climate affect the US Smart Indoor Lighting Market?

    The ongoing economic conditions are likely influencing investment speeds and consumer purchasing behaviors in the market.

    What is the projected market size for the hardware component in 2035?

    The hardware component is expected to reach a market size of 7.12 billion USD by 2035.

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