Market Insight

Smart lighting and connected lighting controls market to double by 2020

December 19, 2016

Paul Bremner Paul Bremner Senior Analyst, Video Surveillance
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Bottom Line

  • The world market for smart lighting and connected lighting controls was valued at $6 billion in 2015, and is forecast to more than double in size by 2020
  • The IoT is a key driver for both commercial and outdoor and street lighting applications
  • The residential smart lighting market is seeing adoption increase alongside the wider smart home offerings. The residential smart lighting market is estimated to have been worth $1 billion in 2015.

Outlook and Analysis

The world market for smart lighting and connected lighting controls was valued at $6 billion in 2015, and is forecast to more than double in size by 2020, according to a new report from IHS Markit. The smart lighting market is being driven by the IoT, as lighting companies look beyond the transition to LED lighting and look to leverage the unique position lighting holds within the IoT.

The smart lighting market is broadly characterised by three application areas: commercial, residential, and outdoor and street lighting. The IoT is a key driver for both commercial and outdoor and street lighting applications, as lighting companies look to leverage lighting systems to act as the ‘backbone’ of an IoT network. Lighting systems have a unique advantage in this respect given that lighting is both powered and ubiquitous across a building or a city.

“As the trend towards solid-state lighting (SSL) has become well established, the industry has shifted its focus towards growth opportunities in the form of smart, controllable lighting,” said Paul Bremner, market analyst for Lighting and LEDs at IHS Markit. “The IoT is top of this agenda and represents a unique opportunity for lighting companies to position themselves as key players in this wider trend.”

The residential smart lighting market is seeing adoption increase alongside the wider smart home offerings such as Apple’s HomeKit, Google’s Nest, Samsung’s SmartThings, or Amazon’s Alexa. The residential smart lighting market is estimated to have been worth $1 billion in 2015. The residential market is forecast to be one of the highest growth areas for smart lighting, growing to over $4 billion in 2020, at a compound annual growth rate of 30.5% from 2015 to 2020.

“The residential market will see the highest growth rate alongside outdoor and street lighting applications,” Bremner continued. “One of the key driving factors for the residential market is the associated growth of smart home systems which allow consumers to control various devices around their home through a combination of their smartphone and even voice commands.”

The IHS Markit report entitled “Smart Lighting and Connected Lighting Controls – 2016” provides a comprehensive view of the smart lighting market. The report segments the market into commercial, residential and outdoor and street lighting applications, with further segmentations by product type; by wired or wireless controls;  by connected or non-connected switches; by region and by country; by route to market; and by connectivity technologies used. This third edition report presents market sizes and forecasts to 2020.

Category
Lighting
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