Market Insight

Lighting equipment attached to BMS platforms will exceed $4.5 billion in 2022

May 14, 2018

Paul Bremner Paul Bremner Senior Analyst, Video Surveillance
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Highlights

  • Lighting equipment represented around 20% of all equipment connected to BMS platforms in 2017
  • Lighting equipment connected into a BMS platform represented around $2 billion in revenues in 2017, and is expected to more than double to $4.5 billion by the end of 2022
  • Osram and Philips announce new BMS platforms at Light+Building conference

Our analysis

At Light+Building 2018 the leading lighting companies, Philips Lighting and Osram, both announced their own BMS  platforms, Interact and Lightelligence, respectively. These BMS platforms allow data to be collected and analyzed via building-wide sensors, via either third-party applications or proprietary applications.

Philips Lighting expect “light [to become] a language, which connects and conveys meaning”. Osram know that lights can do more than just illuminate and can “open the door to [the] data economy”. These two ideas are related, and convey the idea that the lighting system, when combined with a building-wide sensor network, can provide building operators new insights, or “meaning” into how the building is being used, and where efficiency gains can be made. The software platforms allow the data collected to be monetized, opening the “door to the data economy”.

Co-opetition

Lighting vendors are not the only players hoping to have their BMS platforms benefit from the “data economy”. Competition from entrenched BMS vendors, such as Johnson Controls, Siemens, Schneider Electric; from IT companies such as Intel; and from new entrants to the lighting industry such as Gooee and Enlighted also exists. Each of these companies has their own roadmap for their software platform, and their own ideas of how building systems will be integrated together in the future.

However, both Philips Lighting and Osram will be betting on the lighting system within a building being chosen to form the “backbone” of a sensor-based IoT-network, due to the density of light fixtures within a building, the fact that those fixtures are already powered, and are well positioned for communications, being high up within a building. These advantages make lighting a sensible choice to use when deploying a building-wide sensor network incorporating devices such as light level sensors, occupancy, temperature, humidity, or CO2 sensors.

Looking forward

Currently, lighting equipment represents around 20% of all equipment that is connected to BMS platforms. This part of the market is expected to grow from an estimated $2 billion in 2017 to over $4.5 billion in 2022. Philips Lighting and Osram will hope to be on the forefront of this growth and establish Interact and Lightelligence as the go-to commercial BMS platforms, similar to how the Apple HomeKit, Amazon Alexa and Google Home have cemented themselves as the go-to smart home platforms.

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