Market Insight

Connected lighting trends to watch in 2019

February 12, 2019

Wang Shen Wang Shen Senior Analyst, LEDs & Lighting

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Highlights

  • The global market for smart and connected lighting used in commercial applications rose from $6.1 billion in 2017 to  $7.2 billion in 2018. The market is expected to grow at a compound annual growth rate (CAGR) of 21 percent, reaching about $21 billion in 2022.
     
  • The global market for residential lighting applications hit $1.8 billion in 2018, while street lighting applications reached $600 million.

Press Release

Competition has slowed for LED lighting component suppliers over the past two years, as global LED production capacity reached its peak. This slow-down has forced suppliers to determine the best way to digest the huge production capacity, while minimizing any possible harm to the industry. Over the next five to 10 years, growth in general lighting products will remain flat, but LED lighting products are expected to experience promising growth, especially with the commercialization of smart lighting systems.

The thriving market for connected lighting offers many opportunities, not only for lighting-related industries, but also for smart home, smart building and smart city industries. following are some of the key trends for 2019, which are setting the direction for existing market players and new entrants:

  1. 5G-enabled smart city lighting

By all accounts, 2019 will be the start of the 5G era, in which many IoT devices will become better connected, including city lighting facilities. Given the high speeds and limited coverage of 5G technology, many more base stations need to be installed, to ensure adequate coverage and build connections for use cases like ultra-reliable low-latency communication (URLLC) based autonomous driving and others. Street and road lighting poles are a perfect place to put those 5G base stations. In the meantime, these lighting poles can be controlled within 5G-enabled smart city networks, together with many other city sensors and connected devices.

  1. Further integration with smart home

Residential connected lighting is not only one of the earliest smart-home devices, but it is also one of the most popular. There are a great number of smart lighting products currently integrated with major smart-home platforms, which also be controlled by voice commands. With the development of a mature smart-home ecosystem, the human-machine interface for control lighting is expected to gradually transition to automated control-based sensors and machine-learning technology, which is the next frontier for smart-home technology.

  1. More focus on perceptual visual comfort in multiple applications

To reach its maximum effect, advanced lighting-control technology needs to be guided by advanced lighting concepts. These human-centric lighting concepts were studied decades ago, when lighting technology could not perfectly realize the human centric lighting concepts for visual comfort in lighting environments. The introduction of LED lighting and its control technologies has enabled the industry to fulfill the requirements for human centric lighting in many applications. More well-designed lighting products will appear in 2019, which will improve the two most important human-centric lighting indexes – visual comfort and visual performance – that describe the perceptual feeling and ability to accomplish visual tasks in lighting environment. They will also increase public awareness of the relationship between lighting and health.

Visible light communication becoming more commercialized.

Visible light communication (VLC) is the next generation of communication, as its transmission rate can be much faster than the current Wi-Fi technology While high-speed VLC is not even close to becoming commercialied, low bit-rate VLC has already been implemented in many installations, and this technology is expected to grow rapidly. The application known as “indoor navigation through visible light communication” provides an easy approach for visitors to shopping malls, airport terminals or other large indoor spaces to find their location and navigate their way forward. This functionality can be also be combined with commercial promotions, to add value. For the project owners, having VLC indoor navigation in malls or airports is also a good way to promote the commercial place itself.

Other notable trends in the connected lighting include the further consolidation of lighting companies, greater emphasis on user privacy and data security, a growing market for agricultural lighting and other niche applications, and standardization of – and increasing competition among -- control protocols. Decorative outdoor dynamic lighting will again gain popularity in urban areas, especially in the Chinese market.

Smart Lighting and Connected Lighting Controls Report – 2018

This annual report provides the latest assessment of the market, with forecasts about the significant trends expected over the next five years. It provides detailed estimates of market sizes in 2017, forecasts growth for the years 2018 to 2022 and estimates the market shares of the largest vendors of smart lighting and connected-lighting controls.

Geography
Global
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