The world market for smart lighting and connected lighting controls was valued at $8 billion in 2017 and is forecast to more than double in size by 2021.
The Internet of Things (IoT) is a key driver for commercial and outdoor lighting applications.
The residential smart lighting market, which reached $1.5 billion in 2017, is growing alongside the wider smart home offerings.
The smart lighting market is broadly characterized by three application areas: commercial, residential, and outdoor and street lighting. Lighting companies are now looking beyond the transition to LED lighting and attempting to leverage the unique position of lighting within the IoT, by making lighting systems the backbone of IoT networks. Lighting systems have a unique position in this respect, given that lighting is both powered and ubiquitous across buildings and cities.
The connected-lighting trend accelerated in 2017, as the lighting industry seized the unique opportunity provided by the IoT. Vendors have positioned themselves to take advantage of connected lighting - making lighting a central platform for collecting and analyzing data gathered from sensors deployed in buildings via lighting systems. This data can provide extensive added value across multiple use-cases, including asset tracking and optimizing space utilization within buildings.
The residential smart lighting market is one of the highest growth areas for smart lighting, rising to over $4.5 billion in 2021, at a compound annual growth rate (CAGR) of 30.5 percent from 2017 to 2021. This rapid growth will be led by wider consumer adoption of smart home offerings, such as Apple’s HomeKit, Google’s Nest, Samsung’s SmartThings and Amazon’s Alexa.
The residential smart lighting market will continue to see high growth rates through 2021, due in large part to an increase in smart home hubs. As smart home devices move from early adoption to mass adoption, smart lighting will follow. The flexibility of smart lighting in homes increases alongside the additional functionality smart-home hubs provide. For example, a smart home hub using voice control to turn the lights on and off.
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