Global Smart Lighting Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In February 2024, Siemens and Enlighted, a prominent property technology company under Siemens, unveiled a strategic alliance with Zumtobel Group, a renowned global provider of lighting solutions. This partnership aims to promote the integration of smart building technologies, particularly intelligent IoT lighting, establishing novel benchmarks for efficiency and sustainability in building operations across the globe.

• In January 2024, at the Consumer Electronics Show in Las Vegas, NV, Legrand, a renowned global specialist and premier single-source provider of electrical wiring solutions, unveiled its newest addition to the radiant collection of smart lighting. This latest offering features new Matter-enabled Wi-Fi smart devices, slated for release in 2024. This advancement represents the next evolution of the Smart Lighting with Wi-Fi line, introducing the Matter standard to light switches, dimmers, and outlets. It underscores Legrand's ongoing dedication to innovation in the realm of smart lighting.

The Global Smart Lighting Market is experiencing significant growth, driven by increasing demand for energy-efficient lighting solutions and advancements in IoT-based smart lighting systems. By component, the market is categorized into hardware and software & services. Hardware includes essential elements like LEDs, sensors, and control systems, which form the foundation of smart lighting setups. On the other hand, software & services play a crucial role in enabling automation, remote control, and data analytics for optimized lighting solutions, enhancing energy savings and user convenience. The growing integration of AI and cloud-based services is further propelling the adoption of smart lighting across various sectors.

Based on connectivity, the market is segmented into wired and wireless solutions. Wired smart lighting systems, such as those using Power over Ethernet (PoE) and DALI (Digital Addressable Lighting Interface), offer reliable and secure connections, making them ideal for large-scale commercial and industrial applications. Meanwhile, wireless solutions, including Zigbee, Bluetooth, and Wi-Fi-based lighting systems, are gaining popularity due to their flexibility, ease of installation, and integration with smart home ecosystems. The increasing adoption of wireless IoT-enabled lighting in residential and commercial sectors is driving market expansion.

In terms of application, the market is divided into indoor and outdoor smart lighting. Indoor applications encompass residential, commercial, and industrial settings, where smart lighting enhances energy efficiency, ambiance control, and automation. Outdoor applications include street lighting, parking lots, and smart city projects, where intelligent lighting solutions contribute to enhanced security, reduced energy consumption, and remote monitoring capabilities. The rising focus on sustainable urban development and government initiatives for smart city infrastructure is fueling the demand for smart outdoor lighting solutions worldwide.

Global Smart Lighting Segment Analysis

In this report, the global smart lighting market has been segmented by Component, Connectivity, Application, and Geography.

Global Smart Lighting Market, Segmentation by Component

The Global Smart Lighting Market has been segmented by Component into Hardware and Software & Services.

Hardware comprises the physical components of smart lighting systems, including LED bulbs, fixtures, sensors, and controllers. These components form the backbone of smart lighting solutions, enabling functionalities such as remote control, dimming, color adjustment, and automation. Advances in hardware technology, such as the development of energy-efficient LEDs and integrated sensor networks, have significantly enhanced the performance and versatility of smart lighting systems across residential, commercial, and outdoor applications.

Software & services, on the other hand, encompass the digital components and support systems that enhance the functionality and efficiency of smart lighting installations. This segment includes software platforms, applications, cloud-based services, and maintenance/support services provided by manufacturers and service providers. Software solutions enable centralized management, data analytics, and real-time monitoring of smart lighting systems, allowing users to optimize energy usage, customize lighting settings, and integrate with other smart home devices seamlessly. Services such as installation, training, and ongoing technical support ensure smooth implementation and operation of smart lighting solutions, enhancing user experience and satisfaction.

The segmentation of the smart lighting market into hardware and software & services reflects the dual nature of technological innovation and operational support essential for driving market growth. While hardware innovations drive product differentiation and performance enhancements, software solutions and services play a crucial role in delivering value-added features, scalability, and sustainability in smart lighting deployments. Together, these segments contribute to expanding market opportunities, improving energy efficiency, and advancing the adoption of smart lighting technologies in diverse global markets.

Global Smart Lighting Market, Segmentation by Connectivity

The Global Smart Lighting Market has been segmented by Connectivity into Wired, Wireless.

The Global Smart Lighting Market is segmented based on connectivity into wired and wireless solutions, each catering to different applications and consumer needs. Wired smart lighting systems rely on physical connections such as Ethernet, Power over Ethernet (PoE), or DALI (Digital Addressable Lighting Interface) to transmit data and power. These solutions are preferred in large-scale commercial and industrial settings due to their reliability, minimal signal interference, and ability to support complex lighting networks. They are often integrated with building management systems (BMS) for seamless automation and energy optimization. However, wired systems can be expensive to install and may require extensive infrastructure, limiting their adoption in certain residential and retrofitting projects.

On the other hand, wireless smart lighting solutions leverage technologies such as Wi-Fi, Bluetooth, Zigbee, and Z-Wave to enable remote control, automation, and integration with smart home ecosystems. These solutions offer greater flexibility, ease of installation, and scalability, making them ideal for residential, small commercial, and smart city applications. Wireless connectivity allows users to control lighting through smartphones, voice assistants, and centralized platforms, enhancing convenience and energy efficiency. However, potential challenges such as network congestion, signal interference, and cybersecurity risks may impact performance, particularly in large-scale implementations.

The choice between wired and wireless smart lighting depends on factors such as installation complexity, cost, reliability, and intended application. While wired systems dominate commercial and industrial spaces due to their robustness and long-term efficiency, wireless solutions are rapidly gaining traction in the consumer and smart city sectors due to their ease of use and integration capabilities. As advancements in IoT, 5G, and AI-driven automation continue, the smart lighting market is expected to witness a growing convergence of both wired and wireless technologies, driving innovation and broader adoption across various industries.

Global Smart Lighting Market, Segmentation by Application

The Global Smart Lighting Market has been segmented by Application into Indoor, Outdoor.

Segmentation of the Global Smart Lighting Market by Application

The Global Smart Lighting Market is segmented by application into indoor and outdoor categories, each catering to specific use cases and technological requirements. Indoor smart lighting solutions are widely adopted in residential, commercial, and industrial spaces to enhance energy efficiency, automation, and user convenience. These systems incorporate advanced features such as motion sensors, dimmable lighting, and integration with smart home ecosystems, allowing users to control lighting remotely through mobile apps or voice assistants. The increasing demand for energy-saving solutions, coupled with government initiatives promoting smart buildings, is driving the growth of indoor smart lighting applications.

On the other hand, the outdoor smart lighting segment is primarily used in public infrastructure, street lighting, and architectural lighting. These systems leverage IoT-based connectivity, adaptive brightness control, and motion-sensing capabilities to optimize energy consumption and improve safety. Smart street lighting, in particular, plays a crucial role in smart city initiatives, where cities worldwide are deploying connected lighting networks to reduce electricity costs and enhance urban security. The integration of AI and cloud-based management systems further enhances the efficiency and functionality of outdoor smart lighting solutions.

Both indoor and outdoor smart lighting segments are witnessing rapid advancements with the adoption of LED technology, wireless connectivity, and automation. While indoor applications focus on improving comfort and aesthetics in homes and workplaces, outdoor applications emphasize sustainability and public safety. The continuous innovations in smart lighting solutions, along with the rising demand for connected and intelligent lighting systems, are expected to drive the overall growth of the Global Smart Lighting Market in the coming years.

Global Smart Lighting Market, Segmentation by Geography

In this report, The Global Smart Lighting Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Smart Lighting Market Share (%), by Geographical Region, 2024

The global smart lighting market share is geographically distributed across several key regions, each contributing to its overall growth and adoption. **North America** leads in market share, driven by technological advancements, high consumer awareness, and stringent energy efficiency regulations. The United States, in particular, accounts for a significant portion of the market, supported by robust investments in smart city initiatives and widespread adoption of smart home technologies. Canada also contributes to the region's dominance with increasing deployments in residential and commercial sectors.

Europe follows closely in market share, characterized by a strong emphasis on sustainability, government incentives for energy-efficient solutions, and a mature market for smart lighting technologies. Countries like Germany, the United Kingdom, and France are major contributors to the European market, driven by stringent regulations and policies promoting energy conservation and environmental stewardship. The presence of leading technology firms and continuous innovation in smart lighting solutions further bolster market growth across the region.

Asia-Pacific represents a rapidly growing segment of the global smart lighting market share. Countries such as China, Japan, and South Korea are at the forefront of adoption, fueled by rapid urbanization, increasing disposable incomes, and government initiatives to modernize infrastructure. China, in particular, leads the region with significant investments in smart city projects and initiatives promoting energy efficiency and environmental sustainability. Additionally, emerging markets in Southeast Asia show promising growth opportunities, driven by urban development and increasing awareness of smart technologies.

The geographic distribution of the global smart lighting market underscores diverse regional dynamics influenced by technological advancements, regulatory frameworks, and consumer preferences. As smart lighting technologies continue to evolve and become more integrated into everyday environments, these regional markets are poised to expand further, driving innovation and sustainability in global lighting solutions.

This report provides an in depth analysis of various factors that impact the dynamics of Global Smart Lighting Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Increasing Demand for Energy Efficiency
• Technological Advancements in IoT and AI
• Growing Adoption of Smart Home Systems

• Government Initiatives Promoting Sustainability - Government initiatives promoting sustainability play a crucial role in driving the growth of the global smart lighting market. These initiatives are often aimed at reducing energy consumption, lowering carbon emissions, and promoting the adoption of energy-efficient technologies. Governments worldwide have introduced various policies, incentives, and regulations to encourage the use of smart lighting systems in residential, commercial, and public sectors.

  One significant aspect of government initiatives is the implementation of energy efficiency standards and certifications for lighting products. Regulations such as Energy Star in the United States and the European Union's Eco-design Directive set minimum energy performance criteria for lighting products, including smart lighting systems. By establishing these standards, governments ensure that consumers have access to energy-efficient lighting options that help reduce electricity usage and operational costs over time.

  Governments also offer financial incentives and rebates to encourage the adoption of smart lighting technologies. These incentives can include tax credits, grants, and subsidies for homeowners, businesses, and municipalities investing in energy-efficient lighting upgrades. Such financial support helps offset the initial costs associated with purchasing and installing smart lighting systems, making them more affordable and appealing to a broader range of consumers.

  Governments play a role in raising awareness and educating the public about the benefits of smart lighting and sustainable practices. Public awareness campaigns, workshops, and educational programs inform consumers, businesses, and decision-makers about the environmental and economic advantages of adopting energy-efficient lighting solutions. By fostering greater understanding and appreciation of smart lighting technologies, governments empower stakeholders to make informed choices that contribute to sustainability goals and drive market growth in the smart lighting sector.

Restraints:

• High Initial Costs of Installation
• Concerns Over Data Security and Privacy
• Compatibility Issues with Existing Infrastructure

• Limited Awareness and Education - Government initiatives promoting sustainability are pivotal in shaping the global landscape of smart lighting adoption. These initiatives encompass a range of policies, incentives, and regulations aimed at reducing energy consumption, minimizing carbon footprints, and advancing sustainable development goals. Key strategies include the implementation of energy efficiency standards and certifications that mandate the use of energy-efficient lighting technologies, including smart lighting systems. By setting these standards, governments ensure that new lighting installations meet minimum efficiency requirements, thereby driving market demand towards more sustainable solutions.

  Financial incentives and rebates also play a crucial role in accelerating the adoption of smart lighting technologies. Governments often provide financial support in the form of tax incentives, grants, and subsidies to encourage businesses, municipalities, and individuals to invest in energy-efficient lighting upgrades. These incentives help offset the higher initial costs associated with purchasing and installing smart lighting systems, making them more economically viable for consumers and organizations. By reducing financial barriers, governments stimulate market demand and promote the widespread adoption of smart lighting solutions across various sectors.

  Government initiatives include public awareness campaigns and educational programs designed to inform and educate stakeholders about the benefits of smart lighting and sustainable practices. These efforts raise awareness about the environmental, economic, and societal advantages of energy-efficient lighting solutions, fostering a culture of sustainability among consumers, businesses, and communities. By empowering individuals and organizations with knowledge and resources, governments facilitate informed decision-making and encourage proactive steps towards reducing energy consumption and enhancing environmental stewardship through smart lighting technologies.

Opportunities:

• Increasing Demand for Energy-Efficient Solutions
• Advancements in IoT and Connectivity Technologies
• Growth in Smart City Initiatives

• Expansion of Smart Home Ecosystems - The expansion of smart home ecosystems presents a significant opportunity for the global smart lighting market. Smart home ecosystems encompass interconnected devices and systems within a household that communicate and operate seamlessly to enhance convenience, security, and energy efficiency. Smart lighting plays a pivotal role within these ecosystems by offering integration with other smart devices such as voice assistants, sensors, and home automation systems.

  As smart home adoption grows, fueled by increasing consumer demand for connected living experiences, the demand for smart lighting solutions is expected to rise. Manufacturers are developing interoperable platforms that enable different smart devices to communicate and collaborate effectively. This interoperability allows users to control their lighting alongside other smart appliances and systems through a single interface, enhancing user convenience and usability.

  The expansion of smart home ecosystems benefits from technological advancements in wireless connectivity and IoT infrastructure. These advancements enable robust communication networks that support real-time data exchange and remote control capabilities, essential for smart lighting functionalities like scheduling, dimming, and occupancy sensing. As these technologies continue to evolve, they will further streamline the integration and operation of smart lighting within broader smart home environments.

  To capitalize on the expansion of smart home ecosystems, stakeholders in the smart lighting market can focus on developing scalable and interoperable solutions that seamlessly integrate with existing and future smart home platforms. Collaborations and partnerships between lighting manufacturers, technology companies, and service providers can drive innovation and standardization, enhancing the overall user experience and accelerating market adoption. By leveraging these opportunities, the global smart lighting market can position itself as a vital component of modern smart home environments, contributing to sustainable living and enhanced quality of life for consumers worldwide.

Key players in Global Smart Lighting Market include :

• Signify N.V
• Legrand S.A
• Acuity Brands
• Eaton Corporation PLC
• General Electric Company
• OSRAM Licht AG
• Leviton Manufacturing Company
• Lutron Electronics
• Honeywell International

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis