The Smart Lighting Market is undergoing transformative growth as energy efficiency, IoT integration, and smart building initiatives proliferate globally. Smart lighting refers to connected lighting systems that can be automated, controlled remotely, and optimized in real time—providing benefits in energy savings, occupant comfort, and operational data analytics.
The global smart lighting market size was valued at USD 27.33 billion in 2024 and is expected to grow from USD 33.58 billion in 2025 to reach USD 174.80 billion by 2033, growing at a CAGR of 22.9% during the forecast period (2025-2033).
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Smart lighting involves connected lighting systems—lamps, luminaires, sensors, controls, and management software—that enable automation, remote control, and energy optimization.
Q2: Which segments will grow fastest in the coming years?
Wireless technology (BLE, Zigbee, Wi-Fi) and retrofit installations are expected to grow fastest due to flexibility, cost-efficiency, and ease of deployment.
Q3: Which applications are most driven by smart lighting?
Commercial and industrial buildings, outdoor street lighting, and retrofit residential markets are key adopters, followed by outdoor/public infrastructure.
Q4: What kind of ROI can businesses expect from smart lighting?
Organizations often see energy savings of 30–50% and operational efficiency benefits; payback periods typically range from 2–5 years depending on scale and application.
Q5: Who are the leading providers of smart lighting ecosystems?
Top players include Signify, Acuity Brands, Honeywell, Itron, Wipro, Yeelight, Sengled, Ideal Industries, Häfele, Verizon, and Schneider Electric.
The global smart lighting market size was valued at USD 27.33 billion in 2024 and is expected to grow from USD 33.58 billion in 2025 to reach USD 174.80 billion by 2033, growing at a CAGR of 22.9% during the forecast period (2025-2033).
Request a sample report here: https://straitsresearch.com/report/smart-lighting-market/request-sampleMarket Segmentation and Key Insights (2021–2033)
By Component:
- Fixture:
This includes smart bulbs, luminaires, and full lighting fixtures with built-in controls. Fixture-led systems are increasingly popular for seamless integration with design and automation schemes. - Control:
Includes sensors, switches, dimmers, gateways, and software interfaces. Control components enable dynamic scheduling, occupancy sensing, daylight harvesting, and scene setting.
By Technology:
- Wired Technology:
Common in commercial and industrial buildings—using protocols like DALI, KNX, and 0‑10 V. Wired systems offer reliability and scalability but require upfront cabling and infrastructure. - Wireless Technology:
Dominates the market growth, especially in retrofit buildings. Wireless solutions use Zigbee, BLE (Bluetooth Low Energy), Wi‑Fi, or LoRaWAN to deliver flexible, easy-to-install smart lighting.
By Application:
- Residential:
Connected lighting enhances home automation, enabling voice control, scheduling, and energy monitoring. DIY kits and ecosystem compatibility (with smart hubs) are fueling growth. - Commercial:
Offices, retail stores, hotels, and workspaces are adopting smart lighting to cut energy costs, improve productivity, and collect occupancy data. - Industrial:
Warehouses, plants, and manufacturing lines benefit from sensor-based lighting that adapts to machinery status and human presence for efficiency and safety. - Outdoor:
Street lighting and area illumination are moving toward smart fixtures to enable adaptive brightness, remote monitoring, and solar-powered operation. - Automotive:
Ambient interior lighting and adaptive exterior lights in smart vehicles also form a niche vertical within connected lighting.
By Offering:
- Hardware:
- Lamp: Smart bulbs and light engines that can be easily retrofitted into existing fixtures.
- Luminaire: Integrated units designed for specific spaces with built-in sensors and control interfaces.
- Software:
Cloud or on‑premise management platforms that enable scheduling, analytics, integration with building management systems (BMS), and mobile/web dashboards. - Services:
Design, installation, commissioning, and ongoing maintenance or cloud subscription services—particularly relevant in commercial and outdoor projects.
By Installation Type:
- New Installations:
Smart lighting is increasingly specified in new smart buildings, green offices, and infrastructure projects, especially where design integration is prioritized. - Retrofit Installations:
A significant growth driver—existing buildings are upgrading to smart lighting through wireless sensors and smart bulbs, avoiding large rewiring costs.
By End-Use Application (Indoor/Outdoor):
- Indoor:
- Residential and Commercial & Industrial segments dominate building lighting.
- Outdoor:
- Includes Highways and Roadways, Architectural facade lighting, and public spaces equipped with sensors for dimming and fault detection.
- Others:
Specialty environments such as sports lighting, exhibitions, and connected art installations.
Regional Trends
- North America:
A leading region with strong adoption trends in smart buildings, city infrastructure upgrades, and incentives for energy-efficient lighting. The U.S. is advancing municipal streetlight modernization rapidly. - Europe:
Countries like Germany, Netherlands, and Scandinavian markets emphasize energy savings and smart city lighting initiatives under EU policies and green standards. - Asia-Pacific:
Fastest-growing region, driven by new smart cities in China and India, growth in commercial real estate, and residential smart device penetration. Wireless retrofit is especially popular. - Latin America:
Emerging interest in public lighting projects and commercial green buildings. Brazil and Mexico are investing in smart streetlight rollouts. - Middle East & Africa:
High deployment in smart urban projects—particularly in the UAE and Saudi Arabia—leveraging solar-powered smart fixtures and adaptive lighting to reduce energy consumption in hot climates.
Top Players in the Smart Lighting Market
Major companies leading the innovation curve in connected lighting systems include:- Acuity Brands
- Signify Holding (formerly Philips Lighting)
- Honeywell International Inc.
- Itron Inc. (Streetlight Vision)
- Ideal Industries Inc.
- Häfele GmbH & Co KG
- Wipro Consumer Lighting
- YEELIGHT
- Sengled Optoelectronics Co. Ltd.
- Verizon (with smart streetlighting services)
- Schneider Electric SA.
Market Drivers
- Energy Efficiency Regulations & Incentives:
Global emphasis on reducing electricity consumption and carbon emissions is driving adoption of smart lighting, especially with government rebates and efficiency standards. - IoT and Smart Building Growth:
Integration of lighting into broader building automation ecosystems supports enhanced control, analytics, and occupant well‑being. - Falling Cost of LEDs & Wireless Modules:
Wider availability and affordable pricing of LED lamps and wireless controllers make smart lighting accessible in residential and retrofit applications. - Increasing Demand for Connected Infrastructure:
Smart city programs and utilities are funding large-scale streetlight upgrades with sensors, dimming controls, and fault detection to reduce operational costs.
Challenges
- Compatibility and Standardization Issues:
Fragmentation in communication protocols and lack of unified standards can complicate system interoperability between vendors. - Upfront Investment and ROI Concerns:
Although payback periods can be under 2–3 years in commercial settings, initial setup costs for hardware, wiring, and management systems remain a challenge for some buyers. - Privacy and Data Security:
As lighting control becomes part of wider IoT networks, concerns arise around data collected from occupancy sensors and integration with cloud services. - Maintenance Complexity:
Managing software updates, sensor calibration, and component replacements adds ongoing operational overhead.
Buy the full market report here: https://straitsresearch.com/buy-now/smart-lighting-market Access the full research dashboard here: https://access.straitsresearch.com/new-user/smart-lighting-marketFrequently Asked Questions (FAQs)
Q1: What is smart lighting?Smart lighting involves connected lighting systems—lamps, luminaires, sensors, controls, and management software—that enable automation, remote control, and energy optimization.
Q2: Which segments will grow fastest in the coming years?
Wireless technology (BLE, Zigbee, Wi-Fi) and retrofit installations are expected to grow fastest due to flexibility, cost-efficiency, and ease of deployment.
Q3: Which applications are most driven by smart lighting?
Commercial and industrial buildings, outdoor street lighting, and retrofit residential markets are key adopters, followed by outdoor/public infrastructure.
Q4: What kind of ROI can businesses expect from smart lighting?
Organizations often see energy savings of 30–50% and operational efficiency benefits; payback periods typically range from 2–5 years depending on scale and application.
Q5: Who are the leading providers of smart lighting ecosystems?
Top players include Signify, Acuity Brands, Honeywell, Itron, Wipro, Yeelight, Sengled, Ideal Industries, Häfele, Verizon, and Schneider Electric.