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Buildings are shifting from conventional lighting to advanced smart lighting solutions that can help them realize energy efficiency targets, apart from improving occupant experience and comfort within their premises. Lighting companies that hit a plateau with their revenue growth are also focusing on offering digital lighting solutions, such as remote monitoring, workspace management, fault detection and diagnostics, and people monitoring to improve their business.

The global smart lighting market was estimated at $11.62 billion in 2020 and is forecast to record a 17.5% CAGR over the next seven years till 2027. The demand for smart lighting in the residential segment is high with several start-ups and incumbents vying for market share. Apart from the residential segment, healthcare and offices are the major segments that are adopting smart lighting solutions. Leading manufacturers’ focus on megatrends, such as digitization and urbanization, increasing disposable incomes, and climate change will lead to technologically advanced solutions that cater to different customer segments.

The competitive success factors in the market include product quality and cost, and ease of installation and use. Wired lighting solutions will continue to dominate the market in the forecast period, however wireless will grow to 35.8% of the market by 2027. With interoperability between wired and wireless products on the horizon, there will not be major retrofits happening in the future.