According to MarketsAndMarkets, the global smart lighting control market was valued at $12.16 billion in 2022 and is anticipated to experience robust growth during the forecast period, with a CAGR of 23.64% through 2031.

A developing system

Smart lighting control is a type of intelligent lighting system that can adjust the quantity, type, and properties of light in a given space. Apart from promoting energy efficiency, these smart devices help reduce electricity wastage.

The smart module is the execution unit of the lighting control system and the control terminal, forming an organic whole with the intelligent central control system in the background. The growth of Smart City initiatives is driving the market.

Developing economies are focusing on digital awareness. Most countries are now undertaking large-scale Smart City plans as part of their digital strategies. A system of smart devices connected to lighting is one of the critical parts of Smart City projects as it utilizes a connected lighting system controlled by smart devices.

For instance, Indian Prime Minister Narendra Modi announced the Smart Cities Mission in India in June 2015. The mission was carried out by the Union Ministry of Urban Development in cooperation with state governments and was scheduled to take place between 2019 and 2023. Therefore, the market is expected to grow at a high CAGR during the forecast period as people readily adopt smart devices.

High demand

Given the significant need for energy-efficient lighting solutions, the smart lighting control market is expected to grow at a promising pace from 2023 to 2031.

The importance of energy management in reducing carbon footprint is becoming increasingly evident to consumers. Governments are also putting more effort into finding new ways to reduce energy consumption.

For instance, the U.S. government officially confirmed the launch of the Smart Climate Buildings initiative in August 2022, aiming to modernize the country's public infrastructure and reduce greenhouse gas emissions by 2.8 million metric tons per year by 2030.

Increasing research and development spending

Research and development spending for infrastructure development have increased significantly due to the adoption of smart technology in public lighting systems. For example, the UK Government for Business, Energy & Industrial Strategy (BEIS) allocated funds to the UK Research and Innovation (UKRI) in March 2022, totaling over $30.3 billion to support various research and development initiatives.

Furthermore, the need for cost-effective and energy-saving solutions from end-users is rising, as the demand for organic light-emitting diode (OLED) lighting is growing significantly. As a result, the market is likely to expand at a high CAGR in the coming years.

Increasing adoption of LED lighting

One of the key factors influencing the growth of the global smart lighting control market is the increasing adoption of LED bulbs and lights worldwide.

According to a report from the Electrical Lamp and Component Manufacturers' Association (ELCOMA), the lighting industry was expected to introduce more energy-efficient products and work more closely with the government to implement various awareness schemes and programs in 2020, which contributed to reducing lighting energy consumption from 18% of total energy consumption to 13%.

As a result, the market is expected to develop at a high CAGR from 2023 to 2031 due to India's positive transition from conventional lighting to energy-efficient LEDs and smart lights.

Adoption of ZigBee and Bluetooth technologies in smart lighting control systems

Greater connectivity and technological advancements have increased the popularity of smart lighting control systems globally.

ZigBee and Bluetooth, two wireless technologies, have made it easier to implement smart lighting control systems in a variety of settings. They are particularly designed for wireless personal area networks (WPANs) that adhere to the Institute of Electrical and Electronics Engineers (IEEE) standard for control and sensor networks.

The operating frequencies for these Zigbee WPANs are 868 MHz, 902-928 MHz, and 2.4 GHz. The ideal data rate is 250 kbps, which is used for periodic and intermediate bidirectional data transfer between sensors and controllers.

For instance, according to a statement made by the Council of Australian Energy Ministers in April 2018, halogen lighting was expected to be replaced with LED bulbs to increase energy efficiency. This choice was estimated to save customers and businesses over $1 billion in electricity costs and bulb replacement costs.

Moreover, the Smart Dubai Plan 2021's goal to make Dubai a paperless government has encouraged the country to adopt intelligent services. It's an important aspect of Smart City growth. Thus, the rise of Smart Cities and intelligent infrastructure globally helps penetrate smart lighting controls.

Challenges: High installation cost of smart lighting control systems

The anticipated high startup and implementation costs of lighting control systems are expected to limit market growth. Additionally, the expensive sensors, transmitters, and receivers of the system will directly impact the initial selling price of the entire system.

The typical payback period for implementing smart lighting controls can be between two and three years, depending on the type of system.

However, compared to the cost of traditional switch upgrades, the initial cost of a single unit of a smart lighting and control system is significantly higher. This factor constrains market expansion in the years to come.