Smart Lighting To Reach $27 Billion By 2023
Growth predicted from rising interest of consumers in automation and increase in affordability of smart technologies
According to market research report published by P&S Market Research, the Smart lighting market is forecasted to reach $27 billion by 2023. The growth is attributed to the rising interest of consumers towards the adoption of automation technologies such as internet of things (IoT), and increase in affordability and availability of smart automation technologies, Smart lighting is categorised into lighting source, communication medium, product, application, and service.
The market is driven by the new innovations and rapid increase in sales of smart LED solutions. In 2016, LED as an efficient lighting source contributed the largest revenue to this industry and it is expected to witness highest demand during the forecast period.
Apart from this, advancements in LED based lighting technology through adoption of IoT and wireless lighting techniques is escalating the smart lighting market growth. For example, recently Osram Licht AG launched SIMPLUX, an LED based smart control system designed for small and medium sized spaces to provide enterprise level control and automation capabilities.
Based on wireless lighting communication, Wi-Fi technology generated highest revenue in the market and Wi-Fi based lighting communication is also projected to witness fastest growth, during the forecast period. However, the market for booming technology Zigbee in lighting industry will pace up with similar growth as that of Wi-Fi.
Zigbee, developed by a alliance of companies to create wireless solutions for energy management, allows users to control home lighting from a smart device, such as a phone or tablet. Being low in cost and power consumption, the technology is becoming a factor of interest among manufacturers.
On the basis of service, lighting as a service (LaaS) is expected to witness higher demand as compared to smart phone application, during the forecast period. Its market is projected to cross $17 billion mark by 2023. Consumers, particularly medium and small-scale users of smart lighting are attracted more towards subscription based and pay as you go lighting models provided by various vendors in the market.
Geographically, Europe has been the largest smart lighting market, accounting for more than 35 percent of revenue in 2016, whereas the sales in Asia-Pacific is expected to witness the fastest growth, during the forecast period.
The growth in Asia-Pacific will be led by factors such as surge in digitalisation within industries, advancement in new lighting technologies by regional players, growth in investment in smart lighting market, and increasing adoption of connected technologies across indoor and outdoor sectors.
Further, due to rapid technological advancements in IoT and improvement in network infrastructure, the region has high tendency to adopt smart lighting solutions as a mainstream alternative to traditional lighting, in the near future.