Smart Lighting Market - Forecast(2021 - 2026)
According to the International Energy Association (IEA), the global electricity demand had risen by 4% or 940 TWh in 2018, which is two times the demand upsurge for overall energy.[1] The growing concern pertaining to energy consumption is leading to a demand influx in the market of the energy-saving products that also include smart lighting which can significantly reduce the quantity of power consumption. Hence, the vendors manufacturing smart lighting are reaping benefits, and conspicuously so when the global smart lighting market size was gauged at $6.87 billion as of 2018. Furthermore, the opportunities are projected to catapult at a progressive compound annual growth rate (CAGR) of 22.67% during the forecast period of 2019 to 2025.
The increased growth prospects for the vendors in the APAC smart lighting market is attributed to the infrastructural development in the region with an enormous amount of projects cropping up in the residential real estate and industrial sector in order to suffice the demand for the unprecedented population outgrowth. There is also a perceptible growth in the adoption of LEDs and CFLs in the roadway and highway projects which are further propelling the sales in the smart lighting market. APAC had the maximum smart lighting market share of 37.36% in 2018.
Smart Lighting Market Outlook:
A smart lighting system is utilized to minimize greenhouse emissions by using passive infrared and occupancy sensors. There are wired and non-wired smart lighting systems that are used for the energy-saving purpose in the residential, commercial, and industrial sectors.
The key application in the smart lighting market is found to be in the commercial sector. This is mainly because there is a substantial surge in the corporate infrastructure across the globe. The commercial buildings include offices, banks, medical centers, hotels, malls, retail stores, and others. A remarkable energy consumption is attributable to the commercial buildings that consume a massive amount of power which needs to be reduced. The application of smart lighting in the commercial segment is estimated to escalate at a notable CAGR of 21.27% through to 2025.
Smart Lighting Market Growth Drivers:
· The Growth of the Residential Real Estate –
The residential real estate is observing a tectonic shift with numerous domestic infrastructure projects being initiated in various parts of the world. The United Nations (UN) is giving an extensive emphasis on providing housing for the foreseeable increase in population. Affordability, low-cost housing, and social housing happen to be primary targets for the organization. Furthermore, the UNECE Real Estate Market Advisory Group (REM) has come up with an inference that energy-efficient housing will play a crucial role in fulfilling future goals. Evidently, this will lead to the incorporation of energy-saving products in the housing sector which will further flourish smart lighting market.
· The Incorporation of Smart Lighting on the Roads –
According to the World Bank, roads are found to be the most used mode of transport with 80% distance traveled by individuals and 20% by goods. Additionally, the future foresees further development of the road infrastructure, and it’s quite evident when the investment gap pertaining to roads translates to as much as $15 trillion through to 2040.[2] Apparently, the new roads will be inculcated with the latest smart lightings which will create more opportunities in the smart lighting market.
· The Penetration of Smart Lighting in the Industrial Sector –
Recently, the organizations have become cautious about the utilization of energy, and more so when the government has regulated the use of energy-consuming products. Furthermore, the reduction in the energy consumed is further helping the organizations to minimize the costing of production and generate higher profits. Even the upcoming organizations are integrating energy-saving products such as smart lighting to attain the breakeven point at a faster rate. The penetration of such products in the industrial sector is increasing the revenues generated in the smart lighting market.
Smart Lighting Market Trends –
· The Smart Homes Industry Supporting the Market –
The growth prospects in the smart homes market are quite evident in the fact the industry had an impressive market size of $75 billion in 2018, and the demand is going to witness a superlative CAGR of 12% to 15% over the forecast period of 2019 to 2025. Apparently, these smart homes will make use of smart lightings which will play a vital role in the future of the smart lighting market.
· The Trend of Embedded Security –
In the future, smart lighting with cameras will become rampant, and the innovation will gain further prominence as it will suffice the need for lighting and security & surveillance as well.
· IoT Lighting Control Systems –
Lighting systems are now supporting wireless communications to be compatible with the IoT systems. This trend will go a long way as the integration will create a better customer experience and hence, the demand for the same will observe an increment.
Smart Lighting Market Challenges –
The major challenge faced by the vendors in the smart lighting market is that smart lightings are very expensive and this indubitably limits the market size because a lot of consumers hesitate to use the product because of the affordability factor. However, with the rising disposable personal income, the smart lighting market will observe a definite demand influx in the residential sector that will enhance the revenues of the manufacturers.
Smart Lighting Market Key Players Perspective –
The major players striving to capitalize on the augmented demand in the smart lighting market are Koninklijke Philips N.V. (Philips Lighting), Acuity Brands, Inc., OSRAM Licht AG, Cree, Inc., General Electric Company, Hubbell Lighting Inc., Legrand, Honeywell International Inc., and Eaton Corporation plc.
Smart Lighting Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the smart lighting market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The smart lighting market research report also analyses the application of smart lighting in the commercial, residential, industrial, and other sectors.
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