This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
Smart LED Lighting Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
GET A FREE SAMPLE
Report Overview
The global smart LED lighting products market was valued at USD 15.7 billion in 2022 and is expected to expand at a CAGR of 14.7% from 2023 to 2030. The market is driven by the increasing need for energy-efficient and cost-effective lighting systems. Smart LED lighting products are gaining traction due to their energy-saving capabilities and low maintenance costs, as compared to traditional lighting systems. Furthermore, the introduction of various government initiatives and subsidies to promote the adoption of energy-efficient lighting systems is projected to propel the market growth.
The growing demand for smart lighting products from the residential sector is expected to drive the market during the forecast period. The growing awareness about the energy-saving capabilities of these products, along with the increasing demand for automated lighting systems, is expected to fuel the market growth. Moreover, technological advancements and the increasing deployment of Internet of Things (IoT) in the lighting sector are expected to drive the market in the coming years.
In addition, the increasing demand for digital lighting products is likely to support the growth of the market. Smart lighting products, such as digital lighting systems, are gaining popularity due to their enhanced functionalities and capabilities, such as automated on/off functionality, voice control, remote monitoring, and dimming. Furthermore, these products are now being integrated with Google Home, Apple HomeKit, and Amazon Alexa, which is further expanding the scope of the market.
The introduction of various government initiatives, such as the Lighting Pilot Program in the U.S., is expected to drive the market growth. This program focuses on the development and deployment of energy-efficient lighting products. Moreover, the increasing investments in research and development activities to develop advanced lighting technologies are expected to support the market growth. For instance, in November 2021, Philips Lighting announced the launch of Philips Hue Play Gradient Lightstrip, which is a color-changing light strip that can be used for various lighting applications.
Furthermore, the growing trend of retrofitting traditional lighting systems with smart lighting products is expected to fuel the market growth. Furthermore, the increasing adoption of smart lighting products in smart cities is further anticipated to boost the market growth.
Product Insights
The smart LED bulbs segment is expected to dominate the smart LED lighting market with a share of around 60.7% in 2022. This can be primarily attributed to the increasing penetration of smart LED bulbs into the residential sector as well as the commercial sector. Moreover, the rising awareness about the benefits of using smart LED bulbs such as energy efficiency, cost-effectiveness, and convenience is also driving the demand for these products. Furthermore, the emergence of smart lighting technologies such as voice-controlled lighting systems, motion-sensing technology, and light-sensing technology is also contributing to the growth of the smart LED lighting market.
The smart lighting switches segment is projected to expand at a CAGR of 12.5% during the forecast period. Smart lighting switches are gaining traction as they can be used to control multiple connected lights with a single switch, which makes it easier and convenient for users to control their lighting systems. Moreover, the integration of voice-controlled smart lighting switches with various smart home devices such as Amazon Alexa and Google Home is also expected to drive the segment growth. In addition, the emergence of various cost-effective and energy-efficient smart lighting switches is also anticipated to create lucrative growth opportunities for the market.
Distribution Channel Insights
The traditional brick-and-mortar stores segment held the largest market share of over 32.3% in 2022. This is mainly attributed to the higher preference of customers towards stores offering the physical experience of touch and feel of LED lighting products. Moreover, the availability of a wide range of choices along with the discounts offered by stores are some of the major factors contributing to the segment’s growth.
The e-commerce segment is projected to witness the fastest growth over the forecast period. The growing trend of online shopping, coupled with the increasing use of smartphones and low prices of smart LED lighting products, are some of the key factors driving the segment. Furthermore, the availability of various payment options, including cash on delivery and online payments, has encouraged more customers to shop online. Moreover, companies are focusing on increasing their online presence to cater to the demand for LED lighting products. For instance, in January 2021, Philips Lighting launched an online store for smart lighting products in India. This store offers a range of products, including smart bulbs, switches, panels, and accessories.
Type Insights
The retrofit segment accounted for the highest revenue share of 33.8% in the year 2022. The increasing demand for energy-efficient lighting systems and the growing awareness of retrofit products among consumers is driving the market growth in this segment. The emergence of internet-enabled LED products is also contributing to the rising adoption of smart LED lighting products. The smart LED lighting products are easy to install, require low cost, and provide better lighting solutions.
The new installation segment is expected to register the highest CAGR of 28.2% during the forecast period. The increasing population and the growing demand for energy-efficient lighting systems are driving the growth of this segment. The government initiatives such as subsidies and tax rebates for the adoption of energy-efficient lighting systems are also contributing to the market growth. Furthermore, the growing demand for smart lighting systems in commercial and residential applications is also propelling the growth of this segment.
Regional Insights
Asia Pacific is expected to dominate the market and is projected to account for over 40.5% revenue share in 2027. Factors such as the increasing adoption of these products in residential and commercial buildings coupled with the rising awareness among consumers regarding energy-efficient lighting solutions are driving the market in the region. Moreover, the presence of major players such as Philips and LEDVANCE, who are investing heavily in research and development activities to launch advanced products, is further contributing to the growth of the market.
North America is anticipated to be the second-largest market and is expected to witness a CAGR of 9.7% during the forecast period. The region is home to major players such as Cree, Lighting Science Group, and Acuity Brands Lighting, who are investing heavily in research and development activities to launch advanced products. Additionally, increasing governmental initiatives to promote the adoption of energy-efficient lighting solutions is expected to further increase the market share of this region.
Financial Projections
In this part of the Smart LED Lighting Products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your Smart LED lighting products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a Smart LED Lighting Products business comes from the sale of products, installations, and maintenance services. Here you will find a list with a description of each of them and other possible sources of profit such as partnerships with other businesses, the sale of accessories and components, and leasing the place for parties and corporate events.
Projecting Expenses
In this section, all the regular expenses related to keeping the Smart LED lighting products business running will be described. The list of operating expenses includes marketing and advertising, research and development, wages, utilities, insurance policies, software, and others.
Key companies & market share insights
Some of the key companies operating in the smart LED lighting market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In August 2022, Philips Lighting launched the Hue Bluetooth-enabled smart LED lighting system.
– In October 2022, Osram launched its new range of smart LED lighting systems with voice control compatibility.
– In December 2022, Cree Inc. launched its new range of Zigbee-enabled smart LED lighting products.
Some of the prominent players in the smart LED lighting market include:
– Philips Lighting
– Osram
– Cree Inc.
– General Electric
– Acuity Brands Lighting, Inc.
– Eaton Corporation
– Hubbell Lighting
– Zumtobel Group
– Samsung Electronics Co.
– LG Electronics
Global Smart LED Lighting Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global smart LED lighting products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Residential Lighting
– Commercial Lighting
– Outdoor Lighting
– Industrial Lighting
– Automotive Lighting
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Smart Bulbs
– Smart Lamps
– Smart Tubes
– Smart Panels
– Smart Trackers
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: Who are the Key Players in the Smart LED Lighting Products Market?
[A]: Major players in the global smart LED lighting products market include Philips Lighting, Osram GmbH, Cree Inc., General Electric, LG Electronics, Panasonic Corporation, Acuity Brands, Inc., Schneider Electric SE, Zumtobel Group AG, and Legrand SA.
[Q]: What is the Potential of Product Innovation?
[A]: Smart LED lighting products are rapidly evolving, with companies focusing on product innovation and development to meet customer needs. Smart LED lighting products are being used to create innovative lighting solutions, such as tunable lighting, which enables users to control the color, brightness, and intensity of the light produced. Additionally, companies are introducing automated lighting systems that are voice-activated and can be used with smart devices.
[Q]: What are the Factors Driving the Market Growth?
[A]: Factors such as increasing penetration of LED lighting products, rising demand for energy-efficient lighting, supportive government initiatives, and the emergence of connected lighting systems are expected to drive the smart LED lighting products market.
[Q]: What are the Challenges Facing the Smart LED Lighting Products Market?
[A]: High installation and maintenance costs and lack of standardization in terms of interoperability and compatibility of smart LED lighting products are expected to be major challenges for the market. Additionally, the market is facing a lack of awareness about the benefits and capabilities of connected lighting systems.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
To request a free sample copy of this report, please complete the form below.
We value your investment and offer free customization with every report to fulfil your exact research needs.
