Smart Lighting Market Share, Growth Drivers & Forecast 2025–2033

Smart lighting is advanced lighting systems that can be controlled remotely and adjusted according to specific preferences, schedules, or environmental factors. The systems use energy-efficient LED bulbs and are integrated with smart home technologies such as voice assistants (e.g., Alexa, Google Assistant) or smartphone apps. Features include dimming, color-changing capabilities, motion sensing, and the ability to set lighting schedules. Smart lighting can also be integrated with other smart home devices for enhanced convenience and automation.

Consumers are increasingly looking for energy-efficient solutions that help reduce electricity consumption and lower utility bills. In addition, the convenience of controlling lighting remotely, whether at home or while on vacation, appeals to modern lifestyles. As smart homes become more mainstream, the demand for connected and customizable lighting systems is rising. Its popularity is further fueled by integration of smart lighting with the rest of the intelligent devices, such as security cameras and thermostats. This smart lighting has become an integral part of modern living spaces.

Driving Factors for Growth in Smart Lighting Market

Increasing Demand for Energy Efficient Solutions

As awareness about environmental issues increases, and energy costs continue to escalate, there is a growing demand for energy-efficient solutions. Smart lighting systems typically use LEDs to conserve energy and save resources, making them attractive to consumers and businesses alike looking to make reductions in their energy consumption. Further energy saving features include turning off lights when not in use through features such as dimming and using motion sensors and similar devices, thus increasing the adoption of smart lighting solutions in response to increased notions of conservation on these respective products. August 2023, Philips launched new smart LED lighting under the brand launched with advanced connectivity and energy-saving features. Users can control them through a mobile app for maximum efficiency.

Smart Homes and IoT Adoption

Other key drivers for the smart lighting market include the rising adoption of smart homes and the Internet of Things (IoT). More consumers now include smart lighting in their home automation and convenience trends. They can control them remotely through applications on their smart phones, through voice assistants or even automated scheduling, thanks to IoT connectivity. That adds to the complete appeal and functionality of smart lighting systems, integrating smoothly with other devices such as security systems and thermostats in a smart home. Oct 2024, Deako™ launches the first ever modular smart lighting system compatible with Home Assistant. This integration provides home automation to the users of Deako and supports the open smart home ecosystem. The company also integrates with Alarm.com, Alexa, Google, Samsung SmartThings, Control4, and Clare Controls.

Improvements in Smart Lighting Technologies

Technological innovations have significantly enhanced the functionality and performance of smart lighting solutions. In the area of innovations, app-controlled lighting, color-changing LEDs, and motion sensors provide consumers with more control and personalization. Wireless technology continues to advance: Zigbee and Bluetooth have made installation and use easier. The expansion in smart lighting, voice assistant, and home automation integration has made it more appealing to the tech-savvy consumer. Improvements in technology, therefore, drive growth in the smart lighting market. Oct. 11, 2023, Halonix Technologies, one of India’s fastest-growing electrical companies, launched India’s first 'UP-DOWN GLOW' LED Bulb. This innovative bulb features both the upper (Dome) and lower (stem) parts glowing in different colors, allowing consumers to create unique lighting effects through three switch-enabled modes.

Challenges in the Smart Lighting Market

High Initial Installation Costs

One of the primary challenges in the smart lighting market is the high initial cost of installation. While smart lighting systems offer long-term savings through energy efficiency, the upfront costs of purchasing smart bulbs, hubs, and controllers can be prohibitive for some consumers. The cost of upgrading an entire lighting system, particularly for larger homes or commercial spaces, can deter widespread adoption, particularly in price-sensitive markets. In addition, since it is comparably cheaper and, in some respects, may be perceived to be more value-for-money to those budget-sensitive customers, competition remains a strong challenge to smart lighting technology.

Incompatibility/Compatibility Issues in the Market

Smart lighting technology integration compatibility remains one of the greatest challenges to entering the market. Compatibility and integratability may create problems between multiple brands, with technologies that often require different and diverse interfaces or ways of handling or communicating in systems. For instance, there are smart lighting systems that don't support particular voice assistants or security systems. This lack of standardization may lead to confusion on the part of consumers and reduce adoption of smart lighting solutions because users would be hesitant to invest in a product that may not provide complete compatibility with their other devices.

Smart Lighting Market Merger and Acquisition

• April 2025 – Fusion Optix®, a US optical component and integrated lighting solutions leader, has acquired three companies based in Vermont: LEDdynamics, Prolume Lighting, and LEDSupply. This acquisition strengthens Fusion Optix's presence across standard, custom, and outdoor lighting, as well as driver technologies and e-commerce, and creates a consolidated five-brand portfolio.
• June 2024, LiteGear, the company behind revolutionary cinematic LED products such as LiteRibbon and LiteMat, has been acquired by Chauvet, the industry leader in lighting. The acquisition strengthens Chauvet's portfolio featuring brands such as Kino Flo and ChamSys and is set to take professional cinematic lighting solutions to new heights through collective expertise and ingenuity.
• Dec 2024, Gewiss has taken a strategic step towards redefining the smart lighting sector by acquiring Tvilight, the wireless smart city lighting solutions leader. The acquisition is focused on integrating Tvilight's knowledge in smart outdoor lighting systems with Gewiss' electrical infrastructure dominance. The vision is to build an extremely powerful synergy that will provide innovative and sustainable lighting solutions.
• March 2023, Signify, a leader in lighting, has announced the acquisition of Intelligent Lighting Controls, Inc. (ILC), an American producer of wired control systems, as a part of expanding its connected portfolio.
• January 2022, Signify, a lighting company, has bought UK firm Telensa, a market leader in smart street-lighting, famous for its established customer base among UK local councils and utilities. Last July, the deal was unveiled but did not reveal the transaction fee. The takeover positions Signify further in the smart lighting segment with new technology and customers.

Smart Lighting Software Market

The smart lighting software market is expanding as software solutions are necessary for the effective management and control of smart lighting systems. These software platforms allow users to create lighting schedules, automate light settings, and monitor energy consumption. Smart lighting software can also offer insights into performance and help optimize energy use in residential and commercial environments. As the demand for smart lighting systems is increasing, the demand for sophisticated software to further enhance their functionality is also rising, thereby giving users better control and customization options.

Wireless Smart Lighting Market

The wireless smart lighting market is expanding as wireless technology simplifies the installation and control of lighting systems. Wireless smart lighting solutions, based on technologies such as Zigbee, Bluetooth, and Wi-Fi, are convenient and flexible since they do not require complex wiring. They are used in retrofit installations, where users want to upgrade their lighting systems without requiring extensive rewiring. Wireless smart lighting is becoming more popular because of its ease of use, the ability to remotely control it, and its compatibility with other smart home devices.

LED Smart Lighting Market

The LED smart lighting market is one of the fastest-growing segments within the broader smart lighting industry. LED lights are energy-efficient, have a longer lifespan, and provide greater customization options, making them ideal for smart lighting applications. Consumers and businesses are increasingly choosing LED-based smart lighting solutions due to their cost-effectiveness and environmental benefits. LEDs combined with smart controls that include motion sensing, dimming, and color change enhance the functionalities of lighting systems, driving growth in the LED smart lighting market.

Indoor Smart Lighting Market

Indoor smart lighting is a very fast-growing market for consumers and businesses to seek solutions which provide both energy saving and improved user experience. The most common installations of indoor smart lighting systems include homes, offices, and retail. Energy efficiency, as well as the ability to control lighting either remotely or automatically, is highly valued in these installations. Smart bulbs, app-controlled lights, and integration with voice assistants and automation systems are what drive the growth of indoor smart lighting, as it improves comfort and convenience.

Residential Smart Lighting Market

The smart residential lighting market is expanding quickly as consumers become more interested in home automation, energy savings, and convenience. Smart lighting lets homeowners adjust brightness, color, and schedules remotely via apps or voice assistants such as Alexa and Google Assistant. They improve ambiance, enhance security with automated lighting, and lower electricity bills. The move toward sustainable living and smart homes is pushing mass adoption. Technology advances, including integration with IoT devices and occupancy or daylight-responsive sensors, drive demand further. With decreasing prices and increasing awareness, smart lighting is increasingly becoming an standard aspect in contemporary home interiors, adding to an integrated and efficient life. September 2024, Signify has introduced WiZ Smart Lighting in Indonesia, bringing 16 million colors and multiple white-to-full-color modes. Easy plug-and-play installation and intuitive controls make WiZ perfect for technophiles looking to enhance their smart home.

Commercial Smart Lighting Market

The commercial smart lighting market is rising as more business entities become aware of the opportunities and benefits smart lighting can provide: increased energy efficiency, lower operational cost, and even increased workplace productivity. Commercial smart lighting systems may feature automated dimming, motion detection, and daylight harvesting to prevent excessive energy wastage. In turn, such commercial smart lighting also improves the ambient work environment through individualized lighting schemes. The commercial spaces have a significant need for sustainable and cost-cutting solutions; thus, an upward trend is anticipated in the commercial smart lighting market.

Smart Lighting Market Overview by Regions

United States Smart Lighting Market

In the United States, there is a substantial growth in the smart lighting market on account of higher consumer demand for energy-efficient and automated solutions. With a surge in the adoption of home automation and IoT, the demand for smart lighting systems that could be controlled via smartphone apps and voice assistants is gaining momentum quickly. In addition, the energy consumption reduction and sustainability improvement initiatives taken by the U.S. government have driven more growth in the market. Consumers in both residential and commercial sectors are increasingly adopting smart lighting solutions for convenience, saving energy, and enhancing lifestyles. June 2023, URC, an automation leader, launches the URC Lighting LT-3300 as an all-in-one smart lighting solution. Installers can opt for dimmer or switch configurations with easy programming that can create any atmosphere for both entertainment and family gatherings.

Canada Smart Lighting Market

The Canada smart lighting market is growing steadily, propelled by growing demand for energy-efficient and sustainable solutions. As municipalities and cities are embracing smart infrastructure, lighting systems with IoT integration, motion sensors, and wireless controls are in greater demand. Canadian consumers are also adopting smart home technology, employing voice control and mobile apps to regulate lighting for convenience, security, and ambiance. The transition to LED lighting and increasing environmental consciousness also aid market growth. In residential, commercial, and public spaces, smart lighting provides cost savings and enhanced functionality. With ongoing investment in smart city projects and green building initiatives, Canada's smart lighting sector is primed for robust growth in the future. February 2024, EX International Inc. Canada released the announcement of Canada Light Expo 2024, featuring smart lighting and LED solutions November 13-15, 2024, at Toronto's International Centre.

Smart Lighting Market in United Kingdom

The UK smart lighting market is growing consistently, led by increasing consumer demand for energy-efficient and connected home solutions. As interest in smart homes is on the rise, UK homes are increasingly using lighting systems that include remote control, automation, and compatibility with voice assistants such as Alexa and Siri. Government policies supporting carbon reduction and energy conservation are also driving the adoption of LED-based smart lighting. Urbanization and new housing developments also contribute to this trend, particularly in sustainable-focused cities. Also, the ease of app-based lighting control and personalization features like dimming and mood settings is enticing for technology-conscious consumers. With improving infrastructure, the UK smart lighting market has a bright outlook for growth over the next few years. April 2023: Vandal-resistant lighting leader Luminaire LED has introduced its Vandal Resistant Downlight (VRDL), the company's entry into downlights. The architecturally styled series melds sophistication with resilience to harsh environments.

China Smart Lighting Market

The Chinese smart lighting market is growing aggressively, driven by urbanization, smart cities, and the government's aggressive drive for energy-efficient infrastructure. One of the world's largest manufacturers and consumers of lighting products, China is adopting smart technologies that combine IoT, AI, and automation in lighting systems. Customers are using smart lighting in residential places for convenience, remote control, and better ambiance, whereas commercial and municipal applications utilize it for energy management and public safety. Local manufacturers are developing smart bulbs, sensors, and connected systems, driving market growth. With growing ecological consciousness and patronage of green technology, China's smart lighting industry is set to realize continued growth and global leadership in the industry.  September 2024, Unilumin marked the relocation of its Zhongshan Smart Manufacturing Base and its 20th anniversary. This new facility supports Unilumin's international manufacturing network and brings strength to the LED display and lighting sector.

India Smart Lighting Market

India’s smart lighting market is experiencing rapid growth, driven by urbanization, increasing disposable incomes, and rising energy consumption. As more consumers adopt smart homes, the demand for connected and energy-efficient lighting solutions is rising. Additionally, government initiatives such as the Smart Cities Mission are fueling the adoption of smart lighting in public spaces and commercial buildings. The growing popularity of IoT devices is also a factor in the market, as consumers are looking for more automation, convenience, and control over their lighting systems. October 2024: xSignify, the world's leading lighting company, launched India's largest store, the Philips Smart Light Hub, in Lucknow. Covering over 3000 square feet, the store offers more than 450 SKUs, making it a one-stop destination for all lighting needs.

Saudi Arabia Smart Lighting Market

The Saudi Arabian smart lighting market is increasing due to urbanization, increased disposable incomes, and the government's efforts to push for smart city developments. Under the Vision 2030 initiative, Saudi Arabia is focusing on sustainability and energy efficiency, which is driving the adoption of smart lighting solutions. Commercial and residential sectors alike are turning to smart lighting systems to reduce energy costs and enhance convenience. The rising trend of home automation and IoT technologies enhances the growth rate of the smart lighting market in Saudi Arabia. In November 2024, Flashnet, in partnership with Saudi Delta Group, started a smart street lighting project in Jeddah, Saudi Arabia. The deployment of 3,700 inteliLIGHT® controllers with LoRaWAN technology has been implemented in order to provide energy efficiency and reduce maintenance costs while ensuring continued operation with the solar-powered backup system.

Smart Lighting Market Segments

Component – Market breakup in 3 viewpoints:

• Hardware
• Software
• Services

Communication Technology – Market breakup in 2 viewpoints:

• Wired Technology
• Wireless Technology

Light Source – Market breakup in 5 viewpoints:

• LED Lamps
• Fluorescent Lamps
• Compact Fluorescent Lamps
• High Intensity Discharge Lamps
• Others

Application – Market breakup in 3 viewpoints:

• Commercial
• Residential
• Others

Countries – Market breakup of 25 Countries covered in the Report:

• United States
• Canada
• France
• Germany
• Italy
• Spain
• United Kingdom
• Belgium
• Netherlands
• Turkey
• China
• Japan
• India
• Australia
• South Korea
• Thailand
• Malaysia
• Indonesia
• New Zealand
• Brazil
• Mexico
• Argentina
• South Africa
• Saudi Arabia
• UAE

All the Key players have been covered from 4 Viewpoints:

• Overview
• Key Person
• Recent Development
• Revenue

Key Players Analysis

• Acuity Brands Lighting, Inc.
• Signify Holding
• Honeywell International Inc.
• Itron Inc.
• Wipro Lighting.
• Verizon
• Schneider Electric
• Zumtobel Group

Report Details: