Smart Lighting – Lighting Up the Future

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By: Roshni Nair -- Senior Research Analyst, Engineering & Construction

04 November, 2019

Smart Lighting – Lighting Up the Future
ARTICLE

Abstract

The global lighting market is undergoing a massive transformation, driven by two trends: the increasing adoption of LED technology and usage of connected lighting systems or smart systems. The global lighting market of $133.94 billion is growing steadily, and is expected to grow at a CAGR of over 10.4 percent between 2017 and 2025. The general lighting market is expected to grow at a CAGR of 5 percent by 2020 and the smart lighting segment at a CAGR of 22 percent by 2023. The global smart lighting controls market is expected to grow at a CAGR of 21 percent from 2018 to 2024. The global lighting industry is dominated by the Asian market, with a ~40 percent share, followed by the developed market, namely Europe and North America, with shares of 20 percent and 15 percent, respectively. Global lighting demand in the residential segment is expected to grow at a CAGR of 6.12 percent from 20182022.

Smart Lighting’ is the newest adoption in the lighting industry that has gained prominence globally. This technology has been successfully implemented in various regions across sectors such as commercial, retail, industrial healthcare, and so on. Several lighting firms in the US, Europe, China, and various other countries have been actively involved in the implementation of smart lighting to increase energy efficiency and overall cost savings.
 

Key Highlights

  • Smart lighting is an integral part of the ongoing building automation revolution taking place in various sectors such as the retail, commercial, and industrial sectors.
  • The implementation of smart lighting across buildings in various sectors of the construction industry will result in increased energy efficiency and a huge saving in overall costs.
  • Several initiatives are being implemented in the smart lighting sector to improve functionality and usability. The most commonly adopted technology adopted at present is motion sensors that can improve the scope of connected lighting systems.


Introduction - Smart Lighting

  • The global smart lighting market is expected to reach $21 billion by 2023 and is expected to grow at a CAGR of 22 percent from 20182023. The European smart lighting segment is approximately $2 billion and is expected to increase by 20 percent from 20182024. Wireless technology is expected to drive the growth in the smart lighting sector from 2018 onwards, owing to reduced cost of installation and ease of maintenance post installation.
  • Cloud computing is commonly used in smart lighting systems. Smart lighting has already been adopted in the residential, retail, commercial sectors; new opportunities are presented by the horticulture, healthcare, and education sectors. North America is the second largest user and held almost 35 percent of the global market share for high-end lighting in 2017.

 

 global-smart-lighting-market-size

 

  • APAC is the biggest consumer of smart lighting globally, and it is expected to grow at a rate of 8.5 percent between 2017 and 2025. The major growth drivers are increased use of LED lighting, innovations, improving infrastructure with better lighting systems, and increasing awareness among consumers about energy savings.

global-smart-lighting-controls-market-outlook-billions

 

  • Traditional lighting control enables users to switch, schedule, tune color, and control lighting requirements. A cloud-based lighting control system automatically controls the light usage, depending on the ambience. This system will also collect usage data, which helps facility managers to control spending on lighting.

global-smart-lighting-penetration


Smart Lighting – Impact on Overall Cost

  • Lighting energy: The major share, that is, 77 percent, of the total cost of lighting is taken up by the electricity usage, which helps to run the products.
     
  • HVAC energy: HVAC is mainly used to control temperature variations in light bulbs, which is almost 8 percent of the total cost.
     
  • Labor: 11 percent of the cost is for labor, dedicated to maintenance and replenishment of light bulbs.
     
  • Materials: The cost of replacing the lighting products in the store accounts for 3 percent of the total cost.
     
  • Recycling: Products that have burnt-out comprise 1 percent of the cost.
     
  • The costs mentioned in the break-down for lighting services in retail stores are mostly dependent on external factors, such as the application of new technologies in the manufacturing and functioning of products, quality of products available in the market, and so on.

lighting-cost-thumb-rule

 

  • The actual cost of lighting is also affected by factors such as building type, geographical location, market segments, and so on. However, the application of technologies has resulted in decreased lighting energy and maintenance costs.
     
  • Many global general retailers in North America, such as Wal-Mart, Target, and Costco have adopted advanced cloud-based lighting control systems to reduce energy consumption. Target implemented smart lighting control systems across their stores in the US. They successfully reduced annual energy usage from 26.6 million kilowatt hours to 10.7 million kilowatt hours.

Popular Smart Lighting Technologies
 

popular-smart-technologies


References

https://technology.ihs.com/586788/smart-lighting-and-connected-lighting-controls-market-to-double-by-2020

http://www.globallightingassociation.org/

http://www.archlighting.com/products/leds-and-drivers/led-market-forecast_o

https://energy.gov/sites/prod/files/2016/02/f29/smallwood_mktadoption_raleigh2016.pdf

https://technology.ihs.com/api/binary/520405lighting-trends-in-2016 – HIS

https://www.linkedin.com/pulse/retail-early-adopter-new-technologies-lifi-very-one-van-den-bussche

https://www.digitallumens.com/resources/blog-post/part-2-smart-smart-lighting/

http://www.digikey.com/en/articles/techzone/2012/jul/the-use-of-sensors-in-commercial-lighting-applications

http://technopow.com/index.php/2017/10/04/residential-connected-lighting-market/

http://www.findmarketresearch.org/2017/09/energy-efficient-lighting-market-future-demand-and-growth-analysis-with-forecast-2024/

https://www.prnewswire.com/news-releases/global-intelligent-lighting-controls-market-report-2018-2024---market-value-to-grow-at-a-cagr-of-20-9-volume-at-13-3-300640001.html

http://www.ledjournal.com/main/blogs/global-led-lighting-trends-reveal-significant-growth-and-product-development/

http://www.digitimes.com/news/a20160317PD205.html

http://www.prnewswire.com/news-releases/global-lighting-market-2017-2021-300453696.html

https://www.businesswire.com/news/home/20180427006012/en/Global-General-Lighting-Market-Outlook-2018-2022-Declining




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