Key Market Overview:
Lighting Control System Market is estimated to reach over USD 86.78 Billion by 2030 from a value of USD 27.80 Billion in 2022, growing at a CAGR of 14.9% from 2023 to 2030.
Lighting controls refer to devices and systems that regulate the amount and distribution of artificial light in a building or space. Lighting control systems range from simple dimmers to complex building management systems that integrate with other building systems, such as heating, ventilation, and air conditioning (HVAC). Additionally, lighting controls improve the quality of light and enhance the ambiance of a space by adjusting the brightness, color temperature, and distribution of light as needed.
Technological advancements, such as the development of LED lighting, IoT, and artificial intelligence, are driving innovation and growth in the lighting control market. LED lighting is more energy-efficient and versatile than traditional lighting and is integrated with IoT and AI systems to provide advanced lighting control capabilities. For instance, in 2022, HLI SOLUTIONS, INC. launched NX Dual Tech OMNI smart occupancy sensor that provides advanced lighting control capabilities. The OMNI Module is a dual-technology occupancy sensor that uses both passive infrared (PIR) and ultrasonic (US) sensing technologies to detect occupancy in a space. The OMNI Module, further, offers advanced configuration options, including adjustable time delay, sensitivity settings, and daylight sensing, to provide customized lighting control for indoor and outdoor applications such as architectural lighting and lighting for public places.
Lighting Control System Market Scope:-
|Market Size in 2030 (USD Billion)
|86.78 USD Billion
|Hardware, Software, and Services
|By Connectivity Type
|Wired and Wireless
|Low Power, Mid Power, and High Power
|Indoor and Outdoor
|Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|General Electric Company, Signify Holding (Philips Lightings), Cisco Systems Inc., Schneider Electric Toshiba, Legrand S.A., Lutron Electronics Co., Inc., Eaton Corporation PL, Honeywell International Inc., OSRAM Licht AG
The demand for home automation systems is increasing, and lighting controls are a key component of the systems leading to the growth of the lighting control market. Lighting controls are integrated with smart home devices, such as thermostats, security systems, and voice-activated devices, to provide a comprehensive and convenient solution for home automation. Moreover, the need to reduce energy consumption and improve energy efficiency is a major driver of the lighting control market. For instance, Lighting controls that include occupancy sensors and daylight sensors, help reduce energy waste by automatically turning lights off in unoccupied rooms and adjusting light levels based on the amount of natural light in a room.
Some lighting control sensors require specialized installation techniques and require additional electrical wiring, programming, and commissioning that increases the cost and complexity of installation. The increased complexity and cost result in limiting the adoption of the sensors in residential buildings and small commercial buildings. Furthermore, compatibility issues between different lighting control systems and other building systems, such as HVAC and security systems is also hindering the market growth. Thus, owing to the complexity and compatibility issues there is a reduction in the overall effectiveness of the buildings automation system.
The integration of voice-activated controls is providing new opportunities for hands-free and convenient lighting control. Voice-activated controls such as Alexa or Google Assistant enable building occupants to control lighting using voice commands, which improves convenience and accessibility reducing the need for manual switches and controls. Such technology is anticipated to provide lucrative opportunities for the growth of the global market.
Lighting Control System Market Segmentation:
The component segment is divided into hardware, software, and services. The hardware segment accounted for the largest market share in 2021. The widespread adoption of LED lighting, which is more energy-efficient and flexible than traditional lighting sources, has driven demand for hardware-based lighting controls. The hardware segment includes physical devices, such as dimmer switches, occupancy sensors, and lighting control panels that are used to control lighting in buildings. For instance, in 2021, Syska, launched LED lighting products such as T5 LED Batten (PC-Polycarbonate) and T5 LED Batten (AL-Aluminium) in India to meet the needs of residential and commercial customers looking for an affordable and reliable lighting solution.
The services segment is anticipated to register the highest CAGR during the forecast period due to increasing demand for professional installation and the need for ongoing maintenance and support. Additionally, lighting control systems require regular maintenance and support driving the demand for ongoing support services, such as software updates, system upgrades, and repair services.
By Connectivity Type
Based on the connectivity type, the market is bifurcated into wired and wireless. The wired segment holds the largest revenue share in the global market due to the reliability and security of wired systems. Wired lighting controls are more suitable for large commercial buildings as there is no risk of interference or signal loss. Moreover, wired lighting control systems typically use low-voltage wiring, resulting in less energy loss and more efficient use of electricity.
The wireless segment is anticipated to witness significant growth during the forecast period due to its ease of installation and flexibility. Wireless lighting control systems use wireless communication technology, such as Wi-Fi, Zigbee, or Bluetooth, to connect the lighting control devices to the lighting fixtures. Wireless systems are typically easier and less expensive to install, as there is no need for physical wiring.
Based on power, the market is segmented into low-power, mid-power, and high-power. Mid-power segment holds the major share in the global market due to its low cost, high performance, and reliability. Mid-power lighting control systems use mid-power communication protocols, such as Wi-Fi, to connect to lighting fixtures and control devices making them suitable for a wide range of applications, from small-scale residential installations to larger commercial and industrial facilities.
The low-power segment is the fastest-growing segment in the forecast period due to the increasing popularity of smart home technologies and the growing demand for energy-efficient and cost-effective lighting control solutions. Low-power lighting control systems use low-power communication protocols, such as Zigbee, to connect to lighting fixtures and control devices. For instance, in 2020, The Zigbee Alliance and the Digital Illumination Interface Alliance (DiiA) announced to work together to bring standardization to IoT-based luminaires in the smart lighting space. The goal of this partnership is to ensure that products from different manufacturers work together seamlessly.
Based on the end-user, the market is bifurcated into indoor and outdoor. The indoor segment accounted for the largest share of the market due to a greater degree of product innovation such as switches, dimmers, and occupancy sensors in indoor environments. Moreover, increasing demand for lighting control in homes, offices, retail spaces, and commercial buildings due to a higher degree of automation is contributing to the dominance of this segment in the global market.
Outdoor lighting controls application in as parks, parking lots, streets, and other public spaces is anticipated to grow during the forecast period as more cities and towns adopt smart lighting systems to reduce energy consumption. Moreover, lighting controls play an important role in highway lighting as the control improve visibility by adjusting the lights according to the time and traffic conditions on the road. Therefore, lighting controls ensure the safety of drivers, pedestrians, and other road users accelerating the growth of this segment.
North America is the major market for lighting controls accounting for the largest revenue share in 2021. The growing adoption of the lighting control system in the residential and industrial sectors in the United States is responsible for its dominance in the market. Moreover, the US government has taken several initiatives to promote the use of energy-efficient lighting and lighting control systems. For instance, the Energy Star program by the US Environmental Protection Agency (EPA) helps individuals and businesses to save money and protect the environment by promoting energy-efficient products and practices.
Asia-Pacific is anticipated to grow during the forecast period due to the increasing use of smart lighting systems in commercial and residential buildings. Many governments in the Asia Pacific region have implemented policies and incentives to encourage the adoption of energy-efficient technologies, including lighting controls. For instance, in 2021 Government of India announced incentives worth Rs. 6,238 Crore to be provided over five years for manufacturing energy-efficient lighting control products in India. Such policies and incentives have helped to drive the market for lighting controls in the region.
Lighting Control System Market Competitive Landscape:
Market players are investing in product innovation to remain competitive in the market. The data in this report is related to business collaborations, mergers and acquisitions, product innovations, and strategies adopted by competitors. Following are the major market players that comprise the latest market concentration–
• General Electric Company
• Signify Holding (Philips Lightings)
• Cisco Systems Inc.
• Schneider Electric
• Legrand S.A.
• Lutron Electronics Co., Inc.
• Eaton Corporation PL
• Honeywell International Inc.
• OSRAM Licht AG
• In December 2020, Honeywell and Signify (formerly Philips Lighting) partnered to deploy integrated lighting solutions that aim to improve the occupant experience in commercial and industrial buildings.
• In January 2023, Signify and Cambridge Universitys Estates Division teamed up to bring energy-efficient outdoor lighting to the West Cambridge site.