The global smart lighting market is dominated by several players and is likely to retain a significant degree of fragmentation in the coming years, according to a new report from Transparency Market Research (TMR). Key players holding a significant share in the global smart lighting market include Acuity Brands Inc., Osram Licht AG, Lutron Electronics Co., Honeywell International, Zumtobel AG, Encelium Technologies Inc., Legrand S.A., Digital Lumens Inc., Royal Philips N.V., and Streetlight Vision.
According to TMR, the global smart lighting market is expected to rise to a valuation of US$30.1 bn by the end of 2016 and further rise to US$56.6 bn by the end of 2020. This represents a robust 15.9% between 2014 and 2020.
Commercial and Industrial Applications to Retain Dominance in Demand
Of the key applications of smart lighting, commercial and industrial lighting constitutes the leading revenue contributor. The commercial and industrial application segment of the global smart lighting market is expected to rise to a valuation of US$25.5 bn by the end of 2020, more than twice that of any other application of smart lighting.
By product type, compact fluorescent lamps (CFL) are likely to remain the dominant revenue generator for the global smart lighting market. The compact fluorescent lamps segment is expected to almost triple in value over the 2014-2020 forecast period, with a valuation of US$21.3 bn expected by the end of 2020. LED lamps are another key product segment of the global smart lighting market and are likely to exhibit rapid growth in demand over the coming years. The valuation of the LED lamps market is also likely to grow almost threefold over the 2014-2020 forecast period, exhibiting a robust 17.2% CAGR therein.
Regionally, Europe is the leading contributor to the global smart lighting market, followed closely by North America. Both these regional markets are expected to be valued around US$20 bn by 2020, with Europe remaining the leading contributor with a valuation of US$20.8 bn. Asia Pacific is a key emerging market for smart lighting and is expected to more than triple in value over the 2014-2020 forecast period at a strong CAGR of 17.9%.
Steady Progress in Connectivity Solutions Beneficial for Smart Lighting Market
One of the prime drivers for the global smart lighting market is the consistent progress in wireless communication and sensor devices and technologies. Stable communication technology is crucial for smart lighting, as it needs to react to external stimuli and be remotely operable. “The increasing precision of modern sensors is also vital for the smart lighting industry, as it helps the industry refine its own product catalog,” said TMR’s lead analyst.
The need for sustainable technologies to be incorporated in street lighting is another key driver for the global smart lighting market. The use of smart lighting in street lighting can help generate significant savings due to the large scale of the operation. Due to this, several governments across the world are supporting initiatives to incorporate smart lighting, which is likely to remain a key driver for the global smart lighting market in the coming years.
On the other hand, the high initial costs of smart lighting are a key restraint on the global market, particularly in terms of residential use of smart lighting. While governments and large corporations can readily adopt smart lighting on a mass scale, many consumers can’t personally afford it. Even though the increasing adoption of smart lighting in large-scale applications will help lower costs in the long term, this is likely to remain a key constraint on the global smart lighting market in the coming years.
The information in this preview is taken from a Transparency Market Research report titled ‘Smart Lighting Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020.’
The global smart lighting market is segmented as follows:
Smart Lighting Market: By Geography
Smart Lighting Market: By Component
Smart Lighting Market: By Lighting Type
Smart Lighting Market: By Application
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