Lighting Controls Market Size, Share & COVID-19 Impact Analysis, By Product (LED Drivers and Ballasts, Sensors, Switches, Dimmers, Transmitters and Receivers, and Others (Timers and Photo-Sensors)), By Connectivity Type (Wired and Wireless), By End-user (Residential, Commercial, Industrial, and Highways & Roadways Lighting), and Regional Forecast, 2022-2029

The global lighting controls market size was valued at USD 17.03 billion in 2021. The market is projected to grow from USD 18.61 billion in 2022 to USD 57.81 billion by 2029, exhibiting a CAGR of 17.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with lighting controls experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -2.6% in 2020 as compared to 2019.

A lighting controls system is a network of smart lighting system devices that helps control the operation of lighting systems and set up communication protocols between lights and switches within a particular area. It is a smart wired or wireless network of control systems that establishes better communication within many connected output and input lighting devices by using a centralized sensor and computing system. These devices are used to increase energy saving and maintain government code for energy saving. Additionally, the devices are also used to comply with building standards with energy conservation programs.

The global market has seen significant growth in the last decades, and it is expected to grow gradually during the forecast period. However, due to the surge in COVID-19 cases, sudden global lockdown in various countries was imposed, which caused shutdown of various manufacturing plants and disrupted supply chains of raw materials in several countries. Also, increasing digitization and advanced technology, such as the Internet of Things (IoT), in emerging countries is expected to boost the market growth during the forecast period.

COVID-19 IMPACT

Implementation of Lockdown Regulations and Labor Migration to Negatively Affect Market Growth

The COVID-19 pandemic has negatively disrupted global supply chains. However, the global market witnessed a moderate decline in 2020 and is expected to show a positive market growth in future. Moderate decline is attributed to the smart home equipment manufacturing factory shutdown across China, the U.S., and European countries, which challenged the transfer of finished goods around the world.

It is critical to point out any industry, which has not been affected by the COVID-19 pandemic. Since the coronavirus outbreak began in late 2019 in China, there have been a number of cases. Similar to other manufacturing sectors, the manufacturers of connected devices and smart home industry have been heavily dependent on Chinese companies as the major source of raw materials is China. Moreover, China was the first economy in the world mainly affected by the coronavirus and had all of its production units shut down.

However, increasing use of connected devices in emerging countries led to an increase in the installation of smart lighting systems in commercial and residential spaces such as smart homes, warehouses, retail stores, and factories. China, India, the U.S., Saudi Arabia, Germany, South Africa, and other countries are experiencing dynamic improvements in use of the Internet of Things (IoT) and connected devices. This factor has increased the installation of intelligent smart lighting systems. In addition, many governmental and non-governmental bodies such as Energy Conservation Society, International Energy Conservation Corporation, and others have proposed various laws to reduce lighting consumption and increase energy saving, which has driven the global market.

LATEST TRENDS

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Growing Inclination Toward Energy-efficient Lighting Solutions to Fuel Market Progress

Lighting controls system, which is also called a smart connected lighting system, is getting influenced by surging trends of eco-friendly lighting systems and increasing use of the IoT in modern smart and connected home systems. Energy saving or energy conservation is one of the most trending concerns across the globe and the adoption of smart connected device systems is anticipated to significantly contribute to the energy saving and energy conservation mission. Lots of facility managers and business owners became more conscious about energy saving and they established various organizational goals for energy saving. To achieve these goals, facility managers are rapidly implementing smart lighting systems in their organizations. Also, increasing use of building management systems in commercial buildings is expected to boost the growth of the global market.

DRIVING FACTORS

Ongoing and Upcoming Smart City Projects in Developing Economies to Surge Product Demand

Most of the emerging economies are shifting their focus toward digital awareness and digitization. As part of this digitization agenda, most countries are actively implementing smart city projects on a large scale. Smart lighting connected device system is one of the major parts of smart city projects as it makes use of the connected lighting system, which is easy to control by smart devices.

Connected lighting systems played an important role in the intelligent and digital transformation of modern buildings and cities in the last decade. This trend is expected to continue in the forecast period owing to increasing use of IoT and connected devices in smart city programs globally. The use of smart lighting and control system in smart city projects is anticipated to reduce maintenance as well as energy costs of the lighting system by 40% in a single year. This will also help to improve environmental impact positively. Nowadays, most of the smart cities have been installing smart lighting and control systems or upgrading their existing retrofit systems with the help of IoT sensors. Such adoption of smart lighting and control systems in smart city projects is expected to drive the market growth globally.

RESTRAINING FACTORS

High Initial and Deployment Costs of Lighting Controls System to Restrain Market Growth

The smart lighting controls system is becoming popular in the last few years rapidly. However, the initial cost of the single unit of the smart lighting and control system is much higher than the existing retrofit switches. Components, such as sensors, transmitters, and receivers, used in this system are expensive, which will directly impact the initial retail cost of the overall system. Furthermore, the replacement of existing systems and installation of new smart lighting and control systems is not always affordable for residential customers, which is expected to hamper the global market.

SEGMENTATION

By Product Analysis

Switches Segment Recorded Highest Revenue in 2021 Owing to Easy Installation and Cost-effective Replacement

By product, the global market is segmented into LED drivers and ballasts, sensors, switches, dimmers, transmitters and receivers, others.

Due to increasing adoption of lighting controls system, the switches segment generated highest revenue in 2021 and is predicted to continue this streak during the forecast period due to increasing use of connected devices and the Internet of Things. The sensors segment is showing significant growth opportunities followed by the transmitters and receivers segment during the forecast period.

Dimmers, transmitters and receivers, and others (timers and photo sensors) segments are growing moderately due to increasing use of modern technology in smart home projects.

By Connectivity Type Analysis

Due to High Technical Specification, Wired Segment Generated Highest Revenue in 2021

By connectivity type, the global market is segmented into wired and wireless.

The demand for wired lighting controls system has been increasing owing to its high technical benefits. It is easily compatible with digital as well as analog systems. It includes DSI and DALI controls; these controls are heavily used in the smart and IP-based smart lighting system. This control system is gaining more popularity due to its ability to provide smart lighting and rapid data communication through a wiring system. It can be used with the low voltage cabling and it is free from issues such as RF issue, which is associated in the wireless system.

However, the wireless segment is expected to record the highest CAGR in the forecast period. Increasing use of wireless connected devices will boost the adoption of wireless smart lighting systems in the forecast period.

By End-user Analysis

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Increasing Adoption of Lighting Controls Technology in Residential Segment to Enhance Market Growth

By end-user, the market is classified into residential, commercial, industrial, and highways & roadways lighting.

Due to numerous benefits of smart lighting systems in household applications, the residential segment generated highest revenue in 2021. Numerous customers are choosing smart lighting systems, which is estimated to drive the market globally. The industrial segment is also anticipated to follow the same trends and it is estimated to have the highest CAGR during the forecast period. Furthermore, revenue generated by a number of unit sales for smart lighting devices in residential and industry segments is very high. This is due to frequent use of smart lighting devices in this segment, which is estimated to shorten the life of the device and frequent need to replace it.

However, the commercial and highways & roadways lighting segments are also expected to show moderate growth during the forecast period. Due to various factors, such as restricted financial budget and connectivity issues, the use of smart lighting system in commercial and highway & roadways lighting segments is less, which will affect the global market.

REGIONAL INSIGHTS

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The Asia Pacific market size stood at USD 8.97 billion in 2021 and is expected to rise as a dominating region in the global market during the forecast period. increasing use of connected devices and the Internet of Things in smart homes and smart cities is expected to drive the market in the region. Moreover, top players are adopting various business strategies, which are helping to propel the market expansion in the region.

China Exhibited Highest Growth as Well as Dominated Asia Pacific Region in 2021

China is the highest revenue generating country. China has the most advanced manufacturing facility in the globe and it is rapidly adopting emerging technologies such as IoT and automation in the regular industrial as well as residential operation, which will boost the market in the country. Also as per the analysis, it is also anticipated to become the highest growing country during the forecast period.

Some top key players are adopting various business strategies such as partnership, acquisition, and business expansion to boost the market in the country. Also, China is a global hub for manufacturing of semiconductors and transmitters, which will drive the market expansion in the country.

Asia Pacific is the highest growing region in the forecast period due to the availability of top key players in countries such as India and China. Furthermore, the growing number of small scale and medium scale manufacturers in emerging countries such as India, Japan, and South Korea is responsible for the lighting controls market growth. Also, government authorities from emerging countries, such as India, Japan, and South Korea, are taking initiatives such as “Make in India” launched by the Government of India to boost the overall local manufacturing industry that will drive the market in Asia Pacific.

In North America, the U.S. market is expected to flourish significantly during the forecast period due to the adoption of advanced technology in residential as well as industrial sectors in the U.S., which will be responsible for the growth of the market.

In Europe, Germany dominated the overall regional market in 2021, and it is expected to continue this trend during the forecast period. Moreover, Germany is estimated to record the highest CAGR in the forecast period due to availability of large manufacturing units of smart home equipment in the country.

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Due to slower adoption of advanced technology and lack of availability of skilled labor required for operating manufacturing plants of smart lighting equipment, the growth of the market in the Middle East & Africa and South America is moderate.

KEY INDUSTRY PLAYERS

Taiwan Semiconductor and Schneider Electric to Focus on Increasing their Regional Presence

Among the top key players, Lutron Electronics holds the highest lighting controls market share in the market globally. For instance, in April 2020, Lutron Electronics and Cree Lighting Solution expanded its partnership in the U.S. to provide efficient connected lighting solutions in the region. The company is a major manufacturer of sensors and transmitters, which is the main component of the smart lighting system. Also, this company provides raw materials to other players in the global market. Furthermore, companies such as Signify Holding, Cisco Systems Inc., Taiwan Semiconductor, Schneider Electric, Toshiba, Legrand S.A., and others have set-up their production plants in various countries, where the production and labor cost is less as compared with others. Furthermore, most/major players are focusing on product launches, acquisition, and partnership with various small & medium sized companies to expand their regional presence.                                

List of Key Companies Profiled:

• General Electric Company (U.S.)


• Signify Holding (Philips Lightings) (Netherlands)


• Cisco Systems Inc. (U.S.)


• Schneider Electric (France)


• Toshiba (Japan)


• Legrand S.A. (France)


• Lutron Electronics Co., Inc. (U.S.)


• Eaton Corporation PL (Ireland)


• Honeywell International Inc. (U.S.)


• OSRAM Licht AG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• May 2022: URC teamed up with FX Luminaire, a provider of landscape and architectural lighting products, to create a smart home automation and control system for residential and commercial applications. This partnership will provide a smart lighting solution for FX luminaire customers.


• April 2020: OSRAM, one of the global providers of lighting systems and smart lighting systems, has partnered with the Polish-American company Silvair, which provides Bluetooth-based smart lighting solutions globally. Through this partnership, OSRAM provides a Bluetooth-based smart lighting system, which is compatible with OSRAM lighting systems.


• March 2021: Glamox, which is a provider of modern lighting systems, acquired the U.K- based smart lighting solution provider company, LiteIP Limited. By this strategy, Glamox will help and promote LiteIP Limited to develop and launch new and advanced technology in smart home solutions and smart lighting system


• February 2022: Legrand, which provides smart lighting systems as well as smart lighting solutions, partnered with URC, which is a provider of commercial and residential automation systems. This partnership will allow Legrand to provide better and automated smart lighting system for its vantage and climate lighting system.


• July 2022: Wipro, smart home and connected device solution & services provider, partnered with Siemens to provide advanced IoT-based smart lighting solutions for commercial buildings and workplaces.

REPORT COVERAGE

An Infographic Representation of Lighting Controls Market

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The report provides a detailed analysis of the global market and focuses on key aspects such as leading companies, product/service types, and leading end-use industries of the product. Besides this, the report offers insights into the market trends and highlights the key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the growth in recent years.

Report Scope and Segmentation