Smart Lighting Market By Component (Hardware {Smart Bulbs, Fixtures, Lighting Controls}, Software {Cloud-Based, On-Premise}, Services {Consulting, Installation & Maintenance}), By Communication Technology (Wired, Wireless), By Application (Indoor, Residential, Commercial, Industrial, Outdoor, Others), By Distribution Channel (E-commerce, Retail Store, Specialty Stores, Wholesalers), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Smart Lighting market accounted for USD 21.35 Billion in 2024 and is expected to reach USD 155.75 Billion by 2035, growing at a CAGR of around 19.8% between 2025 and 2035. The smart lighting market is growing rapidly because people use energy-saving lights more often, and technologies develop better while users want their homes and businesses to run automatically.

The integration of AI-powered controls creates a network of sensors that tracks energy use and provides easy controls to improve energy efficiency and user satisfaction. The market is divided into hardware, software, services, wired and wireless systems, setup methods, user applications, and end-user categories. Companies in this sector are developing new features like voice triggers to control lights and mobile apps with smart home compatibility. Europe and North America dominate smart home market adoption, but Asia-Pacific stands out with fast urban development support from official efforts to save energy. Although the market deals with steep entry expenses and security troubles, it opens several possibilities through Li-Fi technology and lighting setups that serve people better.

Report Scope:

Market Dynamics

Increasing demand for energy-efficient lighting solutions. 

Efficient lighting solutions drive the growth of smart lighting markets because customers actively seek them. Worldwide energy usage continues to grow, creating an urgent need among authorities, commercial organizations, and private citizens to minimize their power bills and decrease their utility expenses. Energy costs decrease substantially through LED and IoT-enabled solutions since they control lighting automatically according to space requirements natural lighting levels and room occupancy. Embedded sustainable systems generate reduced carbon emissions, which makes them compatible with current climate change reduction efforts.

The speed of smart lighting solution adoption gets boosted through regulatory programs and energy-efficiency standards and incentives set by governments. The escalating energy prices have pushed both residential and commercial stakeholders to use intelligent lighting systems as an economical method of achieving sustainable energy conservation. Modern lighting technologies generate increasingly efficient smart lighting systems that achieve improved performance goals.

Government regulations promoting sustainable energy consumption. 

The smart lighting market is expanding strongly because of government laws that push for environmentally sustainable power use. Governments across the world implement policies with incentives to stimulate homeowners and businesses to adopt energy-efficient technologies that include smart lighting solutions because they focus on carbon emission reduction along with boosted energy system performance. The requirements of these regulations establish energy standards for buildings that mandate low-energy lighting systems for residential, commercial, and industrial spaces.

The adoption of smart, energy-efficient lighting can be aided by various governmental benefits that include financial support through both subsidies and rebates. The initiatives operate harmoniously with goals regarding carbon neutrality and sustainable development. Governmental emphasis on sustainability prompts the rapid adoption of smart lighting technologies that accomplish lower energy use and cost savings in addition to environmental benefit reduction. The surge in demand for automated lighting systems and connected solutions will continue to grow due to this trend in both urban and rural areas.

Dependence on internet connectivity for seamless operation. 

Internet connectivity dependency creates a major obstacle to the operation of the smart lighting market. A stable high-speed internet connection functions as a requirement for numerous features, such as remote control and automation in smart lighting systems that also integrate with smart home devices. Users who reside in areas where internet infrastructure is weak may face problems with the operational stability and full capacity of their smart lighting systems.

Cybersecurity challenges emerge since such systems remain exposed to unauthorized access while requiring secure internet connections to remain protected. The shortage of reliable internet access coupled with high costs for connectivity restricts the spread of smart lighting technology adoption in such areas. The necessity to rely on internet service drives up both operational expenses for businesses and consumers since both groups need to maintain dependable internet connections to utilize all smart lighting functions. The market adoption and expansion of smart lighting demand the resolution of connectivity problems together with enhanced internet infrastructure deployment.

Integration of AI and machine learning in smart lighting. 

The integration of AI and machine learning in smart lighting offers a powerful opportunity for the market, enabling more advanced and personalized lighting solutions. AI-driven systems can analyze data from sensors, user behavior, and environmental factors to automatically adjust lighting for optimal energy efficiency and user comfort.

For example, AI can optimize lighting levels based on real-time occupancy or daylight availability, reducing unnecessary energy consumption. Machine learning algorithms can also predict usage patterns, allowing the system to learn and adapt to users' preferences over time, offering a more customized lighting experience. This integration enables intelligent automation, where lighting can adjust to create the perfect ambiance, enhance security, or improve workplace productivity. As the demand for smart homes and smart offices increases, incorporating AI and machine learning will drive the development of intuitive, self-learning lighting systems that not only reduce energy costs but also enhance convenience and sustainability. This opportunity positions AI as a game-changer in the evolution of smart lighting technologies.

Expansion of smart lighting in industrial and outdoor applications. 

The growth of smart lighting in industrial and outdoor settings offers a major opportunity for the smart lighting market. More industries are turning to smart lighting systems to boost operational efficiency, cut energy costs, and enhance workplace safety. In industrial spaces like warehouses, factories, and manufacturing plants, smart lighting solutions can be set up for automated dimming or motion sensing, which helps optimize energy usage and increase productivity.

For outdoor uses, such as street lighting, parks, and parking lots, smart lighting is becoming part of smart city initiatives, leading to benefits like lower maintenance expenses, better security through sensors and cameras, and energy savings with adaptive lighting. The incorporation of wireless connectivity and IoT-enabled features in outdoor lighting systems allows for real-time monitoring and control, further improving operational efficiency. As both private and public sectors invest in smart city infrastructures and green technologies, the industrial and outdoor smart lighting sectors are poised for significant growth, creating new avenues for innovation and market expansion.

Industry Experts Opinion

"Consumer preferences are increasingly leaning towards smart home integrations, with lighting being a primary focus. 'The convenience of controlling lighting through voice commands and mobile applications has transformed user interactions with their living spaces,' observes Dr. Sarah Mitchell, Director of Smart Home Research at HomeTech Innovations. 'As technology advances, we anticipate even more seamless and intuitive lighting solutions that align with user lifestyles.'"

• Dr. Sarah Mitchell, Director of Smart Home Research, HomeTech Innovations

Segment Analysis

Based on the Components, the Smart Lighting market has been classified into Hardware, Software, and Services. In the Smart Lighting Market, the hardware segment leads and holds the highest amount of market share through its smart bulbs and lighting control products. People choose smart bulbs across home and workplace environments as these products allow for both energy conservation and lighting customization. Smart bulbs bring comfort and smart home integration through their connection to Amazon Alexa and Google Assistant platforms to let users change their lights remotely or by voice commands. Using dimmer switches and motion detectors helps energy management by making lights turn on and off automatically. Because of growing IoT device adoption in smart homes, manufacturers focus on producing smart bulbs and enhanced lighting systems to lead the smart lighting business forward. The market expands due to better LED technology that gives better energy savings plus longer appliance life with reduced maintenance costs.

Based on the Application, the Smart Lighting market has been classified into Indoor, Residential, Commercial, Industrial, Outdoor, Street Lighting, Parking Lots, and Public Spaces. Most facilities use smart lighting solutions today because businesses and organizations install IoT lighting in all their office buildings, retail environments, and hospitality facilities. Businesses choose smart lighting systems because they want to improve work output while cutting costs and following energy management standards. Lighting devices that track motion and adjust their brightness automatically, plus advanced lighting controls, save energy, which leads to money savings for businesses. Smart lighting enhances both work environments and customer enjoyment, which makes it vital for business owners. The connection of IoT systems and artificial intelligence helps us monitor and change lighting settings instantly. The commercial interior market will continue growing, first because people want to build more sustainably while using smart building control systems.

Regional Analysis

The Asia-Pacific area plays an important role in the smart lighting market. This growth stems from city expansion, higher incomes, and the area's push for energy-saving options. China, Japan, and India lead the pack. Their smart city plans, tech progress, and updated infrastructure boost market needs. China tops the list thanks to its big smart city work and rules that save energy. India sees quick growth in smart homes in big cities. Japan keeps adding new tech like Li-Fi and IoT to its lights. The area also attracts more money for smart streetlights and outdoor uses. Governments want to cut energy use and make city life better. Plus, more middle-class folks and interest in eco-friendly, linked living will keep pushing market growth here. This means the Asia-Pacific area will grow the fastest in the world's smart lighting field over the next ten years.

The smart lighting market shows significant activity in North America because this area benefits from technological developments together with increasing consumer desire and environmental sustainability efforts. Smart home technologies currently receive wide adoption throughout the United States and Canada, along with well-developed systems for implementing energy-efficient solutions. The smart city development wave is transforming urban centers of New York, Los Angeles, and Toronto as these cities merge intelligent street lighting with automated lighting systems to achieve improved energy management and urban efficiency.

Market growth intensifies because of government mandates for power preservation and carbon emissions-free building requirements. More people nowadays opt to purchase smart lighting products, including smart bulbs, dimmers, and lighting control systems. Leading market players, including Signify, as well as Acuity Brands, and Honeywell, strengthen the market position of North America in the industry. The combination of favorable regulations and ongoing innovations keeps North America in the lead position for upcoming smart lighting market growth.

Competitive Landscape

Intense competition exists amongst key players in the smart lighting market, which seek to innovate as well as to gain market share. The top end of the market is led by major players such as Signify Holding (doing business as Philips Hue), Acuity Brands Lighting Inc., OSRAM Licht Group, and Schneider Electric Software LLC, with broad product offerings and extensive worldwide exposure. In this case, these industry leaders have been concentrating on providing advanced smart lighting solutions related to integrating their IoT technologies, energy-efficient systems, and seamless connectivity. In addition, newfangled companies and niche players are contributing at a significant pace in the shape of personalized lighting environments, as well as integrated smart home ecosystems. Strategic mergers, acquisitions, and collaborations are further intensifying the competitive dynamics, allowing a company to increase its technological capabilities and market power.

Smart Lighting Market, Company Shares Analysis, 2024

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Recent Developments:

• In January 2025, Philips Hue announced the introduction of a generative AI-powered lighting assistant, allowing users to create custom lighting scenes based on occasion, mood, or style. The assistant is set to roll out in the first quarter of 2025 and will be compatible with all Philips Hue lights.
• In January 2025, Ivani developed Sensify, a new ambient sensing technology that can convert Zigbee-powered light bulbs into motion sensors with a simple firmware update. This innovation is expected to be available for Philips Hue bridges, turning existing devices into motion sensors using Wireless Network Sensing (WNS).
• In April 2024, Govee announced the launch of two new smart floor lamps—the Floor Lamp 2 and Floor Lamp Pro. The Floor Lamp 2 offers brighter illumination, Matter compatibility, and customizable lighting effects, while the Floor Lamp Pro features 324 color and white light beads, a 300-degree rotatable light bar, and an integrated Bluetooth speaker.
• In March 2024, Nanoleaf unveiled its Smart Lamp Collection in collaboration with Umbra, introducing the Cono Portable Lamp and Cup Lamp.

Report Coverage:

By Component

• Hardware
  • Smart Bulbs
  • Fixtures
  •  Lighting Controls
• Software
  • Cloud-Based
  • On-Premise
• Services
  • Consulting
  •  Installation & Maintenance

By Communication Technology

• Wired 
• Wireless 

By Application

• Indoor 
• Residential 
• Commercial 
• Industrial 
• Outdoor 
• Others

Distribution Channel

• E-commerce
• Retail Stores
• Specialty Stores
• Wholesalers

By Region

North America

• The U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Signify
• Schneider Electric
• Eaton
• Honeywell
• OSRAM
• Cisco
• Lutron
• Cree Lighting
• Hubbell
• Leviton
• Acuity Brands
• GE Lighting
• Nanoleaf
• TP-Link
• Govee
• Ivani

Frequently Asked Questions (FAQs)