The world market for smart lighting and connected lighting controls was valued at $6 billion in 2015, and is forecast to more than double in size by 2020, according to a new report from IHS Markit. The smart lighting market is being driven by the IoT, as lighting companies look beyond the transition to LED lighting and look to leverage the unique position lighting holds within the IoT.
The smart lighting market is broadly characterised by three application areas: commercial, residential, and outdoor and street lighting. The IoT is a key driver for both commercial and outdoor and street lighting applications, as lighting companies look to leverage lighting systems to act as the ‘backbone’ of an IoT network. Lighting systems have a unique advantage in this respect given that lighting is both powered and ubiquitous across a building or a city.
The residential smart lighting market is seeing adoption increase alongside the wider smart home offerings such as Apple’s HomeKit, Google’s Nest, Samsung’s SmartThings, or Amazon’s Alexa. The residential smart lighting market is estimated to have been worth $1 billion in 2015. The residential market is forecast to be one of the highest growth areas for smart lighting, growing to over $4 billion in 2020, at a compound annual growth rate of 30.5% from 2015 to 2020.