Smart Lighting Market Size and Forecast 2025–2033

The global smart lighting market is entering a period of explosive expansion. According to Renub Research, the sector—valued at USD 20 billion in 2024—is projected to skyrocket to USD 104.37 billion by 2033, growing at a powerful CAGR of 20.15% from 2025 to 2033. This remarkable acceleration is being shaped by three defining forces: the push for energy-efficient systems, the surge in smart home adoption, and technological advancements in wireless connectivity, sensors, and LED innovations.

The Smart Lighting Market & Forecast report further breaks down growth across offerings (hardware, software, services), technologies (wired, wireless), installation types (new vs. retrofit), light sources, applications, and end-user segments while analyzing market dynamics across over 25 countries. Together, these insights illustrate a market swiftly transitioning from conventional illumination to fully connected, automated, and sustainable lighting ecosystems.

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Global Smart Lighting Market Overview

Smart lighting represents a new era of modern illumination—one that is intelligent, automated, remotely controllable, and deeply integrated with broader smart home or smart city infrastructure. These systems use LED lamps paired with IoT connectivity, allowing users to adjust brightness, color, and scheduling via mobile apps or voice assistants such as Alexa and Google Assistant.

More advanced smart lighting networks feature motion sensing, daylight-responsive dimming, energy consumption monitoring, and integration with thermostats or security systems, increasing both comfort and cost savings. For homeowners, the appeal lies in convenience and personalization; for businesses and governments, smarter lighting delivers reduced operational expenses and sustainability compliance.

As smart homes become increasingly mainstream, seamless device integration is now expected. Smart lighting has evolved from a novelty add-on to a foundational component of modern living spaces.

Key Growth Drivers of the Smart Lighting Market

1. Rising Demand for Energy-Efficient Lighting Solutions

Energy conservation has become a global priority for households, enterprises, and governments alike. LED-based smart lighting systems are significantly more energy-efficient than traditional lighting sources, offering both environmental benefits and financial savings.

Smart lighting automatically turns off when rooms are unoccupied, dims according to user preferences or daylight levels, and provides detailed energy analytics—making it an ideal solution for today’s sustainability-conscious world.

In line with this trend, companies continue to launch advanced, energy-efficient smart lighting products. For example, in August 2023, Philips introduced next-generation smart LED lighting featuring advanced connectivity and app-based energy management tools.

2. Smart Home Expansion and IoT Ecosystem Adoption

The explosion of IoT technologies has revolutionized how lighting systems operate and interact with other devices. Smart lighting is now an essential component of smart homes, enabling seamless automation and remote control.

Users can operate lights through apps, voice commands, or automated routines, with systems that collaborate with home security cameras, thermostats, and entertainment devices. This expands both the functionality and desirability of smart lighting.

The launch of Deako’s modular smart lighting system in October 2024, which integrates with Home Assistant and multiple major automation platforms, reflects rising demand for interoperability within the smart home ecosystem.

3. Continuous Advancements in Smart Lighting Technologies

Technological innovation is propelling the industry forward at unprecedented speed. Enhanced wireless connectivity—such as Bluetooth, Zigbee, and Wi-Fi—simplifies installation and increases device compatibility. Meanwhile, innovations in LED technology enable multi-color, pattern-based, and mode-driven lighting experiences.

A prime example is Halonix Technologies’ UP-DOWN GLOW LED bulb, launched in October 2023, featuring dual-directional glow with customizable color modes. Such advancements heighten consumer interest and accelerate adoption.

Challenges Impacting Market Growth

1. High Initial Installation Costs

Although smart lighting offers long-term cost savings, high upfront costs remain a barrier, especially for price-sensitive markets. Retrofitting older buildings or upgrading entire lighting systems can be capital-intensive, limiting adoption among budget-conscious consumers or small businesses.

2. Compatibility and Interoperability Issues

The lack of universal standards in the smart lighting industry creates challenges for users trying to integrate devices from different brands. Certain lighting systems may not support specific voice assistants or security platforms. This fragmentation leads to confusion and slows market penetration.

Smart Lighting Market Consolidation: Mergers & Acquisitions

The market is witnessing high consolidation as companies broaden portfolios and strengthen technological capabilities:

April 2025: Fusion Optix® acquires LEDdynamics, Prolume Lighting, and LEDSupply—expanding its reach in outdoor, custom, and e-commerce lighting solutions.

June 2024: Chauvet acquires LiteGear, boosting its cinematic LED lighting capabilities.

December 2024: Gewiss acquires Tvilight, strengthening smart street lighting offerings for smart cities.

March 2023: Signify acquires Intelligent Lighting Controls to boost its connected systems portfolio.

January 2022: Signify acquires Telensa, solidifying its dominance in smart street lighting.

These acquisitions highlight rising competition and the industry's shift toward integrated smart lighting ecosystems.

Breakdown of Market Sub-Segments

Smart Lighting Software Market

Software is becoming the brain of smart lighting systems, enabling automation, scheduling, insights, and energy management. As smart homes and smart buildings expand, demand for robust lighting control software continues to surge.

Wireless Smart Lighting Market

Wireless systems—powered by Wi-Fi, Bluetooth, and Zigbee—are growing rapidly due to easy installation and compatibility with retrofit projects. These solutions are particularly popular among homeowners avoiding complex wiring.

LED Smart Lighting Market

The LED segment leads the market due to superior efficiency, long lifespan, and versatility. Pairing LEDs with smart controls unlocks new use cases, from mood lighting to occupancy-based automation.

Indoor Smart Lighting Market

Indoor lighting applications dominate demand, with adoption across homes, offices, retail stores, and industrial facilities. Users value adjustable brightness, color tuning, voice control, personalized ambiance, and energy savings.

Residential Smart Lighting Market

Homeowners increasingly favor smart lighting for convenience, aesthetics, security, and energy management. Falling LED prices and growing awareness support widespread adoption.

Signify's 2024 launch of WiZ Smart Lighting in Indonesia, with 16 million colors and intuitive controls, exemplifies rising consumer interest.

Commercial Smart Lighting Market

Businesses are rapidly investing in smart lighting to reduce utility costs, automate lighting schedules, and enhance employee comfort. Features such as daylight harvesting and zone-specific illumination support corporate sustainability goals.

Regional Market Insights

United States

The U.S. leads in smart home adoption, making it a key market for smart lighting. Government sustainability initiatives and strong consumer demand fuel growth. URC’s LT-3300 launch in 2023 reflects increasing product innovation.

Canada

Canadian adoption is driven by smart city initiatives, green building standards, and increased awareness of energy savings. Events such as Canada Light Expo 2024 highlight the nation's growing interest.

United Kingdom

The UK market is supported by carbon-reduction targets, rapid urbanization, and rising smart home adoption. Products like Luminaire LED’s vandal-resistant downlight (2023) indicate expanding product diversity.

China

China remains the world’s largest lighting producer and a global leader in smart lighting adoption, driven by urbanization and extensive smart city development. Unilumin’s expansion in 2024 underscores China's manufacturing strength.

India

India’s market is expanding rapidly due to rising incomes, IoT adoption, and government smart city projects. Signify’s massive Philips Smart Light Hub in Lucknow (2024) shows growing consumer demand for modern lighting solutions.

Saudi Arabia

Saudi Arabia’s Vision 2030 initiative is a major catalyst for smart lighting adoption. Projects such as Flashnet’s 2024 implementation of smart street lighting in Jeddah demonstrate strong government support.

Smart Lighting Market Segmentation Overview

Component

Hardware

Software

Services

Communication Technology

Wired

Wireless

Light Source

LED

Fluorescent

Compact Fluorescent

High Intensity Discharge

Others

Application

Commercial

Residential

Others

Geographical Coverage

25 countries including the U.S., Canada, UK, China, India, Brazil, Saudi Arabia, South Africa, and more.

Key Players

Acuity Brands Lighting, Inc.

Signify Holding

Honeywell International Inc.

Itron Inc.

Wipro Lighting

Verizon

Schneider Electric

Zumtobel Group

Final Thoughts

The smart lighting market is at a historic turning point. With its projected leap to USD 104.37 billion by 2033, the industry’s growth trajectory aligns with global priorities: energy efficiency, digital transformation, and sustainable development. As IoT ecosystems expand and smart homes become the norm rather than the exception, smart lighting will continue evolving into an essential infrastructure component.

Driven by rapid technological innovation, supportive government policies, and widespread consumer adoption, smart lighting is not merely illuminating spaces—it is lighting the path toward a connected, efficient, and intelligent future.