Europe Smart Lighting Market Set to Skyrocket to $15.23 Billion by 2033

According to Renub Research Latest Report Europe smart lighting market is poised for remarkable growth, with its value expected to increase from USD 4.17 billion in 2025 to USD 15.23 billion by 2033, representing a staggering CAGR of 17.58% over the forecast period. This growth is being driven by increasing demand for energy-efficient lighting solutions, the proliferation of IoT technologies, and the rising adoption of smart home systems across the region.

Smart lighting technology combines advanced Internet of Things (IoT) capabilities with customizable, energy-efficient lighting solutions, offering users the convenience of remote control through smart devices or voice assistants. Features such as dimming, scheduling, color adjustments, and occupancy-based automation enhance user experience while promoting energy savings. The technology is widely adopted in residential, commercial, and public infrastructure, aligning with Europe’s focus on sustainability and modern living standards.

Europe Smart Lighting Industry Outlook

Europe has seen a rapid surge in smart lighting adoption due to the region’s strong emphasis on energy efficiency and green building initiatives. Consumers increasingly install smart lighting systems to reduce energy costs and carbon footprints, encouraged by government incentives and regulations promoting sustainable practices. Key markets such as Germany, the United Kingdom, and France are leading the adoption, both in private residences and commercial settings.

Connected lighting is also integral to modern business operations, where optimized lighting can improve productivity, comfort, and user experience. Furthermore, the rise in popularity of smart home automation—including IoT-enabled devices and voice assistants like Alexa and Google Assistant—has significantly boosted demand for smart lighting solutions.

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Key Growth Drivers

1. Energy Efficiency Demand

Energy efficiency is a primary driver of smart lighting adoption across Europe. Regulations such as the European Green Deal and the Energy Performance of Buildings Directive (EPBD) incentivize reductions in energy consumption and carbon emissions. Smart lighting features like automated dimming, motion sensors, and daylight harvesting optimize electricity usage in homes, offices, and public infrastructure. Rising electricity costs and heightened awareness of sustainability further push consumers toward energy-efficient solutions. According to early estimates by the European Environment Agency (EEA), primary energy consumption by EU end-users fell by 3.8% in 2023 compared to 2022, while final energy consumption decreased by 0.6%, reflecting progress toward long-term energy efficiency targets.

2. Smart Home Adoption

The growth of smart home systems in Europe is accelerating the adoption of connected lighting. Consumers prefer integrated solutions that enhance convenience, security, and lifestyle. Smart lighting seamlessly integrates with voice assistants and smart home hubs, offering automated and remote control. Innovation in IoT, improved internet connectivity, and rising disposable incomes are driving these trends. For example, Philips launched a range of outdoor LED lights in June 2023, featuring UltraEfficient Solar technology designed to withstand various weather conditions, including garden posts, spotlights, pedestals, and wall lights.

3. Government Incentives and Sustainability Targets

European governments actively encourage smart lighting to meet energy efficiency and environmental goals. Financial incentives, subsidies, and tax rebates have spurred adoption in residential and commercial sectors. Initiatives such as the European Green Deal and smart city programs promote the deployment of advanced lighting solutions. Recent developments like the Net-Zero Industry Act (NZIA) and the European Critical Raw Materials Act are part of broader strategies to make Europe the world’s first climate-neutral continent by 2050, further fueling smart lighting demand.

Country-Level Insights

France

France is a leading contributor to Europe’s smart lighting market, with strong government support for energy efficiency. Policies like the Energy Transition for Green Growth Act encourage adoption of connected lighting in urban infrastructure and residential settings. Consumers increasingly invest in smart lighting to reduce energy consumption while enhancing convenience. In September 2024, Govee announced two flagship LED strip lights—Govee Strip Light 2 Pro and Govee COB Strip Light Pro—at the IFA 2024 exhibition, reflecting ongoing innovation in the market.

Germany

Germany is at the forefront of smart LED adoption, driven by technological advancements, a strong manufacturing base, and proactive government policies. The commercial sector, particularly offices and retail spaces, increasingly relies on smart lighting to improve efficiency and sustainability. Germany’s commitment to digital transformation and environmental responsibility strengthens its position in the European smart lighting landscape. In February 2024, Casambi, a global smart lighting control provider, unveiled a new addition to its portfolio at Light + Building 2024.

Italy

Italy’s market is growing rapidly, with cities like Milan and Rome implementing smart lighting in public areas to enhance energy efficiency and reduce maintenance costs. Residential adoption of smart home technologies is also rising. In January 2024, Twinkly, an Italian brand, launched the Matrix light curtain, featuring high-density LEDs and advanced color and brightness monitoring for ambient lighting applications.

Spain

Spain integrates smart lighting into its smart city initiatives in cities like Barcelona and Madrid, focusing on energy reduction and public safety. Residential adoption is growing, supported by government incentives and regulations. The hospitality and tourism sectors also leverage smart lighting to improve customer experience sustainably. In March 2024, Telefónica Tech partnered with Ferrovial and Endesa X to digitalize public lighting in Santiago de Compostela, remotely controlling over 10,000 LED luminaires equipped with NB-IoT connectivity.

United Kingdom

The UK is a major smart lighting market in Europe, fueled by smart home adoption, energy efficiency, and sustainability awareness. Urban infrastructure and smart city initiatives, combined with financial incentives, are driving commercial and residential adoption. In June 2024, Signify expanded its WiZ smart lighting system with a Music Sync feature, new indoor and outdoor fairy lights, a smart dial switch, and outdoor wall lights, reflecting increasing innovation in consumer-friendly smart lighting products.

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Market Segmentation

Offering:

Hardware

Software

Services

Technology:

Wireless

Wired

Installation Type:

New Installation

Retrofit Installation

Light Source:

LED Lamps

Fluorescent Lamps

Compact Fluorescent Lamps

High Intensity Discharge Lamps

Others

Application:

Indoor

Outdoor

End User:

Commercial

Residential

Public Infrastructure

Others

Countries Covered:

France, Germany, Italy, Spain, UK, Belgium, Netherlands, Russia, Poland, Greece, Norway, Romania, Portugal, Turkey, Rest of Europe

Leading Companies

Europe’s smart lighting market features major players driving innovation and adoption:

Cree, Inc.

Philips Lighting

Honeywell International, Inc.

Wipro Limited

Acuity Brands, Inc.

Eaton Corporation Plc.

Legrand S.A.

General Electric (GE)

OSRAM Licht AG

These companies focus on advanced product portfolios, technological innovation, and regional expansion. Strategies include new product launches, smart city projects, partnerships, and sustainability-focused innovations to capture market share.

Outlook

Europe’s smart lighting market is positioned for sustained growth through 2033, driven by energy efficiency, government incentives, and smart home integration. The adoption of IoT-enabled solutions and the increasing preference for automated lighting systems are reshaping residential, commercial, and public infrastructure segments. By 2033, the market is expected to reach USD 15.23 billion, reflecting the ongoing shift toward sustainable, connected, and intelligent lighting solutions.

As cities pursue smart city initiatives and governments implement energy-saving measures, the European smart lighting market is expected to lead global adoption, offering opportunities for manufacturers, technology providers, and service companies alike. The convergence of technology, sustainability, and urban modernization ensures that smart lighting remains at the forefront of Europe’s energy-efficient and environmentally conscious future.

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