Global Smart Lighting Market to Surge to $104 Billion by 2033

According to Renub Research Latest Report smart lighting market is witnessing exponential growth, with its size expected to jump from USD 20 billion in 2024 to USD 104.37 billion by 2033, representing a remarkable compound annual growth rate (CAGR) of 20.15% during 2025–2033. This rapid expansion is fueled by rising demand for energy-efficient solutions, widespread adoption of smart home technologies, and continuous innovations in lighting systems. With smart lighting becoming an integral part of modern residential, commercial, and public infrastructure, both consumers and businesses are investing in solutions that provide convenience, sustainability, and cost savings.

What is Smart Lighting?

Smart lighting refers to advanced lighting systems that can be remotely controlled, customized, and automated according to preferences, schedules, or environmental factors. These systems often utilize energy-efficient LED bulbs and are integrated with smart home technologies, including voice assistants like Alexa and Google Assistant or mobile applications. Key features include dimming, color-changing capabilities, motion sensing, and automated scheduling.

Consumers increasingly value energy savings, convenience, and personalization, making smart lighting a popular choice in modern homes and workplaces. Integration with other smart devices—such as thermostats, security cameras, and home automation systems—further enhances its appeal. As lifestyles become more connected and eco-conscious, smart lighting continues to gain momentum across all regions.

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Key Drivers of Market Growth

1. Increasing Demand for Energy-Efficient Solutions

Rising energy costs and environmental awareness are pushing both households and businesses to adopt energy-saving lighting solutions. Smart lighting systems typically employ LED technology, which significantly reduces electricity consumption compared to conventional lighting. Additional energy-saving features—like automated dimming and motion-sensor activation—further optimize usage, appealing to both eco-conscious consumers and enterprises focused on sustainability.

In August 2023, Philips launched a new smart LED lighting range featuring advanced connectivity and energy-saving features, allowing users to control lights via a mobile app for maximum efficiency.

2. Smart Homes and IoT Integration

The adoption of smart homes and the Internet of Things (IoT) has been a significant growth driver. Homeowners can now remotely control lighting, set automated schedules, and integrate lighting with other smart home devices for enhanced comfort and efficiency. IoT-enabled smart lighting adds convenience and improves energy management, making it a must-have in modern residential setups.

In October 2024, Deako™ launched a modular smart lighting system compatible with Home Assistant, integrating with platforms such as Alexa, Google, Samsung SmartThings, and Alarm.com, further enabling full home automation.

3. Technological Advancements

Continuous innovation in smart lighting technologies has enhanced both functionality and consumer appeal. Features such as color-changing LEDs, app-controlled lighting, and motion sensors offer improved personalization and control. Wireless technologies like Zigbee, Bluetooth, and Wi-Fi have simplified installation and expanded adoption in both retrofit and new setups.

For example, in October 2023, Halonix Technologies launched India’s first 'UP-DOWN GLOW' LED bulb, which illuminates both upper and lower parts in different colors, enabling unique lighting effects with simple switch-enabled modes.

Challenges in the Smart Lighting Market

1. High Initial Costs

While smart lighting provides long-term savings through energy efficiency, upfront installation costs—including smart bulbs, hubs, and controllers—can be prohibitive for some consumers, especially in price-sensitive markets. Upgrading large homes or commercial spaces may require substantial investment, slowing mass adoption despite long-term benefits.

2. Compatibility Issues

Integration and compatibility challenges between different smart lighting brands and smart home devices remain a barrier. Certain systems may not support specific voice assistants or home automation devices, leading to confusion and reluctance among consumers. Standardization across platforms is necessary to encourage wider adoption.

Mergers, Acquisitions, and Industry Consolidation

Strategic acquisitions are reshaping the market landscape:

April 2025: Fusion Optix® acquired LEDdynamics, Prolume Lighting, and LEDSupply to strengthen its presence across standard, custom, and outdoor lighting solutions.

June 2024: Chauvet acquired LiteGear, enhancing its portfolio for professional cinematic lighting.

Dec 2024: Gewiss acquired Tvilight, combining expertise in smart outdoor lighting with electrical infrastructure.

March 2023: Signify acquired Intelligent Lighting Controls, Inc. to expand its wired control systems portfolio.

January 2022: Signify also purchased Telensa, a UK-based smart street-lighting leader, enhancing its smart lighting capabilities and customer base.

These consolidations are creating more integrated, technologically advanced product portfolios, further fueling market growth.

Smart Lighting Segments

The smart lighting market is segmented by components, communication technology, light source, application, and geography:

Components: Hardware, Software, Services

Communication Technology: Wired, Wireless

Light Source: LED, Fluorescent, Compact Fluorescent, High-Intensity Discharge, Others

Application: Residential, Commercial, Others

Regions: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

Segment-specific growth is fueled by unique regional demands and technological adoption trends.

Residential Smart Lighting Market

Residential smart lighting adoption is accelerating as homeowners embrace home automation and energy-efficient solutions. Users can control brightness, color, and schedules through apps and voice assistants, improving ambiance, security, and convenience. The integration of IoT devices and occupancy sensors has further increased demand.

In September 2024, Signify introduced WiZ Smart Lighting in Indonesia, offering 16 million colors and multiple white-to-full-color modes, making plug-and-play installation simple for tech-savvy homeowners.

Commercial Smart Lighting Market

Commercial adoption is rising as businesses seek energy efficiency, cost reduction, and improved workplace productivity. Features like automated dimming, motion detection, and daylight harvesting optimize energy use and create better working environments. Companies are increasingly investing in sustainable lighting solutions, which are now considered essential in modern office and retail spaces.

Wireless and LED Smart Lighting Markets

Wireless smart lighting is growing rapidly due to ease of installation and remote control capabilities. Technologies such as Zigbee, Bluetooth, and Wi-Fi allow flexible setups in retrofit projects without complex rewiring.

LED smart lighting remains the fastest-growing segment within smart lighting due to energy efficiency, long lifespan, and customization options. Integration with motion sensors, dimming, and color-changing controls makes LED systems ideal for smart homes and commercial spaces alike.

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Global Regional Insights

United States

Smart lighting adoption is rising due to home automation, IoT integration, and government incentives promoting energy efficiency. Products like URC Lighting LT-3300 (launched June 2023) enable homeowners to create customizable lighting for entertainment or family settings.

Canada

Canada’s market is driven by smart city initiatives, green building projects, and increasing environmental consciousness. EX International Inc. announced Canada Light Expo 2024 in Toronto, showcasing advanced smart lighting solutions.

United Kingdom

UK consumers are increasingly adopting energy-efficient and connected lighting systems, supported by urban development and government carbon-reduction policies. In April 2023, Luminaire LED launched its Vandal Resistant Downlight (VRDL), expanding smart lighting options in challenging environments.

China

China’s market growth is powered by urbanization, smart city projects, and government initiatives promoting energy-efficient infrastructure. Companies like Unilumin are strengthening global manufacturing capabilities, supporting both LED displays and smart lighting solutions.

India

India is witnessing rapid growth in residential and commercial smart lighting, spurred by urbanization, rising incomes, and the Smart Cities Mission. In October 2024, Signify launched its Philips Smart Light Hub in Lucknow, offering over 450 SKUs across 3,000 square feet.

Saudi Arabia

Saudi Arabia’s market expansion is aligned with the Vision 2030 initiative, emphasizing energy efficiency and smart city development. In November 2024, Flashnet, in partnership with Saudi Delta Group, implemented 3,700 inteliLIGHT® controllers with LoRaWAN for smart street lighting in Jeddah, enhancing sustainability and reducing maintenance costs.

Key Market Players

Leading companies driving innovation and adoption in the smart lighting market include:

Acuity Brands Lighting, Inc.

Signify Holding

Honeywell International Inc.

Itron Inc.

Wipro Lighting

Verizon

Schneider Electric

Zumtobel Group

These companies continue to expand portfolios, develop innovative products, and capitalize on emerging smart lighting opportunities worldwide.

Outlook and Future Trends

The smart lighting market is expected to continue its rapid ascent, driven by:

Rising energy-efficiency awareness

Smart home and IoT integration

Technological innovations in LEDs and wireless systems

Growing demand for customizable and sustainable solutions

Future trends include increased adoption of wireless and IoT-enabled systems, integration with smart city infrastructure, and the expansion of residential and commercial automation. As prices decrease and consumer awareness rises, smart lighting is poised to become a mainstream solution globally, transforming homes, offices, and public spaces into efficient, sustainable, and tech-enabled environments.

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