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Research Forecasts Growth of Smart Lighting

Aug. 22, 2018
Freedonia Group forecasts smart lighting to reach $4.4 billion by 2025.

Demand for smart lighting in the United States is forecast to increase to $945 million by year-end 2018. By 2025, demand is expected to reach $4.4 billion, according to a recent report by The Freedonia Group, Cleveland.

Of that overall smart lighting market, Freedonia estimates that controls account for 63% of sales. The smart controls segment is made up of lighting-specific control devices separate from the light source or fixture, such as centralized lighting system control boxes, lighting-specific smart home hubs and bridges, and smart light switches and dimmers.

Rapid growth in sales of smart lighting systems, including light sources, fixtures and controls, is being driven by several factors, including rapid growth in the broader smart tech and IoT markets, including smart home devices, nonresidential building automation, and smart city infrastructure; consumer interest in the convenience of smart lighting capabilities, such as wireless, away-from-home, and voice control; and energy saving initiatives, especially in nonresidential applications.

The report, titled “Smart Lighting in the US,” points to some overall market dynamics that lighting suppliers should keep in mind in addressing the market. Smart lighting will benefit from the burgeoning smart tech and IoT markets, the report said, but while smart lighting is seen as an energy-saving upgrade in nonresidential applications, residential users adopt smart lighting as a convenience and novelty.

The report looks at smart lighting controls as critical technology for energy savings in nonresidential applications, using large networks of sensors and advanced analytics to reduce energy consumption. Some of the conveniences of consumer smart lighting (e.g., voice control, away-from-home remote control) often require a bridge or hub. Building control suppliers have readily expanded their product offerings to incorporate smart lighting capabilities into broader building automation and Internet of Things (IoT) systems, Freedonia said.