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The Smart Lighting Market is Growing Rapidly, Presenting Major Growth Opportunities for Suppliers
As a relatively undeveloped market, smart lighting presents ample opportunity for gains as it is rapidly adopted in all major lighting markets – including smart homes, smart commercial buildings, and smart cities. Smart lighting appeals to consumers and professionals for a variety of reasons, including connectivity with the broader Internet of Things (IoT), the convenience of wireless and voice controls, and potential energy savings.
Residential Users Adopt Smart Lighting as a Convenience and Novelty
While consumers can appreciate the energy-saving potential of smart lighting, their electrical expenses generally are not so high as to make reducing lighting consumption a top priority. Rather, smart lighting appeals to consumers primarily as a convenient, new way to interact with their home lighting. Suppliers can capitalize on consumer views of smart lighting as a convenience and a novelty by emphasizing its advanced control capabilities, including automated features, wireless control (including away-from-home), and voice control. Suppliers should also emphasize their products’ seamless compatibility with smart home speakers, hubs, and apps for smartphones, as well as color temperature and light color options that can be customized to suit different activities (e.g., watching a movie, settling down for sleep, getting out of bed).
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Smart Lighting
Smart Lighting:
Scope, Demand, & Findings
This study analyzes the US market for smart lighting products. Segments covered include:
- smart light sources (i.e., smart light bulbs and linear tubes)
- smart lighting fixtures (i.e., smart LED-integrated fixtures)
- smart lighting controls (e.g., smart light switches and hubs)
For the purposes of this study, a lighting product is considered smart when it possesses:
- automated interactive capabilities (e.g., transmitting data to other synced smart devices)
- operations that can be controlled with a smart hub or speaker, an app on a smartphone or tablet, or a dedicated controller
- predictive analytics (e.g., the ability to learn and respond to changes in the environment)
- self-monitoring (e.g., of energy consumption rates or remaining service life)
Will the United States market see growth in this industry?
Yes! The IoT market is booming and fueling robust growth for smart lighting and myriad other applications for smartdevices (e.g., smart home security and HVAC, quality control for manufacturing, municipal waste management). Reasons for the growth include smart lighting energy savings, analytical capabilities, lighting automation, and wireless and voice controls. Concerns that suppliers will need to address include security and privacy issues, interoperability of different devices, general user friendliness, and reliable connectivity.
Scope & Methodology
How is the market for light sources?
Sales of light sources are expected to increase 7.5% by year-end 2018. The light source market has seen a rapid shift in product mix in the last decade as LED lighting – an energy-efficient and long-lasting alternative to traditional light sources such as incandescent and fluorescent types – has become dominant. While the market share gains of LED lighting continue to have a significant impact on light source pricing and demand in volume terms, the overall effect so far has been to boost demand in value terms due to LED lighting’s high value compared to traditional light sources.
The US lighting industry’s rapid shift to LED light sources was spurred by the Energy Independence and Security Act of 2007 (EISA), which required suppliers to improve the energy efficiency of their products. New efficiency standards first went into effect in 2012 and essentially mandated the phase-out of many traditional light sources – including most incandescent and halogen light bulbs. The law also encouraged the rapid development and adoption of LED lighting – even at the expense of other fairly efficient types, such as compact fluorescent lamps (CFLs) and high intensity discharge (HID) light sources.
Smart light sources accounted for 21% of smart lighting sales in 2017. Smart light sources include lighting products in traditional light source formats (e.g., light bulbs and linear tubes) that contain hardware that allows for direct wireless communication with separate controllers such as:
- smart light switches
- smart home hubs and speakers
- mobile devices (e.g., smartphones and tablets)
- Light sources that do not themselves contain smart tech but are used in otherwise smart lighting systems are not included in the scope of this study.
- LEDs that are integrated into smart fixtures are considered part of the fixture and do not contribute to smart light source demand.
How does Freedonia conduct research?
Information and data on smart lighting products were obtained from numerous primary and secondary sources, including industry participants, government agencies, trade associations, online databases, company annual reports and investor presentations, and other Freedonia Group studies.
Methods key to the development of this study include:
- primary research involving smart lighting product manufacturers
- secondary research into smart lighting product offerings and features
- leveraging demand estimates from Freedonia Group studies on lighting fixtures and high-efficiency light sources
Freedonia analysts consult a wide range of primary and secondary sources.
Primary information was gathered through consultations with marketing/technical personnel of participating companies and other industry specialists.
Secondary data and background information were derived from numerous trade publications, including:
- Architectural Lighting
- CNET
- Digital Trends
- Engadget
- enLIGHTenment
- Greentech Media
- LD+A
- LEDs Magazine
- lightED
- TechCrunch
Key sources consulted for this study include:
- BuildingGreen
- Consumer Technology Association
- DesignLights Consortium
- Illuminating Engineering Society
- Lighting Research Center
- National Electrical Manufacturers Association
- US Census Bureau
- US Census of Manufactures
- US Department of Commerce
- US Department of Energy
- US Green Building Council
- US International Trade Commission
Need more detail on methodology? Ask your Freedonia representative or email [email protected]!
Smart Lighting Primer
What is Smart Lighting?
Smart lighting is that which offers one or more of the following features:
- automated interactive capabilities (e.g., transmitting data to other synced smart devices)
- operations that can be controlled with a smart hub or speaker, an app on a smartphone or tablet, or a dedicated controller
- predictive analytics (e.g., the ability to learn and respond to changes in the environment)
- self-monitoring (e.g., of energy consumption rates or remaining service life)
The key feature that differentiates smart lighting from traditional lighting is two-way digital communication among lighting devices or between a lighting device and external controls, as opposed to the one-way, passive transmissions common in traditional lighting (e.g., remote controls, timers, and daylight and motion sensors). Unlike a traditional lighting device – which historically could be set up to passively receive digital signals associated with certain functions (e.g., on/off or brightness settings) – smart lighting devices can relay information (e.g., usage or energy consumption data) back to a controller (e.g., an app on a smartphone) or centralized control system.
Key Findings
Are you looking to answer any of the following questions?
With over 50 charts, tables, and graphs - and 100+ pages of analysis - this study will be able to answer the below questions and more:
- How is demand impacted by innovations like smart cities?
- Which markets (residential and commercial) offer the best opportunities for smart lighting growth?
- What is the value demand for smart lighting?
- How are companies competing within the industry?
Contact your Freedonia sales rep today to find out more information or call and ask for redacted tables at +1-440-684-9600.
Table of Contents
EXECUTIVE SUMMARY
OVERVIEW
Key Findings
Smart Lighting Primer
What is Smart Lighting?
The Internet of Things
Overview
Wireless Communication Technologies
Artificial Intelligence & Ambient Computing
Smart Homes
Nonresidential Building Automation
Smart Cities
Benefits of Smart Lighting
Concerns About Smart Lighting
Market Size & Forecast
US Versus Global Market Size
Demand by Product Type
SMART LIGHT SOURCES
Key Findings
Light Source Market Overview
Light Source Market Trends
The Energy Independence & Security Act
LED Lighting's Impact on the Light Source Market
Key Trends in Smart Light Sources
Smart Light Sources: Scope
Smart Light Sources: Factors Driving Demand
Smart Light Sources: Opportunities from Factors Restraining Demand
Key Product Introductions
Smart Light Sources: Timeline of Key Market Developments
Smart Light Sources: C by GE
Smart Light Sources: Philips Hue
Smart Light Sources: SYLVANIA SMART+
SMART LIGHTING FIXTURES
Key Findings
Lighting Fixture Market Overview
Key Trends in Smart Lighting Fixtures
Smart Lighting Fixtures: Scope
Smart Lighting Fixtures: Factors Driving Demand
Smart Lighting Fixtures: Opportunities from Factors Restraining Demand
Key Product Introductions
Smart Lighting Fixtures: Timeline of Key Market Developments
Smart Lighting Fixtures: Cree SmartCast
Smart Lighting Fixtures: HALO Home
Smart Lighting Fixtures: Philips Hue
SMART LIGHTING CONTROLS
Key Findings
Lighting Control Market Overview
Key Trends in Smart Lighting Controls
Smart Lighting Controls: Scope
Smart Lighting Controls: Factors Driving Demand
Smart Lighting Controls: Opportunities from Factors Restraining Demand
Key Product Introductions
Smart Lighting Controls: Timeline of Key Market Developments
Smart Lighting Controls: ecobee Switch+
Smart Lighting Controls: Enlighted
Smart Lighting Controls: Limelight by Lutron
MARKETS
Key Findings
Demand by Market
Nonresidential Buildings
Nonresidential Building Market: Scope
Nonresidential Building Market: Demand Forecast
Residential Buildings
Residential Building Market: Scope
Residential Building Market: Demand Forecast
Residential Building Market: Demand by Household
Roadway & Other Nonbuilding
Roadway & Other Nonbuilding Markets: Scope
Roadway & Other Nonbuilding Markets: Demand Forecast
PRODUCERS
Key Findings & Industry Composition
Market Leaders
Mergers & Acquisitions
Cooperative Agreements
Producer Profiles
Acuity Brands Incorporated
Cree Incorporated
Eaton Corporation plc
Enlighted Incorporated
General Electric Company
Honeywell International Incorporated
Hubbell Incorporated
LEDVANCE GmbH
Legrand SA
Leviton Manufacturing Company Incorporated
Lutron Electronics Company Incorporated
OSRAM Licht AG
Signify Holding
Other Companies Mentioned in the Study
APPENDIX
Scope
Definitions
Abbreviations
Freedonia Methodology
Study Specific Methodology
Sources
Associations & Agencies
Related Freedonia Group Studies
Macroeconomic Assumptions
Economic Environment
Demographic Trends
List of Tables
OVERVIEW
Table 2-1 | Smart Home Speaker & Hub Retail Sales, 2016 - 2025
Table 2-2 | Smart Lighting: US Versus Global Market Size, 2016 - 2025 (million dollars)
Table 2-3 | Smart Lighting Demand by Product Type, 2016 - 2025 (million dollars)
SMART LIGHT SOURCES
Table 3-1 | Light Source Demand, 2016 - 2025 (million dollars)
Table 3-2 | Timeline of Regulatory Developments in the Light Source Market
Table 3-3 | Smart Light Source Demand, 2016 - 2025 (million dollars)
Table 3-4 | Smart Light Sources: Timeline of Key Market Developments
SMART LIGHTING FIXTURES
Table 4-1 | Lighting Fixture Demand, 2016 - 2025 (million dollars)
Table 4-2 | Smart Lighting Fixture Demand, 2016 - 2025 (million dollars)
Table 4-3 | Smart Lighting Fixtures: Timeline of Key Market Developments
SMART LIGHTING CONTROLS
Table 5-1 | Smart Lighting Control Demand, 2016 - 2025 (million dollars)
Table 5-2 | Smart Lighting Controls: Timeline of Key Market Developments
MARKETS
Table 6-1 | Smart Lighting Demand by Market, 2016 - 2025 (million dollars)
Table 6-2 | Residential Smart Lighting Equipment Installed, 2016 - 2025 (millions)
PRODUCERS
Table 7-1 | Selected Acquisitions & Divestitures
Table 7-2 | Selected Cooperative Agreements
Table 7-3 | Selected Smart Lighting Market Participants
Table 7-4 | Acuity Brands Incorporated: Key Product Lines
Table 7-5 | Cree Incorporated: Key Product Lines
Table 7-6 | Eaton Corporation plc: Key Product Lines
Table 7-7 | Enlighted Incorporated: Key Product Lines
Table 7-8 | General Electric Company: Key Product Lines
Table 7-9 | Honeywell International: Key Product Lines
Table 7-10 | Hubbell Incorporated: Key Product Lines
Table 7-11 | LEDVANCE: Key Product Lines
Table 7-12 | Legrand SA: Key Product Lines
Table 7-13 | Leviton Manufacturing: Key Product Lines
Table 7-14 | Lutron Electronics: Key Product Lines
Table 7-15 | OSRAM Licht: Key Product Lines
Table 7-16 | Signify Holding: Key Product Lines
APPENDIX
Table 8-1 | Relevant Industry Codes
Table 8-2 | Abbreviations & Acronyms Used in Study
Table 8-3 | Macroeconomic Indicators, 2007 - 2022 (billion 2009 dollars)
Table 8-4 | Population & Households, 2007 - 2022 (million persons)
List of Figures
EXECUTIVE SUMMARY
Figure 1-1 | US Smart Lighting Market
OVERVIEW
Figure 2-1 | Key Trends in the US Smart Lighting Market
Figure 2-2 | Examples of Automated Lighting Products that Are Not Considered Smart
Figure 2-3 | Smart Speaker & Smartphone Ownership, 2018 (percent)
Figure 2-4 | Consumer Attitudes About Smart Lighting, 2018 (percent of consumers aware of smart lighting)
Figure 2-5 | Share of Smart Lighting Demand by Product Type, 2016 - 2025 (percent)
SMART LIGHT SOURCES
Figure 3-1 | Key Trends in the US Smart Light Source Market
Figure 3-2 | Smart Light Sources: C by GE
Figure 3-3 | Smart Light Sources: Philips Hue
Figure 3-4 | Smart Light Sources: SYLVANIA SMART+
SMART LIGHTING FIXTURES
Figure 4-1 | Key Trends in the US Smart Lighting Fixture Market
Figure 4-2 | Smart Lighting Fixtures: SmartCast
Figure 4-3 | Smart Lighting Fixtures: HALO Home
Figure 4-4 | Smart Lighting Fixtures: Philips Hue
SMART LIGHTING CONTROLS
Figure 5-1 | Key Trends in the US Smart Lighting Control Market
Figure 5-2 | Smart Lighting Controls: ecobee Switch+
Figure 5-3 | Smart Lighting Controls: Enlighted
Figure 5-4 | Smart Lighting Controls: Limelight by Lutron
MARKETS
Figure 6-1 | Key Trends in Smart Lighting Markets
Figure 6-2 | Share of Smart Lighting Demand by Market, 2016 - 2025 (percent)
Figure 6-3 | Consumer Smart Lighting Familiarity, Ownership, & Plans to Purchase, 2018 (percent)
APPENDIX
Figure 8-1 | Annual Growth in Real GDP, 2000 - 2017, Compared to 1980 - 2005 Average (percent)
Figure 8-2 | Annual Population Growth, 2002 - 2017 (percent)
© by The Freedonia Group, a division of MarketResearch.com