Study #: 3655 | Published: 07/2018 | Pages: 163 | Individual User License: US$ 2,900

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.

Smart Lighting

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 info@freedoniagroup.com!

Smart Lighting Controls

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)


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