Smart Lighting Market Outlook:
Smart Lighting Market size was valued at USD 23.54 Billion in 2025 and is expected to reach USD 163.68 Billion by 2035, registering around 21.4% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of smart lighting is evaluated at USD 28.07 Billion.
The growth of the market is due to the adoption of energy-efficient lightening solutions that are safe for the environment. Smart lighting solutions have been rapidly adopted to meet an urgent need for energy efficiency and environmental sustainability. These systems enable precise control of lighting levels with regard to room occupancy and natural daylight availability, which leads to substantial energy savings. By 2020, the European Union (EU) promised to reduce energy usage by 20% from baseline predictions.
In addition, the lighting system is interconnected to the Internet in a wide way through wireless technology that allows remote control and monitoring. Bluetooth technology, making it easy for mobile devices to control and configure lights, is a common feature of indoor lighting systems. In order to grow in the market, intelligent home products such as lighting systems are being used on a regular basis by Zigbee technology. Also, the use of voice to control lights through an integration with a platform like Google Assistant, Amazon Alexa, Apple Siri or Microsoft Cortana.
Key Smart Lighting Market Insights Summary:
Regional Highlights:
- The Europe smart lighting market is expected to capture 32% share by 2035, fueled by LED innovations and smart lighting adoption in public infrastructure.
- The North America market will secure 27% share by 2035, attributed to energy efficiency needs and consumer adoption of smart lighting.
Segment Insights:
- The wireless segment in the smart lighting market is projected to achieve a 55% share by 2035, driven by widespread use of wireless technologies like Wi-Fi and Bluetooth.
- The hardware segment in the smart lighting market is expected to achieve a 48% share by 2035, driven by the growing demand for smart lighting control through mobile devices.
Key Growth Trends:
- Integration of Internet of Things (IoT) and Smart Infrastructure
- Bringing about the Adoption of Connected Stadium Lighting
Major Challenges:
- Interoperability issues can be created by the diversity of manufacturers and communication protocols.
- Entrepreneurship challenges may arise as the market for intelligent lighting grows at a slow pace.
Key Players: Samsung Electronics, IKEA, Schneider Electric, Echelon Corporation, Lutron Electronics Co. Inc, Signify Japan LLC.
Global Smart Lighting Market Forecast and Regional Outlook:
Market Size & Growth Projections:
- 2025 Market Size: USD 23.54 Billion
- 2026 Market Size: USD 28.07 Billion
- Projected Market Size: USD 163.68 Billion by 2035
- Growth Forecasts: 21.4% CAGR (2026-2035)
Key Regional Dynamics:
- Largest Region: Europe (32% Share by 2035)
- Fastest Growing Region: Asia Pacific
- Dominating Countries: United States, China, Germany, Japan, United Kingdom
- Emerging Countries: China, India, Japan, South Korea, Singapore
Last updated on : 11 September, 2025
Smart Lighting Market Growth Drivers and Challenges:
Growth Drivers
- Integration of Internet of Things (IoT) and Smart Infrastructure- Due to their ability to connect with the Internet of Things devices, as well as generating a range of light patterns by merely using mobile phones or tablets, the popularity and demand for lights have increased in both commercial and household spaces. In 2021 there were 1.28 billion people in the world with tablets, accounting for 16 % of the global population. Since 2013, the proportion has almost doubled or increased by 93,93%. A major driving force behind the smart lighting market growth is the ability to build intelligent homes, offices, and cities that operate smoothly by means of connectivity and automation.
- Bringing about the Adoption of Connected Stadium Lighting- A connected lighting system consists of a set of activities, such as controls and connection of lighting and sensors to a local network, which is controlled and monitored through a dashboard that can be accessed via a mobile phone, tablet or computer. It is becoming more and more common in stadiums to install connected lighting systems, which provide different lighting effects. Stakeholders may optimize lighting performance by remote control, build a multi-use venue, and obtain real-time data on the state of the lighting system at their sites via an interconnected lighting stadium. Users who want to improve their operation through the connection of lighting systems can engage with fans via a cellular device or another system. Energy efficiency, sustainability, operation, and fan experience improve as a result of the integrated lighting system in stadiums. As a result, demand for connectivity lighting platforms is increasing due to advances in technology.
- Favourable Government Regulation- Market demand for integrated LED lights is expected to be stimulated by favorable government regulations on conventional lighting and consumption of electricity in the United States, Europe, China, and India.
Challenges
- The cost of initial implementation to limit growth in the market- This leads to significant early capital investment, together with continued support and maintenance costs which are a problem for stakeholders because of the high cost of first installing connected lighting systems. As a result, it will increase capital expenditure and support staff expenses to carry out the required maintenance and upgrades, which is a handicap for smart lighting market growth.
- Interoperability issues can be created by the diversity of manufacturers and communication protocols. Attempts by consumers or businesses to integrate products from various suppliers, as well as the upgrade of current systems, may lead to difficulties.
- Entrepreneurship challenges may arise as the market for intelligent lighting grows at a slow pace.
Smart Lighting Market Size and Forecast:
| Report Attribute | Details |
|---|---|
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Base Year |
2025 |
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Forecast Period |
2026-2035 |
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CAGR |
21.4% |
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Base Year Market Size (2025) |
USD 23.54 Billion |
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Forecast Year Market Size (2035) |
USD 163.68 Billion |
|
Regional Scope |
|
Smart Lighting Market Segmentation:
Component Segment Analysis
The hardware segment is attributed to hold 48% share of the global smart lighting market during the forecast period. The growing popularity of connected lighting devices and fixtures that can change color, dim light, or turn them on using a control device such as a mobile phone or tablet is reflected in the hardware demand segment. A total of 6.8 billion mobile phone users are now in the world. Given the world's population is in excess of 8 billion, this would mean a 75 % penetration rate for smartphones.
Connectivity Segment Analysis
The wireless segment in the smart lighting market is expected to hold 55% of the revenue share by 2035. Consumers who need a connection range of less than 5 km are highly preferred to network in an intelligent lighting environment, and that segment is expected to grow significantly over the forecast period. Wireless technology such as Wi-Fi, Bluetooth, SmartThings, Z-Wave, or ZigBee connects lighting fixtures with smartphone apps to control the light bulb's functions. The residential sector has majorly adopted wireless technology to control the luminaire hues and colors for aesthetic purposes within a confined space. The number of wireless broadband subscriptions around the world is set to reach 6.044 billion by 2020.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Connectivity |
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Application |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Smart Lighting Market Regional Analysis:
European Market Insights
Europe industry is expected to dominate majority revenue share of 32% by 2035. The growth of the market in the region is due to some indoor commercial intelligent lighting standards for garages, highways, and parking facilities, and Europe has taken the lead in developing safety and harmonized performance standards. According to the continuing advances in light emitting diode design and technology, focused lighting as well as smart replacement lamps for LEDs are becoming a key growth area of the lighting industry. Existing manufacturers are expanding their product lines in order to enter the market in the region, while traditional smart lighting producers continue to keep an ever-increasing number of new products available. Especially with the applications of Downlights, Task Lights, Landscape Lights, General Ambient, and Outdoor Lighting, it can be seen that there is an impending surplus of suppliers specialized in the market. For example, the Worcestershire County Council announced in March 2022 that up to 20,000 streetlight bulbs would be replaced by more energy-efficient LEDs. Around 35,000 lights have already been replaced by the Council in this area.
North American Market Insights
Smart lighting market in North America is projected to hold second largest share of about 27% by the end of 2035. The growth in consumer acceptance of smart lighting and energy efficiency solutions, together with the region's illumination problem, is driving consumers to embrace such technologies. In addition, there are a number of prominent companies in the region who have put into place smart lighting solutions with the most recent technologies and this is making it easier to adopt intelligent lighting solutions.
Smart Lighting Market Players:
- Cree, Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Eaton Corporation
- Philips Lighting
- Honeywell International Inc.
- Samsung Electronics
- IKEA
- Schneider Electric
- Echelon Corporation
- Lutron Electronics Co. Inc
- Leviton Manufacturing Co.
Recent Developments
- Leviton expanded the compatibility and capabilities of its award-winning Decora Smart Wi-Fi lighting control portfolio with the release of decora smart Wi-Fi 2nd Gen. The next generation of decora smart Wi-Fi includes four new products such as a 600W Dimmer, a 15A Switch, a Mini Plug-in Switch, and a Mini-Plug-in Dimmer that work with the free My Leviton app, is Wi-Fi certified, and are compatible with Amazon AlexaTM, Hey Google, Apple HomeKit/Siri, IFTTT, and other voice assistants.
- Lutron plans to provide new solutions and upgrade existing products that enable AV professionals to offer high-quality, future-ready lighting control while allowing clients to achieve their interior design dreams, removing the need to choose between aesthetics and experience.
- Report ID: 5325
- Published Date: Sep 11, 2025
- Report Format: PDF, PPT
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