In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
November 2019: Buddy Technologies Limited have announced a non-exclusive 10-year multi-product licensing agreement for its Powered by LIFX platform with Eastfield Lighting which encompasses an uncapped minimum of 500, 000 smart lighting products.
August 2017: OSRAM have announced the agreement to acquire Digital Lumens Inc. which specializes in industrial IoT solutions. The acquisition will help OSRAM to expand its business with digital lighting solutions.
Smart lighting is referred to the lighting technology which is designed for greater energy efficiency and may include high efficiency fixtures and automated controls. These automated controls make adjustments based on conditions such as occupancy or daylight availability, as well as other parameters, for instance, temperature, movement, and others. Smart Lighting technology includes sensors and other electrical components that helps to minimize wastage of energy.
The global smart lighting market is thriving on the back of significant transformation for modernization and the development of infrastructure, such as smart cities, which is raising the demand for intelligent solutions for street lighting systems and others. Moreover, growing awareness for energy savings amongst the consumers and the governments worldwide, so as to minimize the energy wastage from lighting are some of the factors anticipated to contribute significantly towards the growth of the global smart lighting market. According to the International Energy Agency (IEA), global electricity consumption grew at 1.17x times and increased from 16870 TWh in the year 2010 to 19721 TWh in the year 2017.
The market is anticipated to record a CAGR of around 19.81% throughout the forecast period, 2019-2027. The global smart lighting market is segmented by offering into hardware, software and services. The hardware segment is further sub-segmented into lights & luminaries and lighting controls. Smart bulb segment, which is a sub-segment of lights & luminaries sub-segment, is anticipated to hold the largest market share on the back of greater adoption of smart bulbs and connected luminaire amongst the residential and commercial sectors. Smart bulbs are known to provide greater energy efficiency than traditional bulbs and are also known to last longer. According to the U.S. Department of Energy, LEDs use only 20-25% of the energy and last 15 to 25 times longer than the traditional incandescent bulbs. Furthermore, LEDs, in comparison to halogen incandescent, use 25-30% of the energy and lasts 8 to 25 times longer. CLICK TO DOWNLOAD SAMPLE REPORT
According to the IEA, power sector CO2 emissions grew at 1.12x times and increased from 12.41 GtCO2 in the year 2010 to 13.93 GtCO2 in the year 2018.
Rising concern for CO2 emissions from the power sector is leading to the increase in focus of the governments of various nations for energy efficient lighting systems which consume lower energy. With the rise in electricity demand globally, which increased by 4% in the year 2018 according to the IEA, and the need to be in line with the Sustainable Development Scenario (SDS) of the IEA, there is a tremendous shift in the power sector investment by the governments across the globe. According to the IEA, global power investment for renewable energy sources increased from 294 USD (2018) Billion in the year 2013 to 317 USD (2018) Billion in the year 2016. Furthermore, fossil fuel power investment decreased significantly from 157 USD (2018) Billion in the year 2013 to 140 USD (2018) Billion in the year 2016. Additionally, carbon intensity of electric generation reduced drastically from 534 gCO2/kWh in the year 2011 to 478 gCO2/kWh in the year 2018.
All of these factors are raising the awareness for energy efficient lighting systems, which are known to consume less energy. Smart lighting adapts to different lighting forms based on various parameters which helps to minimize energy wastage. Such a factor is considered to act significantly towards the growth of the global smart lighting market during the forecast period.
There is a rising trend for fancy mood lighting, artificial roof lighting, and others. Owing to rise in the household disposable income of consumers, and the facilities provided by intelligent lighting products, there is an uptick in sale of smart home automation products, which are interconnected by IoT and provides a beautiful ambience to the consumer. All of these factors are considered to contribute significantly towards the growth of the global smart lighting market.
One of the major demerits of the smart lighting equipment is the temperature sensitivity. Surrounding temperature have an impact on the quality of diodes lighting, as a result of which, when these lights are lit up in high temperature surrounding, there is a change in the current passing by the semiconductor elements. Such a factor is likely to burn out the LED module. Additionally, high initial cost required for the deployment of smart lighting solutions are some of the factors anticipated to act as a key restraint to the growth of the global smart lighting market during the forecast period.
Our in-depth analysis of the global smart lighting market includes the following segments:
On the basis of regional analysis, the global smart lighting market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia Pacific is expected to hold largest market share on the back of growing smart infrastructure in the region coupled with the rising investments for technology infrastructure. According to a report by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), 110 of India’s cities prepared a Smart City challenge proposal for India’s Smart City Mission, out of which, 99 were selected under the program. Furthermore, India has invested USD 31 billion in this smart city project. It is anticipated that with such scalable establishments, there will be a rising demand for smart lighting, which will foresee increase in investments by the government of the nations on public infrastructure. Additionally, growing IoT connections in the region is also anticipated to contribute significantly towards the growth of the market in the region during the forecast period.
The global smart lighting market is further classified on the basis of region as follows: