Lighting Control System Market Size & Growth Analysis

Global Lighting Control System Market: Growth Drivers and Challenges

Growth Drivers

Increasing Use of LED Lights in Outdoor Lighting Applications– There has been an increasing use of LED lights in outdoor lighting, as they are the most competent lighting solutions for providing enough light without being too harsh on the eyes. Owing to this, the demand for lighting control system is increasing, and it is expected to surge the market’s growth by the end of 2035. As per the International Energy Agency, the LED technology is used by 50 percent of the total lighting sector.
Rising Concept of Smart Cities – Smart lighting system are adopted in the smart cities, that consist of energy efficient LED lighting with light control that are adjusted according to applicable regulations, and the user’s needs. Moreover, smart lighting reduces light pollution, and are connected with Wi-Fi enabled devices using wireless technologies. In addition, they can be automatically regulated on the basis of sunset and sunrise, thus, it is anticipated to boost the growth of the global smart lighting system market. As per the reported data, more than 2,000 cities across the globe have adopted smart city technologies.
Surging Adoption of IOT with Rising Use of Smart Devices- The lighting control system consists of multiple lighting fixtures connected in a network in order to control lighting. The whole lighting control system is connected to various smart devices, such as smartphones, that is projected to expand the growth of the market in the market over the forecast period. According to the most recent data, there will be more than 25 billion active connected IOT devices by the end of 2030.
Growing Commercial and Non-Commercial Buildings – The commercial and non-commercial buildings are growing year-on-year basis, which is increasing the demand for lights as well as lighting control systems. Therefore, it is anticipated to increase the market’s growth by the end of 2035. It is expected that the construction industry required to build more than 12,000 buildings each year by 2050 in order to support the population of more than 6.5 billion people living in cities.
Rising Focus on Reduction of Carbon Footprint– There has been growing focus on reducing the carbon footprint through switching off the lights when not needed. Turning off the lights can reduce the carbon emissions, and other harmful greenhouse gases. This can be easily achieved through the installation of an advanced level of lighting control system associated with different technologies. Hence, it is predicted to surge the growth of the global lighting control system market in the upcoming years. As per the reports, lighting leads to more than 4 percent of the global CO2 emissions.
Requirement of High Initial and Deployment Cost- The lighting control system comprises of various hardware components such as software, sensors, switches, and others that leads to the rise in the initial cost of the system. Moreover, the installation cost is also high owing to the technician required for the proper setting of the lighting system. In addition, the integration cost of the lighting control system with other devices is also contributing to the upsurge in the cost. Therefore, all these factors are expected to restrain the growth of the market.
Interoperability Issues
Reliability and Security Issues

Global Lighting Control System Market Segmentation

The market is segmented and analyzed for demand and supply by end use-applications into outdoor, and indoor. Out of these, the outdoor segment is anticipated to hold the largest share over the forecast period. This can be attributed to the rising number of outdoor lighting applications that include railway stations, highways, parks, stadiums, and others. Moreover, there has been a surge in the use of luminaries and LED lights for outdoor lighting systems, along with the growing acceptance of protocols and regulations from the government is further expected to expand the growth of the segment in the market. Public lighting accounts for more than 1 percent of the electricity consumption in India, as per the recent reports.

The global lighting control system market is also segmented and analyzed for demand and supply by communication protocol into wired, and wireless. Amongst these segments, the wireless segment is expected to garner a significant share of around ~56% in the year 2035. This can be attributed to the advancement in technology that has become part of the smart lighting control system, such as Bluetooth. Moreover, the rising number of smart cities in countries such as India, the United States, and others are increasing the demand for automated lighting systems. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.

Our in-depth analysis of the global lighting control system market includes the following segments:

By Communication Protocol	Wired Wireless
By End Use-Applications	Outdoor Indoor
By Installation Type	Retrofit New Installations
By Type	Dimmers Units Sensors Gateways Others

Global Lighting Control System Market Regional Synopsis

The market share of lighting control system in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~38% by the end of 2035. The growth of the market can be attributed majorly to the increasing use of energy efficient solutions in relation to the lighting control system, and the increasing penetration of smart homes. In the United States, the current penetration rate of smart homes is more than 40 percent. Moreover, there is a presence of key manufacturers in countries such as the United States that includes General Electric Company, Lutron Electronics, and others. In addition, the increasing adoption of smart homes, followed by the improving standard of living among people, is further estimated to boost the growth of the lighting control system market in the region.

The European lighting control system market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The growth of the market can be attributed majorly to the increasing installation of new smart lighting system with upgraded sensors. Furthermore, the rising population of people living in urban areas, followed by the increasing disposable income in countries such as the UK is anticipated to surge the growth of the market in the European region. In addition, the stringent regulations by the government to cut the energy and light pollution are another factor that is anticipated to upsurge the market’s growth in the region.

Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increase in the number of smart cities in the countries such as India, and the government initiatives to reduce the consumption of energy. Furthermore, there have been rising construction activities, including buildings in the region, that is projected to significantly contribute to the market’s growth in the region. The lighting control system has been an important part of the digitalized household that is creating potential opportunities in emerging countries.

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Top Featured Companies Dominating the Global Lighting Control System Market

Cisco Systems, Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis

Honeywell International Inc.
Panasonic Corporation
General Electric Company
Eaton Corporation plc
RAB Lighting Inc.
Schneider Electric
Signify Holding
ACUITY BRANDS, INC.
Taiwan Semiconductor

In The News

Schneider Electric announced the launch of new solutions to improve building sustainability. New integration capabilities in EcoStruxure Building Operation 2023, EcoStruxure Connected Room Solutions, and EcoStruxure Power Monitoring Expert will help simplify and accelerate access to data that is essential for managing energy use, reducing carbon emissions, and increasing building value.
ACUITY BRANDS, INC., announced its collaboration with Microsoft in order to bring new capabilities to Acuity Brands lighting controls, smart lighting, and building automation solutions.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the lighting control system market?

Ans: Rising focus on reduction of carbon footprint, and growing commercial and non-commercial buildings are the major factors driving the market growth.

2) What would be the CAGR of lighting control system market over the forecast period?

Ans: The market size of lighting control system is anticipated to attain a CAGR of ~17.80% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the lighting control system market growth?

Ans: Requirement of high initial and deployment cost, and interoperability issues are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of lighting control system market in future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the lighting control system market?

Ans: The major players in the market are Honeywell International Inc., Panasonic Corporation, General Electric Company, Eaton Corporation plc, RAB Lighting Inc., Schneider Electric, Signify Holding, ACUITY BRANDS, INC., Taiwan Semiconductor, and others.

Base Year	2022
Forecast Year	2023-2035
CAGR	~17.80%
Base Year Market Size (2022)	~ USD 30.59 Billion
Forecast Year Market Size (2035)	~ USD 218.44 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Global Lighting Control System Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Global Lighting Control System Market: Key Insights