LIGHTING CONTROL SYSTEM MARKET

Lighting Control System Market size was estimated at USD 32.0 billion in 2023 and is slated to register a double digit CAGR of 12.7% over the period 2024-2031 and is projected to reach USD 83.4 billion in 2031 owing to the global shift toward greater energy efficiency and the rising smart city initiatives worldwide.

Major Market Drivers and Emerging Trends

The lighting control system market size growth is fueled by innovations in technology and an increasing focus on energy efficiency. The public and private sectors are making significant investments in smart lighting systems to cut energy usage while supporting sustainability objectives.

The lighting control systems market growth is further being propelled by the growing energy efficiency policies by governments and the increasing consumer understanding regarding the benefits associated with smart lighting systems. Stricter building codes along with energy efficiency regulations in commercial and residential sectors are contributing to the rising need for lighting control solutions. The United States alongside the European Union are providing grants and subsidies for lighting projects aimed at reducing CO2 emissions.

Integrating IoT into lighting control system also enables automation and remote control which increases operational efficiency while enhancing user convenience. In the last ten years, connected lighting solutions have played a key role in the digital and smart evolution of urban areas or contemporary buildings. The trend is anticipated to persist driven by the growing global adoption of connected devices and IoT in smart city initiatives.

The global trend towards smart city and smart building developments is also fueling market growth. In line with their digitalization initiatives, many countries are rolling out smart city initiatives on a broad scale. Smart lighting is integral to these initiatives as it offers a connected system that can be conveniently controlled using smart devices. The smart city development has been largely driven by governments who have introduced policies and initiatives that emphasize the integration of smart services into the urban infrastructure. Lighting control solutions are essential in promoting smart city growth especially in their ability to enhance sustainability. In smart cities, lighting control systems and intelligent lighting are projected to cut energy and maintenance costs by 40% within a year while also helping to minimize the environmental footprint.

While smart lighting offers advanced features, its initial expense is considerably higher than traditional retrofit switches due to the expensive components like transmitters and receivers which drive up the overall system price. Moreover, retrofitting old systems and adopting new intelligent lighting may not always offer a return on investment for residential customers which could present a barrier to the global lighting control system market.

Component Insights: Hardware segment registered the largest market size

The hardware segment led in revenue share primarily due to the rising adoption of sophisticated sensor technologies including occupancy sensors which significantly enhance lighting system efficiency and performance. These sensors facilitate automatic changes according to real-time information which results in energy efficiency and a better user experience. The LED category is seeing substantial growth within the hardware segment largely due to the rapid developments in LED technology which offers higher energy efficiency over conventional lighting. The sensors segment facilitates adaptive lighting solutions that automatically adjust to occupancy or daylight variations which results in reduced energy consumption and cost savings. The progress in sensor technology has facilitated their seamless incorporation into smart lighting which makes it essential for the development of smart buildings and cities.

The software segment is also experiencing growth owing to the rising adoption of cloud-based lighting which enables users to remotely control their lighting via smartphones or other devices for greater flexibility and convenience.

Communication Protocol Insights: Wired segment registered the largest revenue share

The wired segment leads the market driven by increasing opportunities as industries look to modernize their current infrastructure with wired lighting systems. Wired systems provide the benefit of better data security and a lower susceptibility to hacking than wireless solutions which makes them particularly valuable in sensitive environments like vital infrastructure or data centers.

Wired systems ensure uninterrupted performance by being less affected by signal loss and interference particularly in complex environments. They also enable faster data transfer and provide smoother integration with current infrastructure. Their reliability and extended lifespan further make them highly favored in industrial or commercial applications which solidifies their leadership in the market.

Wireless systems are also seeing strong growth due to their flexibility and simple installation process. The surge in smart home solutions and the widespread use of IoT devices are key drivers behind this segment growth with consumers increasingly opting for wireless systems that offer convenience without complex rewiring.

End Use Application Insights: Indoor segment dominated the largest revenue share

The indoor segment is seeing strong growth fueled by the rising implementation of smart home systems and innovations in building automation technologies. Rising energy costs coupled with the need for operational efficiency are leading homeowners or businesses to seek out sophisticated lighting systems with features like automated scheduling and occupancy sensing. These systems contribute to energy savings while also boosting user comfort by allowing for accurate adjustments to lighting based on individual preferences.

The commercial subsegment dominates the indoor segment due to its strong demand for energy efficiency and adherence to regulations. Large commercial buildings gain considerable efficiency from lighting control system which lead to lower energy usage and operational expenses. The residential category also grows rapidly driven by increasing demand for smart home solutions along with innovations in IoT devices. More homeowners are turning to smart lighting for the convenience and automation options they offer.

The outdoor segment is witnessing significant growth driven by the growing focus on smart cities and the need for improved public safety. By incorporating data analytics and sensors, outdoor systems are evolving from conventional street lights into smart networks which can adapt to changes in the environment.

Regional Insights: North America holds the largest market share

The market in North America is experiencing significant growth driven by the increasing interest in smart home solutions and the push for greater energy efficiency. The growth is also driven by sophisticated technological infrastructure and widespread use of smart technologies in the region. A strong emphasis on energy conservation in the region is a key market driver as organizations along with governments recognize the economic and environmental advantages of minimizing energy use.

The Asia Pacific region is projected to grow fueled by urbanization and growing government efforts toward energy efficiency. Countries like China and India are undergoing fast urban growth to support their increasingly larger populations which leads to a surge in the construction of residential and industrial properties.

Europe presents a lucrative market driven by the EU’s increasing focus on cutting carbon emissions and improving energy efficiency in buildings which create a high demand for sophisticated lighting solutions.

Top Market Players

Various notable players in the Lighting Control System market include Philips Lighting Holding B.V., Honeywell International Inc., Hubbell Incorporated, Acuity Brands Lighting Inc., Schneider Electric SE, Legrand S.A., General Electric Company, Lutron Electronics Co., Inc., Ideal Industries, Inc., and OSRAM, Cisco Systems, Toshiba Corporation, General Electric, Schneider Electric, among others. Leading players are driving growth by launching new products and using the latest technology to meet varying consumer demands while maintaining leadership in the market. They focus on expanding their portfolios through strategic collaborations and acquisitions to bolster their product range

Key Developments

• • In 2024, CISCO and Morgan Solar which is based in Toronto have teamed up for a pilot project aimed at improving collaboration through solar energy. The startup encourages the development of advanced solutions to reduce greenhouse gas from conventional energy production and pave the way for companies to achieve sustainable growth.
  • In 2024, Casambi introduced Salvador which is the newest addition to its range of DALI controller technology as part of its ongoing expansion in smart lighting solutions. This launch represents a key move into the wired lighting market which establishes the company as a prominent competitor in the broader lighting controls industry. By launching Salvador, the company expands its portfolio which highlights its commitment to delivering innovative wired lighting solutions.
  • In 2022, Acuity Brands announced an expanded partnership with Microsoft to introduce new features to its smart lighting along with building automation offerings.
  • In 2019, Acuity Brands Lighting Inc. introduced the Modulus, a low voltage distributed power and control system which will offer digital control and network technologies for LED luminaires. It provides extensive capabilities and more flexibility.
  • In 2019, Ideal Industries, Inc., acquired Cree Lighting, a lighting Product business unit of Cree, Inc. The acquisition includes LED lighting fixtures, lamps, and corporate lighting solutions business for commercial, industrial, and consumer applications.
  • In 2018, Lutron Electronics Co., Inc. acquired Ketra, a natural light solution provider. With this acquisition, Lutra aims to expand its product offering and provides its target customer with a more comfortable, productive, and pleasant environment at home and at work.

Segments covered in the Report:

The Global Lighting Control System Market has been segmented on the basis of Component, Communication Protocol and End Use Application. Based on the Component, the market is segmented into Hardware (LED Drivers, Sensors, Switches and Dimmers, Relay Units, Gateways), Software (Web Based, Cloud Based), Services. Based on the Communication Protocol, the market is segmented into Wired, Wireless (Wi-Fi, Bluetooth, ZigBee, Proprietary, Hybrid, Others). Based on the End Use Application, the market is segmented into Indoor (Residential, Commercial), Outdoor (Highways and Roadways, Architectural, Others).

Market Segmentation

Global Lighting Control System Market by Component

• • Hardware
    • LED Drivers
    • Sensors
    • Switches and Dimmers
    • Relay Units
    • Gateways
  • Software
    • Web Based
    • Cloud based
  • Services

Global Lighting Control System Market by Communication Protocol

• • Wired
  • Wireless
    • Wi-Fi
    • Bluetooth
    • ZigBee
    • Proprietary
    • Hybrid
    • Others

Global Lighting Control System Market by End Use Application

• • Indoor
    • Residential
    • Commercial
  • Outdoor
    • Highways and Roadways
    • Architectural
    • Others

Global Lighting Control System Market by Region

• • North America Lighting Control System Market (Option 1: As a part of the free 25% customization)

    • By Component
    • By Communication Protocol
    • By End-use Application
    • United States of America (US) Market All-Up
    • Canada Market All-Up

  • Europe Lighting Control System Market (Option 2: As a part of the free 25% customization)

    • By Component
    • By Communication Protocol
    • By End-use Application
    • United Kingdom (UK) Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Lighting Control System Market (Option 3: As a part of the free 25% customization)

    • By Component
    • By Communication Protocol
    • By End-use Application
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Lighting Control System Market (Option 4: As a part of the free 25% customization)

    • By Component
    • By Communication Protocol
    • By End-use Application
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Lighting Control System Leading Market Players (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Philips Lighting Holding B.V.
  • Honeywell International Inc.
  • Hubbell Incorporated
  • Acuity Brands Lighting Inc.
  • Schneider Electric SE
  • Legrand S.A.
  • General Electric Company
  • Lutron Electronics Co., Inc.
  • Ideal Industries, Inc.
  • OSRAM
  • Cisco Systems
  • Toshiba Corporation
  • General Electric
  • Schneider Electric