Intelligent Lighting Controls Market

Market Overview

The global intelligent lighting controls market size was valued at USD 10.2 billion in 2021 and is estimated to reach an expected value of USD 43.88 billion by 2030, registering a CAGR of 17.6% during the forecast period (2022 – 2030).

A network of interconnected lighting fixtures is used by an automated system known as an intelligent lighting control system to control illumination. Solutions for intelligent lighting control improve output, customer value, and energy efficiency. These systems have many applications across a wide range of industries, including those for houses, cars, airplanes, and many other systems.

To reduce energy usage, intelligent lighting controls are increasingly adopted. global demand for intelligent lighting controls has also increased as energy management awareness. Government limits on using energy-efficient products further aid the business. The market for intelligent lighting controls would have a wide range of growth opportunities due to future improvements in low-cost sensors and lowering LED product costs that would reduce installation costs.

Market Dynamics

Market Drivers

Increased Use of LED Lighting and Bulbs Worldwide

Architectural lighting, both inside and outside, has changed quickly with the introduction of LED lamps. LED adoption has increased significantly due to falling LED unit costs and technological developments improving energy efficiency. Increased sales result from the range of LEDs being easily accessible on both the internet and offline markets. Furthermore, transforming conventional systems into autonomous systems in the lighting industry has increased investments in lighting products such as LED bulbs and lighting solutions. Therefore, integrating IoT and AI to transform conventional infrastructure into smart & automated infrastructure drives the demand for intelligent lighting in various applications, which further creates a need for intelligent lighting controls system. In addition, the increased use of smartphones, mobile devices, and other smart consumer electronics such as Amazon echo dot, which provides user ease of access to intelligent interior lighting, increases the demand for smart lighting controls.

Increase in Government Initiatives toward Energy Saving

To reduce CO2 emissions and encourage efficient electricity use and management, the governments of many nations have launched several initiatives. Because these systems ensure effective use of electricity in lighting with low wastage, supportive government measures help to fuel the growth of the intelligent lighting controls market. Intelligent lighting controls are in high demand in countries like the United States, the United Kingdom, China, and India, where local governments have enforced legislation. For instance, European 2020 energy targets will encourage EU member states to adopt lighting controls.

Market Restraint

High Initial Installation Cost

More extended payback periods are caused by the high initial installation costs associated with intelligent lighting controls, which also result in significant long-term cost reductions. Depending on the type of system, the average payback period for installing intelligent lighting controls might be between two and three years. However, as technology develops and prices for microcontroller units, sensors, and other lighting components fall, the payback period will eventually shorten. As a result, usage will increase in the years to come.

Market Opportunities

Emerging Smart City Projects in Developing Economies

Governments have played a significant role in the smart cities market through their regulations and initiatives focused on deploying smart services as a substantial part of their infrastructure. For instance, General Services Administration's (GSA) Smart Buildings initiative started in May 2012, which aimed to reduce costs and promote smart services with modernized federal government buildings in large parts through connected technologies. This is one such major project recorded in recent years. Moreover, governments in emerging economies in APAC, such as China, South Korea, Dubai, India, Singapore, and Japan, are aimed toward smart development of their economies. Furthermore, China has announced 500 smart city pilot projects, representing yet another significant government investment.

Additionally, the Smart Dubai Plan 2021's goal of making Dubai a 100% paperless government has prompted the country to adopt smart services. It is a significant factor in the market expansion for smart cities. Therefore, the emergence of smart cities and smart infrastructure globally assists the penetration of intelligent lighting controls.

Regional Analysis

Region-wise, the global intelligent lighting controls market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

North America was the highest revenue contributor and is estimated to grow a CAGR of 15.2%. The North American region includes countries such as the U.S. and Canada that are leading in adopting new technologies. This region is in its maturity stage for adopting intelligent lighting controls. Wireless connectivity type controls are witnessing a prominent adoption in this region. Companies such as General Electric and Acuity Brands, Inc. have introduced intelligent lighting control solutions in the region. The North American region is witnessing a considerable demand for the intelligent lighting controls. Different societies and regulatory bodies have given mandates to reduce energy consumption and hence, the overall CO2 emission in the North American region. One such regulation was EPAct in California. This led to intelligent lighting control systems that can help the companies qualify for the various local and federal utility rebate programs for energy conservation.

The Europe intelligent lighting controls market, is projected to reach 11425 million by 2030, growing at a CAGR of 16.5%. The European region includes countries such as the UK, Germany, France, Russia, and the rest of Europe. Europe is the leader in adopting energy-efficient products due to stringent policies and increased electricity prices. Leading companies in the European region, such as Schneider Electric, Siemens AG, and other companies, have introduced wireless communication room controllers that provide intelligent lighting control solutions for small to large Smart Building & Smart homes, and Automotive buildings. Approximately 30% of all street lighting in Europe is based on 1960s technology. Europe has adopted several measures to improve energy efficiency. These measures include an annual reduction of 1.5% in national energy sales and mandatory energy efficiency certificates accompanying the sale and rental of buildings. It also consists of the minimum energy efficiency standards and labeling for various products such as boilers, household appliances, lighting, and televisions (EcoDesign). Intelligent lighting controls are adopted in the European region to fulfill the EU commission's benchmark.

Asia-Pacific is the third largest region. Need for decreased consumption of energy and CO2 emissions, attention to public safety on streets and roads, increased resistance against light pollution, drive for reducing maintenance costs, and need for a green image. Utility rebates & incentives to create a sustainable work environment are some factors that would cause the adoption of smart lighting controls in the Asia-Pacific region. An ongoing boom in the retail and construction industry and increasing energy & powerization would ultimately give the challenge to fulfill the electricity demand. These factors would drive the high adoption of smart lighting in the region.

Segmental Analysis

The global intelligent lighting controls market is segmented based on type, connectivity, application, and region.

By type, the global intelligent lighting controls market is segmented into sensors, ballasts & LED drivers, microcontrollers, dimmers & switch actuators, transmitters & receivers, and others. The sensors segment was the highest contributor to the market and is estimated to grow at a CAGR of 20.6% during the forecast period. Smart sensors are characterized by features such as advanced learning and adaptation capabilities. Smart sensors contain embedded processing functionality that provides computational resources to perform complex sensing and actuating tasks in high-level applications. In the current market environment, occupancy and photo sensors are two key parts of intelligent lighting control systems. To effectively control lighting, a network of these sensors is connected. According to GE lighting research, using occupancy and photo sensors can reduce energy expenses by an average of 30–40%. These advantages fuel the segment's expansion. Such benefits drive segment growth.

Ballasts & LED drivers segment is the second largest. Ballasts play a critical role in shaping the fluorescent luminaire performance while being integral to the lighting system. The market is anticipating the emergence of a new rating methodology, which would be based on actual inrush load characteristics, and tested inrush control tolerances. This methodology would allow better coordination between loads and controls. Electronic ballasts and drivers offer improved efficiency and control of LED, inductive, and fluorescent lighting loads. They can also subject the associated lighting controls to high inrush currents when switched on, possibly causing damage or reducing the life of the photo control. Introducing dimmable LED drivers allows users to decrease energy costs by automatically adjusting the luminance level. Such factors drive segment growth.

By connectivity type, the global intelligent lighting controls market is bifurcated into wired and wireless. The wired segment was the highest contributor to the market and is estimated to grow at a CAGR of 17.2% during the forecast period. Wired connectivity is a traditional way of connecting lighting components. The sensors and other components in intelligent lighting controls are connected to a network through a wired connection. Companies are introducing different modules of wired connectivity solutions to provide optimal energy savings through occupancy and daylight detection. Color-coded pluggable connections for simple installation, quicker and simpler programming of sophisticated lighting control schemes and easy programming and recall of lighting scenes are some features offered by wired connectivity, which boost its adoption among consumers.

The wireless segment is the second largest. The installation of smart lighting networks facilitates significant reductions in energy management while increasing consumer safety and comfort, thereby making it a necessary implementation for home automation and smart city planning. DALI, or Digital Addressable Lighting Interface, is an internationally recognized smart lighting control interface that requires less complex wiring installations than other protocols. With the help of a wireless network and DALI components, users benefit from a fully isolated control of each lamp equipped with an on/off dimming and scene control feature. For instance, Philips introduced Hue wireless dimming kit, which requires no installation for starting operations. This solution could be used for perfectly dimmable lights in the home, which can eliminate the impending need for finding a flicker-free ambiance. Furthermore, companies are introducing products compatible with different wireless connectivity standards, owing to an increase in the adoption of wireless technologies.

By application, the global intelligent lighting controls market is divided into smart cities, automotive, manufacturing, media & entertainment, and others. The smart cities segment was the highest contributor to the market and is estimated to grow at a CAGR of 19.4% during the forecast period. The primary goals of the smart cities initiative are to promote economic development and enhance the quality of life for citizens by empowering local community development and utilizing technology, particularly that which produces smart results. Since commute times are predicted to decrease by 15-20% by 2025 in cities deploying smart mobility systems, this illustrates the advantages of such applications and encourages governments to adopt them. Moreover, an increase in demand for smart city solutions supported by government initiatives, a rise in the need to manage limited natural resources in a better way, growth in urban population, and a rise in focus on environmental sustainability are the major factors that fuel the development of the intelligent lighting control market for smart cities.

The automotive segment is the second largest. Automotive lighting is one of the most important aspects of automotive electronics. Automotive manufacturers are now developing, testing, and producing electronic control systems and components to control lighting and other infotainment features in automotive. Intelligent lighting controls in the automotive sector are made according to specific vehicle architecture. Intelligent lighting controls in the automotive industry control the intelligent & smart, and adaptive functions in automotive to provide comfort and safety on the road. Products such as LED drivers, actuator drivers, climate controls, body computers, and door modules, among others, are being developed in the automotive industry to provide efficient functionality and operations to the users.

Recent Developments

• September 2022 - Siemens AG has launched an open digital business platform, Siemens Xcelerator, to accelerate digital transformation and value creation for customers of all sizes in the industry, buildings, grids, and mobility. The business platform makes digital transformation easier, faster, and scalable. Siemens Xcelerator includes a curated portfolio of internet of things (IoT) enabled hardware, software, and digital services across Siemens and certified third parties; a growing ecosystem of partners; and an evolving marketplace to facilitate interactions and transactions between customers, partners, and developers.
• June 2022 - Siemens, a leader in industrial automation and software, infrastructure, building technology, and transportation, and NVIDIA, a pioneer in accelerated graphics and artificial intelligence (AI), announced an expansion of their partnership to enable the industrial metaverse and increase the use of AI-driven digital twin technology that will help bring industrial automation to a new level.