USD 18.08 Billion
Report ID:
SQMIG45K2060 |
Region:
Global |
Published Date: June, 2025
Pages:
195
|Tables:
88
|Figures:
71
Global Smart Lighting Market size was valued at USD 18.08 Billion in 2023 and is poised to grow from USD 21.71 Billion in 2024 to USD 93.97 Billion by 2032, growing at a CAGR of 20.1% during the forecast period (2025-2032).
The smart lighting industry is undergoing a radical transformation due to the combination of energy efficiency regulations and Internet of Things lighting technology. The urgent need for intelligent lighting solutions is highlighted by the International Energy Agency's estimate that buildings and construction together account for about 30% of global energy consumption. According to the United Nations Environment Programme Copenhagen Climate Centre, smart street lighting alone is responsible for 15% of the world's power consumption, underscoring the enormous impact potential of intelligent lighting technologies. This shift is accelerated further by the increasing integration of connected lighting with building management systems, which enables comprehensive energy monitoring and optimization.
Moreover, the global smart lighting market growth is driven by significant technological advancements due to the introduction of sophisticated control systems and connectivity features.
Can AI Make Smart Lighting Truly Intelligent and Energy-Efficient?
AI is improving the adaptability, energy efficiency, and usability of smart lighting systems. AI-powered systems use sensors and data analytics to automatically adjust the lights according to user preferences, daylight availability, and the number of people in the room. For instance, Philips Hue demonstrated an AI-powered scene customization system that learns user preferences and recommends the best lighting conditions. Barcelona's smart city initiative, which employed AI to control streetlights, was extended in 2024. By enabling dynamic brightness settings, this reduced energy consumption by 30% and improved street safety. As companies work to create intelligent and durable infrastructure, this trend is accelerating in the commercial, residential, and municipal sectors. By facilitating real-time monitoring, predictive maintenance, and connectivity with IoT networks, AI continues to spur innovation.
Market snapshot - 2025-2032
Global Market Size
USD 18.08 Billion
Largest Segment
Wireless
Fastest Growth
Wired
Growth Rate
20.1% CAGR
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The global smart lighting market is segmented into components, connectivity, applications, and regions. By components, the market is divided into hardware, software, and services. Depending on connectivity, it is bifurcated into wired and wireless. According to the application, the market is classified into indoor and outdoor areas. Regionally, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
As per the 2024 global smart lighting market analysis, wireless is simple to install, expandable, and compatible with IoT platforms. The wireless category dominated the market. Many homes and businesses use Bluetooth, Wi-Fi, and Zigbee. In 2025, Philips Hue upgraded its AI-powered wireless lighting assistant, which makes it simpler to set up and control scenes over wireless networks with voice or text commands. Wireless interoperability was further enhanced by the Matter protocol, which made it the standard option for smart homes and offices.
The use of wired smart lighting is anticipated to grow steadily in industrial and infrastructure settings where reliable, low-latency connections are crucial. Its expansion is being driven by the rise of smart cities and companies seeking more dependable control. As wired systems are less vulnerable to interference and are safer, they are becoming more and more common in public and business settings. This is a result of significant modifications that emphasize centralized control.
Based on the 2024 global smart lighting market forecast, due to widespread use in homes, hotels, and businesses, indoor applications account for the majority of the market. Advanced lighting is used in smart homes and office buildings for mood setting, energy conservation, and automation. To improve the interior user experience, LIFX, for instance, developed multi-zone smart ceiling lights with Matter support and AI-driven scene modification in 2025. To engage customers with dynamic lighting schemes, retailers are also installing smart lighting within their establishments.
The outdoor category is anticipated to have the largest smart lighting market share due to city investments in smart city infrastructure and energy-efficient streetlights. To reduce energy consumption and improve street safety, cities in Europe and Asia installed networked outdoor systems with motion sensors and movable lighting between 2024 and 2025. With the addition of environmental, traffic, and surveillance sensors, the outdoor area is expanding even more quickly.
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As per the smart lighting market regional analysis, as more people use energy-saving devices and smart homes, North America continues to lead the market. The percentage of local business buildings with smart lighting installed increased by 28% in 2024. The adoption process is being accelerated by government initiatives that support sustainable urban infrastructure, such as the U.S. DOE's Connected Communities program. The Internet of Things (IoT) and artificial intelligence (AI) are making it possible to control lighting in public spaces and homes in a way that anticipates future developments.
The use of AI and the quick development of smart cities are driving the growth of the smart lighting market in the U.S. With over 80,000 new lights installed by 2024, New York City's smart streetlight program reduced energy consumption by 40%. Additionally, AI-powered adaptive lighting is increasingly being used in workplaces and educational institutions. Large corporations like GE Current and Signify are investing in AI-based solutions to improve user comfort and customize lighting for various industries.
Regulations pertaining to sustainability and urban modernization are driving growth in Canada's smart lighting market. In 2024, Toronto began a $25 million renovation project to swap out city lights for Internet of Things-capable smart systems. AI and motion-sensing lighting are becoming more and more common in homes. It is anticipated that the Canadian market will expand gradually until 2025, particularly in the sectors of public and commercial infrastructure. This is due to the strong backing of eco-building regulations and federal energy-efficiency awards.
Europe is leading the way in smart lighting innovation because of EU green regulations and smart city initiatives. In 2024, over 100 Million Euros was allocated by the EU's Horizon program for AI-powered city lighting systems. Goals for energy conservation and carbon neutrality are driving adoption across a number of industries. Cities like Vienna and Amsterdam have implemented dynamic lighting grids that use up to 35% less electricity while making the city appear better and safer for people.
The smart lighting sector in the UK is growing quickly because of the government's Net Zero plan. London installed AI-enabled smart lighting in several boroughs in 2024. As a result, street lighting costs were reduced by 25%. Due to energy bill savings and smart home trends, the number of smart lights in homes increased by 20%. AI-powered lighting solutions for your health and work-from-home requirements are also being produced by startups.
Strong environmental laws and government assistance have contributed to the significant growth of the smart lighting industry in France. One of the first cities to fully implement AI-based adaptive street lighting was Lyon in 2024. CO2 emissions were reduced by 18% as a result. Adoption was accelerated by the "France Relance" recovery plan, which allocated large sums of money to green digital infrastructure. Both contemporary business districts and historic districts are seeing an increase in the use of smart lighting. This is due to the fact that it effectively balances efficiency and appearance.
Germany's "Energiewende" strategy has made it a leader in smart lighting projects for businesses and cities. AI-controlled lighting was installed in Berlin's transit corridors in 2024, increasing their energy efficiency by 30%. To make their manufacturing facilities safer and more efficient, the automotive and industrial sectors are also implementing smart lighting. Germany's robust public-private partnerships and cutting-edge research and development are likely to keep it at the forefront of the European smart lighting market.
Asia-Pacific's smart lighting market is expanding rapidly due to the region's expanding cities and improving infrastructure. More than 35% of all smart lighting installations worldwide were in this region in 2024. The governments of China, India, and Southeast Asia are investing heavily in smart cities. AI and IoT are becoming more prevalent because of the high demand for lighting systems in homes, factories, and businesses. Two key factors that enable this are local manufacturing and cost-effective deployment strategies.
China is the Asia-Pacific leader in smart lighting because it produces its own technology and manages Smart City pilot projects. More than 100,000 AI-powered smart lights that change brightness in response to weather and human movement were installed in Shenzhen in 2024. Government incentives and 5G infrastructure are speeding up adoption. AI-based lighting is becoming more widely available to consumers thanks to the efforts of Chinese tech behemoths like Xiaomi and Huawei.
According to its Smart Cities Mission, India is emerging as one of the Asia-Pacific regions with the fastest-growing smart lighting market. An AI-based smart lighting system that covered 50,000 streetlights and reduced energy costs by 35% was installed in Pune in 2024. In tier-2 cities, there is an increasing demand for reasonably priced smart lighting solutions. Strong mobile connections and government-led energy efficiency initiatives like UJALA are driving the growth of residential and municipal applications through 2025.
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Large corporations are concentrating on developing new products, forming strategic alliances, and integrating AI into the fiercely competitive smart lighting market. While new businesses concentrate on creating features that are affordable and initially functioning on mobile devices, established companies like Signify and GE Current are expanding the capabilities of the Internet of Things (IoT). Consolidation of portfolios is aided by mergers and acquisitions, such as Signify's 2024 acquisition of Fluence. Investing in R&D and providing solutions that can expand with sectors like retail, commercial real estate, and urban infrastructure are also essential.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, smart cities are being built and there are higher needs for more intelligent, energy efficient lighting solutions, the global smart lighting market outlook is likely changing. Artificial intelligence (AI), voice control, and the Internet of Things (IoT) are rapidly changing the way people interact with technology, both in the workplace and in their homes. While initial costs are in the tens of thousands of dollars and cybersecurity issues have always been paramount and are still concerning, but as government regulations are beginning to improve, technologies are evolving, and companies across industries are investing heavily in new solutions. The landscape is changing quickly. New start-ups and large companies alike are developing new approaches to rapid, low-cost solutions. Sustainable practices, customizable options, and interoperability with other smart systems will increasingly influence new innovations and developments in the smart lighting arena.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 18.08 Billion |
Market size value in 2032 | USD 93.97 Billion |
Growth Rate | 20.1% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Smart Lighting Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Smart Lighting Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Smart Lighting Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Smart Lighting Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Global Smart Lighting Market size was valued at USD 18.08 Billion in 2023 and is poised to grow from USD 21.71 Billion in 2024 to USD 93.97 Billion by 2032, growing at a CAGR of 20.1% during the forecast period (2025-2032).
Large corporations are concentrating on developing new products, forming strategic alliances, and integrating AI into the fiercely competitive smart lighting market. While new businesses concentrate on creating features that are affordable and initially functioning on mobile devices, established companies like Signify and GE Current are expanding the capabilities of the Internet of Things (IoT). Consolidation of portfolios is aided by mergers and acquisitions, such as Signify's 2024 acquisition of Fluence. Investing in R&D and providing solutions that can expand with sectors like retail, commercial real estate, and urban infrastructure are also essential. 'Signify (Philips Lighting)', 'GE Current', 'Acuity Brands', 'OSRAM GmbH', 'Eaton Corporation', 'Zumtobel Group', 'Cree Lighting', 'Hubbell Lighting', 'Honeywell International', 'Legrand', 'Lutron Electronics', 'Wipro Lighting', 'Syska LED', 'Panasonic Corporation', 'Schneider Electric'
Lighting plays a significant role in the development of smart cities, which are actively funded by governments worldwide. These initiatives seek to improve energy use, safety, and public services. By 2025, it is anticipated that over 70% of European cities will have smart street lighting as part of smart city development. This will be more environmentally friendly and use less energy.
Creating Lights That Change with AI and IoT: One of the major smart lighting industry trends includes integration of IoT and AI into lighting. AI and IoT are increasingly being used by smart lighting systems to provide users with responsive and customized experiences. AI-enabled lighting in smart office buildings will be able to change the lighting's brightness according to the amount of natural light present and the number of occupants. Employees will be happier and expend less energy as a result. In North America and Europe, this trend is particularly strong.
How is North America Leading the Smart Lighting Revolution?
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