The vendor landscape of the global smart lighting market is largely fragmented and the level of competition among companies is high, observe Transparency Market Research in a recent report. With the constant influx of new innovative product varieties and increased focus of companies on expansion of product portfolios and geographical reach, the intensity of competition is expected to remain strong in the next few years as well.
The market is witnessing a rise in the number of products that are compatible with popular smart home systems such as Amazon Alexa, Amazon Alexa, and Google Home. For instance, the new lighting series Trådfri by IKEA is, along with several other smart features such as different color temperatures, motor sensors, and wireless remote controls, compatible with these smart home solutions. Some of the leading companies in the market are Encelium Technologies, Inc., Osram Licht AG, Honeywell International Inc., Royal Phillips N. V, Zumtobel Group AG, Acuity Brands, Inc., Legrand SA, Digital Lumens, Inc., Lutron Electronics, and Streetlight Vision.
According to TMR analysts, the global smart lighting market will witness expansion at an exponential 15.9% CAGR over the period between 2014 and 2020 and rise to a revenue opportunity of US$56.6 bn by the end of 2020.
High Demand for Energy-efficient Systems in Europe to Develop Promising Growth Opportunities
Of the key types of lights used in smart lighting systems, in 2014, compact fluorescent lamps held the dominant share. Over the report’s forecast period, however, the segment of LED lamps is anticipated to register substantial growth. In terms of application, the commercial and industrial segment accounted for the dominant share and is further anticipated to remain dominant between 2014 and 2020. Nevertheless, the residential segment is also considered to bear high growth potential in the next few years.
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In terms of geography, Europe dominated the global smart lighting market in 2014 and is anticipated to maintain its position in the coming years as well. Europe was followed by North America, which held a share of 35% in the global market. The increased adoption of smart lighting systems as an energy efficient lighting solution is fueling the smart lighting market in this region. Asia pacific and Rest of the World are considered emerging markets for smart lighting and are projected to grow substantially throughout the forecast period.
Demand for Smart and Energy-efficient Solutions for Street Lighting Systems Drive Growth
A vast number of factors are working in favor of the global smart lighting market. The rising need for energy-efficient smart lighting systems, rapid development of wireless and sensor technology, and tremendously increasing demand for intelligent lighting solutions for street lighting are some of the key factors that are expected to fuel this market in the forecast period. In addition, adoption of smart lighting systems while developing smart cities could emerge as a huge growth opportunity for market players. However, incompatible wireless solutions and high initial investment are expected to curb the growth of this market.
