This report provides Transforma Insights’ view on the Building Lighting Application market found in the Transforma Insights Connected Things IoT forecast.
The connected lighting market is expected to continue to grow rapidly due to the changing needs of customers, demand for greater comfort and convenience, and most importantly, due to increased awareness around sustainability and energy savings opportunities. Companies are exploring ways to take advantage of smart lighting that goes beyond sustainability, for example, the use of lighting to increase employee productivity and improve
their health. Retail companies are leveraging the technology to improve sales and decrease operational costs, and restaurants are providing the perfect ambience combined with daylight harvesting. Despite the benefits, a key factor that can limit market growth, especially in the consumer market, is the high cost of smart light devices.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue.
A full set of forecast data, including country-level forecasts, sector breakdowns and public/private network splits, is available through the IoT Forecast tool.
This section of the report first charts the drivers of the connected lighting market, like increasing deployment of smart building devices. It then explains why the smart building market is rapidly expanding, how it got a considerable push during the Covid-19 pandemic and then talks about how connected lighting systems are becoming a key component of smart home systems. For instance, a study by Nielsen reveals that at 70%, lighting controls are the most commonly used home automation feature.
The report then examines the key factors that are influencing the development of the market, including:
This section discusses the primary reasons behind the increasing adoption of smart lighting control systems (both in commercial and residential buildings) such as significant savings in the energy used by lighting. It also charts how different environmental organisations and governments have realised the importance of smart lights and are accordingly creating suitable frameworks and calls to action for property developers and corporations. Case in point, in England, requirements outlined in the 2021 edition of the Part L Building Regulations mandated building owners to have controls (manual or automatic) installed to allow for the separate control of internal lighting in each space or zone.
This section of the report jots down the other benefits of smart lighting (such as improvement in occupants’ health and productivity) in addition to energy and cost savings. It also talks about how various companies are exploring ways to take advantage of smart lighting that go beyond sustainability and productivity, and are leveraging this technology to increase sales and decrease operational costs. For instance, Globus, a retail company increased customer traffic by 15% and sales by 5% by adopting smart lighting. It also dedicates a separate paragraph to discuss the benefits of adopting smart lighting systems across factories, industrial facilities, and in agriculture and healthcare industries.
This section of the report discusses how the cost of smart bulbs (which range between USD15 to USD40 and can go up to USD90) can be a major deterrent to their adoption in the consumer market. It then goes on to compare the cost of smart bulbs and that of retrofitting, and explains how smart bulbs can prove to be a better option than retrofitting.
This section of the report discusses the commonly used technologies that are used to connect lighting devices (such as Bluetooth and Zigbee). It then discusses the scope for Thread, which is another significant emerging technology in this space. It then charts the major three different ways, through which smart lights can be connected (including direct Wi-Fi connection) and finally discusses an alternative to smart lights that is gaining prominence widely, its features, advantages, and disadvantages.
This section talks about smart home devices can be hacked, allowing attackers to access personal data and take control over them. For instance, research shown that TP-Link Tapo L530E has cryptographic insecurities allowing a hacker to capture a user’s Wi-Fi password and TP-Link account details.
This section then discusses a few relevant IoT deployments in this application, like Meander Medical Center and Signify using intelligent in-building lighting in its eye clinic and The Skovlunde Skole Syd school in Demark using Philips intelligent lighting solution.
The key vendors section lists some of the main providers of products and services related to the building lighting market, such as Signify (previously Philips Lighting), Savant Systems (previously GE Lighting), LIFX, Sengled, Wipro Lighting, Nanoleaf, and Acuity Brands (nLight). The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of building lighting devices, which will grow from 426 million in 2024 to 2.5 billion in 2034.
Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the building lighting application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Building Lighting Application Group will grow at a CAGR of 19%.
