Wireless Lighting Market

Wireless Lighting Market Outlook (2022-2032)

[250 Pages Report] The global wireless lighting market is slated to top a valuation of US$ 1,31,896 million in 2022. Sales of wireless lighting, also known as smart lighting, are expected to increase at a 3.48% CAGR over the forecast period. Against this backdrop, the total wireless lighting market size will reach US$ 1,85,672 million by 2032.

Factors driving the wireless lighting market demand globally:

• The development of wireless lighting aids manufacturers in decoupling the marketing of lighting products from the strong downward price spiral in the conventional LED lighting markets. Hence, the adoption of wireless lighting helps manufacturers skim additional payments from customers.
• Controlled power usage and longer life are factors that increase the penetration of wireless lighting. Moreover, it further increases due to the availability of a wide range of decorative lighting products, as well as multiple light setting in a single lamp.
• Government policies coupled with stringent regulations encourage energy conservation and environment protection and discourage the usage of incandescent lamps. These aspects are likely to bolster the demand for wireless lighting.
• The replacement of the inferior compact halogen or fluorescent lighting technologies could accelerate since wireless lighting is being increasingly deployed, owing to its societal benefits. This is anticipated to drive the global wireless lighting market growth.

Although the wireless lighting market share is likely to experience substantial growth, hindrances such as high initial costs of the equipment, as well as the cost of installation and integration services, may curb its global demand.

Energy Conservation & Safety Protocols Transforming Wireless Lighting Markets in Different Regions: North America & Europe

North America currently dominates the wireless lighting market, which is attributed to the presence of leading manufacturers in the U.S. In addition, there is a high demand for smart lighting across schools, colleges, universities and work spaces.

The U.S. hosts numerous concerts, public events and conferences, which increases the demand for wireless lighting and drives product innovations. Likewise, these lighting systems are being increasingly deployed for shooting advertisement commercials, music videos and photoshoots. The introduction of Li-Fi, which is essentially lighting equipped with a Wi-Fi connection, is becoming progressively popular. Additionally, rising interest in media and film communities and a high influx of tourists in Canada are further anticipated to drive global market growth.

Europe holds the second-largest market share of wireless lighting owing to the rising focus on implementing safety protocols and uniform performance standards for indoor and commercial lighting systems. Smart lamps and lighting systems for entertainment rooms, garages, art studios, and indoor theatres are being preferred by consumers in Germany, France, and Italy. Moreover, the replacement of traditional systems through the high adoption of wireless lighting in residential sectors in this region.

Replacement of Non-renewable Power & Other Market Opportunities

A major contributor to greenhouse emissions and environmental deterioration is the rising consumption of non-renewable power, which is becoming a growing concern amongst consumers and enterprises. Therefore, carbon emissions can be limited by conserving the energy utilized for lighting and ultimately improving environmental health. Several policymakers and governments are implementing sustainable policies to promote energy-saving lighting products owing to rising pressure to make energy-efficient changes.

Manufacturers are offering smart LED street lighting fixtures that consume about half of what HBS fixtures do, but presently, spot LED lighting systems are being deployed as they can be controlled via network communications and reduces energy consumption.

Either a PC or a smartphone can be used to facilitate the control of these lighting fixtures, as well as manage them as social assets. These streetlights conserve a lot of energy by reducing unnecessary lighting and simply illuminating the target area to only the degree required.

There has been a recent launch in the wireless lighting market share with the introduction of “Wi-Fi enabled LED Bulb.” This 9W smart LED bulb comes with multi-color lighting options, as well as automated scheduling functions. Key manufacturers claim that the multi-color options offer nearly 16 Mn shades.

The lighting settings can be adjusted according to the needs of the user, which range from dinner, family gatherings, and parties to kids playing areas and recreational rooms. Moreover, the bulb comes equipped with a pre-set feature that allows the user to auto-schedule the switching on and off of the lights. These innovations are anticipated to spark creativity in manufacturers, which may eventually expand the global market size.

High demand for energy-efficient and wireless lighting systems across smart city projects in various countries is a chief trend driving the adoption of wireless lighting. Rising preference for wireless lighting can be attributed to the widespread awareness of reducing energy consumption across homes and offices.

The introduction of integrated lighting control systems, decreasing costs of LEDs, along with rising demand for lighting devices with smartphone connectivity will augment the wireless lighting market size.

In addition to this, the popularity of human-centric lighting solutions across countries such as India, Germany, China, and Brazil is gaining traction. These systems detect individuals' moods and behavior and adjust the lighting in a particular room accordingly. The adoption of these lighting systems in the healthcare sector is rising, which, in turn, will fuel the demand for wireless lighting.

Further, government initiatives to promote the use of green energy, along with high demand for PoE-based lighting solutions in residential, commercial, and healthcare sectors will continue pushing the adoption of wireless lighting.

Sudip Saha

Principal Consultant

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Which Trends are Driving Sales of Wireless Lighting?

To reduce energy consumption across the industrial and residential sectors, government bodies across various countries have introduced a standard protocol for lighting control systems. A standard protocol defines and analyses the methods used for data representation, authentication, signaling, and error detection in wireless lighting systems.

A standard protocol ensures the stability of connection in these systems, streamlines communication, and enables data transfer between computing units and control endpoints. Digital protocols are either one-way or two-way, in which two-way (bilateral) protocol enables fast and effective communication between luminaires and connected devices.

Currently, ZigBee and DALI are the most commonly installed protocols in smart and wireless lighting solutions. Besides these two, the adoption of protocols such as KNX has improved the overall efficiency of wireless lighting systems, which is driving sales in the market.

Standard protocols also facilitate better understanding and compatibility among connected devices and simplify the overall installation process, thereby making the adoption of smart lighting more convenient and effective.

Which Factors are Hampering Demand for Wireless Lighting?

In wireless lighting systems, wireless networks are used to connect network components to perform the required functions. These lighting systems comprise an array of built-in sensors, cameras, and LED fixtures to a wireless network.

The data is stored in the cloud to enable remote access to wireless lighting systems. As these systems are connected through the Internet, they are susceptible to exploitation by hackers. For instance, a hacker can gain access to the controlled lighting system installed in a residential space and turn the cameras and lighting off for malicious intent.

Intruders can also turn off lights and security alarm systems at hospitals and public places, which might result in severe consequences. Privacy and security remain key challenges in wireless lighting systems, which are expected to influence the wireless lighting market demand analysis.

Besides this, inadequate network connectivity in remote locations might disrupt the functioning of wireless lighting systems, causing hindrances and delays in operations. When a large number of wireless components are deployed in wireless lighting systems, unlicensed systems might breach the connectivity and hamper the efficacy of lighting systems. Such factors are expected to limit sales of wireless lighting across remote locations over the forecast period.

What Will be the North America Wireless Lighting Market Outlook?

In 2022, the North America wireless lighting market is expected to hold 25% of the total wireless lighting market share. Growth in the market can be attributed to government initiatives to minimize energy consumption across various states in the U.S.

The presence of leading manufacturers of wireless lighting in the U.S. is expected to create opportunities for growth in the market. In addition to this, high demand for smart lighting across universities, schools, colleges, and offices will boost sales of wireless lighting systems.

Further, rising demand for wireless event lighting for concerts, public events, and conferences is driving product innovations in the market. Wireless lighting systems are increasingly being adopted for shooting advertisement commercials, music videos, and photoshoots.

Citing this trend, Astera, a hardware and software manufacturing specialist, collaborated with cinematographers to launch portable heavy lighting systems for the media industry. In 2018, the company developed a wireless lighting system known as Titan Tube, which includes a DMX protocol, indoor and outdoor compatibility, an AC-powered battery, unlimited usage range, and connectivity with the AsteraApp for remote access.

Demand for event wireless lighting in Canada is also gaining traction amid high influx of international tourists and rising interest in media and film communities. Backed by the aforementioned factors, sales of wireless lighting across North America will remain high.

Why is the Europe Wireless Lighting Market Considered Attractive?

As per the report, demand for wireless lighting and smart lighting systems across Europe is expected to account for 31% of the total wireless lighting market valuation over the forecast period.

Increasing focus on implementing uniform performance standards and safety protocols for indoor and commercial lighting systems is expected to shape the wireless lighting market outlook in Europe.

Consumers in Germany, France, and Italy are preferring smart lamps and lighting systems in garages, indoor theatres, entertainment rooms, and art studios. High adoption of LED luminaires, along with the replacement of traditional systems with smart lamps in the residential sector are some of the emerging wireless lighting market trends in Europe

Numerous small smart lighting manufacturers are entering the market in Europe, while established players are constantly evolving their product portfolios by adding specific lighting solutions for applications such as landscape lighting, task lighting, downlighting, and ambient illumination.

In March 2022, one of the global leaders in wireless lighting solutions, Zumtobel Group AG presented its latest outdoor lighting solution for outdoor applications at the Data Centre World 2022 exhibition held in the U.K. Such developments are expected to augment the Europe wireless lighting market size over the upcoming decade.

How are Startups Spearheading the Growth in the Wireless Lighting Market?

Amid ongoing technological advancements in residential and commercial lighting, various emerging players and startups are offering a wide range of innovative smart lighting systems, which is expected to bode well for the growth in the market.

The integration of the Internet of Things (IoT) is one of the key wireless lighting market trends, resulting in product innovations in smart cities and homes. Human-centric lighting is gaining popularity among consumers worldwide.

Taking cues, U.S.-based startup Aurea Lighting launched human-centric wireless lighting for commercial spaces, schools, universities, offices, and homes. These systems use a dye film that converts blue light to natural and soft lighting based on the mood. The company’s HCL solution aims to increase alertness in students and employees during work hours.

Similarly, Heliohex develops IoT-enabled LED lighting for horticulture, paving way for sustainable agriculture practices such as indoor farming. LED lighting enables farms to improve the yield and productivity in indoor farming practices as it simulates the effect of natural light using automation.

Heliox’s lighting system adjusts the color and wavelength of light to suit the photoreceptors in plants. The system also simulates the cycle of the sun from sunrise to sunset and even produces changes that occur due to seasonal variations for better crop growth.

What is the Competition Landscape in the Wireless Lighting Market?

Leading wireless lighting manufacturers are investing in research and development to launch IoT-enabled wireless lighting systems for smart cities and homes. They are also launching application-specific wireless lighting for industries such as media and entertainment, agriculture and horticulture, and healthcare.

Some of the prominent players operating in the wireless lighting market include Panasonic Corporation, Schneider Electric S.E., Eaton Corporation, and Hubble Lighting Inc. Recent developments in the market include:

In March 2021, Hubble launched a new and improved NX Distributed Intelligence Lighting Control Panel (NXP2) Series. It centralizes connection points in an enclosure and reduces the time required to deploy compliant lighting control systems.

Report Scope

Key Segments Profiled in the Wireless Lighting Industry Survey

By Product:

• Wi-Fi
• Z-Wave
• ZigBee
• Bluetooth
• Enocean

By Application:

• Residential
• Commercial Buildings
• Government offices and building
• Street Lighting
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East and Africa