According to the new market research report "Commercial Lighting Market with COVID-19 Impact Analysis by Offering (Hardware, Software, and Services), Installation Type (New and Retrofit), End-use Application (Indoor and Outdoor), Communication Technology, and Region - Global Forecast to 2025", published by MarketsandMarkets™, the Commercial Lighting Market is projected to reach USD 21.8 billion by 2025 from USD 8.2 billion in 2020; it is expected to grow at a CAGR of 21.5% during the forecast period.
The most significant factors driving the growth of this market are the ongoing and upcoming smart city projects in the developing countries, growing focus of governments worldwide on energy consumption, increasing acceptance of standard protocols for lighting control systems, escalating demand for LED lights and luminaires for use in outdoor applications, and surging use of integrated lighting control systems. Rapid transition from traditional lighting to connected lighting solutions and increased adoption of PoE-based and solar lighting system are major opportunities for the commercial smart lighting market. However, interoperability issues between different network components and security & reliability issues with IoT-based lighting systems prove to be a challenge for the market.
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Among offering, the hardware segment projected to hold a largest share of the commercial smart lighting market during the forecast period
Hardware offerings are expected to hold the largest share of the commercial smart lighting market during the forecast period. The increasing demand for energy-saving lighting systems is a key driving factor for the commercial smart lighting market for hardware offerings. Lighting control systems integrated with lamps and luminaires play a vital role in reducing energy consumption without compromising aesthetics.
Retrofit installations segment to grow at a higher CAGR during the forecast period
The retrofit installations segment is expected to register a higher CAGR of during the forecast period. The rate of energy conservation is projected to increase owing to the rising number of retrofitting initiatives undertaken by government and private organizations in the US. Retrofit lighting is often considered a 'low-hanging fruit' that instantly and easily helps achieve significant reductions in energy usage.
Wired communication technology segment of the commercial smart lighting market projected to hold a larger share during the forecast period
By communication technology, the wired segment is estimated to continue to hold a larger share of the commercial smart lighting market during the forecast period. Wired technology offers reliable performance and greater control. However, the cost of wiring and installation is high, especially in a commercial setting. This high cost, therefore, acts as a restraining factor for the adoption of wired technology-based smart lighting solutions.
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The commercial smart lighting market in Asia Pacific projected to hold the largest share in 2025
Asia Pacific (APAC) is expected to continue to lead the commercial smart lighting market by capturing the largest market size throughout the forecast period. This growth can be attributed to the rapid infrastructure development activities being undertaken in APAC, mainly in China, where smart lighting solutions pave the way for the modernization of infrastructure. Projects related to infrastructure modernization and development, such as smart cities, across the region would also drive the demand for smart street lights, thereby propelling the growth of the market for commercial smart lighting in this region.
Signify (Philips Lighting) (Netherlands); Legrand S.A. (France); Acuity Brands, Inc. (US); GE Current, a Daintree Company (US); OSRAM Licht AG (Germany); Leviton Manufacturing Company, Inc. (US); Lutron Electronics (US); Hubbell Incorporated (US); LEDVANCE GmbH (Germany); Schneider Electric SE (France); Ideal Industries, Inc. (Cree Lighting) (US); and Zumtobel Group (Austria) are a few major players in the commercial smart lighting market.