As I stated in a previous post, Strategies Unlimited has released three connected lighting reports, “Connected Lamps”, “Outdoor Connected Lighting”, and “Indoor Connected Lighting”, which I believe is the future of lighting.
I thought it would be interesting to focus on the connected lamps market. The Connected Lamps report covers the market for wirelessly connected Reflector and A-lamps. The reason for this focus is because these lamp shapes comprise approximately 9 billion of the 15 billion global lamp shipments today and will continue to comprise a large portion through 2022.
The chart above from the “World Market for Lamps” shows that A and reflector lamps comprise more than 60% of all lamp shipments in 2015, and will still be about 50% of all lamp shipments in 2022.
Additionally, these lamp shapes are the most likely to incorporate wirelessly connected technology, since they are used on a large scale in applications (residential, hospitality and retail) where this technology is more likely to be used.
The chart above from the “World Market for Lamps” shows the Installed Units of lamps, broken out by application in 2014.
For the purpose of this report, we broke out connected lamps into their main functionality, since they will each penetrate differently into each application, based on the needs of the consumer for each. The description of functionality can be found below:
· Simple Dimming Connected Lamp – LED lamps that are wirelessly controlled to dim, with no control over the color temperature or CRI of the light emitted by the lamp.
· Basic Tunable White Connected Lamp – LED lamps that are wirelessly controlled to dim using a linear tuning mechanism. Linear tuning products cannot track the blackbody curve (i.e., they cannot maintain a constant Duv as CCT is adjusted).
· Complex Tunable White Connected Lamp – LED lamps that are wirelessly controlled to dim by using a non-linear mechanism, that are effective at following the blackbody curve. Some products can be adjusted over a range of CCTs and can be dimmed at a constant CCT.
· Color Tunable Lamp – Wirelessly controlled LED lamps that can be adjusted to create white or colored light.
Connected lamps fall under a new category of lighting, and should be partially considered as a consumer electronic product. Therefore unlike the general lamp market, purchasing decisions for these products will not only come down to price but also perceived quality, brand awareness, and functionality. That being said, being able to control your lamps wirelessly is not a necessity, and therefore the potential market for these lamps automatically shrinks. Additionally, the higher ASPs of these products further decreases the potential size of the market as well.
The market for connected lamps is very small right now, and is not envisioned to be a major player when it comes to the general lamp market. The charts below, which will be presented at SIL Europe, show that connected lamps made up less than 0.002% of the total installed base of lamps in 2014, and by 2020, they will only make up 0.4% of the total installed base.
Of course the global installed base of lamps is so large that even a small piece of the pie is big in terms of revenues, especially for these products which have higher ASPs, specifically when you are talking about professional applications like retail and hospitality, which are forecasted to use connected reflector lamps that are color changing as well on a large scale.
The chart above from the “Connected Lamps Report” shows the Installed Units of lamps, broken out by application in 2014.
By 2020, with lamps shipments reaching 42 million units, it is forecasted that the total market will reach approximately $650 Million.