The 2016 Smart Lighting Market

The hype of the connected lighting or smart lighting or networked lighting or even IoT of lighting has spread throughout the lighting industry as well as the network and technology companies. Nontraditional lighting companies such as SAP, Google, Cisco, Apple, and Microsoft are targeting the lighting landscape through network infrastructure familiar to them and are also partnering with existing lighting players such as Acuity, Philips, Osram and etc. who are familiar with the end-users and regulatory demands of the market.

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I do realize that this post is a few weeks into the New Year but I would like to share my perspective on what we expect from smart or connected lighting this year. The hype of the connected lighting or smart lighting or networked lighting or even IoT of lighting has spread throughout the lighting industry as well as the network and technology companies. Nontraditional lighting companies such as SAP, Google, Cisco, Apple, and Microsoft are targeting the lighting landscape through network infrastructure familiar to them and are also partnering with existing lighting players such as Acuity, Philips, Osram and etc. who are familiar with the end-users and regulatory demands of the market. We also have been seeing changing dynamics within the Strategies in Light and LEDs Show (scheduled for March 1st-3rd) with the introduction of many new players into the connected and smart lighting market. With so much interest and new companies we expect that smart lighting is going to continue to burgeon. In our smart or connected Indoor and Outdoor lighting report Strategies Unlimited estimates that the 2016 smart lighting market will bloom close to $3 billion with majority of the installation coming from the indoor market and experience an expected annual growth rate of 25% year over year from 2014 to 2022.

Blog Jan 2016

The smart lighting market still has a large number of lighting networks and protocols being deployed by various manufactures since there are still no regulatory specifications on a preferred technology. The chart above describes the expected landscape of the 2016 smart lighting with majority of the lighting communications technologies being DALI based. However, if we compare this picture to how the smart lighting market was a year ago we are now seeing a lot more presence of wireless based lighting communication technologies and we expect wireless lighting technologies to keep gaining traction. With the expansion of smart lighting we are also seeing flourishing interest in human centric lighting, agricultural/ grow lights and animal lights where lighting can be operated on an active feedback loop system to maximum output or beneficent to the recipient or object.

For this year, we hope to update and report in the various ways we anticipate lighting to get smarter and hurdles it will face along the way.

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