Smart Lighting Market Key Driving Factors and Challenges, Opportunities and Forecast Insights

Smart Lighting Market Key Driving Factors and Challenges, Opportunities and Forecast Insights

Demand for smart lighting solutions 2020 will be fostered by increasing smart city projects across the globe

Increasing smart city projects as an initiative by the governments across the globe to reduce environmental footprint and render improved citizen and government engagement will amplify smart lighting trend globally.

Regional authorities are extensively partnering with prominent companies to implement their vision of smart and connected city. For instance, Intel had tied up with The City of San Jose, CA on a public-private partnership project that deploys Intel’s IOT Smart City Demonstration Platform to accelerate the Green Vision initiative of the city.

Rapidly expanding urban population has sparked initiatives to deliver access to efficient LED lights, coupled with deploying IoT and AI in building automation systems for commercial, industrial and residential spaces. Governments are undertaking efforts to reduce the use of inefficient lightings like incandescent and halogen lamps with an aim to support energy efficiency and reduce CO2 emissions.

The federal government of Australia had confirmed a ban on halogen lights with effect from September 2020 with an aim to promote the use of environmentally friendly and more efficient LED lighting. Most of the domestic halogen lamps will be replaced by LED ones and the switch is likely to save Australian consumers nearly USD 1.48 billion over a period of 10 years.

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Notable efforts worldwide to curb halogen use and deploy LED lights, while incorporating technology to facilitate more convenience for people will significantly fuel smart lighting market size, which is anticipated to reach US$23 billion by 2025.

Increasing smart city initiatives in Europe

Europe is projected to emerge as one of the most significant consumer for smart lighting market due to the significant number of smart city projects in the region, along with extensive adoption of smart LED lighting systems.

The European innovation partnership on smart cities and communities (EIP-SSC) is an initiative undertaken by the EU Commission that aims at bringing together industry, cities, small businesses and banks. The program is primarily aimed at enhancing the urban lifestyle with the help of sustainable solutions and address key challenges across varied policy areas like energy, transport and mobility.  Europe is witnessing a rise in usage of LED due to adequate awareness regarding sustainable sources of energy.

Optimum utilization of energy using light sensors

As per the U.S. Energy Information Administration (EIA), the total electricity used for lighting commercial and residential sectors in the region was estimated at 216 billion kWh in the year 2019. High disposable income among people along with infrastructural advancements in various sectors is steering the demand for efficient lighting solutions in order to reduce the cost of operation and ensure sustainable usage of electricity.

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Light control sensor systems facilitate remote operation of lighting systems through mobile phones that assist in monitoring the usage of lights and control the wastage of energy. Additionally, the life of lamps is extended owing to the reduction in run-time which lowers time spent on the maintenance along with the cost of maintenance.

A lighting control system uses three types of sensors, motion sensors for detecting when someone is entering or leaving the room or premise and activate/deactivate the light accordingly. Time controls- that automatically turn the lights on or off as per the set time schedule and light sensors- that measure the brightness of the daylight and then accordingly calculates the amount of artificial lighting required.

Reduction in the consumption of energy, electricity cost savings and enhanced lighting solutions are some of the pivotal features of sensors that will supplement smart lighting industry outlook. Technological advancements such as ZigBee, Wi-Fi, and Bluetooth will support wireless technology in smart lighting systems.