Smart Lighting Market (2026 - 2033)

Smart Lighting Market Summary

The global smart lighting market size was valued at USD 20.7 billion in 2025 and is projected to grow from USD 24.4 billion in 2026 to USD 66.7 billion by 2033, at a CAGR of 15.5% from 2026 to 2033. Europe dominated the market and accounted for the largest revenue share of 39.0% in 2025. The ability of lights to connect with IoT devices and create a variety of ambient lighting using just smartphones or tablets has increased their popularity and demand across commercial and residential spaces.

Smart lighting is also termed connected lighting, as it can be seamlessly integrated into the IT network in a building or city infrastructure to share information regarding the status of the operation. For instance, smart street lights in city parking lots or roads ensure safety by providing wide coverage, environmental monitoring, parking and traffic management information, and city surveillance through connectivity with IoT devices. Smart lights are often integrated with sensors, turning them into intelligent devices that gather information on activity patterns, daylight levels, occupancy, changes in temperature, and humidity. This information is vital for government departments to take appropriate actions and monitor the city for unwarranted activity.

The adoption of smart lights is expected to increase owing to benefits such as controlled power usage, longer lifespans, multiple light settings in a single lamp/luminaire, and the availability of a wide range of modern decorative lighting products. The adoption of smart lighting in the residential, commercial, and industrial sectors is yet to reach its full potential. Hence, various government initiatives to promote the use of LED-based smart lights are expected to boost their demand over the forecast period. Moreover, countries such as China, Brazil, Colombia, Mexico, France, Spain, and Germany have imposed a complete ban on the sale of incandescent lamps to encourage the adoption of LED light, wherein high-income groups are leaning towards LED-based smart lights.

Smart lights consist of several networked components, including lighting fixtures that collect information about the physical environment and allow users to control or adjust devices based on their requirements. The advent of the Internet of Things (IoT) and its rising set of applications in lighting systems has contributed to the growth of the market. Moreover, advancements in technology that enable the easy integration of functions such as ambient sensing and voice control into lighting systems have widened and diversified the scope of smart lighting applications.

Smart lighting systems use wired and wireless communication protocols such as Bluetooth, Wi-Fi, ZigBee, DALI, EnOcean, and Sigfox to network the necessary components. Lighting control modules receive real-time information about the lighting environment and transmit signals to the lighting system or luminaires to perform actions such as switching lights on or off and adjusting brightness.  For instance, Hue Lighting by Philips is a smart home lighting system that provides an entire range of lights that can be controlled using the Hue app on smartphones. The emergence of such integrated lighting systems has boosted the demand for smart lamps and smart fixtures.

Market Dynamics

Component Insights

The hardware segment led the smart lighting market with a revenue share of 57.1% in 2025. Smart lighting hardware has been further categorized into lamps and luminaires, wherein the lamp segment is exhibiting high growth potential during the period 2026 to 2033. Increasing adoption and high replacement rate of existing traditional lighting solutions are expected to support the growth of this segment. This has spurred new product development and the launch of designs aligned with consumer preferences. In April 2026, MOONLEX announced the launch of the Sunflower X smart lamp on Kickstarter.

The software segment is expected to grow at the fastest CAGR during the forecast period. The demand for Smart Lighting is driven by the increasing adoption of smart lighting for data-driven purposes in critical areas. Also, the software application is required by each brand to facilitate the controlling of lights using smartphones or tablets. The apps also help in connecting smart lights with smart platforms such as Alexa, Cortana, and Siri to control them using voice commands. The immense popularity of creating an ambient atmosphere and aiding in data collection in smart cities is expected to boost the segment growth over the forecast period.

Connectivity Insights

The wired segment accounted for the largest revenue share in 2025 and is expected to grow at the fastest CAGR during the forecast period. The wired connections are required for the range above 30 feet. Ethernet, as an exception, can facilitate wired connection within 100 meters, while DALI, DSI, and DLVP provide connectivity above the range of 1000 feet. The increasing adoption of smart lighting in commercial and industrial spaces is driving the demand for wired connectivity in the smart lighting space.

The wireless segment is expected to grow at a significant CAGR during the forecast period. Wireless connectivity in a smart lighting environment is highly preferred among consumers who need connections within a small range. Wireless technology such as Wi-Fi, Bluetooth, SmartThings, Z-Wave, or ZigBee connects lighting fixtures with smartphone apps to control the light bulbs’ functions. The residential sector has majorly adopted wireless technology to control the luminaire hues and color for aesthetic purposes within a confined space.

Application Insights

The indoor segment accounted for the largest revenue share in 2025. The indoor application is further sub-segmented into residential, commercial, and industrial. The residential sub-segment is expected to attain a high growth rate over the forecast period due to the rising popularity of smart lighting bulbs and fixtures that can be controlled by the user for setting different lighting moods. In addition, demand within commercial and industrial space is propelled by the need to control lighting consumption as the office spaces or warehouses are functional 24x7 and need a regular power supply throughout the day and night. Installing smart lighting with inbuilt sensors ensures lights are used only in the required area based on the movement of people, which is captured by the sensors. Also, the light setting can automatically dim based on outside lighting inside the premises.

The outdoor segment is expected to grow at the fastest CAGR during the forecast period. The outdoor segment is further sub-segmented into highways & roadways, architecture, and others. The outdoor architectural application comprises lighting for patios, gardens, exterior walls, and the outdoor premises of residential or commercial spaces. The burgeoning demand for smart lighting in outdoor applications is driven by the need for energy-efficient lighting and for monitoring outdoor activity. This phenomenon is specifically adapted for smart street lighting. The government has invested in installing LED-based smart lighting connected with the camera and sensors to capture and share data on outdoor activity.

Regional Insights

The Europe smart lighting industry dominated the market and accounted for the largest revenue share of 39.0% in 2025. Europe is leading the way in drafting safety and uniform performance standards for certain indoor commercial smart lighting for garages, roadways, and parking. Dedicated LED luminaires and LED replacement smart lamps are emerging as the key growth areas in the lighting industry in line with the continued advancements in LED designs and technology. While incumbent smart lighting manufacturers continuously update their product offerings, existing manufacturers are expanding their portfolios to enter the market. A looming surplus of dedicated smart luminaires vendors is particularly evident in applications such as down lighting, task lighting, landscape lighting, general ambient illumination, and outdoor general area lighting.

Asia Pacific Smart Lighting Market Trends

The smart lighting industry in the Asia Pacific is expected to grow at the fastest CAGR during the forecast period, owing to the surging demand from the commercial and residential application segments. China is projected to emerge as the largest revenue contributor, controlling the highest global market share. Countries, including Japan, India, and South Korea, are anticipated to be at the forefront of smart lighting adoption due to their rising economies and increasing investments in smart city projects. The smart lighting demand in the Asia Pacific is largely influenced by the changing scenario of lighting across commercial sectors. The increasing construction of commercial buildings for offices, retail, and entertainment is creating new demand for smart lighting.

North America Smart Lighting Market Trends

The smart lighting industry in North America is estimated to grow at a significant CAGR due to consumers' growing acceptance of smart lighting and the energy-efficient solution to the lighting problem in the region.  Also, several leading companies, such as Honeywell International Inc., have introduced smart lighting solutions powered by the latest technologies, encouraging the adoption in the region.

Key Smart Lighting Company Insights

The leading players in the smart lighting market are undertaking strategies such as product developments, mergers and acquisitions, strategic partnerships, and business expansions to maintain their stronghold on the market. For instance, in November 2025, Itron, Inc. and Connected Lighting Solutions (CLS) partnered through the Itron Engage Sales Channel Partner Program to support the deployment of smart lighting technologies by Itron, Inc., including its Networked Lighting Controller (NLC) hardware across the Australian market.

Key Smart Lighting Companies

The following key companies have been profiled for this study on the smart lighting market.

• Acuity Inc.

• Signify Holding

• Honeywell International Inc.

• Itron Inc.

• IDEAL INDUSTRIES, INC.

• Häfele America Co.

• Wipro Lighting

• YEELIGHT.

• Sengled GmbH

• Verizon

• Schneider Electric

Recent Development

• In January 2026, Philips Hue, a brand of Signify, showcased their latest developments related to AI-based smart lighting and smart home security solutions. The company revealed its first-ever generative AI assistant that works within the Hue application, allowing consumers to design individual lighting scenes using voice or text instructions based on their emotions, preferences, or events.

• In November 2025, IKEA Systems B.V. announced the launch of 21 new smart home products, related to three categories, including lighting, sensors, and control. This included a new smart bulb range, offered in various shapes, lumens styles, sizes, and dimming capabilities.

Smart Lighting Market Report Scope

Global Smart Lighting Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global smart lighting market report based on component, connectivity, application, and region:

• Component Outlook (Revenue, USD Million, 2021 - 2033)

  • Hardware

    • Lamp

    • Luminaire

  • Software

  • Services

• Connectivity Outlook (Revenue, USD Million, 2021 - 2033)

  • Wired

  • Wireless

• Application Outlook (Revenue, USD Million, 2021 - 2033)

  • Indoor

  • Residential

  • Commercial

  • Outdoor

  • Highways and Roadways

  • Architectural

  • Others

• Regional Outlook (Revenue in USD Million, 2021 - 2033)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE