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Connected Lighting Market Poised To Hit $21.41 Billion By 2030 With A 15.5% CAGR
The connected lighting market has experienced substantial growth in recent years. This market is projected to expand from $10. 45 billion in 2025 to $12. 04 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 15. 2%. Historically, this expansion has been propelled by several factors, including the increasing embrace of energy-efficient lighting technologies, accelerated urbanization alongside smart city development, a surge in commercial construction activities, the declining cost of LED lighting systems, and the early adoption of building automation systems in developed regions.
The connected lighting market size is expected to undergo rapid expansion in the coming years, with projections indicating growth to $21. 41 billion by 2030, at a compound annual growth rate (CAGR) of 15. 5%. This anticipated growth throughout the forecast period stems from factors such as increasing demand for net zero and green buildings, the expansion of smart city infrastructure projects, rising integration of IoT-enabled building systems, a growing focus on energy optimization and carbon reduction targets, and the increasing adoption of AI-driven facility management systems. Major trends foreseen during this period include the rising adoption of human-centric lighting systems to enhance occupant well-being and productivity, increased deployment of energy-efficient smart lighting in commercial buildings to reduce operational costs, greater integration of lighting systems with building automation platforms for centralized control, the expansion of wireless connected lighting solutions enabling flexible retrofitting in existing infrastructure, and the increasing use of occupancy and daylight sensors for adaptive lighting optimization.
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Connected Lighting Market Demand Drivers Opening New Revenue Streams
The increasing adoption of smart home systems is anticipated to drive the expansion of the connected lighting market going forward. A smart home system functions as a network of interconnected devices and appliances that can be remotely managed and automated to enhance convenience, security, and energy efficiency. These systems are becoming more prevalent primarily due to the greater convenience they offer, allowing users to control and automate household devices from a distance, which conserves time and simplifies daily routines. Connected lighting complements smart home systems by integrating with sensors and voice assistants to automatically adjust illumination based on occupancy, time of day, or user commands, thereby improving comfort and energy savings. For instance, in August 2024, GreenMatch, a UK-based online services provider, reported that as of 2023, approximately 5. 3 million households in the UK, making up about 19. 7% of all homes, utilized smart home products. This figure is projected to climb sharply, with nearly all homes, 98. 8%, expected to adopt smart devices by 2027. Consequently, the rising penetration of smart home systems is fueling the growth of the connected lighting market.
Connected Lighting Market Segment Analysis And Revenue Potential
The connected lighting market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Sales Channel: Direct Sales, Distributors Or Wholesalers, Online Retail, Electrical Contractors Or Integrators, Original Equipment Manufacturer Channels
3) By Deployment Type: Wired Connected Lighting, Wireless Connected Lighting
4) By Application: Indoor Lighting, Outdoor Lighting
5) By End User Industry: Commercial And Enterprise, Industrial And Manufacturing, Residential, Municipal And Public Infrastructure, Healthcare, Education, Transportation And Logistics, Utilities And Energy
Subsegments:
1) By Hardware: Smart Bulbs And Lamps, Control Modules And Switches, Gateways And Hubs
2) By Software: Lighting Control Platforms, Energy Management Software, Building Management Integration Software
3) By Services: Installation And Commissioning Services, Maintenance And Support Services, Consulting And System Design Services
Connected Lighting Market Trends Powering Strategic Industry Growth
Leading firms within the connected lighting market are concentrating on creating advanced solutions, including cloud-based lighting management, to facilitate centralized oversight, monitoring, and automation of lighting setups, thereby enhancing operational effectiveness, safety, and adherence to regulations. This cloud-based lighting management system leverages cloud computing technology to remotely supervise, manage, and fine-tune lighting networks by utilizing internet-connected hardware and software platforms. As an illustration, in June 2025, Signify N. V., a Netherlands-based lighting firm, introduced the Interact emergency lighting system, a wireless offering that allows building managers to oversee, track, and examine emergency lighting via a protected cloud-based interface. Fully integrated with the Interact building manager platform, this system autonomously conducts function and duration tests, issues health status notifications, and produces comprehensive compliance reports, all while accommodating various testing timelines. Such functionalities empower building operators to decrease manual involvement, lessen operational expenses, boost system dependability, and guarantee compliance with safety standards, simultaneously providing effortless control over both general and emergency lighting within a single, integrated connected infrastructure.
Connected Lighting Market Company Landscape And Competitive Strategy
Major companies operating in the connected lighting market are Signify N. V., Schneider Electric SE, Acuity Inc., Legrand SA, Eaton Corporation plc, Lutron Electronics Co. Inc., Honeywell International Inc., Samsung Electronics Co. Ltd., Panasonic Holdings Corporation, Hubbell Incorporated, Delta Electronics Inc., Zumtobel Group AG, Fagerhult Group AB, Helvar Oy Ab, Trilliant Networks Inc., Bajaj Electricals Limited, Leviton Manufacturing Co. Inc., Havells India Limited, Wipro Lighting Limited, Syska LED Lights Pvt. Ltd., Ubicquia Inc., Enlighted Inc., Schréder S. A., Dimonoff Inc., Flashnet S. A., CIMCON Lighting Inc.
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Connected Lighting Market Largest Region: Which Geography Holds The Highest Market Share?
North America was the largest region in the connected lighting market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the connected lighting market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
