According to a new report from Arizton Advisory & Intelligence, the global lighting control system market is expected to grow at a CAGR of approximately 19% and exceed revenues of USD $26 billion during the period from 2020−2026.
According to Arizton's analysis, key drivers and trends fueling the market's growth include: demand for lighting control in street lights; rising demand from the retrofit market; growing penetration of luminaire-level lighting control; and increasing demand for energy-efficient lighting.
The firm's new global lighting control system market report provides in-depth analysis and data-driven insights, including the impact of the COVID-19 pandemic.
Key highlights from the report, directly according to Arizton's analysts, include the following:
- "In 2020, the APAC region dominated the global lighting control system market, accounting for around 42% share by revenue. India is expected to witness strong traction in demand for lighting control systems during the forecast period.
- Burgeoning population, increasing affordability of consumers, rising awareness, and significant shift in lifestyle is expected to fuel the demand for lighting control systems during the forecast period.
- Wired lighting control systems dominate the market; however, wireless lighting control systems are expected to grow at a CAGR of approximately 20%.
- Vendors are creating marketing strategies based on the lifecycle and payback of lighting control systems. The competitive environment in this market is likely to intensify further with an increase in product/service extensions, technological innovations, and M&As.
- In terms of installation, the global lighting control system market has been broadly classified into new and retrofit installations. Presently, the market is dominated by new installations accounting for around 78% share in 2020.
- In terms of offerings, the global lighting control system market was dominated by hardware, which accounted for over 70% share in 2020. Hardware comprises the foundation of lighting control systems with the installation of components such as drivers, sensors, dimmers, and many more.
- One of the key restraints hampering the growth of the global lighting control system market is the high initial cost of installation and lack of awareness about energy efficiency among end-users.
- A surge in the number of market vendors has provided customers with a wide variety of options to choose from, and this has led to intense competition amongst vendors with a task to not just acquire customers, but even retain them.
- As the price of LED bulbs is constantly decreasing, its adoption is increasing in the residential and commercial sectors. The commercial sector is expected to dominate the market during the forecast period. Moreover, the rising disposable income of people and the growing real estate industry are expected to further drive market growth."
Regarding the global lighting control system market's segmentation, the new report finds that wired communication protocols account for over 70% share in the market largely due to their high safety and reliability. The indoor segment dominates market share, accounting for over 90% of the market with an expected growth of over 18% during the forecast period. The outdoor segment constituted approximately 8% share of the global market in 2020; however, it is projected to grow at a fast CAGR of over 23% during the forecast period.
Meanwhile, the analyst finds that increased focus by government agencies toward efficient energy usage and reduced carbon emission are spurring initiatives to incorporate highly efficient lighting systems in outdoor settings. The hardware lighting control system market is projected to reach approximately USD 18 billion by 2026. The hardware segment accounts for over 70% share in the market, states Arizton. Increasing installation of LED-based systems by government agencies to achieve energy efficiency and reduce operational expenditure is likely to continue to drive demand for hardware components, adds the firm.
In terms of the market's geographical highlights, the analyst states that the APAC region accounted for the highest share of over 40% in the global lighting control system market in 2020. Arizton says several major factors are contributing to the dominating position of APAC in the market, including "the presence of some of the most populous countries, high penetration of LED in countries such as Japan and China, and a huge base for electrical equipment production and consumption."
The analyst notes that Asia is the major global production base for the LED industry and home to three countries with the highest LED revenue: Japan, South Korea, and China. Further, the growth in construction and infrastructural development in the region is due to its booming population, which, in turn, is fueling the demand for lighting control systems.
In terms of market dynamics, Arizton's executive summary states that:
IoT is quickly expanding and increasingly being integrated into commercial structures. Communication between the lighting system, users, the environment, and other devices is possible with IoT lighting control systems. The adoption of IoT in the lighting market is expected to accelerate significantly in the coming years, and the growth of connected devices will have a significant effect on the lighting control system market as more commercial buildings install these systems.
The research notes how, in recent years, the transition from traditional lighting controls to intelligent lighting controls has occurred due to the shift to solid-state lighting (SSL). The report highlights how a variety of lighting control systems are available in the market; and jow both wireless systems such as ZigBee and Bluetooth Smart, and wired technologies such as Power over Ethernet (PoE), are currently being integrated.