LED smart lighting market structure

The LED smart lighting market is divided into three parts, namely hardware, software and services. The hardware segment leads the market with a revenue share of more than 57% in 2020. Smart lighting hardware has been further classified into lamps and luminaires, of which the smart lamp segment will show high growth potential from 2021 to 2028. The demand in the hardware sector is attributed to the proliferation of connected light bulbs and lamps that can use control devices such as smartphones or tablets to change the color tone, dim the lights, and turn on/off.

The software segment is expected to achieve the highest compound annual growth rate during the forecast period. The demand for smart lighting is due to the increasing use of smart lighting in key areas to meet data-driven needs. In addition, every brand needs software applications to facilitate the use of smart phones or tablets to control lights. These apps also help to connect smart lights with smart platforms such as Alexa, Crotona, and Siri for control using voice commands. The huge popularity of creating an environmental atmosphere and helping data collection in smart cities is expected to drive the growth of market segments during the forecast period.