The CSIL report “The worldwide market for connected lighting” (February 2024) is a first an in-depth analysis of connected lighting segment as a relevant and emerging business in LED lighting market.

Connected lighting is described as the connection of lighting fixtures, controls, and sensors to a local network that can be monitored and controlled, either wired or wireless, through a dashboard accessed by a computer, tablet or smartphone. As just one piece of the extensive Internet of Things (IoT) field, the lighting system may also interact with other building systems, such as HVAC and security systems.

The worldwide market for LED lighting fixtures and lamps worth around USD 85 billion for the year 2023. About 14% of this value is estimated to be represented by “Connected Lighting”. The value of connected lighting products almost doubled over the last five years, posting an average annual growth of +17%.

Professional indoor lighting is currently the segment where connected lighting solutions show the highest penetration, followed by outdoor lighting. The incidence is by far below in residential indoor lighting and lamps.

Geographically, the share of connected lighting on total LED lighting market is quite similar in Europe and North America, while is lower in Asia-Pacific.

The evolution of the connected lighting is closely linked to energy-saving policies. The demand for these products will increase significantly in the coming years, partly due to the supports provided by governments to achieve environmental targets. The potential for the reduction of energy consumption is significant when the luminaires are networked into a smart system with the use of sensors and dimming profiles. The lighting is only activated when it is really needed. This limits light pollution to a minimum.

SENSORS AND INTEROPERABILITY

Lighting control sensors can be wireless, wired or hybrid and all of these delivers impactful energy saving, automation benefits, maximising efficiency and data achieving for detailed reporting and analysis.

The smart sensor is any device that can process inputs from the surrounding physical environment, which may include electrical, physical, or chemical variables and is a crucial and integral element in internet of things. It is designed to execute various predefined functions, storing and reprocessing data before transmitting it in a digital format to external sources.

According to a CSIL survey respondents, “Dimmable” and “Presence/Motion” sensors are currently the most mentioned options, immediately followed by “Daylight/Ambiance” and “Timer/Clock/Calendar”.

Especially in the office and commercial sector, connected lighting has a high-impact providing digital solutions, data-driven insights, customization, and control to improve their occupant experience and energy efficiency. However, like many advances in technology, there may be some initial barriers to overcome for an industry to hit its potential and open-up widespread adoption.