The lighting industry has entered a dynamic period of growth and potential. New technologies emerging in recent years have enabled a wide range of innovative strategies, from room-level intelligence of occupancy and daylight sensing to building-wide coordination of a fully networked system. Lighting technologies have been used to supplement and complement natural light in various applications. Smart lighting is an emerging technology which is more energy efficient than other technologies, more environment friendly, has longer operational life, and also produces better light output. This technology is expected to be the future of global lighting. The total smart lighting market was USD 2.28 billion in 2014 and it is expected to reach USD 8.14 billion by 2020, at a CAGR of 22.07% between 2015 and 2020.

The commercial end user occupied the largest market share of 45% in 2014, while the residential end users are expected to grow at the highest CAGR of 27.25% between 2015 and 2020. The development of smart homes across the world is creating opportunities for smart lighting manufacturers in residential end user market. It was found that energy management is the key factor that is driving the market for smart lighting controls in residential applications. The U.S. Department of Energy (DOE) and the European Union have initiated awareness campaigns to ensure energy saving in their respective countries to increase the adoption of smart lighting technologies. Further, it is expected that by 2020 the market for residential end users would occupy a prominent share in the smart lighting market.

With most of the expansions and infrastructural modernization programs initiated in emerging Asian countries, the smart lighting manufacturers are anticipating the Asian region as lucrative avenue for their growth. The emerging Asian economies such as India and China are emerging markets for smart lighting as there is more scope of expansion than the matured countries, namely, the U.S., Germany, and the U.K. Additionally; government initiatives are also playing a key role in developing smart lighting market in these economies. For instance, the government has initiated several plans such as development of smart cities and intelligent traffic lighting system which are expected to boost the smart lighting market in the region.  It is therefore analyzed that the growing market for residential end users and the economy modernization initiatives in the Asian region are the key revenue pockets for smart lighting companies.