The smart lighting market is led by Asia-Pacific with a 37.38% revenue share in 2025. The market is driven by rising focus on energy efficiency, smart cities, and connected buildings, with LED technology, IoT controls, and supportive regulations accelerating the shift from conventional to intelligent, demand-responsive lighting across several sectors.
Hyderabad, India, Feb. 17, 2026 (GLOBE NEWSWIRE) — According to a new research report published by Mordor Intelligence, the smart lighting market continues to demonstrate strong expansion, supported by rapid digital infrastructure development and rising demand for intelligent energy management solutions. The smart lighting market size reached USD 27.52 billion in 2026 and is projected to grow to USD 67.83 billion by 2031, registering a robust 19.77% CAGR during the forecast period.
The smart lighting industry is benefiting from increased investments in smart cities, automation of commercial buildings, and integration of lighting systems with IoT, AI, and cloud-based platforms. As organizations and municipalities prioritize energy optimization and sustainability goals, the smart lighting market growth outlook remains favorable across both developed and emerging economies.
Key Developments and Adoption Trends in the Smart Lighting Market
Utility Incentives Accelerating Smart Lighting Adoption: Utility-backed efficiency programs are playing a growing role in accelerating smart lighting adoption. Rather than expanding power generation capacity, utilities are increasingly prioritizing lighting upgrades as a cost-effective way to manage demand and stabilize grids. Incentive structures are also evolving, shifting beyond upfront rebates toward performance-driven models that reward facilities for flexibility and grid responsiveness. This approach is encouraging broader deployment of connected lighting systems, especially in commercial and institutional settings where energy optimization and demand management are critical.
Improving ROI Through Declining LED Costs: Falling LED prices are significantly improving the return on investment for smart lighting deployments. Advances in manufacturing efficiency and chip production have made high-performance LED fixtures far more accessible than in the past, while steady gains in light output efficiency continue to strengthen their value proposition. At the same time, incentive programs and supportive policies in select regions are accelerating adoption by lowering upfront costs and shortening payback timelines. Cities and large facilities are increasingly leveraging these improvements to modernize lighting infrastructure, reduce energy consumption, and justify faster upgrades. This downward cost trajectory is reinforcing demand across commercial, industrial, and public-sector applications.
Discover comprehensive insights and stay ahead of the latest industry trends, including the Japanese edition for in-depth localized analysis: https://www.mordorintelligence.com/ja/industry-reports/smart-lighting-market?utm_source=globenewswire
Table of Contents (Partial) – Smart Lighting Industry
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET LANDSCAPE
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Expanding Smart-Home Ecosystem Integration
- 4.2.2 Rapid LED Cost Reductions Improve ROI
- 4.2.3 Utility-Funded Demand-Side-Management Incentives
- 4.2.4 National Net-Zero Building Codes (2025-2030 Roll-outs)
- 4.2.5 and more
- 4.3 Market Restraints
- 4.3.1 Cyber-Security Vulnerabilities in Wireless Protocols
- 4.3.2 Fragmented Inter-Operability Standards
- 4.3.3 Supply Chain Volatility in Rare-Earth Phosphors
- 4.3.4 and more
- 4.4 Industry Value Chain Analysis
- 4.5 Regulatory Landscape
- 4.6 Technological Outlook
- 4.7 Porter’s Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Buyers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes
- 4.7.5 Degree of Competition
- 4.8 Impact of Macroeconomic Factors on the Market
5. MARKET SIZE AND GROWTH FORECASTS (VALUE)
- 5.1 By Product Type
- 5.1.1 Control Systems
- 5.1.2 Smart Lamps and Fixtures
- 5.2 By Installation Type
- 5.2.1 New Construction
- 5.2.2 Retrofit
- 5.3 By Connectivity Technology
- 5.3.1 Wi-Fi
- 5.3.2 Bluetooth
- 5.3.3 Zigbee
- 5.3.4 and more
- 5.4 By End-User
- 5.4.1 Residential
- 5.4.2 Commercial
- 5.4.3 Industrial
- 5.4.4 Other End-Users
- 5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 Europe
- 5.5.2.1 Germany
- 5.5.2.2 United Kingdom
- 5.5.2.3 France
- 5.5.2.4 Russia
- 5.5.2.5 Rest of Europe
- 5.5.3 Asia-Pacific
- 5.5.3.1 China
- 5.5.3.2 Japan
- 5.5.3.3 India
- 5.5.3.4 South Korea
- 5.5.3.5 Australia
- 5.5.3.6 Rest of Asia-Pacific
- 5.5.4 Middle East and Africa
- 5.5.4.1 Middle East
- 5.5.4.1.1 Saudi Arabia
- 5.5.4.1.2 United Arab Emirates
- 5.5.4.1.3 Rest of Middle East
- 5.5.4.2 Africa
- 5.5.4.2.1 South Africa
- 5.5.4.2.2 Egypt
- 5.5.4.2.3 Rest of Africa
- 5.5.5 South America
- 5.5.5.1 Brazil
- 5.5.5.2 Argentina
- 5.5.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration
- 6.2 Strategic Moves
- 6.3 Market Share Analysis
- 6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, and Recent Developments)
- 6.4.1 Signify N.V.
- 6.4.2 Acuity Brands Inc.
- 6.4.3 Hubbell Inc.
- 6.4.4 Eaton Corp.
- 6.4.5 Lutron Electronics Co. Inc.
- 6.4.6 Legrand SA
- 6.4.7 Cree Lighting USA, LLC
- 6.4.8 Samsung Electronics Co. Ltd.
- 6.4.9 Xiaomi Corp.
- 6.4.10 and more
7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK
- 7.1 White-Space and Unmet-Need Assessment
For details on other market segments and the full table of contents, visit – https://www.mordorintelligence.com/industry-reports/smart-lighting-market?utm_source=globenewswire
Smart Lighting Market: Global Adoption Trends
The Asia-Pacific region continues to play a central role in the smart lighting landscape, supported by large-scale manufacturing capabilities, rapid urban development, and advanced construction practices. While adoption remains strong, growth is gradually shifting from large replacement projects toward incremental upgrades, particularly in lighting controls and system optimization as early adopters mature.
In contrast, regions such as the Middle East and parts of Africa are emerging as faster-moving adopters, driven by government-led smart city programs and infrastructure mandates. These initiatives are accelerating the rollout of intelligent lighting across public spaces and road networks, creating momentum that offsets slower uptake in more cost-sensitive markets.
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Lighting Control System Market Growth – The lighting control system market is forecast to grow from USD 45.43 billion in 2025 to USD 51.15 billion in 2026 and reach USD 92.53 billion by 2031, at a CAGR of 12.6% during 2026–2031. Market growth is supported by energy-efficiency regulations, smart building adoption, and increasing use of IoT-based lighting solutions.
Signify (Philips Lighting), Acuity Brands, Legrand, Lutron Electronics, and ams OSRAM are the major companies operating in this market.
Read more about companies active in the lighting control system market: https://www.mordorintelligence.com/industry-reports/lighting-control-system-market/companies?utm_source=globenewswire
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