The global smart lighting market size was valued at USD 10.85 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 20.4% from 2021 to 2028. Ambient lighting using only a smartphone or tablet has increased its popularity and demand in commercial and residential spaces. Smart lights can be dimmed in a variety of hues as needed, can be scheduled on/off, monitor the lighting's energy usage, and connect via Wi-Fi, Bluetooth, SmartThings, Z-Wave or ZigBee.

Smart lighting is also known as connected lighting because it can be seamlessly integrated into IT networks in a building or city infrastructure to share information about operational status. Smart lights are often integrated with sensors, turning them into a smart device point to gather information about activity patterns, daylight levels, occupancy, temperature changes or humidity. This information has proven crucial for government departments to take appropriate action and monitor cities for unwanted activity.

Government policies to encourage energy conservation and environmental protection, as well as strict regulations that discourage the use of incandescent lamps, are expected to boost demand for LED smart lighting. The global lighting industry consumes approximately 19% of total electricity and generates approximately 6% of greenhouse gas emissions. In contrast, LED smart lights are highly efficient. They consume almost 70% of energy and connect devices to collect information for future processes. They last significantly longer and do not contain any mercury content. Likewise, LED lights do not emit harmful greenhouse gases. Therefore, LED technology has the potential to revolutionize the entire lighting industry and penetrate into the smart lighting field, where LEDs are the first choice for suppliers and consumers.

Additionally, penetration of smart lights is expected to increase due to advantages including controlled power usage, longer lifespan, multiple light settings within a single lamp/luminaire, and availability of a wide range of modern decorative lighting products. The adoption of smart lighting in residential, commercial and industrial sectors has yet to reach its full potential. Hence, various government initiatives to promote the use of LED-based smart lights are expected to increase their demand over the forecast period.