Asia-Pacific Smart Lighting Market Outlook, 2028

Asia Pacific is expected to emerge as a prominent region owing to the surging demand from the commercial and residential application segments. The growing need for internet of things (IOT) technology, rising consumer and government awareness about energy savings, and the emergence of light fidelity (Li-Fi) technology are the primary factors driving market expansion. The demand for energy-efficient connected lighting controls, as well as ongoing and upcoming smart city projects, as well as various policies encouraging energy conservation and environmental protection, combined with stringent regulations discouraging the use of incandescent lamps in developing economies, will exacerbate the market value. Commercial businesses' increased usage of smart and automated technologies is consequently likely to fuel market growth. However, the market is hampered by the high initial cost of integration and installation services, deployment, smart equipment, and accessories. Furthermore, energy-efficient lighting solutions, expanding smart office and smart retail trends present new chances for market growth during the projection period. The security and reliability challenges of smart, IOT-based lighting systems will slow expansion, posing a challenge to the market. The demand for smart lighting is increasing as people attempt to modernise their home lighting systems. These systems can provide convenience and security benefits in addition to being more effective and user-friendly. LED technology is also gaining favour among customers due to its extended lifespan and low energy consumption. Today's market provides a variety of smart lighting solutions, ranging from traditional light bulbs to fixtures that can be controlled by smartphone apps. Since the emergence of AI and the Internet of Things (IoT), the world has been progressing towards a "Smart World" with smart buildings, technologies, and cities, among other things. Smart lighting allows control of both interior and outdoor lights via smartphones, tablets, or intelligent assistants such as Alexa. Furthermore, many industry participants in the Asia Pacific smart lighting market are considering combining smart lighting technology with numerous Asian governments' Smart City Missions, including Japan, China, and India.

According to the research report, “Asia-Pacific Smart Lighting Market Outlook, 2028” published by Bonafide Research, the market is growing at a rapid CAGR of 23.19% for 2023-28. The Asia-Pacific region has seen a surge in the adoption of Internet of Things (IoT) technologies, which has greatly influenced the evolution of smart lighting. Smart lighting systems are now integrated with IoT platforms, enabling connectivity and control through smartphones, tablets, or voice assistants. This connectivity allows users to remotely manage and personalize their lighting settings, monitor energy usage, and integrate lighting with other smart devices. The Asia-Pacific region has witnessed rapid urbanization and the development of smart cities. Smart lighting plays a vital role in these initiatives, contributing to energy efficiency, safety, and enhanced quality of life. Governments and city planners are increasingly implementing smart lighting systems in public spaces, streets, and infrastructure to optimize energy consumption, improve lighting quality, and enable features like adaptive lighting, motion sensing, and remote monitoring. Energy efficiency is another key driver of smart lighting adoption in the Asia-Pacific region. With a growing emphasis on sustainability and reducing carbon footprints, smart lighting offers significant energy-saving benefits. Lighting systems with features like occupancy sensors, daylight harvesting, and automated dimming are being widely deployed in commercial buildings, offices, and public spaces to optimize energy usage. Governments and regulatory bodies in the region have also implemented energy efficiency standards and labelling programs for lighting products, further promoting the adoption of smart lighting solutions.

Smart lighting has evolved to be an integral part of building automation systems in the Asia-Pacific region. It is seamlessly integrated with other building systems, such as HVAC (heating, ventilation, and air conditioning), security, and access control. Integrated systems allow for centralized control, energy optimization, and data analytics. Building automation platforms are increasingly incorporating lighting control and management, offering advanced features like scheduling, occupancy-based control, and real-time monitoring. Smart lighting systems in the Asia-Pacific region have evolved to provide greater customization and personalization options. Users can easily adjust lighting levels, colors, and ambiance to suit their preferences, creating personalized lighting scenes and moods. The availability of smart lighting products with tunable white and RGB color options has enabled users to tailor lighting based on their activities, time of day, or desired atmosphere. As technology advancements continue, the cost of smart lighting components has reduced, making them more affordable and accessible to a wider range of consumers in the Asia-Pacific region. This affordability factor has contributed to increased adoption in residential applications, leading to greater penetration of smart lighting in homes and apartments. The Asia-Pacific region has seen the emergence of local market players and innovative solutions in the smart lighting sector. These companies have developed region-specific products, addressing the unique needs and preferences of the local market. This has led to the introduction of smart lighting products and solutions that cater to diverse cultural, architectural, and environmental aspects of the region. Based on the offerings, hardware segment is estimated to lead the market by the end of the forecast period.

In 2022, China held the higher market share, and India was the fastest-growing in the Asia-Pacific region. Rising demand for intelligent solutions for street lighting systems in countries such as India, China, and Japan is propelling the region's market revenue development. Smart lighting for indoor applications is becoming more popular as the demand for more energy-efficient lighting solutions for commercial, industrial, and residential facilities grows. Street lighting in nations such as India has been evolving due to the introduction of government programmes such as smart city projects such as Mission, UJALA, and the Street Lighting National Programme, which is driving market revenue growth in this area. The fast adoption of the smart homes concept is expected to boost the growth of the smart lighting industry. As people become more aware of the benefits of home automation and the convenience it provides, smart homes are becoming increasingly popular in India. Smart lighting is an important component of home automation systems because it provides energy-efficient, adjustable lighting solutions that can be managed remotely via a smartphone or other device. Furthermore, the Indian government has initiated a number of efforts to encourage the use of energy-efficient lighting solutions, such as smart lighting systems. On the other side, global tech behemoths such as Google and Amazon have launched a slew of smart home goods customised to the Japanese market. Despite the gloom surrounding the country's decreased Y-o-Y penetration rate of traditional home appliances, the smart home market promises boundless possibilities in the future, owing to the increasing integration of AI-powered products and services in households.

The smart lighting demand in the Asia Pacific is largely influenced by the changing scenario of lighting across commercial sectors. The increasing commercial building construction for office, retail, and entertainment is creating an opportunity for fresh demand for smart lighting. However, the onset of the COVID-19 pandemic affecting construction activities during the initial days is expected to inhibit the expected growth in demand for smart lighting. The increasing adoption of the Internet of Things (IoT) is expected to brighten the development of the lighting market in China, thereby increasing the growth of connected smart lighting systems in the country. The market for smart lighting in the country is also driven by the increased adoption of smart devices, including smartphones, due to their ability to connect conveniently to IoT devices. Japan Smartphone Security Association (JSSEC) estimates that the number of smartphone users in the country may reach 68.8 million by 2022. The increasing demand for smart lighting solutions in the region is further fuelled by the rising urbanization, and advancements in the internet connected devices. This impressive growth is attributed to the increasing use of smart lighting in commercial and industrial settings, which in turn has resulted in high demand for wired connectivity in this market. Furthermore, the market is expected to witness higher adoption of smart technologies such as Internet of Things (IoT), Artificial Intelligence (AI) and Machine Learning (ML) in the coming years.

The Asia-Pacific region is experiencing rapid urbanization, with a significant number of new construction projects and urban developments. New installations offer the advantage of incorporating smart lighting systems during the initial construction phase. This allows for seamless integration of smart lighting components into the building's infrastructure, including wiring, controls, and fixtures. New installations provide the opportunity to design lighting systems from scratch, ensuring optimal placement, functionality, and scalability of smart lighting solutions. The Asia-Pacific region is also witnessing a surge in Greenfield projects, where new buildings and infrastructures are constructed in previously undeveloped areas. Greenfield projects provide a clean slate for implementing advanced technologies, including smart lighting. By incorporating smart lighting systems from the beginning, developers and building owners can leverage the benefits of energy efficiency, automation, and customization right from the start. New installations in Greenfield projects allow for comprehensive planning and integration of smart lighting with other building systems. Many countries in the Asia-Pacific region have stringent energy efficiency regulations and sustainability goals. New installations provide an opportunity to comply with these regulations from the outset by incorporating energy-efficient smart lighting systems. Building codes and standards often require the use of energy-efficient lighting solutions in new constructions, driving the adoption of smart lighting technologies. New installations enable the implementation of advanced energy-saving features, such as occupancy sensors, daylight harvesting, and adaptive lighting controls.

Growing adoption of smart lightings in commercial, infrastructural, automobile and industrial sectors, presence of several lighting majors, availability of novel technologies, and stringent regulations pertaining to energy efficiency, among others, are the major factors that would drive the market growth in the developed regions. Governments in the Asia-Pacific region are providing support and incentives for the adoption of smart technologies, including smart lighting, in new constructions. These incentives may include tax benefits, grants, and subsidies for incorporating energy-efficient and sustainable technologies. The availability of government support encourages developers and building owners to choose new installations of smart lighting systems to capitalize on these incentives. The Chinese government has launched several initiatives to promote energy efficiency and smart lighting. The Ministry of Housing and Urban-Rural Development (MOHURD) has implemented regulations and standards that encourage the use of energy-efficient lighting systems, including smart lighting, in new construction projects. The government also provides financial incentives and subsidies to promote the adoption of energy-efficient technologies, which can be applied to smart lighting installations. In Japan, the government has implemented the Top Runner Program, which sets energy efficiency standards for various products, including lighting. The program encourages the adoption of energy-efficient lighting technologies, including smart lighting solutions. The government also offers financial incentives and subsidies to promote energy efficiency in buildings, which can be utilized for smart lighting installations.

Recent Product Launches:
• Philips Hue is a popular brand of smart lighting products that offers a wide range of smart bulbs, light strips, and fixtures. These products are known for their compatibility with various smart home platforms and voice assistants, allowing users to control their lighting with ease. Philips Hue has introduced its products in several countries across the Asia-Pacific region, catering to both residential and commercial markets.
• Xiaomi, a prominent Chinese technology company, has launched its Yeelight range of smart lighting products. Yeelight offers a variety of smart bulbs, lamps, and light strips that can be controlled through mobile apps or integrated with voice assistants. Xiaomi Yeelight products are known for their affordability, ease of use, and compatibility with popular smart home platforms.
• Tuya Smart is an AI-powered IoT platform that offers a range of smart lighting products, including bulbs, switches, and lighting controls. Tuya's products are known for their compatibility and integration capabilities, allowing users to control their lighting through mobile apps, voice commands, or automation routines. Tuya Smart has partnered with various lighting manufacturers across the Asia-Pacific region to bring smart lighting solutions to the market.

Considered in this report

• Geography: Asia Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Countries covered in the report:

• China
• Japan
• India
• Australia
• South Korea

Aspects covered in this report

• Asia Pacific Smart Lighting market with its value and forecast along with its segments
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offerings:

• Hardware (Lights and Luminaires and Lighting Controls)
• Software
• Services

By Application:

• Indoor
• Outdoor

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Manmayi Raval

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By Indoor Application:

• Commercial
• Residential
• Industrial
• Others

By Outdoor Application:

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• Highways & Roadways
• Architectural Lighting
• Light for public places

By Installation Type:

• New
• Retrofit

By Communication Technology

• Wired Technology
• Wireless Technology

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Smart Lighting industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.