Indoor Lighting Management Market - Size, Share, Industry Trends, and Forecasts (2024 - 2032)

By Component:

Based on the Component, the market is categorized into Hardware, Software, and Services.

Indoor lighting management systems rely on a combination of hardware, software, and services to control and optimize lighting in buildings. Hardware includes lighting fixtures, sensors, and controllers, while software provides control, monitoring, and analysis capabilities. Services range from system design and installation to ongoing maintenance and support. Lighting control systems significantly reduce energy consumption by adjusting lighting levels based on occupancy, daylight availability, and other factors. By providing customized lighting levels and color temperatures, these systems can enhance the comfort and productivity of occupants.

Trends in the Component:

• Rising trend towards the adoption of Cloud-based software solutions for remote monitoring, management, control, and analysis of lighting systems across multiple locations.
• Software is leveraging data analytics and AI/ML algorithms to optimize energy consumption, predict maintenance needs, personalize lighting experiences, and automate lighting schedules.

Hardware accounted for the largest revenue share of 65.38% in 2024.

The hardware segment, encompassing crucial elements like sensors, controllers, and lighting fixtures, forms the backbone of indoor lighting systems. Sensors enable efficient lighting control by detecting occupancy, ambient light, and motion, while controllers manage operations based on this data. The rising adoption of energy-efficient LEDs, coupled with sophisticated sensors and controllers for optimized energy consumption, fuels the demand for these hardware components, thereby boosting the indoor lighting management market size.

• For instance, in Dec 2020, OSI Systems' Optoelectronics and Manufacturing division has secured a USD 6 million order to supply smart grow light controllers to a major original equipment manufacturer (OEM).

Thus, as per the indoor lighting management market analysis, the aforementioned factors are driving hardware segment.

Services are also projected to register the fastest CAGR during the forecast period.

The services segment, including essential installation, maintenance, and consulting, is crucial for the successful deployment and operation of increasingly complex indoor lighting management systems, especially in commercial and industrial settings. As organizations seek to optimize efficiency and save costs, the demand for expert guidance and ongoing support for integrated lighting solutions is rising, leading to rapid growth in this sector. Thus, as per the indoor lighting management market analysis, the aforementioned factors are driving the services segment.

By Technology:

Based on the Technology, the market is classified into Wired Lighting Control Systems, Wireless Lighting Control Systems, and IoT-based Lighting Control Systems.

Wired, wireless, and IoT-based lighting control systems offer different approaches to managing indoor lighting, each with its own advantages and disadvantages. Wired systems use physical wiring for communication, while wireless systems rely on radio frequencies, and IoT systems integrate smart devices and networking to control lighting remotely.

Trends in the Technology:

• Continued reliance on established wired protocols like DALI, KNX, and BACnet for robust and secure communication, integrating with digital controls for enhanced functionality and energy efficiency.
• The rise of hybrid systems that combine wired and wireless components to leverage the strengths of both.

Wireless Lighting Control Systems accounted for the largest market share in 2024.

There is a continued dominance of protocols like Z-Wave, Zigbee, Wi-Fi, and Bluetooth Low Energy (BLE) for various applications. With Z-Wave currently strong in residential and BLE and Zigbee gaining traction due to their low power consumption and mesh networking capabilities. Additionally, user-friendly mobile applications and web-based dashboards for intuitive control, scheduling, customization, and monitoring of wireless lighting systems.

• For instance, in Feb 2022, Daintree released new wireless wall dimmers and switches offering simple and scalable room-based lighting control. These controllers are available in a 2-button version for easy dimming and a 4-button version for programmed scene-based light adjustments tailored to specific tasks within space.

Thus, as per the indoor lighting management market analysis, the aforementioned factors are driving the wireless lighting control systems segment.

IoT-based Lighting Control Systems is projected to register the fastest CAGR during the forecast period.

Utilizing data collected from connected lighting devices and sensors to gain insights into energy usage, occupancy patterns, and system performance, with AI/ML algorithms enabling predictive maintenance, personalized lighting, and optimized energy savings. Additionally, seamless integration with other IoT-enabled systems within smart cities and buildings, such as HVAC, security, energy management, and building management systems (BMS), for holistic automation and control. Thus, as per the indoor lighting management market analysis, the aforementioned factors are driving IoT-based lighting control systems segment growth.

By Control Type:

Based on the Control Type, the market is divided into Dimming Control, Occupancy-Based Control, Daylight Control, Color Control, and Others.

In indoor lighting management, control types like dimming, occupancy-based, daylight, and color control are commonly used. Dimming control allows users to adjust the brightness of lights to suit their needs or the environment. Occupancy-based control uses sensors to detect presence and automatically turn lights on when someone enters a space and off when the space is unoccupied, saving energy. Daylight control system integrates natural light from windows and adjusts artificial lighting accordingly, optimizing energy consumption and daylight utilization. Color control allows for adjusting the color temperature of the light (e.g., from warm yellow to cool blue), creating different moods or atmospheres. Beyond these main categories, other lighting control types include time-based controls, manual controls, and networked lighting systems.

Trends in the Control Type:

• Increasing trend of more accurate and spectrally sensitive photosensors that can precisely measure daylight levels and adjust artificial lighting accordingly.
• Advancement in both closed-loop (sensor measures total light in the space) and open-loop (sensor measures external daylight) systems, with more intelligent algorithms to optimize the balance between natural and artificial light.

Dimming Control accounted for the largest revenue in the market in 2024.

Dimming control, the ability to adjust light brightness for specific needs, is a leading technology in indoor lighting management due to its significant energy-saving potential and ability to create adaptable lighting environments in both commercial and residential spaces. Its effectiveness, especially with LEDs which benefit from extended lifespan and precise illumination control, coupled with the increasing demand for energy efficiency and adaptive lighting, drives its widespread adoption.

• For instance, in Aug 2022, Wemo introduced a new Smart Dimmer that utilizes Thread technology, providing users with a faster and more reliable connection for controlling their lights remotely via the Home app, Wemo Stage, or Siri voice commands.

Thus, the aforementioned factors are driving the market.

Occupancy-Based Control is predicted to register the fastest CAGR during the forecast period.

Occupancy-based control systems, automatically adjust lighting based on detected presence, are gaining rapid traction as a key energy-saving solution, especially in intermittently used spaces like meeting rooms and restrooms. Driven by the increasing emphasis on energy conservation and the rise of smart building technologies, organizations are increasingly adopting these automated systems to optimize energy usage and reduce operational costs, leading to significant market growth. Subsequently, the above-mentioned factors are contributing notably in spurring indoor lighting management market expansion.

By Application:

Based on the Application, the market is divided into Commercial, Residential, and Industrial.

Indoor lighting management in commercial, residential, and industrial spaces focuses on optimizing lighting for energy efficiency, user comfort, and operational costs. Offices, retail stores, and warehouses benefit from lighting control systems that optimize lighting for specific tasks and create a comfortable environment for employees and customers. Homes utilize various lighting types like ambient, task, accent, and decorative lighting to enhance aesthetics and create a functional living space. Factories and warehouses require robust and efficient lighting to ensure safety, productivity, and compliance with safety regulations.

Trends in the Application:

• Increasing trend of lighting with other smart home devices and platforms (Amazon Alexa, Google Home, Apple HomeKit) for voice control, automation, and centralized management.
• Growing trend minimizing energy consumption in large industrial facilities through LED upgrades, occupancy-based controls in storage areas and low-traffic zones, and daylight harvesting in areas with natural light access.

Commercial accounted for the largest revenue in 2024 and is also projected to register the fastest CAGR.

The commercial sector in indoor lighting management is focused on creating productive and comfortable environments through Human-Centric Lighting (HCL) and smart, integrated lighting systems connected via IoT for optimized energy efficiency and centralized control. There's a strong drive towards personalized and flexible lighting solutions that can be adapted to various tasks and preferences, alongside a significant emphasis on aesthetic design and the retrofitting of outdated systems to meet green building standards and reduce operational costs.