- The valuation stood at $10 billion in 2018
- Omdia said that smart lighting can enable “human centric lighting”
The worldwide sales of smart-lighting and connected control systems are expected to reach $21 billion in 2023, more than doubling from $10 billion in 2018 as per Omdia. It said that sales of residential do-it-yourself (DIY) smart lighting systems will be one of the most important factors driving market revenue growth. It will also raise awareness of the concept of smart lighting.
Pal Karlsen, research analyst, building technology, at Omdia said, “Smart lighting technology is becoming more accessible to consumers thanks to the growing availability of simple DIY smart-lighting systems. However, there are a few barriers preventing mass adoption. The main obstacle is arguably the lack of awareness and appreciation of the benefits smart lighting can provide to the consumer. This is a critical factor preventing the business from reaching its full growth potential.”
“Human centric lighting”
Omdia said that smart lighting can enable “human centric lighting”. This allows for customised lighting conditions in the home to help improve residents’ sleep, productivity, and comfort.
Karlsen added, “Health benefits can be a very strong argument in favor of making an investment in a smart lighting system, but manufacturers have not been able to effectively share this message with consumers. Manufacturers will need to dedicate more effort to educating customers about the real-life benefits of smart lighting systems. This educational outreach can include real case-studies and results from scientific studies or consumer tests where the benefits of smart lighting have been demonstrated.”
As per Omdia, the emergence of the smart lighting market is directly linked to the rapidly increasing adoption of LED lighting technology. This, in turn, is driven by demand for energy efficiency. It said that lighting manufacturers have tried to refocus their marketing activities on benefits beyond energy savings. They have tried to position their products as part of the “IoT revolution.”
Do-it-yourself ( DIY) solutions
These companies introduced many smart-lighting solutions for residential end-users. the cost of set-up and installation service is very high and not many families can afford the luxury of a professional smart lighting system. This made the manufacturers introduce simple, highly affordable Do-it-yourself ( DIY) solutions that do not require professional installation.
Omdia says that traditionally consumers have purchased DIY smart lighting systems that include a dedicated hub or a gateway priced around $30-$60 that can control smart light bulbs. Simpler solutions exist too with simpler solutions where users can control the lights directly through their tablets or phones via Wi-Fi or Bluetooth connections.
Wider smart home ecosystem
Omdia adds, “Lighting manufacturers can capitalize on the opportunity of residential DIY smart lighting systems by offering easily accessible solutions that highlight the benefits of human-centric lighting, including improved wellbeing and comfort at home. The ability to use voice commands through smart assistants is another key factor driving successful product adoption. Connectivity through easily accessible wireless technologies such as Wi-Fi or Bluetooth and compatibility with the wider smart home ecosystem are important factors necessary to the long-term success of consumer-grade smart lighting solutions. “
The growing popularity of smart speakers embedded with digital assistants is expected to enable users to control their smart lights with voice, without the need for a separate hub as per Omdia. This reduces the costs of acquiring a smart-lighting system as many users already have a smart speaker at home