Connected Lighting Systems Market | Size, Growth Forecast, Market Share 

Market Summary and Growth Forecast

The global Connected Lighting Systems Market is valued at $18,420 million in 2026 and is expected to appreciate to $48,760 million by 2035, at a CAGR of 11.4%. The market covers network-enabled lighting products and control platforms that allow luminaires, sensors, gateways, software, and building-management systems to communicate and operate as an integrated lighting environment. In 2026, the market is moving beyond basic remote lighting control. Buyers increasingly view connected lighting as an operating layer for energy management, occupancy intelligence, building automation, and workplace optimization.

Market Indicator	2026	2035
Global market size	$18,420 million	$48,760 million
CAGR	—	11.4%
Connected lighting penetration in commercial building projects*	~24%	~48%
Software and connected-control component of market*	~21%	~29%

Analyst estimates based on market structure and adoption patterns.

Several forces are shaping this trajectory. LED adoption has created the hardware base needed for digital control, while wireless connectivity has reduced the installation burden associated with traditional wired building-control networks. Bluetooth Mesh, Zigbee, Wi-Fi, Thread, and other communication approaches are giving system designers more flexibility across new construction and retrofit projects.

Energy efficiency remains a major commercial consideration. Lighting can represent a meaningful portion of electricity consumption in commercial facilities, so automated dimming, scheduling, occupancy-based control, and daylight harvesting can offer a direct route to lower operating costs. Building owners are also under pressure to improve energy performance as efficiency standards and building-performance requirements become more demanding across major markets.

The production ecosystem is becoming more software-oriented as well. Suppliers are moving from selling individual luminaires toward complete combinations of lighting hardware, sensors, connectivity modules, control software, commissioning services, and analytics. This changes the revenue model and creates opportunities for recurring software and service income.

The strongest customer base includes commercial offices, retail chains, hotels, hospitals, industrial facilities, warehouses, educational institutions, airports, and large residential developments. Municipalities and infrastructure operators are another important client group, particularly for connected outdoor and street-lighting deployments.

Expert view: “The commercial case is shifting from smarter lights to smarter buildings. Over time, lighting networks are likely to be valued less as standalone electrical assets and more as a distributed sensing and control infrastructure.”

The market outlook through 2035 therefore rests on three linked developments: continued LED conversion, wider deployment of building automation, and stronger demand for measurable energy and operational savings. That combination should keep connected lighting among the more strategically relevant segments of the broader smart-building ecosystem.

Market Segmentation and Forecast Scope

The Connected Lighting Systems Market can be evaluated across four primary dimensions: product type, application, end user, and geography. Each dimension reflects a different part of the purchasing decision and helps identify where adoption is moving fastest.

By Product Type

This segment includes connected luminaires, lighting control systems, sensors, gateways and communication devices, and software/platform solutions.

Connected luminaires account for a substantial portion of current spending because they form the physical foundation of a networked lighting installation. However, control platforms and software are gaining strategic importance. Buyers increasingly want centralized configuration, energy monitoring, automated schedules, device diagnostics, and integration with wider building-management systems.

In 2026, connected luminaires are estimated to represent 36.8% of global market revenue. The fastest-growing opportunity is expected to be software and connected-control platforms, supported by demand for analytics, remote management, and integration with building automation.

By Application

Applications include commercial buildings, industrial facilities, residential buildings, outdoor lighting, hospitality, healthcare, education, retail, and transportation infrastructure.

Commercial buildings remain a core application because they combine large lighting footprints with relatively high energy-management potential. Offices, retail locations, and hospitality properties also benefit from occupancy-based control and centralized management.

Industrial and warehouse environments represent a particularly strategic growth area. High ceilings, long operating hours, large floor areas, and variable occupancy make automated lighting control financially attractive. For example, a distribution facility can combine occupancy sensors with scheduling and zone-based dimming instead of operating every lighting zone at full output throughout the working day.

By End User

The end-user landscape spans building owners, facility-management companies, commercial enterprises, industrial operators, municipalities, residential developers, and system integrators.

Large commercial and industrial organizations are likely to remain early adopters because they can justify connected-lighting investments through energy savings and centralized operational control. System integrators also have an increasingly important role because many deployments require interoperability between lighting networks, HVAC controls, security systems, and building-management platforms.

By Region

The regional framework comprises North America, Europe, Asia Pacific, and LAMEA.

North America has a mature commercial building-automation ecosystem and strong demand for retrofit solutions. Europe benefits from energy-efficiency priorities, building modernization, and sustainability-focused investment. Asia Pacific offers the strongest volume opportunity because of urban development, commercial construction, industrial expansion, and large-scale infrastructure investment. LAMEA remains a smaller base but has opportunities in hospitality, commercial real estate, infrastructure modernization, and energy-saving projects.

Segment Dimension	Leading/Strategic Segment	2026 Share / Outlook
Product Type	Connected luminaires	36.8% share
Application	Commercial buildings	31.5% share
End User	Commercial enterprises & facility operators	Strategic
Region	Asia Pacific	Fastest-growing regional opportunity

The most important shift is not simply geographic. It is the movement toward integrated systems. Buyers increasingly expect lighting infrastructure to communicate with occupancy, HVAC, security, and energy-management systems. As a result, suppliers with strong interoperability and software capabilities may gain an advantage over vendors focused only on hardware.

Market Trends and Business Innovations

Innovation in the Connected Lighting Systems Market is increasingly centered on making lighting networks easier to deploy, manage, and integrate. The first generation of connected systems focused mainly on remote switching and dimming. Current development is moving toward adaptive control, richer sensing, interoperability, and data-driven building management.

R&D Is Moving Toward Interoperability and Lower Installation Complexity

R&D programs are increasingly focused on communication reliability, wireless commissioning, device interoperability, cybersecurity, and easier system configuration. This matters because installation and commissioning can become major cost components in large connected-lighting projects.

Wireless mesh architectures are receiving continued attention because they can reduce the need for extensive control cabling during retrofit projects. At the same time, manufacturers are working toward systems that can accommodate multiple communication protocols and connect with existing building-management infrastructure.

Sensors Are Becoming More Important Than Basic Controls

Occupancy and presence sensing is moving beyond simple motion detection. More sophisticated sensors can help systems distinguish between occupied and unoccupied zones and adjust lighting according to actual use patterns.

Daylight sensing is also becoming more closely integrated with automated dimming. In a building with substantial natural light, this allows artificial lighting output to respond to changing daylight conditions rather than following a fixed schedule.

Expert view: “The value of connected lighting will increasingly come from the quality of the data generated by the network, not simply from the ability to switch a light remotely.”

AI Has a Targeted but Growing Role

AI is relevant where connected lighting systems generate enough operational data to support optimization. Current applications include pattern recognition, occupancy forecasting, anomaly detection, predictive maintenance, and automated adjustment of lighting schedules.

The practical opportunity is more focused than the broad “AI-powered lighting” label sometimes suggests. AI becomes useful when it improves a measurable outcome, such as reducing unnecessary operating hours, identifying abnormal equipment behavior, or adapting lighting to changing occupancy patterns.

Lighting Networks Are Becoming Part of Smart-Building Platforms

A notable technology trend is the integration of lighting controls with broader building-management platforms. This allows lighting data to become useful outside the lighting function itself. Occupancy information, for example, can potentially support HVAC scheduling or space-utilization analysis.

This creates a wider competitive field. Lighting companies increasingly compete not only with other lighting manufacturers but also with building-automation vendors, controls specialists, software providers, and technology integrators.

Partnerships and Ecosystem Development Are Gaining Weight

Strategic partnerships are becoming an important route to market. Lighting manufacturers are working with technology companies, building-automation providers, electrical contractors, and system integrators to improve interoperability and accelerate deployment.

The broader direction is toward open ecosystems rather than isolated proprietary systems. Partnerships that connect lighting hardware with building-management software, cloud platforms, sensors, and energy-management tools can shorten deployment cycles and increase the value of installed networks.

Business Model Innovation

Another emerging trend is the shift from one-time equipment sales toward lighting-as-a-service, managed controls, software subscriptions, remote monitoring, and performance-oriented contracts. These models can reduce the upfront burden for customers while giving suppliers a longer relationship with the installed asset.

Expert view: “As connected lighting becomes embedded in building operations, recurring software and service revenue could become as strategically important as luminaire sales for leading suppliers.”

Overall, innovation through 2035 is likely to favor vendors that can combine reliable hardware with flexible connectivity, intuitive software, cybersecurity, analytics, and integration capabilities. The winning proposition will be less about having the most features and more about delivering a system that is simple to install, easy to operate, and capable of producing a clear economic return.

Competitive Intelligence and Benchmarking

The competitive structure of the Connected Lighting Systems Market includes established lighting manufacturers, building-automation companies, controls specialists, and technology providers. Competition is increasingly shifting away from standalone lighting hardware. Companies are differentiating through connectivity, software, interoperability, energy analytics, installation support, and lifecycle services.

Signify

Signify maintains a strong global position with capabilities across professional lighting, connected controls, software, IoT integration, and consumer applications. Its portfolio addresses commercial buildings, public infrastructure, industrial facilities, hospitality, retail, and residential environments. The company benefits from a broad installed base and an extensive ecosystem of technology partners and system integrators. Its competitive advantage lies in combining lighting hardware with digital control and data-enabled services.

Acuity Brands

Acuity Brands has a particularly strong position in North American commercial and institutional lighting. Its portfolio combines luminaires, controls, sensors, building intelligence, and software-based solutions. The company benefits from established relationships with electrical contractors, distributors, facility managers, and commercial building owners. Its position is strongest in projects where connected lighting is being integrated with broader building-management functions.

Schneider Electric

Schneider Electric approaches connected lighting through its broader energy-management and building-automation ecosystem. Its strength is the ability to connect lighting with electrical infrastructure, energy monitoring, automation, and building-management systems. This positioning is particularly relevant for large commercial and industrial projects where customers want centralized management of multiple building functions.

Zumtobel Group

Zumtobel Group maintains a strong European presence in professional lighting, with particular exposure to commercial buildings, offices, healthcare, hospitality, and architectural applications. Its differentiation is based on lighting quality, energy efficiency, professional controls, and project expertise. The company is well positioned where customers consider lighting performance, design, and automation together.

Legrand

Legrand participates in connected lighting through its broader electrical and digital-building ecosystem. Its extensive presence in electrical infrastructure gives it an advantage when lighting, electrical systems, automation, and building controls are procured as part of a unified project. The company is positioned across commercial, residential, and infrastructure applications.

Hubbell

Hubbell has an established position in North American electrical and lighting markets. Its connected portfolio addresses commercial, industrial, outdoor, and institutional applications. The company benefits from strong distribution and contractor relationships. Connected controls and sensing technologies add value to its conventional lighting base, particularly in retrofit projects where customers are seeking measurable energy savings.

ams OSRAM

ams OSRAM occupies a more technology-focused position, with expertise spanning LEDs, optical components, sensing, and intelligent lighting technologies. Its role extends into the technology layer that supports connected lighting systems. This gives the company strategic relevance as lighting becomes increasingly dependent on sensors, digital controls, and intelligent electronics.

Competitive view: The strongest companies through 2035 are likely to be those that can combine reliable hardware with flexible connectivity, intuitive software, cybersecurity, analytics, and strong implementation capabilities. Buyers increasingly want a complete operating solution rather than another standalone lighting product.

Regional Landscape and Adoption Outlook

Regional adoption varies based on construction activity, energy costs, building standards, digital infrastructure, retrofit economics, and access to skilled installation partners. Asia Pacific offers substantial volume expansion potential, while North America and Europe provide mature markets for integrated controls and higher-value software solutions.

United States

The United States remains one of the leading markets for connected commercial lighting. Adoption is supported by large office, retail, healthcare, education, logistics, and industrial building stocks.

Energy management remains a central purchasing consideration. Building owners are increasingly evaluating lighting projects based on total operating costs rather than equipment prices alone. Occupancy sensing, automated dimming, scheduling, and remote monitoring are particularly attractive for large facilities.

The country also has a mature ecosystem of lighting manufacturers, electrical contractors, distributors, building-automation providers, and system integrators.

High-growth opportunity: logistics centers, warehouses, healthcare facilities, large commercial buildings, and retrofit projects.

Europe

Europe represents a mature but evolving market. Energy efficiency, building modernization, and decarbonization policies continue to influence investment decisions.

Germany, the United Kingdom, France, and the Netherlands are among the more established markets for connected building technologies. Older commercial buildings provide a significant retrofit opportunity.

European customers are also placing greater emphasis on measurable energy performance. This supports solutions that combine automated controls with monitoring and reporting.

China

China represents one of the largest long-term volume opportunities. Urban development, industrial expansion, commercial construction, smart-city programs, and infrastructure modernization create a broad deployment base.

Domestic manufacturing capabilities support competitive equipment costs and large-scale production. Connected lighting is increasingly being incorporated into broader smart-building and smart-city projects.

High-growth areas: industrial parks, warehouses, commercial complexes, public infrastructure, and smart-city developments.

India

India has strong structural potential because of rapid urbanization, commercial construction, industrial development, and growing attention to energy efficiency.

The country’s earlier large-scale LED deployment has created a useful installed base for further digitalization. More than 13 million LED streetlights had been deployed under India’s national street-lighting program by mid-2024, demonstrating the scale at which lighting infrastructure can be modernized.

Manufacturing localization is another important factor. In March 2025, Signify and Dixon Technologies announced plans for a 50:50 Indian joint venture focused on lighting products and accessories. This reflects the growing role of domestic manufacturing in the lighting ecosystem.

High-growth opportunity: commercial real estate, smart-city infrastructure, industrial facilities, warehouses, hospitality, and connected outdoor lighting.

Japan

Japan has a mature lighting market, but connected solutions continue to benefit from energy-efficiency requirements, aging infrastructure, labor constraints, and high technology adoption.

The opportunity is particularly strong in factories, logistics facilities, hotels, commercial buildings, and public infrastructure. Japanese customers typically place strong emphasis on reliability, system stability, maintenance, and long operating life.

South Korea

South Korea has an advanced digital infrastructure environment and a strong electronics ecosystem. Connected lighting adoption is closely associated with smart buildings, manufacturing facilities, commercial developments, and digitally managed infrastructure.

The country’s capabilities in electronics, communications, sensors, and automation also create favorable conditions for integrated lighting systems.

Middle East

The Middle East is relevant, particularly across the Gulf states. Large-scale urban developments, hotels, airports, commercial complexes, entertainment districts, and smart-city projects are creating new opportunities.

Saudi Arabia and the United Arab Emirates are the most strategically important markets. New-build projects provide an advantage because connected lighting can be incorporated during the design stage instead of being added through costly retrofits.

Regional Comparison

Region / Country	Adoption Position	Primary Demand Driver	Infrastructure / Investment Environment
United States	Mature, high-value	Commercial retrofits and energy savings	Strong private investment and integrator network
Europe	Mature, sustainability-led	Energy efficiency and building modernization	Strong efficiency focus and retrofit activity
China	High-growth	Smart cities, construction, industrial automation	Large manufacturing and infrastructure base
India	High-growth	Urbanization, LED conversion, energy efficiency	Public programs plus expanding private investment
Japan	Mature	Automation, reliability, aging infrastructure	Strong technology and industrial ecosystem
South Korea	Advanced	Smart buildings and digital infrastructure	Strong electronics and connectivity capabilities
Middle East	Emerging/high-growth	New cities, hospitality, infrastructure	Large-scale government-backed development

Asia Pacific is likely to generate the largest incremental volume through 2035. North America and Europe should remain important for software-intensive controls, sophisticated retrofit solutions, and integrated building-management applications.

Recent Developments + Opportunities & Restraints

 Recent Developments

March 2025 — Signify and Dixon Technologies announced a proposed 50:50 joint venture in India. The planned venture focuses on manufacturing lighting products and accessories and is intended to combine Signify’s lighting expertise with Dixon’s manufacturing capabilities. The development strengthens India’s position as both a lighting-consumption and production market.

April 2025 — Signify, Cornerstone, and Dense Air announced a partnership focused on connected street-lighting infrastructure in the United Kingdom. The initiative aims to use existing street-lighting infrastructure as a platform for wireless connectivity, including 4G, 5G, and IoT applications. This expands the potential value of connected lighting beyond illumination.

June 2025 — Signify, Pineapple Partnerships, and Schneider Electric announced a commercial-property decarbonization collaboration. The initiative combines connected lighting with energy modelling, financing, and broader building-efficiency measures. This reflects a wider shift toward selling lighting as part of an integrated energy-performance solution.

September 2025 — Signify expanded its professional lighting portfolio with additional connected outdoor and specialized lighting solutions. The development highlights the growing application of digital controls beyond conventional indoor commercial lighting.

May 2026 — Philips Smart Lighting expanded its connected-home portfolio. The expansion added new capabilities around synchronized and digitally controlled home lighting, reinforcing the broader transition toward connected lighting ecosystems.

Opportunities & Business Insights

1. Emerging-market deployment

India, China, Southeast Asia, and Gulf markets offer a combination of new construction and infrastructure modernization. Suppliers that can combine competitive pricing with local manufacturing and implementation support should have an advantage.

2. AI, automation, and remote monitoring

AI has a practical role in occupancy forecasting, fault detection, energy optimization, predictive maintenance, and automated lighting schedules. The larger opportunity is integration with building-management systems, where lighting data can contribute to broader operational decisions.

3. Performance-based energy solutions

Connected lighting can increasingly be packaged as an energy-saving service instead of a simple equipment replacement. Remote monitoring, financing, maintenance, and performance measurement can reduce the initial investment barrier for building owners.

Key Restraints

Installation complexity remains a major constraint, particularly in older buildings. Interoperability issues can also complicate projects where equipment from multiple vendors must communicate reliably.

Cybersecurity is becoming more important as lighting systems become connected to corporate networks and building-management platforms. Smaller facilities may also struggle to justify the upfront cost when their energy savings are relatively modest.

Business view: The strongest opportunity lies where connected lighting can demonstrate a clear financial result. Energy savings, reduced maintenance, better space utilization, and centralized control provide a stronger investment case than connectivity alone.