Smart LED Bulb Market - Forecast(2024 - 2030)

Smart LED Bulb Market size is estimated to reach $39.4 billion by 2030, growing at a CAGR of 21% over the forecast period 2024-2030. Due to its ease of use and energy-saving benefits, con-sumers might adopt energy-efficient LED technology more rapidly, so replacing the inferior compact fluorescent or halogen lighting technologies could be accelerated. The popularity and demand for lights have grown in both commercial and residential spaces due to their ability to connect with IoT devices and genera te a variety of ambient lighting using only smartphones or tablets. 

Smart lights can be dimmed with different color tones depending on the situation, schedule their on/off times, track their energy consumption, and connect to other devices via Wi-Fi, Bluetooth, SmartThings, Z-Wave, or ZigBee. Office spaces are also emerging as one of the common smart lighting applications. In today's business world, owners and managers are plac-ing more emphasis on the overall well-being of their employees. By switching to smart lighting, offices can provide bright light for their employees. This helps them see well and experience less eye fatigue. Additionally, the color of the light can help brighten moods and provide com-fort. Furthermore, favourable government regulations regarding conventional lighting and en-ergy consumption across the United States, the European Union, China, and India are antici-pated to favor the market demand for connected LED lighting.

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The “Smart LED Bulb Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Smart LED Bulb Market.

The COVID-19 pandemic triggered significant shifts in the smart LED bulb market, evident in various facts and figures. For instance, during the lockdowns in 2020, smart bulb sales witnessed a 23% increase compared to the previous year, reflecting the heightened consumer interest in home automation and lighting control. The sales of smart LED bulbs with adjustable color temperature and circadian lighting features surged by 30% as health and wellness became paramount during the pandemic, with consum-ers seeking to create optimal lighting conditions for well-being. Moreover, the abrupt shift to remote work led to a 40% increase in the sales of smart LED bulbs for home offices, indicating their crucial role in creating productive workspaces. However, supply chain disruptions during the pandemic led to a 15% increase in lead times for smart bulb manufacturers and caused price fluctuations. Online sales chan-nels, on the other hand, experienced a notable 50% boost as consumers turned to e-commerce due to retail store closures or restricted access. Manufacturers also seized the opportunity to innovate, with 60% of them introducing smart LED bulbs equipped with UV disinfection capabilities, tapping into the emerging demand for home sanitization solutions. Lastly, sustainability considerations during the pan-demic translated into a 25% increase in the sales of energy-efficient smart LED bulbs, as consumers val-ue the ability to monitor and reduce energy consumption. Looking ahead, the smart LED bulb market is poised to sustain its growth, driven by these evolving consumer preferences and innovative lighting solu-tions.

The Russia-Ukraine conflict has cast a shadow of uncertainty over the smart LED bulb market, with sev-eral noteworthy facts and figures underscoring its impact. Firstly, as geopolitical tensions escalated, the global supply chain for smart LED bulbs experienced disruptions, resulting in a 12% decrease in the availability of these products in international markets. Moreover, fluctuations in the prices of raw mate-rials like rare earth metals, essential for LED production, have contributed to a 15% increase in manu-facturing costs, prompting manufacturers to pass some of the cost burden onto consumers. 

Geographically, Asia Pacific is expected to witness the highest growth over the forecast period with a CAGR of more than 26% from 2024 to 2030, followed by North America and Europe.  The Smart LED Bulb market has seen substantial growth all around the world, however, the Asia Pacific area has seen the quickest expansion. Asia Pacific has developed into a key market for Smart LED Bulb growth because of the growing adoption of the Internet of Things (IoT) is set to illuminate the landscape of the smart LED bulb market in various Asian countries. In China, where GSMA predicts an impressive 4.1 billion IoT connections by 2025, smart lighting systems are anticipated to be the primary beneficiaries of this trend, contributing to the market's growth. Similarly, in Japan, a surge in AI-powered smart home products from global tech giants like Google and Amazon is infusing fresh potential into the smart LED bulb market, compensating for the sluggish performance of traditional home appliances. Furthermore, the increased use of smartphones in Japan, projected to reach 68.8 million users by 2023, is propelling the smart lighting sector as these devices conveniently connect to IoT solutions. In India, the demand for smart LED bulbs is on the rise, fuelled by the desire for voice recognition and remote-control features, as well as the overall appeal of smart home automation. The growing use of LED lighting across residential, healthcare, and commercial sectors, combined with increasing disposable incomes, is poised to be a driving force behind the expansion of the smart LED bulb market in the country. These factors drive up demand for smart LED bulb throughout the forecast period.

In the smart LED bulb market analysis, by technology segment wireless technology is estimated to grow with the highest CAGR over the forecast period. In the smart LED bulb market, consumers seeking short-range connectivity overwhelmingly opt for wireless solutions, driving the segment's rapid expansion over the forecasted period. Wireless technologies, such as Wi-Fi, Bluetooth, SmartThings, Z-Wave, and ZigBee, are instrumental in linking lighting fixtures to smartphone applications for seamless control. This wireless technology has found widespread use in residential settings, particularly for adjusting lighting color and ambiance within confined spaces. Notably, in 2023, the wired connection category dominated the revenue share, a trend expected to persist throughout the projected period. Wired connections are essential for extended distances, typically exceeding 30 feet, with Ethernet supporting wired connectivity up to 100 meters and technologies like DALI, DSI, and DLVP facilitating connections spanning up to 1000 feet. The growing demand for wired connectivity in the smart LED bulb industry is notably attributed to the increased adoption of these bulbs in commercial and industrial settings n.

For instance, in 2023, Philips Hue launched its new Philips Hue Bridge Pro, which supports Wi-Fi 6 and ZigBee 3.0. This allows users to connect more smart lights to their system and control them faster and more reliably.

Indoor segment is anticipated to continue growing at the highest rate over the projected period owing to the rise. The indoor category has emerged as the market leader in smart LED bulb, which has shown impressive development in recent years. This increase is mostly due to a growing emphasis on green building construction and smart lighting in the commercial sector, particularly in developing countries in the APAC region. As a result, the market for interior smart lighting would expand. In 2023, the commercial sector held the greatest proportion of the indoor smart lighting market. Smart lighting in business buildings is becoming more affordable as well as more efficient. Besides that, smart lighting has low maintenance and security features which is a driving factor in the commercial segment.

For instance, in March 2023, Cync, a smart home brand owned by GE Lighting, announced that it had partnered with Amazon to offer its smart LED bulbs on the Amazon.com website. This partnership is expected to make it easier for consumers to purchase and install indoor smart LED bulbs.

The rising demand for energy-efficient lighting solutions is a major driver of the smart LED bulb market. Smart LED bulbs are much more energy-efficient than traditional incandescent bulbs. In fact, they can use up to 90% less energy than incandescent bulbs. This can lead to significant energy savings for consumers and businesses. There are a number of factors that are driving the rising demand for energy-efficient lighting solutions. One factor is the increasing cost of energy. The cost of energy has been rising steadily in recent years, and this is making consumers and businesses more aware of the need to save energy. Another factor driving the demand for energy-efficient lighting solutions is the increasing awareness of the environmental benefits of energy efficiency. Energy efficiency is one of the most effective ways to reduce greenhouse gas emissions and combat climate change. The rising demand for energy-efficient lighting solutions is creating a number of opportunities for companies in the smart LED bulb market. Companies are developing new and innovative smart LED bulb products, and they are expanding into new markets. Smart LED bulbs save energy in a number of ways. First, they are much more efficient than traditional incandescent bulbs. Incandescent bulbs produce light by heating a thin wire filament. This filament can reach temperatures of up to 500 degrees Fahrenheit. This process is very inefficient, and most of the energy used by an incandescent bulb is wasted as heat. In addition to saving energy, smart LED bulbs offer a number of other benefits. Smart LED bulbs can be controlled remotely using a smartphone or tablet. This makes it easy to turn on and off lights, even when you are not home. Smart LED bulbs can also be used to create security features, such as motion-sensor lights and timers. And smart LED bulbs can be customized to create different moods and atmospheres in your home. As a result of these benefits, the smart LED bulb market is expected to grow rapidly in the forecast years

For instance, in April 2023, Nanoleaf, a company that specializes in smart lighting products, announced that it had launched a new line of indoor smart LED bulbs called Nanoleaf Essentials. These bulbs are designed to be affordable and easy to use, making them a good option for consumers who are new to smart home technology.

 

Government regulations mandating the use of LEDs are boosting the market demand in several regions. For instance, in the United States, as the law mandates energy savings to be 45 lumens per watt for the most common types of light bulbs, a typical 60-watt incandescent light bulb puts out about 15 lumens per watt, a halogen incandescent bulb offers about 20 lumens per watt, CFL bulb offers 65 lumens per watt, and LEDs put out 80-100 lumens per watt with a fraction of energy. In addition, the price drop in LEDs has led to a further increase in smart lighting adoption. Through performance standards, labeling, and incentive programs, many governments worldwide are moving quickly to phase out inefficient light sources, as in Europe, where the switch to LED technology began more than 10 years ago. Recent updates to the Ecodesign Directive and the Restriction of Hazardous Substances Directive by the European Union will effectively phase out all fluorescent lighting by 2023. Further, in January 2023, the Government of Ukraine announced the approval of a program to replace incandescent light bulbs with light-emitting diode (LED) light bulbs. This initiative is part of the European Union's support of Ukraine's energy front. A regionally harmonized lighting standard has been adopted by 16 African nations that make up the Southern African Development Community (SADC). This standard’s market will transition entirely to LED in the coming years. The East African Community (EAC) is also phasing out fluorescent lighting in six member nations. Other jurisdictions, including Southeast Asian nations, are implementing similar regulations. This is expected to drive the growth of the market studied. According to the US Department of Energy, widespread use of LED lighting is expected to impact energy savings in the US greatly. As a result, many lighting installations are expected to use LED technology, and energy savings from LED lighting could reach 569 TWh annually by 2035, equal to the annual energy output of approximately 92 1,000 MW power plants.

The high initial cost of smart LED bulbs is a major restraint on the growth of the smart LED bulb market. Smart LED bulbs can be significantly more expensive than traditional incandescent bulbs. For example, a single smart LED bulb can cost anywhere from $10 to $50, while a traditional incandescent bulb typically costs less than $1. The high initial cost of smart LED bulbs is a barrier to entry for many consumers and businesses. This is especially true for consumers and businesses in developing countries, where incomes are lower. However, the long-term energy savings of smart LED bulbs can offset the initial cost. Smart LED bulbs use significantly less energy than traditional incandescent bulbs. This can lead to significant energy savings, especially for consumers and businesses that use a lot of lighting. For example, a study by the U.S. Department of Energy found that smart LED bulbs can save consumers up to 90% on their lighting costs. This means that the initial cost of smart LED bulbs can be paid back in energy savings within a few months or years. This aspect inhibits the expansion of the market.

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Smart LED Bulb Market. The top 10 companies in this industry are listed below: 

1. Syska LED

2. Panasonic

3. Philips Lighting N.V.

4. LIFX.

5. Wipro Enterprise Ltd

6. TP-Link Kasa Smart.

7. Honeywell International Inc.

8. Crompton

9. LightwaveRF PLC

10. Hangzhou Huoshi Lighting Co., Ltd