Smart lighting white paper
Why compact, cost-effective Wi-Fi modules are critical components for smart lighting mega-growth
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Low-cost lighting upgrades are leading demand in smart lighting
Smart lighting is a high-volume, rapidly maturing market with millions of connected products shipped annually. There are several product categories in the market: luminaires and lightbulbs, sensors, controllers and switches. All of these require connectivity to enable features and user control. Thanks to the location of smart lighting in the home, Wi-Fi is especially popular for connecting lighting systems. Some smart lighting offerings also integrate into wider smart home systems.
Users across the world are recognizing the power consumption advantage of switching to LED lighting. They are therefore increasingly selecting smart bulbs when the time comes to replace existing legacy lighting setups. This is leading to significant growth in smart lighting shipments. Shipments will grow at a CAGR of 12% between now and 2030, rising from 71 million in 2024 to 138.5 million in 2030.
To unlock the full potential of the smart lighting market, cost-effective wireless connectivity solutions are essential. This is a volume play, and users will push back against costs – especially on a per luminaire or per bulb basis – becoming excessive. Wireless modules that enable low-cost luminaires to be deployed in their millions are the foundation of this market and its future growth.
Many current smart luminaires and lightbulbs now have embedded capabilities. With a module integrated into the bulb itself, for instance, they can change lighting color or brightness via voice or remote control. Users can now install smart bulbs that cost approximately $5 and reap the benefits in a frictionless replacement cycle. And, importantly, for many users the time to make this upgrade is now. LED lamps and luminaires installed between 2014 and 2016 started to hit their lifespan limit from 2023. This is propelling demand for secondary replacement year after year, fuelling the market’s growth over the next five years. This will make secondary replacement the dominant force by 2025, and by 2028, it will account for 78% of LED lighting demand.
Relevant products
Because of the low barrier to entry and the number of lights in homes, smart lighting is one of the highest volume opportunities in IoT. Cheap smart bulbs can connect immediately to existing Wi-Fi networks, and users can control them straight away via apps. Choosing the right modules however is critical to success. They must not only meet the cost constraints of the market, but also be robust enough to enable long product lifespans. They must also be secure, so users are confident installing them in their homes.