The lighting control system market size is estimated to grow from USD 19.5 billion in 2019 and projected to reach USD 39.0 billion by 2024, at a CAGR of 14.8%. The most significant factor driving the growth of this market is the high requirement for energy-efficient connected lighting controls due to the increased awareness to reduce energy consumption. Rising demand for intelligent solutions for street lighting systems, upcoming smart city projects in developing economies, increasing adoption and decreasing cost of LEDs, and growing awareness of consumers and governments across the world about the importance of energy saving, along with the modernization and development of infrastructure, are the significant factors contributing to the growth of the lighting control system market.
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On the other hand, factors such as the high cost of deployment and the lack of standardized regulatory frameworks in the energy sector, along with security and privacy issues in connected lighting control systems, are restraining the growth of the lighting control system market. However, the rapid transition from traditional lighting to connected lighting, the development of the Internet of Things (IoT) technology in the field of the lighting control systems, advancements in wireless communication technologies, and government initiatives toward saving electricity are the major opportunities for the growth of the lighting control system market.
The market for the services segment is expected to grow at the highest CAGR during the forecast period. Technological advancements in the lighting industry have provided a gateway to the Internet of Things (IoT), while lighting services have been meeting the rising demands for new networks, which offers lighting manufacturers a new opportunity to compete with players offering traditional networking solutions. The growth of the services segment is mainly propelled by the use of lighting services for reducing the cost, as well as for energy conservation and ecological safety.
The lighting control system market for outdoor lighting applications is expected to grow at the highest rate. Outdoor lighting includes lighting for highways and roadways lighting, lighting for public places, and architectural lighting. Increasing focus on enhancing connectivity by building roads and road lights, especially in developing countries in Asia Pacific (APAC) is expected to spur the growth of the lighting control system market for outdoor applications. The market for wireless communication protocols is expected to grow at the highest rate during the forecast period. The development of wireless technologies for lighting control systems is expected to drive the market for wireless communication technologies during the forecast period.
APAC is expected to be the fastest-growing region in the lighting control system market during the forecast period owing to the rapid infrastructure building activities being undertaken in APAC, mainly in China, where smart lighting paves the way for the modernization of infrastructure. Urbanization is taking place at a faster rate in APAC, both developed and developing countries in the region that are looking to adopt smart city technologies, thereby creating opportunities for lighting control manufacturers in the market.