According to market research firm Navigant Research, global annual residential lighting controls revenue will grow from $963.0 million to $1.5 billion from 2018 to 2027. While the research firm says that the residential market for connected LED lighting luminaires, lamps, and controls is growing, the growth in the market is modest.
Navigant asserts that despite the added value of connected LEDs, overall market penetration of connected LED lighting products for the home is still small. The company cites consumers’ minimal understanding of the value and use cases of connected lighting products.
“Declining LED prices and the longer lifetime are helping to drive adoption of non-connected LEDs,” said Krystal Maxwell, a research analyst with Navigant Research. “However, these drivers are different for connected LEDs, which are centered around growing adoption of the smart home and added values of connected lighting focused on security and health.”
Lighting Producers Switching Focus to Connected Products and Controls
According to the Navigant, lighting producers have switched their focus toward connected products and lighting controls to continue adding value for customers. In addition to adding value for customers, controls and connected LED products can also give manufacturers a new or increased revenue stream.
As expected, revenue for LED-based residential lamps is in decline. These reduced revenues are the result of declining LED lighting prices and the replacement of legacy lighting products with much longer-lasting LEDs, Navigant notes.
Even though LED lighting makers are have increased the number of available lighting control products for the residential sector, demand for controls in the sector is still weak. The one ray of hope in the residential connected lighting controls market is the potential for increased adoption if more consumers are educated about the value of connected lighting beyond just novelty and convenience.