Allied Market Research forecasts that the worldwide market for intelligent lighting controls will reach $8.3 billion by 2020, according to its latest forecast report. The company projects that the market will grow at a compound annual growth rate (CAGR) of 16.2% during the period of 2015 – 2020.
The firm found that Europe generated the highest revenues in the intelligent lighting control market in 2014. The rising cost of electricity and the stringent government mandates in the region led to the region’s thriving intelligent lighting control market, according to Allied Market Research.
However, the company predicts that the Asia-Pacific region will see an increased adoption of intelligent lighting control devices in the future because of the boom in commercial establishments including retail, industries, and hospitals. Overall, the firm anticipates that the Asia-Pacific region will surpass the European market in 2017, to emerge as the leading market.
Intelligent Lighting Controls Categories
The firm breaks down the intelligent lighting controls into various components such as sensors, ballasts & LED drivers, dimmers & switch actuators, microcontrollers, transmitters & receivers, and intelligent luminaries. The Ballasts & LED drives segment is predicted to attain the highest revenue during the analysis period. Also, the intelligent luminaries segment is expected to grow rapidly, with a significant CAGR during the forecast period as a result of low-priced product launches for integrated luminaries and ongoing research.
The end users of intelligent lighting controls include public utilities, as well as commercial buildings and residential buildings. The firm found that commercial buildings make up about 58% of the overall market revenue. The commercial buildings segment is comprised of hospitality, retail, industrial, and other types of buildings. Allied Market Research contends that the adoption of intelligent lighting controls is high in these sectors due to high electricity consumption and the resulting economic incentive for improving energy management.
Wired Versus Wireless
The firm examined both wired and wireless intelligent lighting controls. Wired lighting controls were found to have generated the most revenue in 2014, and the company expects wired lighting controls to maintain their lead over wireless during the forecast period of 2015-2020. However, the company predicts that wireless connectivity will increasingly be adopted for lighting control. This increased adoption will result from features such as ease of use, improved flexibility, and better scalability.
The company further anticipates that the advent of new wireless & wired network protocols, such as ZigBee and BACnet, EnOcean will also foster the growth of the market. The company points out that the installation cost for intelligent lighting controls is high and it increases the payback period for the lighting significantly. However, the company predicts that soon the cost of intelligent lighting control components will go down, resulting in earlier payback and increased adoption.