Human-Centric Lighting Market Size Exceeded $1 Billion in 2020
The human-centric lighting market size exceeded $1 billion (USD) in 2020 and is expected to grow at around 25% compound annual growth rate (CAGR) between 2021 and 2027, according to a study by Global Market Insights. The growing popularity of new lighting innovations and initiatives toward replacing conventional lights is likely to drive industry growth.
Human-centric lighting refers to lighting solutions designed specifically to produce a beneficial psychological and/or physiological effect upon humans. It supports human health, well-being, and performance through deterministic and holistic planning and implementation of the visual, emotional and, in particular, biological effects of light.
The emergence of advanced lighting technologies including LEDs, smart bulbs, controllers, and intelligent and tunable fixtures is promoting the implementation of smart and controllable light systems, enhancing the market share. Due to the addition of sensors and wireless controllers, light fixtures are becoming more intelligent by allowing users to control illumination through smartphones, controller devices, and computer panels.
The increasing demand for energy-efficient lighting systems in various sectors, including residential, commercial, retail, hospitality, and public infrastructure is driving the human-centric lighting industry expansion. LEDs and various tunable fixtures used in these systems consume less power compared to conventional halogen and incandescent lamps, enhancing the adoption of these systems.
Along with energy-efficiency features, these lights also offer compatibility with circadian rhythms and lower harmful impacts on visual and nonvisual health. Moreover, increasing research activities related to the implementation of energy-efficient lighting technologies are supporting the market outlook globally.
The factors hampering the market growth include high maintenance and ownership costs associated with human-centric lighting systems. These lighting systems include tunable fixtures, lights, and software that are costly owing to energy efficiency and body dynamic features, hindering the market representation of human centric lighting systems.
These systems also incur high installation costs impelled by the complex architecture and lighting design. However, the improvement in employee efficiency and enhancement of the commercial and health-care environment through human-centric lighting systems outweigh these costs.
The global human-centric lighting market witnessed a slowdown in 2020 on account of the impact of the COVID-19 pandemic on the electronics industry. The slow growth can be attributed to the severely impacted manufacturing capabilities of electronic component providers and severe disruptions in the supply chain during the first six months of 2020.
The rapid decrease in the purchasing power of end-users across the globe is also one of the major factors responsible for the global market slowdown.
Due to the spread of COVID-19 and subsequent lockdown measures, electronic component manufacturers have faced huge financial insecurities and capital crunch.
High demand for long-lasting LED fixtures will spur the market
The hardware solution segment is anticipated to witness an upward trend during the forecast timeline, driven by the rising demand for low energy-consuming and long-lasting LED fixtures. The hardware segment will grow at more than 26% CAGR through 2027.
Hardware components, such as controllers and fixtures, are witnessing a high demand owing to visual benefits and technical advancements.
The human-centric lighting market is also fueled by advancements in materials, manufacturing processes, and technologies to improve product functionality and energy efficiency. The lighting fixtures made up of 100% recycled materials, such as discarded plastic bottles and recycled cement and paper, are gaining more attention in the market.
Governments across the globe are also focusing on initiating various lighting projects, which aid in the growth of lighting fixtures. High investments by industry players in launching new products coupled with commercial and health-care sector initiatives toward the adoption of human-centric lighting systems will contribute to the market revenues.
Growing construction activities will augment the market demand
The new installation segment accounted for more than 90% of the human-centric lighting market share in 2020, led by factors such as an increase in new construction activities and penetration of smart home automation solutions. Furthermore, rising government support for energy-efficient intelligent lighting systems will contribute to the surging market growth.
Significant transformations in commercial and health-care structures and the necessity to integrate intelligent lighting control systems are also increasing the demand for human centric lighting in new installations.
Additionally, to support energy conservation initiatives and to comply with government regulations, new construction project owners are moving toward environment-friendly lighting systems, increasing the market revenues from the new installation segment.
Increasing adoption in the commercial segment is fueling the market
Commercial application held a more than 45% share in the human-centric lighting market in 2020. Commercial applications including business enterprises, offices, banks, retail stores, malls, and restaurants will expand at a high CAGR through 2027 on account of the infrastructure transformation initiatives.
The deployment of human-centric lighting in commercial settings aids in the improvement of the occupant’s mood, concentration, and provides natural light effects, boosting the industry statistics.
Employers and retailers across the globe are focused on enhancing the work and store environments to promote human wellbeing and gain cost and productivity benefits, supporting the market demand for human-centric lighting systems.
Learn more about this report at Global Market Insights’ website.