Bright Prospects Ahead for the Lighting Industry

From IoT integration to smart cities to LED advancements, several key trends are powering growth in the lighting and control market.
March 17, 2026
4 min read

Key Highlights

  • Market forecasts project the smart lighting sector to grow from $18.5 billion in 2025 to over $43 billion by 2030, driven by technological advancements and urbanization.
  • IoT, sensors, and connected platforms are transforming lighting from standalone fixtures into integral components of smart building infrastructure.
  • Regulatory standards and sustainability mandates are pushing adoption of advanced controls, energy management systems, and retrofit solutions.
  • LED technology continues to expand into new sectors like controlled-environment agriculture, offering innovative lighting 'recipes' to boost yields.

Although we routinely cover lighting and control in our print issues as well as online throughout the year, we are dedicating our March issue entirely to everything lighting — a key area of interest for the EC&M audience. What does the future hold for this sector? When you look at market forecasts for smart lighting in particular, the future is undeniably bright (sorry, I couldn’t resist the pun). 

According to Research and Markets, the smart lighting market, valued at $18.5 billion in 2025, is projected to grow to $43.4 billion by 2030. In its latest industry report, “U.S. Lighting Market Outlook 2025-2033: Smart Systems, Retrofit Pipelines, and the Future of Connected Illumination,” Phoenix Research expects the U.S. lighting market to expand from $28.4 billion in 2025 to approximately $41.9 billion by 2033.

Sure, the numbers vary from forecast to forecast, but I couldn’t help noticing some underlying themes coming through in the reports. Over the next decade, major market research firms that project the size or share of the smart lighting market agree that certain trends are poised to drive market growth, including: IoT and sensor integration; energy efficiency and sustainability mandates; LED advancements, declining cost, and widespread adoption of the technology; urbanization/smart cities; and a rise in smart home demand. Taken together, these trends highlight how rapidly lighting technology is evolving. As controls, sensors, and connected platforms become integral to modern building systems, lighting is shifting from a standalone product choice to a critical networked component of energy management and smart infrastructure. This issue is packed with content that explores the driving forces behind this growth. Check out the following lineup for the latest developments.

“Advances in lighting controls and energy management have made code compliance more complex, but they’ve also unlocked better options — with higher-quality emergency lighting, easier testing and maintenance, and simpler design and installation,” writes Martin Marcier, P.Eng. in the cover story, “Cut the Cord, Keep the Code: Wireless Control for Code-Compliant Emergency Egress.”

At the same time, the rise of connected lighting platforms is redefining how lighting is used within buildings — turning fixtures into data-driven infrastructure. As authors Arati Sakhalkar and Samarth Kathare of Affiliated Engineers, Inc. point out in their feature: “Connected lighting is no longer just a utility; it is becoming a dynamic, data-driven platform shaping the future of smart buildings.”

Regulatory pressure is also shaping the market, as new building performance standards require buildings to reduce energy use and emissions over time. “Lighting systems, advanced controls, commissioning, submetering, and long-term system flexibility often represent some of the most impactful and cost-effective compliance tools,” notes Shaun Taylor, Government Relations Supervisor at Lutron, in his article on building performance standards. 

Meanwhile, LEDs continue to gain ground in new sectors such as controlled-environment agriculture, writes Freelancer Tim Kridel in his piece. “Dynamic lighting allows for ‘light recipes’ that can increase yields,” notes one source.

With adoption of luminaire-level lighting controls rising across commercial, industrial, and institutional facilities alike, electrical contractors are finding new opportunities to deliver more efficient and flexible lighting systems, as is evidenced in these two articles: “How to Ensure Smoother Luminaire Level Lighting Control Projects” written by BetterBricks and “Lighting Controls: From Code Compliance to Retrofits” by Sean Grasby of Wesco Energy Solutions.

EC&M readers work in a multitude of vertical markets and industries that incorporate lighting design, installation, and maintenance into their daily workflow. No matter what setting or sector you look at, the message from market analysts and our subject matter experts/authors featured in this edition is clear: Lighting will continue to evolve into a connected, data-driven platform for the built environment, suggesting that the industry’s brightest days still lie ahead.

About the Author

Ellen Parson

Editor-in-Chief - EC&M

Ellen Parson is the Editor-in-Chief for EC&M. She has a journalism degree from the University of Missouri-Columbia. She's been a business-to-business writer and editor for more than 25 years, most of which have been covering the construction and electrical industries. Contact her at [email protected].

Sign up for our eNewsletters
Get the latest news and updates

Voice Your Opinion!

To join the conversation, and become an exclusive member of EC&M, create an account today!