Global annual residential lighting controls revenue is expected to grow from $963 million to $1.5 billion from 2018 to 2027, according to a new research report from Navigant Research.
The report, Market Data: Residential Energy Efficient Lighting and Lighting Controls, analyzes the global market for residential energy efficient lighting and lighting controls. The report lays out lighting forecasts segmented by region, technology type, product type, and building type.
Navigant said increased interest in the smart home and desire for home automation is spurring global adoption of connected LED lighting. However, despite the added value of connected LEDs, overall market penetration of these products is still small. This is partly due to consumers’ lack of understanding of the value and use cases of connected lighting products, the firm said in a release.
“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.”
According to the report, lighting manufacturers are turning toward lighting controls and connected products to continue adding value for customers. Controls and connected LED products also provide manufacturers a new or increased revenue stream as revenue for residential lamps declines. The decline, Navigant said, is due to declining LED prices and the replacement of legacy lighting products with longer lasting LEDs. However, even with the increased number of available controls products, demand for controls in the residential sector is still not strong.