Smart Lighting Market Projected to Reach $20.5 Billion by 2032
The smart lighting market is forecast to grow from $11.0 billion in 2026 to $20.5 billion by 2032, at a compound annual growth rate of 10.9%. Growth is driven by increasing investments in connected buildings and energy efficiency.
The global smart lighting market is projected to expand significantly in the coming years, reaching an estimated $20.5 billion by 2032, according to a report by MarketsandMarkets™. The market was valued at $11.0 billion in 2026 and is expected to grow at a compound annual growth rate (CAGR) of 10.9% during the forecast period.
Key drivers for this growth include increasing investments in connected buildings, smart city initiatives, and energy-efficient infrastructure. Businesses, municipalities, and consumers are adopting IoT-enabled lighting solutions across various sectors, including commercial, residential, industrial, healthcare, retail, and outdoor applications. Demand is further fueled by the need for automated lighting control, real-time monitoring, and energy optimization.
Technological advancements and strategic developments by major players such as Signify, Legrand, and Acuity Brands are also contributing to market expansion. These include innovations in connected luminaires, occupancy and daylight sensors, and wireless control systems. The services segment is expected to see a notable CAGR of 13.6%, while wireless communication technology is projected to grow at 12.8%.
Online sales channels are anticipated to register a higher growth rate due to increased accessibility of smart lighting products. Indoor lighting applications are expected to lead the market, driven by widespread adoption in offices, homes, and commercial spaces. Europe held a dominant market share of approximately 39.3% in 2025.