Report Overview

Increasing government initiatives to promote the adoption of energy-efficient lighting solutions, rising energy costs and need for efficiency, growing urbanization and smart city projects, and rapid adoption of IoT and connected devices are expected to drive the India Smart Lighting Market during the forecast period between 2024 and 2030.

India Smart Lighting Market – Industry Trends & Forecast Report, 2030

The India Smart Lighting Market size was estimated at USD 4.28 billion in 2023. During the forecast period between 2024 and 2030, the India Smart Lighting Market size is projected to grow at a CAGR of 7.65% reaching a value of USD 6.09 billion by 2030. A prominent driver of the market is the increasing adoption of innovative technology, which replaces conventional lighting fixtures, such as incandescent bulbs, halogens, and CFLs, with more efficient LED lights and sensors aimed at conserving energy. India, as the world's most populous country and a significant consumer of electricity, grapples with a widening gap between electricity demand and supply, leading to frequent power shortages and blackouts nationwide. Currently, the lighting sector consumes about 18% of India's total electricity. Consequently, the government is actively promoting the adoption of energy-efficient alternatives in the lighting sector, which is expected to propel the Smart Lighting Market in the country. In addition to curbing energy consumption and reducing electricity expenses, smart lighting offers various benefits to consumers. Unlike traditional switches and buttons, smart lights utilize motion sensors to automatically activate and deactivate lights as individuals enter or exit a room. Also, smart LED bulbs can be controlled via smartphone applications, allowing users to adjust brightness and color according to their preferences and remotely switch lights on or off. Other factors are further fueling the growth of the smart lighting market in India, including the rising affordability of smart lighting solutions, technological advancements, the development of smart cities, and growing levels of awareness among consumers.

Smart Lighting – Overview

Smart lighting refers to technologically advanced systems that enable remote control and automation of lighting via smartphones or voice assistants. These systems utilize LED bulbs and connectivity like Wi-Fi or Zigbee. Features include remote operation, automated scheduling based on sensors or preset times, energy efficiency, integration with smart home ecosystems, customizable settings for color and brightness, and voice control compatibility. Offering convenience and energy savings, smart lighting allows users to personalize their lighting experience and seamlessly integrate it with other smart devices for a cohesive home automation setup.

India Smart Lighting Market

Growth Drivers

Government Initiatives Driving Adoption of Energy-Efficient Lighting

The UJALA scheme, a flagship initiative by the Government of India, stands as a pivotal endeavor to promote the widespread adoption of energy-efficient lighting solutions across the country. Through strategic interventions, including policy reforms and incentivized manufacturing, the scheme has significantly reduced the cost barriers associated with LED bulbs, thereby stimulating consumer demand. Over the past five years, more than 36 crore LED bulbs have been distributed, ushering in a transformative LED revolution. Despite initial challenges, such as high upfront costs and limited awareness, the UJALA scheme has successfully addressed these barriers, paving the way for increased adoption and realization of the substantial energy-saving benefits offered by LED technology.

Rising Energy Costs and Need for Efficiency

As India's per capita income rises, driven by technological advancements and favorable demographics, consumer preferences shift towards efficient energy management systems. Lighting, constituting a significant portion of power consumption (18–20%), demands attention amidst proliferating power usage. Smart lighting emerges as a solution, promising substantial energy savings. Transitioning to LED or smart lighting nationwide could potentially halve the country's power demand. This imperative for efficiency stems from the pressing need to mitigate escalating energy costs and ensure sustainable resource utilization in the face of growing power consumption.

Challenges

High Initial Cost

The high initial cost acts as a significant barrier to the growth of the India Smart Lighting Market. While smart lighting offers long-term energy savings and advanced features, the upfront investment dissuades many potential consumers. Affordability remains a key concern, particularly in a market where price sensitivity is high. Overcoming this challenge requires innovative pricing strategies, subsidies, or financing options to make smart lighting solutions more accessible to a broader consumer base. Additionally, highlighting the long-term benefits and return on investment may help alleviate concerns about the initial cost barrier.

Impact of Escalating Geopolitical Tensions on India Smart Lighting Market

Geopolitical tensions can have a multifaceted impact on the India Smart Lighting Market by introducing uncertainties in the supply chain, impacting imports of crucial components like LEDs and smart lighting technology. Heightened geopolitical risks may lead to increased trade barriers, tariffs, or supply chain disruptions, consequently affecting product availability and pricing. Moreover, investor confidence and market sentiment could be negatively affected, deterring investments and expansions in the smart lighting sector. To mitigate these impacts, diversification of supply chains, strategic partnerships, and proactive risk management strategies are essential for stakeholders in the India Smart Lighting Market to navigate geopolitical uncertainties effectively.

India Smart Lighting Market

Segmental Coverage

India Smart Lighting Market – By Offering

By offering, the India Smart Lighting Market is divided into Hardware, Software, and Services segments. The software segment holds the highest share in the India Smart Lighting Market by offering. It is fueled by the increasing adoption of smart lighting for data-driven purposes in critical sectors. Apps play a significant role in integrating smart lights with platforms like Cortana, Alexa, and Siri, enabling control through voice commands. Meanwhile, the services segment is expected to witness the fastest growth rate during the period in analysis. It is driven by the increasing demand for connected lighting bulbs and fixtures offering customizable features such as color adjustment, dimming, and remote control via devices like smartphones or tablets.

India Smart Lighting Market – By Communication Technology

Based on communication technology, the India Smart Lighting Market is bifurcated into Wired Technology and Wireless Technology segments. The wireless segment is expected to hold a higher share in the India Smart Lighting Market by communication technology during the period in analysis. It can be attributed to the incorporation of cutting-edge technologies like Bluetooth, ZigBee, and Wi-Fi into lighting solutions. The rise of Internet of Things (IoT) devices has been instrumental in propelling the smart lighting market forward. Lighting component manufacturers are now prioritizing wireless connectivity integration into their fixtures, spurred by advancements in IoT and wireless communication technologies. Furthermore, the tech-savvy younger demographic increasingly embraces innovative features and technologies. There is a discernible trend toward replacing traditional systems, fueled by mounting consumer awareness regarding energy-efficient and sustainable solutions.

India Smart Lighting Market – By Installation Type

Based on installation type, the India Smart Lighting Market is split into New Installation and Retrofit Installation segments.

India Smart Lighting Market – By Light Sources

Based on light sources, the India Smart Lighting Market is divided into LED Lamps, Fluorescent Lamps, Compact Fluorescent Lamps, and High Intensity Discharge Lamps segments. The LED lamps segment holds the highest share in the India Smart Lighting Market and is expected to maintain its dominance throughout the forecast period. It is driven by a spurring demand from the growing building and construction sector across the country, alongside government’s stringent regulations aimed at curbing the usage of inefficient lighting systems.

India Smart Lighting Market – By Application

Based on application, the India Smart Lighting Market is split into Indoor and Outdoor segments.

India Smart Lighting Market – By Region

Geographically, the India Smart Lighting Market is divided into North India, South India, East India, and West India regions.

Competitive Landscape

Major players operating in India Smart Lighting Market include Bajaj Electricals Ltd, Philips India Ltd, Schneider Electric India Pvt Ltd, Syska LED, Wipro, LG Electronics Inc., Xiaomi, GE Lighting, Jaquar India, Turnpoint Technologies Private Limited, and Lutron. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2023 - Halonix Technologies introduced India's first 'UP-DOWN GLOW' LED Bulb, offering versatile lighting options with dual-color illumination. It features three switch-enabled modes for varied ambiances.

Scope of the Report

By Offering

• Hardware

• Software

• Services

By Communication Technology

• Wired Technology

• Wireless Technology

 By Installation Type

• New Installation

• Retrofit Installation

By Light Sources

• LED Lamps

• Fluorescent Lamps

• Compact Fluorescent Lamps

• High Intensity Discharge Lamps

• Others

By Application

• Indoor

• Outdoor

By Region

• North India

• South India

• East India

• West India