Navigant Research predicts that global annual residential lighting controls revenue will grow from $963 million to $1.5 billion from 2018 to 2027, but cautions that even with an increased number of controls products, demand in the residential sector is still not strong.
The new report “Market Data: Residential Energy Efficient Lighting and Lighting Controls,” analyzes the global market for these products, which include sensors, timers, dimmers, and connected controls.
Global market forecasts, segmented by region, technology type, product type, and building type, extend through 2027, Navigant Research says. The report also looks at major trends, market drivers, and barriers.
“Declining LED prices and the longer lifetime are helping to drive adoption of non-connected LEDs,” says Krystal Maxwell, a research analyst for 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.”
The report found that lighting manufacturers are turning to lighting controls and connected products so they can add value for their customers. These products also provide manufacturers with a new or increased revenue stream at a time when revenue for residential lamps is declining, according to the market research firm. “This is due to declining LED prices and the replacement of legacy lighting products with longer lasting LEDs.”
Despite the added value of connected LEDs, overall market penetration of these products is still small, Navigant Research notes. That stems from consumers’ lack of understanding about the value and use cases for connected lighting products, the report says.
A separate report from Research and Markets published recently predicts that increasing building and construction activities, favorable government regulations for energy efficiency, and increasing adoption of LED lighting in emerging countries are propelling the global LED driver market. The firm estimated that this market will reach $16.1 billion by 2023.