Lighting Control Market

Key data points: Market size in 2027 = $46.2 billion and 2035 = $71.9 billion, growth forecast = 5.7% annually for the next 8 years. Scroll below to get more insights. This market report covers trends, opportunities and forecasts in lighting control market to 2035 by product type (LED drivers, sensors, switches & dimmers, relay units, and gateways), connection type (wired and wireless), installation type (new installation and retrofit installation), application (indoor and outdoor), and region (North America, Europe, Asia Pacific, and the Rest of the World) Lighting Control Market The future of the global lighting control market looks promising with opportunities in the indoor and outdoor markets. The global lighting control market is expected to reach an estimated $71.9 billion by 2035 from $46.2 billion in 2027 with a CAGR of 5.7% from 2027 to 2035. The major drivers for this market are the growing use of iot in lighting control systems, the rising demand for automated & connected lighting solutions, and the increasing government rules for energy efficiency. • Lucintel forecasts that, within the product type category, LED drivers is expected to witness the highest growth over the forecast period due to energy efficient lighting demand. • Within the application category, indoor is expected to witness the highest growth over the forecast period due to rising smart indoor lighting adoption. • In terms of regions, APAC will remain the largest region over the forecast period due to rapid industrialization and infrastructure development expansion. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below. Emerging Trends in Lighting Control Market The lighting controls market is undergoing significant changes. Traditionally, the market focused on the installation of switching controls. Currently, the market is focused on integrating lighting control systems into the building automation and controls systems. It is expected that in 2025-2027, with the implementation of energy codes and improvement in retrofit economics, the demand for lighting controls systems will increase. Lighting controls systems measure and improve the energy performance of buildings. It is expected that controls systems will be integrated in all types of buildings (commercial and industrial). • Connected Lighting Controls: In 2024, Signify indicated that connected controls represent 23% of the company’s professional lighting controls business. It is expected that the industry will continue to migrate to connected controls. Connected lighting controls provide building owners/operators the opportunity to improve energy performance, reduce operational costs, and better manage the building. • Energy Optimization: Connected controls provide the opportunity to utilize energy and daylight to further improve the performance of the building. It is expected that energy performance building standards will further drive the market for connected controls. • Human-centric Lighting: The use of tunable-white lighting systems to provide occupant control of their lighting environments continues to increase in various market segments including office, healthcare, education and hospitality. Light-related features of the WELL Building Standard have encouraged specification of these systems. The level of evidence supporting the use of wellness features in building design will dictate the degree of market acceptance for these features and systems. • Wireless Retrofits: The development of battery-powered sensors and wireless control modules has resulted in very low impact systems for lighting control and other building systems. Approximately 5.9 million buildings in the United States are of sufficient age to require a lighting systems retrofit. Lower the first costs for control systems and greater the potential for systems to integrate with other building systems. • Interoperability: There is a growing preference for building systems to integrate with other building systems. Multivendor interoperability is being encouraged through the use of standard communication protocols and/or open interfaces. Owners are expecting lighting systems to provide integrated controls for HVAC systems to facilitate building systems optimization. Competitive differentiators will be systems that incorporate soft controls (i.e. lighting) and hard controls (i.e. HVAC and building systems) to provide integrated and measurable controls and energy management. Cybersecurity and building code compliance will be the main competitive barriers to market. Recent Developments in the Lighting Control Market The lighting control market is shifting from standalone dimmable controls. More and more controls will be integrated into lighting systems and managed by software. The market will experience greater levels of innovation during the 2025–2027-time frame. This is expected to happen as codes and regulations encourage the replacement of existing lighting systems. The focus of competition will be to integrate software and services to analyse the performance of a building. • Integration of Various Controls: The DALI Alliance (now part of the Digital Illumination Interface Consortium) worked during 2025 to expand DALI-2 certification to include products with wireless connectivity. This will enable controls integrators to take less integration risk and use different control products in the same system. • Connected Lighting Systems: The requirements set forth in Title 24 of the California Building Energy Efficiency Standards Class 2025 created requirements for connected control systems in many commercial lighting systems. These codes are expected to increase the replacement of lighting systems to include appropriate controls. • Software and Services: Signify, the lighting division of Philips, reported strong connected lighting system and control services and software sales during the first quarter of 2025. Other lighting systems and controls manufacturers and service providers are expected to emphasis similar offerings. • Integration of Building Systems: Siemens announced in March 2025, integration of building automation across its portfolio of building compromises, and integration of lighting controls to other building controls and systems. Long term, Siemens expects the market for lighting control to be outside the electrical system and be part of the energy management system. • Investment in Energy Efficiency: The amended EU Energy Performance of Building Directive, obligates EU members to take implementation measures starting May 2026. This increases the need to improve the energy performance of buildings. Installation of building controls, particularly, occupancy sensors and sensors for dimming controls, is expected. In the next five years, the building controls market is expected to shift to building controls and systems that integrate with other building systems and assist in achieving energy savings. Hardware is expected to remain the major component of building controls systems. Building controls systems that utilize open systems and protocols are expected to gain market share. Building controls systems that use proprietary systems and protocols are expected to face long sales and marketing cycles. Strategic Growth Opportunities in the Lighting Control Market There has been growing investment in the lighting control market as building owners look for ways to improve energy efficiency. There will be fewer barriers to building retrofits in the mid-2020s because of ongoing developments in the fields of LED and wireless technology. According to Lucintel, the lighting controls market will shift to a subscription model. • Smart Building Systems: In 2025, Signify (formerly Philips Lighting) reported that more than 1 million light fixtures were connected to the company’s Signify Controls system. Additionally, in the next 5 years, energy management systems will further integrate building controls. • Healthcare and Senior Living: The DOE also reported in 2025 that 15% of the total energy consumed by the US Commercial Sector was from the Healthcare Sector. With the focus on the health and wellness of staff and patients, the use of lighting controls will increase. • High End Human Centric Systems: Advanced lighting controls, along with other building controls, will gain market share because of their ability to improve tenant health and comfort while reducing building operating costs. • Retrofit-as-a-Service: The EU’s update to the Energy Performance of Buildings Directive requires the renovation of inefficient buildings by 2030. This could drive the adoption of controls and energy management systems through service-based financing. Building owners would be willing to pay for controls if energy savings are achieved and documented. • Interoperable Wireless Systems: In March 2025, the Connectivity Standards Alliance announced over 1,300 products supporting Matter. The adoption of Matter in the marketplace would drive the use of other interoperable systems and protocols. Building owners would be willing to invest in control and energy management systems to achieve building performance goals. The use of control systems would increase to meet the needs of building occupants. The use of control systems would be greater in facilities where controls and energy management systems achieve specific performance goals, reduce operational costs, or improve the comfort and experience of building occupants. Control and energy management system vendors would be able to achieve and retain a competitive edge in the market if they integrated other related systems and services. There would be variability in the adoption of control systems, particularly if incentives are offered for building retrofits. Lighting Control Market Drivers and Challenges Various trends including technology, economy, ecology, and law shape the lighting control industry. The industry is shifting from simply controlling lights to more complex systems. The assumption is that in the future, control systems for lighting will integrate other building systems and improve energy efficiency. Long-term, the digital transformation and need for upgrading building systems is expected to create a greater demand for controls. However, in the short term, challenges such as the high cost to install the systems, lack of interoperability and integration, and security will limit market growth. Successful companies in the market will integrate these systems in a way that improves affordability and sustainability. The factors responsible for driving this market include: • Increasing Customer Request: Building owners want a reduction in energy costs, more comfortable and engaged occupants, and the ability to automatically manage and adjust lighting throughout the building. These trends drive the implementation of lights controlled by occupancy sensors, daylight, timing and/or control by building users via mobile devices. The U.S. Department of Energy, in January 2025, indicated that advanced controls and other building automation systems are key to improving building energy efficiency. In the coming years, building owners will implement improved lighting controls to enhance the occupants’ user experience and workplace flexibility while upgrading and reconfiguring the building’s electrical and HVAC systems. • Advancements in Technology: Recent developments in computer, communication and control technologies such as Artificial Intelligence, Edge Computing, and the Cloud, have facilitated the development of lighting control systems that can automatically learn and adjust to occupancy patterns, and be integrated with other controls systems in a building. In March 2025, the Bluetooth Special Interest Group (SIG) reported that the use of Bluetooth Mesh Technology in large building automation systems had increased. • Regulatory Support: Building codes and other standards and mandates facilitate the incorporation of occupancy sensors, automated dimming controls, energy-efficient and or-control lighting systems, and energy management systems. While multiple codes and standards exist, not all buildings are required to comply with them. In the U.S., many state legislatures and building code counsel organizations are reviewing and developing energy codes that will lower the permitted or prescriptive emission levels of buildings to increase the demand for lower energy or emission control systems. As of the report’s date, several countries in the European Union had adopted or updated their versions of the Energy Performance of Buildings Directive to reduce the emissions of buildings in their member countries and require the construction of new buildings to be emissions-free by 2030. • Sustainability: The reduction of energy consumption and greenhouse gas emissions, as well as the mitigation of peak electrical demand, can be achieved through the use of lighting control systems and other energy management systems. The incorporation of daylight harvesting systems and other controls and sensors can also help organizations meet their sustainability and decarbonization goals. The IEA released a report in 2021 outlining its plan to achieve a decarbonized economy by 2050 and outlining the critical role building efficiency and other initiatives would play. • Investments in Infrastructure: Investment in digitally managed electrical infrastructure has increased due to various factors including smart city projects, data centre construction, and expanding the healthcare and industrial sectors. When construction or renovation projects of significant size occur, it is more cost-effective to integrate lighting controls. Funds allocated to the reconstruction and renovation of buildings within the European Union will be issued under the Recovery and Resilience Facility. By 2026, approximately €650 billion will be made available to member countries for energy and construction infrastructure projects. Allocation of these funds will improve energy and construction infrastructure, and encourage the use of building controls and automation systems in public and private facilities. The challenges facing this market include: • High Initial Investment: Costs associated with the integration of controls with lighting systems, including labour, increase the cost per unit above what is considered acceptable. Energy savings may offset the costs, but if the energy cost savings do not occur in a reasonable time frame, the user may not replace the lighting system. High energy and labour costs, combined with a focus on urgent health and social care needs, further limited building renovation budgets. This situation will likely change in the next three to five years, increasing the focus on renewing building control systems. • Interoperability and Cybersecurity: Differences in communication methods and data structures among lighting controls can limit the ability for connectivity and integration across different systems and products. Cybersecurity risks exist with the increased usage of connected devices. These risks are of particular concern in critical infrastructure (e.g. buildings, manufacturing, offices and hospitals) and public facilities. From October 2025, the EU’s Cyber Resilience Act will require manufacturers of connected products to take measures to ensure their products are secure from exploitation. This will prompt the industry to develop and use more secure products and implement protected services. This will also enforce the use of secure standards for connectivity and integration, as well as over-the-air software and firmware updates. • Building Construction and Supply Chain: Uncertainty in building construction and commercial space occupancy creates demand for lighting controls. The COVID-19 pandemic led to economic slowdowns, supply chain disruptions and delays in building construction. Raw material and component shortages have resulted in increased lead times and prices for Building Integration and Control systems. Various governments have set energy savings targets and mandated the usage of technologies which increase energy efficiency in buildings. Also, there are stringent building codes and regulations which promote the use of building systems and equipment which improve the intelligence of building operations. Additional factors which drive the market are the voluminous incentives and other government policies which promote energy efficiency and sustainability. Public-private partnerships have increased investments in building infrastructure. Although there has been a positive shift in market forces, there are still challenges which include integration of building systems and equipment, costs, construction cycle time, and instability. Security and interoperability of building systems will be key in capturing new customers and market opportunities. List of Lighting Control Market Companies Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies lighting control market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the lighting control market companies profiled in this report include- • General Electric • Cree • Osram • Philips • Lutron • Leviton Manufacturing • Legrand Lighting Control Market by Segment The study includes a forecast for the global lighting control market by product type, connection type, installation type, application, and region. Lighting Control Market by Product Type [Value ($B) from 2019 to 2035]: • Led Drivers • Sensors • Switches & Dimmers • Relay Units • Gateways Lighting Control Market by Connection Type [Value ($B) from 2019 to 2035]: • Wired • Wireless Lighting Control Market by Installation Type [Value ($B) from 2019 to 2035]: • New Installation • Retrofit Installation Lighting Control Market by Application [Value ($B) from 2019 to 2035]: • Indoor • Outdoor Lighting Control Market by Region [Value ($B) from 2019 to 2035]: • North America • Europe • Asia Pacific • The Rest of the World Country Wise Outlook for the Lighting Control Market Lighting controls will be required to integrate more fully with automation and energy management systems (EMS) as building code requirements increase. Lucintel expects building automation and controls systems to be integrated with EMS and become more code-compliant as a result of energy conservation incentive programs. • United States: California has been a leader in Building Energy Efficiency Standards and the adoption of automation controls. In 2026, requirements for 2025 standards take effect and include use of day-lighting, occupancy and automated controls for lighting. The U.S. Department of Energy continues to fund and encourage building upgrades for efficiency. • China: The 14th Five-Year Plan ended in 2025 and focused on the digital economy and energy savings. The 14th Five-Year Plan succeeded the 13th Five-Year Plan which encouraged Municipalities to implement Efficient Lighting Upgrade Programs to replace less efficient lighting and controls. China continues to renovate, modernize and digitize public lighting and other building infrastructure. • Germany: By 2026, Germany will need to implement the updated version of the Energy Performance of Buildings Directive (EPBD) of the European Union. The EPBD sets goals to achieve a completely decarbonized building stock by the year 2050. New rules to increase building automation and energy management will be enacted as part of this latest update to the EPBD. Acceleration of the control’s integration will happen in newly constructed or renovated commercial buildings. • India: The India Bureau of Energy Efficiency issued the Seventh Energy Conservation Building Code (ECBC) in December 2024. For the first time, commercial buildings codes have been established in India and include requirements for building automation and control systems for lighting and HVAC. Energy Efficiency Services Limited (EEESL) is leading national programs for the replacement of traditional public lighting with energy efficient LEDs and smart controls. • Japan: The GX Policy aims to increase energy efficiency in buildings by investing 150 trillion JPY over the next 10 years. The Policy is expected to promote the use of energy efficient and smart lighting and controls, and building management systems in Japan. Features of the Global Lighting Control Market Market Size Estimates: lighting control market size estimation in terms of value ($B). Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions. Segmentation Analysis: lighting control market size by various segments, such as by product type, connection type, installation type, application, and region in terms of value ($B). Regional Analysis: lighting control market breakdown by North America, Europe, Asia Pacific, and Rest of the World. Growth Opportunities: Analysis of growth opportunities in different product type, connection type, installation type, application, and regions for the lighting control market. Strategic Analysis: This includes M&A, new product development, and competitive landscape of the lighting control market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model. If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more. This report answers following 11 key questions: Q.1. What are some of the most promising, high-growth opportunities for the lighting control market by product type (LED drivers, sensors, switches & dimmers, relay units, and gateways), connection type (wired and wireless), installation type (new installation and retrofit installation), application (indoor and outdoor), and region (North America, Europe, Asia Pacific, and the Rest of the World)? Q.2. Which segments will grow at a faster pace and why? Q.3. Which region will grow at a faster pace and why? Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market? Q.5. What are the business risks and competitive threats in this market? Q.6. What are the emerging trends in this market and the reasons behind them? Q.7. What are some of the changing demands of customers in the market? Q.8. What are the new developments in the market? Which companies are leading these developments? Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth? Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution? Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?