Like so many other technology industries, lighting has undergone a dramatic transformation in recent years. Perhaps no other form of lighting has had a more profound effect on the industry than LEDs.
While cost continues to be an inhibitor, the market for LEDs and lighting controls looks to be ready for more growth.
Published in the first quarter of 2021, Guidehouse Insights' "Market Data: Residential Energy Efficient Lighting and Lighting Controls" proclaims that LED lighting is rapidly becoming the "predominant technology throughout the residential lighting installed base."
Guidehouse Insights, Boulder, Colo., identifies several factors contributing to this trend. The declining price of the technology combined with their longer life and increased energy savings, have helped make LEDs a more attractive choice. Regulatory changes have also affected the market, as building code advancements now mandate the adoption of LEDs in residential buildings in many jurisdictions.
"Alexa, turn off my bedroom light."
In an increasingly digital world, the connectivity of LEDs gives them another competitive advantage over other forms of lighting. As Guidehouse explains, the "value proposition" of LEDs continues to improve with the growth of connected LED products, interoperability and an increased emphasis on occupant comfort and control. Features including the improved integration with broader smart home technologies, ease of use and voice control are also helping to give connected LEDs a greater share of the overall LED and lighting controls market. The trend works both ways, and the study adds that as LED penetration increases, digital lighting controls have also seen increased growth.
LEDs and connected LEDs will play a large role in driving the broader market for lighting controls. Guidehouse expects global annual residential lighting controls revenue to grow from $1.3 billion to $1.9 billion at a compound annual growth rate of 4.9% from 2020 to 2029. Dimmers will represent the largest share of lighting controls revenue during this time, while connected controls are expected to grow at the fastest rate.