Human Centric Lighting Market

The human centric lighting market is expected to reach USD 3.6 billion by 2024 from USD 0.8 billion in 2019, growing at a CAGR of 35.2% from 2019 to 2024.

Human-centric lighting solutions are controllable lighting solutions that assemble on a spectrum of correlated color temperatures (CCTs). The system intends to improve a person’s wellbeing, mood, and health by varying CCTs. Implementation of wireless technology for LED lighting is expected to provide huge growth opportunity to players in the human-centric lighting market. Advances in wireless communication technology for smart lighting systems, an increasing number of smart city projects and the development of the IoT technology for ambient lightings provide huge opportunities for the growth of the human-centric lighting market. Also, emerging countries are witnessing rapid urbanization with the development of smart cities. This infrastructure development would boost the demand for energy-efficient and human beneficiary lighting solutions, one of the major factors that would propel the growth of the human-centric lighting market. High adoption of LED lighting solutions owing to increasing demand for human-centric lighting, initiatives toward establishing smart cities driving demand for human-centric solutions, and growing demand for energy-efficient lighting solutions are the major factors contributing to the growth of the human-centric lighting market. However, compatibility issues and high installation cost pose hurdles in the path of lighting controls, thereby restraining the growth of the human-centric lighting market.

Human Centric Lighting Market Forecast to 2024

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This report offers detailed insights into the human-centric lighting market segmented into light source, component and service, installation, application, and region. Based on components, the market is segmented into lighting fixtures, lighting controllers, and software. Based on service, the market is segmented into design and engineering, installation, and post-installation services (maintenance, support & monitoring services). Based on application, the market is segmented into wholesale and retail, enterprises and data centers, residential, educational institutions, healthcare, industrial, and hospitality. Major companies operating in the market include Signify Lighting NV (Netherlands), OSRAM Licht AG (Germany), Acuity Brands, Inc. (US), Cree, Inc. (US), Legrand SA (France), Hubbell Inc. (US), Zumtobel Group AG (Austria), Wipro Enterprises (P) Ltd. (India), Glamox AS (Norway), and Lutron Electronics Co., Inc. (US).

A major factor driving the human-centric lighting market is the high adoption of LED lighting solutions, initiatives towards establishing smart cities driving demand for human-centric solutions, and growing demand for energy-efficient lighting solutions.

Human-Centric Lighting Market Dynamics:

Driver: Initiatives toward establishing smart cities driving demand for human-centric solutions

Application areas of lighting are expanding—from residential buildings and hospitals to office spaces. Lighting solutions are used for indoor and outdoor purposes, with the demand for innovative and energy-efficient solutions growing among end users. In a smart city or building, lighting controllers enable lighting systems to detect natural light in an area and the presence of people, and accordingly determine and adjust luminosity or switch off if no person is present. Lighting controls are essential components of energy-efficient lighting systems, which combine sources of electric light with daylight to create a pleasant ambience and save energy and cost, as well as aid in environmental sustainability.

However, modern trends of people migrating to cities, spending a longer period of time indoors have amplified efforts to provide a healthier indoor environment. To fulfill this requirement, smart lighting solutions are replacing traditional lighting solutions. The intensity of the light may have an adverse impact on human health such as disturbance of sleep/wake cycles and mood disorders. For this purpose, light management systems that control luminosity are required. Poor lighting quality can impact human vision and health. So, it is necessary to deploy light management systems in modernized infrastructure for the enhancement of a living environment. Efficient lighting solutions are crucial for the development of smart cities. According to Siemens AG (Germany), the market for smart cities increased by 19.9% to USD 1,240 billion in 2015 (from USD 575 billion in 2014). The growing trend for smart cities increases the demand for smart lighting solutions, and several companies are focusing their efforts toward assessing the impact of lighting systems on end users. For instance, Philips Lighting Holding B.V. is engaged with Boyette Strategic Advisors, an independent research firm, to conduct an impact analysis study of its diverse light fixture installations in the US. This analysis will provide in-depth information about the needs and expectations of end users, and aid in the development of the human-centric lighting market.

Restraint: Compatibility issues and high installation cost

Lighting control systems make use of different types of communication links throughout the facility to control the lighting devices. Every communication method needs dedicated electronic circuits inside the lighting devices. Both replaced and newly fitted lamps may not always be compatible with the existing controls, which may lead to complications. Compatibility issues might arise due to the increase in complexity of lighting control systems, rise in the frequency of using the lighting control systems, increased complexity of electrical environment where the lighting control systems are installed, or due to the deployment of new lighting devices. These compatibility issues act as restraining factors for the growth of the market for lighting controls. The impact of the compatibility issue is expected to reduce in the future as more technological innovations have been introduced in the market.

Also, the cost of replacing traditional lighting systems with human-centric lighting systems is high, because of which it acts as one of the restraints in this market. Ambient lighting is essential to maintain the ambience, and the initial installation cost of ambient lighting can be high. This factor inhibits the growth of the human-centric lighting market. However, factors such as falling prices of LEDs and high return on investment in human-centric lighting are expected to reduce the impact in the future.

Opportunity: Implementation of wireless technology for LED lighting

LED is now entering the era of wireless technology. The application of wireless technology has not only reduced the use of wires but also helped avoid the reconstruction of the existing infrastructure, thereby creating flexibility for end users. Developments have been taking place to integrate wired and wireless technologies across the world. The wireless technology not only enables easy access to the LED lighting system but also proves to be a cost-effective solution. Smart lighting platforms under wireless technology help maintain lighting temperature and luminance. Due to this, the wireless technology for LED lighting system is creating huge opportunities in the human-centric lighting market.

Recently, developments have been taking place toward integrating wired and wireless technologies. BACnet has added wireless networking options by adding the ZigBee profile to the LED lighting system. ZigBee is a wireless technology designed to address the requirement of low-cost, low-power wireless sensors and control networks in the LED lighting market. This integration between BACnet and ZigBee would allow creating an efficient and connected LED lighting system. Besides ZigBee, other wireless communication technologies used in LED lighting systems are EnOcean, Z-Wave, and Wi-Fi. These wireless networks offer opportunities in the advanced connected lighting market, especially in the areas of the retrofit market.

Challenge: Lack of common standards

One of the major challenges in the human-centric lighting market is the lack of common standards. Standards and protocols for LED and other light sources are not defined clearly, due to which manufacturers vary their product standards from one region or country to others. Manufacturers of lighting systems are focusing on the development of open protocol devices. Currently, it is mandatory for lighting manufacturers to match the industry standards across the world pertaining to the light source. Zhaga Consortium (US) is among the initiator to set up general lighting standardization for LEDs. The lack of a common standard often results in inefficiency in the industry. For example, manufacturers of LED module cannot benefit from economies of scales, and designers and manufacturers of fixtures cannot design their products with efficiency because of the lack of extensive coordination among various part suppliers. In relation to an initiative toward open standards, The Lighting Industry Association (UK) has launched an independent verification program for LED production which defines standards for LED products in the country. According to LEDinside, a Business Division of TrendForce Corp., as different light source manufacturers use different measurement criteria and benchmark, lighting designers face difficulty in sorting out lighting label measurements. The reputation of lighting designers will get affected if these labels are misleading. Therefore, it becomes necessary to establish a common standard for lighting sources.

Based on installation type, new installations to account for the largest share and is also expected to grow at the highest growth rate of the human-centric lighting market from 2020 to 2025

The growing infrastructure and smart city developments will generate the demand for lighting solutions installations. In this type of installation, a completely new human-centric lighting solution, which includes new-generation LED drivers and ballasts, sensors, switches, dimmers, and gateways, is installed. Unlike the retrofit installation type, which refers to the partial replacement of lighting controls and management systems, in a new installation type, a traditional lighting system is completely replaced with new lights and fixtures.

Based on offering, services segment is expected to have significant growth from 2020 to 2025

The growth of the market for services is mainly attributed to the rising adoption of human-centric lighting solutions and lighting services to reduce the cost and energy consumption and to ensure ecological safety. Moreover, this growth is ascribed to high demand for the engineering, consulting, and analytical services pertaining to human-centric lighting among end users. Services play a vital role before and after the installation of human-centric lighting systems. Design and engineering services, installation services, and post-installation services (maintenance, and support and monitoring services) are the major services provided by human-centric lighting market players. The growth of the human-centric lighting market for services in the coming years is mainly attributed to the expected high rate of adoption of smart lighting systems for energy conservation and ecological safety during the forecast period.

Based on application, residential segment is expected to witness highest growth rate during the forecast period

The adoption of human-centric lighting in the residential application is comparatively higher than that of in other application areas. The lighting for the residential sector comprises 4 technologies—incandescent, halogen, fluorescent, and LED. Among all the major light sources available, the market for LEDs is likely to grow at the highest growth rate. Countries such as Switzerland, Brazil, Venezuela, and Russia have restricted the use of incandescent lamps. Moreover, the rising awareness about the installation of LEDs is supporting the growth of the market for this light source. Various fixtures used in the residential sector include recessed, surface-mounted, suspended, and track lights. Amongst these, recessed and surface-mounted lights are most commonly used in the residential sector. Factors such as ongoing technological advancements, increasing consumer preferences for better interior designing, and rising need for energy-efficient lighting are driving the growth of the market for decorative as well as smart lighting. Also, in residential settings, i.e., at home or in elderly care, human-centric lighting can reduce sleep disorders, thereby limiting the need for cost-intensive medication and reducing nursing efforts. In retirement homes, high illuminance, high color temperatures, and dynamically adjusted light distribution levels improve the well-being and activity of the elderly during the day. This explains that there will be an increasing demand for lighting solutions in residential worldwide, thereby driving the growth of the human-centric lighting market.

Regional Insights:

Asia Pacific is expected to grow at highest growth rate during the forecast period

APAC accounted for 20% of the global smart lighting market in 2018. APAC is expected to be the fastest-growing market for human-centric lighting during the forecast period. The human-centric lighting market has enormous growth potential in APAC, and these systems are likely to be accepted by consumers as an integral part of a digitalized household. The increased construction activities in APAC are contributing significantly to the growth of the human-centric lighting market in the region. The expected construction of ~200 million homes in China and 18 million homes in India is likely to provide several new opportunities for energy-efficient lighting and home automation in the next few years in this region. The growing economy of China creates a significant requirement for lighting systems, which is expected to drive the human-centric lighting market in this country. Japan would be the second-largest human-centric lighting market in APAC in the coming years. Increasing population and growing need for residential infrastructure are supporting the construction projects in APAC. This is boosting the demand for human-centric lighting in the region.

Human Centric Lighting Market by Region

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The Europe held the major share of the human-centric lighting market in 2019

Germany holds the largest share of this market in this region. Europe is among the main regions to have recognized and accepted human-centric lighting practices. A few key companies in this region that offer lighting and control devices are Legrand (France) and OSRAM (Germany). The high living standard of people is driving the growth of the human-centric lighting market in the region. The demands for energy-efficient lighting solutions and technologies are booming in Western European countries. Moreover, historical buildings and architectural sites, as well as hospitality businesses in the country, are driving the demand for innovative lighting solutions. The European Union’s environmental policies, such as the 2012 Energy Efficiency Directive and Energy Performance of Building Directive (EPBD) of the European real-estate sector, help establish and promote energy conservation measures across industrial and commercial workplaces, as well as homes. Moreover, the drive for “green city” projects brings more energy efficiency in most EU countries. This has created a market opportunity for manufacturers of LED and energy-efficient human-centric lighting solutions. The increase in construction activities, followed by the rise in new Installations of lighting fixtures and dimmers, drives the human-centric lighting market in this region.

Key Market Players:

Major players in the human-centric lighting market are OSRAM Licht AG (Germany), Signify Lighting NV (Netherlands), Acuity Brands Inc. (US), Cree Inc. (US), and Legrand SA (France).

OSRAM Licht AG provides lighting solutions and specialty products featuring energy-saving technologies. The company offers fully integrated lighting solutions to meet the growing demand for networked, intelligent lighting. The company is also focusing on the development of lighting products for human wellbeing. The company is one of the innovators driving this movement and the first company to implement an HCL solution—Osconiq S 1620, under Osconiq professional product family for a complete office building. Furthermore, in March 2018, OSRAM acquired BAG Electronics GmbH (Germany) (a Trilux subsidiary), a company that is specialized in LED modules and software for innovative LED lighting solutions. BAG specializes in electronic ballasts, LED modules, and software for innovative LED lighting solutions, such as for human-centric lighting (HCL).

Signify Lighting NV is a global market leader with recognized expertise in the development, manufacturing, and application of innovative green lighting products, energy-efficient lighting products, systems, and services. The company is an industry leader in connected lighting systems and services; the company is leveraging the Internet of Things (IoT) to help transform streets and roads, homes, buildings, and urban spaces and increase their energy efficiency and make cities safer and more responsive. The company continues to conduct research and innovation to develop lighting that is easy on the eyes. In March 2018, Signify introduced the EyeComfort Standard in its portfolio of consumer LED lamps and luminaires because currently, there is no global standard that defines EyeComfort.

Human Centric Lighting Market  Report Scope  :

The research report categorizes the Human-Centric Lighting market to forecast the revenues and analyze the trends in each of the following sub-segments:

 Human-Centric Market, By Offering

• Hardware
• Fixtures
• Controllers
  • Sensors
  • Drivers
  • Microprocessors & Microcontrollers
  • Switches & Dimmers
  • Transmitters & Receivers
• Software
• Services

Human-Centric Market , By Installation Type

• New Installations
• Retrofit Installations

Human-Centric Market , By Application

• Wholesale & Retail
• Enterprises & Data Centers
• Residential
• Educational Institutions
• Healthcare
• Industrial
• Hospitality

Human-Centric Market , By Region

• North America
• Europe
• Asia Pacific (APAC)
• Rest Of The World (RoW)

Human-Centric Lighting Market Highlights:

Research Scope

• Market Segmentation

• Human-centric lighting Market, by Offering

• Hardware
• Software
• Services

• Human-centric lighting Market, By Installation Type

• New Installations
• Retrofit Installations

• Human-centric lighting Market, by Application

• Wholesale & Retail
• Enterprises & Data Centers
• Residential
• Educational Institutions
• Healthcare
• Industrial
• Hospitality

• Coverage of market players and providing ranking analysis of players of the human-centric lighting market.

Company profiles: Company profiles give a glimpse of the key players in the market with respect to their business overviews, financials, product offerings, recent developments undertaken by them, SWOT analysis, and MnM view. In the report, we have total 20 players (10 major, 10 Startups/SME). Moreover, ranking analysis of top 5 companies operating in the human-centric lighting market, and market quadrant for players has also been provided in the report.

• Financial information and product portfolios of players operating in the human-centric lighting market.

Newer and improved representation of financial information: The report provides updated financial information in the context of the human-centric lighting market till 2018 for each listed company in the graphical representation in a single diagram (instead of multiple tables). This would help to easily analyze the present status of profiled companies in terms of their financial strength, profitability, key revenue-generating region/country, business segment focus in terms of the highest revenue-generating segment and investment on research and development activities.

• Market developments of the profiled players.

Recent Developments: Market developments such as partnerships, contracts, collaborations, and new product launches have been mapped for the years 2016 to 2018. For instance, in November 2018, Legrand acquired Netatmo (France), a French leading smart home company, to enhance its offerings with new, complementary, and high-potential connected product categories for the home.

Recent Developments

• In December 2018, Legrand acquired Kenall Manufacturing (US), an American leader in lighting solutions dedicated to specialized applications and critical non-residential environments, to strengthen its lighting position in North America.  
• In November 2018, Cree launched LED Troffer, a FLEX series lighting system that provides architects and lighting specifiers incredible design freedom to address the USD 1.2 billion specification tier of the industry. The FLEX Series LED Specification troffer combines artistic appeal, design flexibility, and premium performance into a slim luminaire design that fits virtually any ceiling type.
• In November 2018, OSRAM launched Osconiq S3030, an LED that enables customers to build luminaires with optimum quality, extra-long life, and exceptional robustness. These LEDs are modern components designed to meet professional demands in various general lighting applications and are characterized by long life, high performance, and first-class reliability.
• In November 2018, Legrand acquired Netatmo (France), a French leading smart home company, to enhance its offerings with new, complementary, and high-potential connected product categories for the home.  
• In October 2018, Cree launched LXB Series Linear High-Bay luminaires that include best-in-class performance including enhanced efficacy, reliability, and an extended lifetime, which make them ideal solutions for high ceilings, high ambient temperatures, and high-profile spaces.

Key Benefits of the Report/Reason to Buy

• This report includes the market statistics pertaining to offering, installation type, application, and region segments of the human-centric lighting market
• An in-depth value chain analysis has been done to provide deep insight into the human-centric lighting market.
• Major market drivers, restraints, opportunities, and challenges have been detailed in this report.
• The report includes an in-depth analysis and ranking analysis of key players.

Target Audience

• Semiconductor and electronic component manufacturers and suppliers
• Raw material and manufacturing equipment suppliers
• Sensor manufacturers and distributors
• Lighting manufacturers
• Lighting control system manufacturers
• Original equipment manufacturers (OEMs)
• ODM and OEM technology solution providers
• Electronic and consumer electronics product manufacturers
• Suppliers and distributors
• System integrators
• Middleware providers
• Assembly, testing, and packaging vendors
• Research institutes and organizations
• Technology standards organizations, forums, alliances, and associations
• Technology investors
• Governments, financial institutions, and regulatory bodies

Frequently Asked Questions (FAQ):

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