Light Control Switches Market

The light control switches industry is estimated to grow from USD 6.6 billion in 2020 to USD 10.2 billion by 2025, growing at a CAGR of 8.9% during the forecast period.

A light switch can be defined as a device that is used to operate electrical lamps and lighting fixtures. Generally, light switches have been synonymous with simple manual on/off switches; however, rapid changes in lighting technologies during the last decade have led to the evolution of sensor-based switches, timer switches, and other advanced switches.

A dimmer is a kind of switch which regulates the luminosity of the installed lights/lighting system rather than just switching it on and off. Smart lighting control switches and dimmers consist of automated controls, which can adjust the lighting based on criteria such as occupancy and daylight. These control devices can also switch lights on and off or dim them in accordance with time, events, alarms, or manual override.

Light control switches and dimmers use different communication technologies for communication between connected devices depending on the requirement of the application/use case. These devices use both wired and wireless communication technologies, where the associated cost and complexity restrict the deployment of conventional wired controls. Light control switches and dimmers can be either a standalone light control solution or an integrated light control solution.

Light Control Switches Market Forecast to 2025

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Light Control Switches Market Dynamics:

Driver: Ongoing and upcoming smart city projects in developing economies

Smart cities are an application of the Internet of Things (IoT), which helps the growth of smart lighting initiatives to maintain a secure lighting network with an expanding array of city-to-citizen data-enabled products and services. There is a huge opportunity for smart lighting projects as cities are willing to implement them in their locality. The adoption of LED street lighting has shown about 50-70% energy savings as compared to traditional lighting and hence presents an urgency to raise the adoption of LED adoption across the global market. Los Angeles is one of the early adopters of LED streetlights. To date, the city has installed more than 180,000 units, which amounted to 65% of energy savings and CO2 reduction of 65,000 metric tons per year. Jakarta, Indonesia, has plans of replacing over 90,000 streetlights with LED lighting systems, thereby targeting to achieve about 70% energy savings.

The main objective of a smart city is to use electricity efficiently to achieve sustainability; this can be achieved with the advent of smart lighting solutions. Smart lighting solutions, integrated with advanced light control switches, increase energy efficiency and promise to deliver reliable performance. Demand for smart home technologies equipped with voice control and growth in smart home offerings (e.g., Amazon Alexa, Apple’s Home Kit, Google’s Nest, Samsung’s SmartThings) are creating more opportunities for implementing smart lighting solutions. Such developments in the smart lighting solution market are helping in increasing the demand for light control switches to enable efficient performance and reliability.

Restraint: Privacy and security issues with smart lighting control systems

The emergence of connected lighting solutions integrated with smart homes, offices, and warehouses is the beginning of a new era pertaining to the green strategy. With the help of IoT devices such as security systems, door locks, lighting, and thermostats, everyday items are now connected to the Internet, which makes the lives of users easy. While the usefulness of IoT devices is well-known, something that is not highlighted is the potential risk it tags along with Wi-Fi home networks. As the system is connected to the Internet, it becomes an exploiting area for hackers and increases the possibility of messing with smart lighting, security systems, door unlocking systems, etc. A connected lighting system is a sophisticated array of LED features with built-in sensors and cameras connected to the wireless network. Since all the collected data is stored on the cloud, it becomes vulnerable to a wide range of attacks.

Opportunity: Growing inclination towards energy-efficient lighting solutions

The rapid depletion of natural resources and global warming have generated an indispensable need for energy conservation across the globe. Both government and organizations across the world are working on reducing energy consumption by adopting smart LED lighting solutions integrated with advanced luminaire switches. Energy-efficiency programs, such as the ENERGY STAR certification and Lighting Design Lab certification by the US Environmental Protection Agency, are some of the programs aimed at highlighting the importance and need for energy efficiency. These programs actively encourage and promote the use of energy-efficient lighting sources that help organizations and households across the globe to achieve energy efficiency and reduce their carbon footprints. Along with that, the FIFA World Cup 2018, held in Russia, also contributed significantly to the global LED market by increasing the construction of sports infrastructures. This led to significant growth in the lighting solutions and switches market across the globe.

According to the US EIA, the residential and commercial sectors consumed around 232 billion kilowatt-hours of electricity for lighting in 2018, which is approximately 8% of the total electricity consumed in both sectors. The electricity consumption by the residential and commercial sectors for lighting in 2016 was 10% of the total electricity consumption. This decline is primarily due to the use of energy-efficient smart LED lighting solutions. Thus, the rising requirement for energy-efficient lighting solutions would result in a high demand for smart lighting systems and light control switches.

Challenge: Interoperability issues between different network components

IoT is transforming the way devices interact with each other by integrating smart homes, warehouses, and offices with connected lighting solutions. However, interoperability issues between different network components are hampering the IoT business. Traditional lighting control systems usually consist of hardware and software manufactured by the same manufacturer, whereas, in connected lighting solutions, controls are developed by different manufacturers. The lack of interoperability prevents devices from connecting autonomously, discovering each other, and collaboratively engaging with other smart devices and services, which is a barrier for companies to build automated ecosystems. Such issues are the consequence of factors such as vendor lock-in, problems in developing cross-platform IoT applications, and difficulties in plugging non-interoperable IoT devices into different IoT platforms. Hence, there is a need for establishing standard protocols to develop compatible products. Several organizations such as The Connected Lighting Alliance (TCLA) and the ZigBee Alliance are trying to standardize the protocols used in connected lighting technologies so that luminaires could be used to collect and share data for analytics purposes.

Light Control Switches Market Segment Insights:

Based on product, switches accounted for the largest share of the light control switches market in 2020

Electronic switches held a major share of the light control switches market in 2020 and similar trend is expected to continue during the forecast period. The market for electronic switches is also expected to grow at a higher CAGR during the forecast period, due to the rise in the number of units of smart switches installed for various indoor end-use applications. Switches are one of the most common interfaces between the lighting system and the occupant. They are mainly used to operate and control an electric light. A switch can be permanently connected or can be installed on electrical outlets, depending on its application or use. A switch is used for different purposes and provides more flexible lighting. It saves energy and helps in extending the lifespan of the lighting source.  

Based on solution type, standalone light control solutions to dominate light control switches market during forecast period

Standalone light control solutions held the major share in the overall light control switches market in 2020. This is mainly due to their long presence in the market and cost-effectiveness. Standalone lighting control products include sensors, switches, and dimmers, which are hard-wired to control light fixtures in a room with no communication outside the space. Usually, most of the traditional lighting control products are referred to as standalone lighting control solutions. In general, along with retrofitted traditional or LED lights and luminaries, standalone lighting control solutions are installed along with a set of controls for each room. These solutions are simple, require primarily localized wiring changes, and thus are very cost-effective.

DALI protocol to account for major share of light control switches market for wired communication protocol during forecast period

DALI protocol held largest share among all wired communication technology in 2020 and is expected to dominate the market during the forecast period. As of now, DALI is the predominant communication technology used owing to its ease of installation, open protocol, and requirement of less branch wiring than traditional controls.

DALI is a standard protocol that is followed in the US along with the European Standard 60929 and NEMA 243-2004. In the lighting control and management system market, DALI provides centralized control daylighting and occupant control capabilities, enables application flexibility, and provides significant energy savings. DALI can be used for scene selection and for getting feedback regarding faulty light sources, which makes this protocol useful in cases where remote supervising is required. A DALI system could be as small as a single luminaire. It is also scalable to multiple systems across a building or more where DALI systems can be connected using lighting hubs/routers.

Based on indoor application, commercial segment likely to witness fastest growth during the forecast period

The light control switches market for indoor applications has been segmented into residential, commercial, industrial, and others. The light control switches market for commercial application is expected to grow at the highest CAGR during the forecast period due to the increase in demand for smart lighting control products such as electronic switches and wireless dimmers. Commercial spaces such as offices, malls, and retail shops, which are usually large in terms of area, require an efficient lighting system to help control the cost of electricity.

Regional Insights:

Light Control Switches Market by Region

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US to hold major share of light control switches market in North America during forecast period

The US held the major share of the North American light control switches market in 2020, mainly due to the presence of major manufacturers of light control switches and dimmers along with the demand from various sectors for lighting control systems. Mandates and regulations by the US government over energy consumption are also among the key factors driving the light control switches market in the US. The US is expected to remain the largest market for light control switches in North America despite an uneven economic recovery, which includes increasing GDP growth but low wage rates. The building codes in the US are increasingly being designed to create energy-efficient building systems. According to the US Department of Energy, lighting contributes to almost 16% of the overall energy consumption. Hence, building codes are mandating energy-efficient light sources and technologies to reduce energy consumption through lighting. The energy consumption by residential and commercial buildings in the US is growing and accounts for a major share of the ever-increasing energy consumption in the country.

Germany to lead light control switches market in Europe during the forecast period

Germany is expected to dominate the European light control switches market during the forecast period. It held the largest share in 2020, mainly due to its robust economy, high standard of living of its citizens, and its commitment to reduce its carbon footprint. The adoption of Industry 4.0 is expected to further boost the market for light control switches and dimmers for indoor end-use application in the country. Germany is Europe’s economic powerhouse and plays a crucial role in the European market for light control switches and dimmers. The German population prefers well-equipped smart homes. Moreover, in the next 4–5 years, the number of new households is expected to rise, which would offer opportunities for new and innovative lighting solutions.

Key Market Players

The light control switches market is a highly competitive market, with a large number of global and regional players operating in this market. Some of the key players in the light control switches market are Signify (Philips Lighting N.V.) (Netherlands), Legrand S.A. (France), Leviton Manufacturing Company, Inc. (US), Lutron Electronics (US), and Eaton Corporation (Ireland). These players have adopted various growth strategies such as contracts, joint ventures, partnerships & agreements, acquisitions, and new product launches to further expand their presence in the light control switches market.

Signify is an industry leader in the lighting market. The company’s market experience and brand name allow it to capitalize on the fundamental market dynamics in the lighting industry and deliver innovative solutions that create value and ensure its growth. The company aims to further invest in connected lighting systems to win contracts related to the supply of connected lighting systems and other lighting control equipment. It also adopts the strategy of acquisition. For instance, in October 2019, Signify acquired Cooper Lighting Solutions from Eaton. This acquisition would strengthen its position in the North American lighting market. Also, in April 2019, it acquired WiZ Connected—a developer of the WiZ Wi-Fi-based connected lighting ecosystem. This acquisition will allow Signify to extend its leadership position in the Wi-Fi-based smart lighting control switches market.

Legrand is a global specialist in electrical and digital building infrastructure. The company has a strong product portfolio pertaining to the light control switches market. This enables the company to maintain its leading position in this market. Legrand focuses on growth strategies such as acquisitions, partnerships, and product launches. For instance, in May 2019, the company launched wireless DLM systems, which are designed for easy installation, which, in turn, saves cost and time, thereby benefiting engineers, electrical contractors, and facility managers needing reliable, code-compliant lighting controls. In December 2018, the company acquired Kenall, a leading manufacturer of innovative, energy-efficient, and sustainable specification-grade lighting and control solutions.

Leviton delivers a range of innovative and reliable indoor and outdoor lighting and control solutions, specifically designed to maximize performance, energy efficiency, and cost savings. The company emphasizes on the development of new products and solutions with a few advanced technologies for the customers across the world. For instance, in January 2019, the company introduced two new devices— Decora Smart Wi-Fi and Smart Z-Wave Plus In-Wall Receptacle’s—for homeowners to control their lamps, small appliances, and other electronics. Leviton has adopted the strategies of collaborations and partnerships to grow in the light control switches market. For instance, in November 2019, it acquired Viscor, Canada’s largest independent lighting manufacturer, which specializes in lighting for architectural, commercial, medical, institutional, and industrial applications. With this acquisition, Leviton strengthened its ability to expand its lighting and controls product offerings.

Lutron is a leading provider of energy-saving wireless light and shade controls. Its partners and affiliations are its key strengths, and product recalls the primary area of concern. It is an established player with significant experience in providing energy management and lighting management systems for industrial, residential, and commercial applications. However, the company has a huge dependency on North America for its revenue. The ongoing integration of IoT in various lighting applications could create ample opportunities for the company, which, in turn, could positively impact its profitability.

Light Control Switches Market Report Scope

Light Control Switches Market Segmentation

Market, by Product Type

• Switches
• Manual On/Off Switches
• Toggle switches
• Rocker switches
• Illuminated switches
• Electronic Switches
• Wireless switches
• Sensor-based switches
• Others
• Dimmers
• Wired Dimmers
• Wireless dimmers

By End-use Application

• Indoor
• Residential
• Commercial
• Industrial
• Others
• Outdoor
• Highways & Roadways Lighting
• Architectural Lighting
• Lighting for Public Places

By Communication Protocol

• Wired
• DALI
• PLC
• Wired Hybrid Protocols
• Wireless
• ZigBee
• Bluetooth/BLE
• EnOcean
• Wi-Fi
• Wireless Hybrid Protocols

By Switch Solution

• Standalone switch solution
• Integrated switch solution

By Light source

• Incandescent
• Fluorescent
• Compact Fluorescent Lamp (CFL)
• Linear Fluorescent Lamp (LFL)
• High-Intensity Discharge
• Light-Emitting Diode (LED)

By Geography

• North America
• Europe
• APAC
• RoW

Light Control Switches Market Highlights:

Recent Developments

• In May 2022, Signify completed the acquisition of Fluence from ams OSRAM (SIX: AMS).
• In March 2022, ams OSRAM (SIX: AMS) expanded its partnership with Roleds, a global smart IoT solutions provider specialized in smart city lighting, to provide highly innovative and efficient LED lighting technology.
• In October 2021, Hubbell Incorporated (NYSE: HUBB) entered into a definitive agreement to sell its commercial and industrial Lighting business to GE Current, a Daintree company
• In February 2020, Signify introduced a new integrated Philips Combo Charge Controller for streetlights, enabling the emergence of a hybrid solar system. 
• In September 2019, Signify announced the launch of various smart lighting products, including the Hue Smart Button to control the Hue lights.
• In September 2019, Osram announced that it would install over 1,300 LED luminaires at the Beijing Daxing International Airport. The installed luminaires would be controlled intelligently by a central system.
• In July 2019, Leviton partnered with Alarm.com as an approved provider of certain Z-Wave lighting controls for Alarm.com installations.

Key Benefits of the Report/Reason to Buy

Target Audience

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