ON World Predicts Bright Future for the Smart Home Lighting Market |
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The smart home lighting market in North America is set to brighten considerably, with equipment revenues reaching $2.3 billion by 2030 from $944 million in 2023, according ON World. This significant growth is fueled by increasing consumer interest and advancements in smart bulbs, strips, lamps, and fixtures, which are projected to constitute the bulk of the revenues. Channel Trends Shaping the Future Online sales of smart home products is experiencing a paradigm shift, with intense competition driving the market share of the top 8 leaders from 67% in 2020 down to 34% in 2022. Smart lamps, light strips and fixtures are leading the charge in online growth in the last few years. Conversely, retail sales are witnessing an uptick, with a 15% increase in average weekly sales since 2021, as per ON World's Q3 2023 survey of 104 smart lighting retail sales representatives. Smart switches are especially gaining momentum in Home Centers, Mass Markets, and Hardware stores. Professional installers are also seeing steady growth of 12%-17% over the last two years, with the highest demand observed for smart light switches, blinds/shades, panelized lighting, and indoor light fixtures. Consumer Trends Highlight a Bright Future In a comprehensive survey with 1,200 online adults across the US and Canada, ON World uncovered growing consumer enthusiasm for smart lighting. Over half (57%) indicate they are more inclined to make a purchase today compared to 2021. They are most likely to purchase: The preferred smart lighting sources include: Despite recent economic headwinds, ON World predicts a bright future for the smart lighting market, anticipating a return to double-digit growth in the next two years. Driven by technological innovations and an improving economic climate, the sector is poised for significant expansion through renewed interest from consumers including current users and new adopters. For respondents who have not yet purchased a smart lighting product, barriers to adoption still persist with 44% seeking more research, 33% deterred by costs, and 22% citing lack of home ownership as a constraint. For more information about our customizable market size forecasts and survey datasets, please contact us at: About ON World: Back to News
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