Lighting

Sizing the Smart Wireless Lighting Controls Market 2013 and Growth to 2018

Not surprisingly the introduction of LED Lighting has given a major boost to smart lighting controls right across the globe; but we are now entering a new phase of its development, when LED will be dependent upon smart wireless controls, if it is to open up the vast retrofit market in the commercial and industrial building space. The LED lighting companies will soon need this business. LED is not creating a new market but is replacing an existing one and progressively each year it loses the conventional bulb replacement business which was (and still is for the time being) a cash cow. LEDs last for the lifetime of the fittings which means little possibility of regular revenues. Therefore they will need to open up the retrofit market; and they need wireless controls to enable this. Memoori’s market research report “The Smart Wireless Controls Market for Lighting 2014 – 2018” estimates the world value of smart […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $200 per year per user (just $17 USD per month) for Access to Quality Independent Smart Building Research & Analysis!

What Exactly Do you Get?

  • Access to Website Articles and Notes. Unlimited Access to the Library of over 1,700 Articles Spanning 10 Years.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now

Not surprisingly the introduction of LED Lighting has given a major boost to smart lighting controls right across the globe; but we are now entering a new phase of its development, when LED will be dependent upon smart wireless controls, if it is to open up the vast retrofit market in the commercial and industrial building space.

The LED lighting companies will soon need this business. LED is not creating a new market but is replacing an existing one and progressively each year it loses the conventional bulb replacement business which was (and still is for the time being) a cash cow. LEDs last for the lifetime of the fittings which means little possibility of regular revenues. Therefore they will need to open up the retrofit market; and they need wireless controls to enable this.

Memoori’s market research report “The Smart Wireless Controls Market for Lighting 2014 – 2018” estimates the world value of smart lighting control product in 2013 at $1.668 billion at factory gate prices and of this only 10% accounted for wireless controls. We forecast that the global market for Lighting Controls from 2013 to 2020 will grow at a CAGR of 12%. However wireless controls will grow more rapidly and by 2020 will account for some 23% of the smart lighting controls market. Wireless controls currently provide the only means of delivering an acceptable return on the building owner’s investment and that is the driving force because its growth opens up the enormous technical latent potential for retrofitting the vast building stock across the world.

Global Market Size of Building Wireless Lighting Controls Products
The report shows that although most of the wireless controls technology has evolved in the developed countries of the world over the next 7 years growth in the developed markets of Europe and North America will fall behind China an Asia where it will well exceed the average CAGR of 30% across the world.

These figures do not include any other controls or value add services that could well become part of the lighting controls contract. Developing countries, particularly China and Asia may take up the initiative to go for wireless in new construct buildings where they see it providing the platform for the Internet of Things (IoT). Resistance to wireless control is a little more entrenched in the western world.

Looking back over the last 7 years shows a volatile and disappointing performance for the lighting controls business. From the liquidity crisis in 2007 and the financial meltdown in 2008, trading conditions have been very poor and particularly so in the commercial and industrial building industry. Demand in new construction has since picked up and therefore lighting and its control has seen an increase in demand since 2010. At the same time the introduction of LED Lighting has further increased demand and in order to deliver a low carbon economy in the 21st century this growth has to be sustainable.

Our forecast for a CAGR of 30% for wireless controls is indeed a high rate of growth particularly for a rather mature lighting business but is still a relatively small percentage of the potential that is currently available. The big major imponderable is when will the retrofit market really kick in.

What is needed now is a major awareness campaign backed by government agencies to target building owners on the benefits of LED Lighting and its control. They are the ones that will have to make the investment decision and therefore the case for doing so has to be centered on what’s in it for them.

We have identified 20 companies that we believe have the products and resources to grow this market at the rate we have forecast and more. They have been taken from our listing of 121 lighting controls companies so it’s very likely that there are more challengers out there. The report also details how building the supply side through M&A and Venture Capital is strengthening the business. Investors are attracted to this market for its relatively low risk but high growth prospects - http://memoori.com/portfolio/smart-buildings-wireless-lighting-controls-2014-to-2018/

Most Popular Articles

VPPs Virtual Power Plants
Energy

DoE Claims US Can Save $10 Billion in Annual Grid Costs Using VPPs

The US Department of Energy (DoE) believes the nation can save as much as $10 billion in annual grid costs by 2030, simply by tripling the existing deployment of virtual power plants (VPPs). As the US ramps up sustainability processes in line with environmental targets VPPs are becoming an increasingly important factor in their success. […]

iLobby Visitor Management
Smart Buildings

iLobby Visitor Management Platform for High-Security Enterprises Examined

In this Research Note, we examine iLobby, a Canadian startup offering a visitor management platform for high-security enterprises and complex work environments. Founded in 2013 and based in North York, Ontario, iLobby offers a SaaS-based facility and visitor management platform which helps enterprise companies track, manage and monitor visitors, contractors, employees, and others in their […]

The Power of Existing Buildings
Smart Buildings

#Podcast 23: The Power of Existing Buildings!

In our Podcast series “Sh*t You Wish Your Building Did!”, Memoori explores the intersection between technology and commercial real estate through interesting conversations. In Episode #23 of our Podcast, we sat down with Rob Murchison from Intelligent Buildings & Craig Stevenson from Auros Group for a free-ranging discussion about the Power of Retrofit and Existing Buildings! […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy