EUROPE LIGHTING CONTROL SYSTEM INDUSTRY INSIGHTS
The European lighting control system market size was valued at USD 3 billion in 2020 and is expected to reach USD 8 billion by 2026, growing at a CAGR of around 18% during the forecast period. The wireless technology segment will grow at a CAGR of over 16% and will lead the Europe lighting control system market in the upcoming years. The Europe lighting control system market share is witnessing significant growth due to rapid urbanization and growing demand for a smart and comfortable lifestyle. The region sells more energy-efficient lights than less efficient ones, boosting the demand for lighting control systems. The European government strongly believes that building renovations will greatly increase Europe's energy efficiency. The market share of LED light is estimated to cross 70% in the overall light industry in Europe in the coming years. The Smart and wired artificial lights segment are expected to fuel technological advancements and functions for lighting systems. The smart lighting market is highly competitive, and competitors are strategizing to gain higher shares.
The outdoor segment accounts for a smaller share. Still, the government agencies are focusing on increasing the application of efficient lighting control systems in streets, acting as a catalyst in industry growth. The industry is connecting the potential of LEDs and is delivering energy-efficient and sustainable products. According to Arizton’s forecast, human-centric and intelligent lighting controls to gain high momentum in the European region. Manufacturers are investing in R&D to reduce the cost of LEDs to make them affordable for the end-users. Digitalization and the data economy are changing the European lighting control system market.
- In France, the penetration of smart lighting in households is expected to cross 18% by 2025.
- Spain is retrofitting 2,25,000 streetlights with energy-efficient lamps. The project is estimated to cut power consumption by approximately 40%, and the savings will be used for financing the investment.
- Around 19-24% of energy savings can be achieved by combining LED and wireless advanced lighting.
- Lighting accounts for around 20% of the electricity consumed in the UK residential sector.
EUROPE LIGHTING CONTROL SYSTEM INDUSTRY GROWTH FACTORS
- Strong pipeline innovation and development in the European smart lighting market, creating lucrative growth opportunities for the players.
- The commercial sector generates the highest demand in Europe, holding for a share of over 55% in the indoor segment.
- In recent years, the latest trend of IoT has completely transformed the European lighting control system creating value for the end-user.
- The government is banning inefficient technology and introducing stricter energy efficiency legislation to reduce energy consumption across Europe.
EUROPE LIGHTING CONTROL SYSTEM MARKET SEGMENTATION
- Connection Protocol
INSIGHTS BY CONNECTION PROTOCOL
The wireless technology market to generate over USD 2 billion by 2026.
Wireless lighting control systems are designed to simplify the installation process and reduces labor cost—the snowballing adoption of smartphones creating demand for intelligent lighting control market in the European countries. Z-Wave is a major wireless standard for home control and automation that was developed in 2003. Wired connection protocols accounted for the highest share in the European market. Around 25% of energy savings and a 30% reduction in maintenance can be achieved using PLC in tunnel lighting controls. PoE segment converges electrical and communication networks into a single infrastructure and encourages massive savings from energy and space optimization to increase the efficiency of LED luminaires. The Konnex KNX protocol is used widely in continental Europe, especially Germany, Austria, and Switzerland.
INSIGHTS BY APPLICATION
The indoor segment to grow at a CAGR of over 17% during the forecast period.
The indoor segment is dominating the European lighting control system market. The commercial sector generated the highest revenue, accounting for over 55% in the indoor lighting segment. A significant rise in construction activities is surging the demand for indoor light control across Europe. In the commercial sector, offices occupy the largest share.
The European lighting control market is strong in Western Europe, where investment in infrastructure development is high. The rising focus of the Government towards efficient lights is propelling the growth of the outdoor segment in Europe. The increasing demand for RGB color control and the rising replacement of traditional bulbs by smart controllable LED bulbs is driving the market growth. The highways & roadways lighting control system market in Europe was estimated at USD 127 million in 2020.
INSIGHTS BY OFFERINGS
The hardware lighting control system market size in Europe is expected to cross over USD 5 billion by 2026.
Transformation into modernization and infrastructural development are paving the way to install lightning control hardware. The current trend of remote-based applications is propelling the growth of lighting-based software in the European market. The software available is web-based and cloud-based. Companies selling cloud-based lighting control systems provide a range of services from monthly control leasing to simply having access to an online control portal. Software-based systems are gaining traction across Europe. The growth is primarily attributed to the higher acceptance by the end-users.
INSIGHTS BY INSTALLATIONS
The incremental growth of the new installation to cross over USD 3 billion by 2026.
New installation is dominating the industry in European countries. The residential sector and outdoor lighting replacement are the major growth drivers. The increasing focus on the development of smart cities is rapidly emerging and propelling the demand for new lightning control installations.
Furthermore, the demand for wireless applications is rising the demand for retrofit installations. Owing to the reduction of labor and maintenance costs, various companies provide retrofit installations to the consumers. Europe plans to prioritize the renovation of buildings that will accelerate the installation of these products in the coming years.
INSIGHTS BY COUNTRIES
The lighting control system market in Italy is expected to reach over USD 1 billion. Italy is making significant investments in installing LED lights and controls in public places. The city of Spoleto in Italy has recently installed around 1,000 LED lamps and a remote-control system for dimming, brightening, switching, and more. Italy to create high growth opportunity for the players to invest in the lighting control system market in Europe. The implementation of energy-efficient regulations is gradually leading in the UK. LED is gaining a significant share in terms of sales in the country. The market in the UK is estimated to grow over 16% by 2026.
Acquisitions, collaborations, consolidation, partnerships, and integration are the core strategies followed by most manufacturers in the European lighting control system market. Companies with better technical and financial resources can develop innovative products. Legrand, Eaton, Osram Licht Group, Hubbell, Signify Holdings, Lutron Electronics, and Helvar are the leading vendors in the industry. Key players are expected to develop high functionalities and continue upgrading their products to sustain the competitive market.
Legrand strategizes to make technological advancements and accelerate digitalization in its products. The company is expected to experience higher market penetration with an expanded product portfolio owing to rigorous acquisitions. The company has a robust product portfolio, and it operates in multiple domains in terms of electrical devices.
The Europe lighting control system market research report includes in-depth coverage of industry analysis with revenue and forecast insights for the following segments:
Segmented by Connection Protocol
Segmented by Application
Segmented by Offerings
- Software & Services
Segmented by Installation
- New Installation
- Retrofit installation
Segmented by Countries