About two years ago, many industry insiders projected smart lighting would be a niche market that would take another 2 years before fully blossoming, while others believed at the time only gadget lovers would warm up to the products. Their predictions have been fairly accurate so far. Smart LED lighting started to pick up from 2014~2015, with major lighting manufacturers launching related products in the last two years.
Manufacturers are focusing on more profitable value adding products such as smart lighting or wearable devices as conventional lighting businesses become increasingly unprofitable. A report recently beautifully summed up the 3 major challenges the lighting industry is facing: high market competition, low profit margins, and slow growth caused by LEDs long life cycles.
More manufacturers are turning to smart LED lights that are believed to be more profitable and hold huge market potential. The smart lighting market is projected to grow at a CAGR of 15.9% from 2014~2020 to reach $56.62 billion in 2020 Another market research firm estimated lighting control market would grow at CAGR of 12% from 2013~2020, but projected wireless lighting controls would grow at CAGR of 23%.