U.S. Smart Lighting Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

The U.S. smart lighting market is projected to grow from USD 4.6 billion in 2024 to USD 23.9 billion by 2032, at a compound annual growth rate (CAGR) of 23.3%. This expansion is largely driven by the increasing emphasis on energy efficiency, sustainable solutions, and the integration of smart technologies like IoT and home automation. Smart lighting systems, which offer features such as occupancy-based adjustments, daylight integration, and remote control, are rapidly gaining adoption in residential, commercial, and industrial spaces. These systems not only help reduce energy consumption but also support environmental sustainability goals. Moreover, government programs, such as LEED certification, are contributing to the demand for smart lighting as part of a broader initiative to reduce greenhouse gas emissions and energy consumption.

Key Insights

The retrofit installation type holds the largest market share at 65% and is the fastest-growing segment, with a 26% CAGR. This growth is driven by the cost-effectiveness of upgrading existing systems without needing a complete overhaul, making it an attractive option for both residential and commercial sectors.

Hardware dominates the market, accounting for 70% of the market share, due to the high demand for components like LED lights, luminaires, sensors, and dimmers. This segment benefits from advancements in LED technology, which offer greater energy efficiency, longer lifespan, and improved integration with IoT platforms and smart home devices.

LEDs are the largest and fastest-growing source, holding a 55% market share with a CAGR of 28%. Their energy efficiency, long lifespan, and reduced environmental impact make them the preferred choice for smart lighting systems.

The integration of smart lighting with IoT and home automation systems is a major trend, enabling features such as voice control via Alexa, Google Assistant, and Apple HomeKit. This connectivity enhances convenience through functionalities like geofencing, scheduling, and adaptive lighting based on occupancy or time of day.

Lighting as a Service (LaaS) is emerging as a key opportunity, offering affordable smart lighting solutions with flexible payment structures. This model eliminates the upfront cost of hardware and maintenance, making it particularly attractive to large businesses and municipalities.

The U.S. market is also benefiting from government incentives promoting energy-efficient systems, particularly in commercial buildings, where smart lighting is becoming an essential component of sustainability initiatives.