Lighting Control System Market Analysis Report 2025-2031: Falling LED Costs and Smart City Rollouts Boost Adoption While Interoperability Remains a Constraint

The lighting control system market is driven by energy-efficiency mandates, smart city growth, and IoT integration, enabling data-driven building automation. Opportunities arise in retrofits due to wireless technology and LED price erosion, despite challenges like high costs and cybersecurity threats.


Dublin, Feb. 09, 2026 (GLOBE NEWSWIRE) -- The "Lighting Control System - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The global lighting control system market is projected to expand from USD 45.43 billion in 2025 to USD 51.15 billion in 2026, with forecasts reaching USD 92.53 billion by 2031 at a CAGR of 12.6% from 2026 to 2031.

This growth is primarily driven by energy efficiency mandates, smart city initiatives, and the integration of IoT in building automation. Regulatory requirements for features like automatic shut-off, and daylight-responsive dimming are driving demand, highlighting the importance of energy conservation. LED price reductions further support economic viability, even for smaller facilities.

Market Trends and Insights

Energy-Efficient Lighting Systems Demand

Global facilities are increasingly embracing LEDs with intelligent controls, achieving up to 80% energy savings over traditional systems. Documented case studies show up to 87% savings within a year, promoting rapid returns on investment. Daylight harvesting and scheduling enable continuous optimization, making capital approvals more straightforward as utility prices rise.

Strict Building-Energy Codes

Compliance with codes like the International Energy Conservation Code 2021 ensures mandatory installation of advanced controls. California's Title 24 mandates demand-responsive dimming in large projects, effectively turning optional upgrades into necessities, thereby providing a defensive growth strategy for the market even amid economic fluctuations.

Installation and Integration Costs

High initial costs for comprehensive control retrofits can deter smaller enterprises. Skilled installation requirements and associated labor costs are barriers, particularly in less mature markets. Nonetheless, demonstrated financial savings in high-profile projects emphasize the long-term benefits, although initial financing remains challenging.

Segment Analysis

Hardware led the market with 56.80% revenue in 2025, while services are set for fast growth due to the demand for design and optimization. The lighting control system market often requires tailored consultations, as seen in complex rollouts like Energy Management Collaborative's Bluetooth Mesh project. Service contracts increasingly manage installations and updates, creating a shift towards integrated solution ecosystems.

Wired solutions maintained a 63.40% share in 2025 due to their reliability and stability in critical settings like hospitals. Conversely, wireless systems are rapidly advancing, with a projected CAGR of 14.85%, offering flexible, cost-effective installation options ideal for various environments, including heritage sites and retail spaces.

Geographical Insights

North America dominated with a 34.10% market share in 2025, propelled by strong energy regulations and incentives. Europe maintains its momentum through aggressive decarbonization goals. In the Middle East and Africa, smart infrastructure developments fuel market growth amid economic diversifications, supported by governmental focus and international funding.

Market Overview

Market Drivers

  • Growing demand for energy-efficient lighting systems
  • Stringent building-energy codes and green certification mandates
  • Rapid LED price erosion expanding ROI
  • Smart-city programs using adaptive street lighting
  • ESG-linked finance accelerating smart retrofits
  • Li-Fi readiness unlocking new revenue streams

Market Restraints

  • High upfront installation and integration cost
  • Interoperability issues across multi-vendor ecosystems
  • Cyber-security and data-privacy risks
  • Shortage of qualified commissioning professionals

Key Industry Players

  • Signify (Philips Lighting)
  • Acuity Brands
  • Legrand
  • Lutron Electronics
  • ams OSRAM
  • Schneider Electric
  • Eaton (Cooper Lighting)
  • Hubbell Lighting
  • Honeywell
  • Cisco Systems
  • Siemens (Enlighted)
  • Delta Electronics
  • Panasonic
  • Zumtobel Group
  • Helvar
  • Synapse Wireless
  • WAGO
  • Cree Lighting
  • Leviton Manufacturing
  • Digital Lumens
  • ABB

For more information about this report visit https://www.researchandmarkets.com/r/kt5bbr

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

 

Coordonnées