smart lighting & control market

GLOBAL SMART LIGHT FIXTURE (LED, HID), CONTROL (Sensor, Ballast, Relays & Switches) & SERVICES MARKET: 2015-2020

Global Smart Light Fixture (LED, HID), Control (Sensor, Ballast,

Relays and Switches) & Services Market: 2015-2020

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1 MARKET DYNAMICS

1.1 MARKET OPPORTUNITIES

1.1.1 THE CHANGING PARADIGM OF LIGHTING INDUSTRY TO ELECTRONICS INDUSTRY

The advent of smart technologies in the lighting industry has opened the gateways for players

from a host of industry verticals including control systems, sensors, dimmers and software

based solutions. The scenario of lighting sector has completely changed with the introduction

of modern technologies. The image of light bulb as a standalone unit is swiftly changing. The

smart lighting industry not only involves the lamp, but the sensors that gather information

from a stimulus, and transfer the information via an interface. The information is read by

software that generates an appropriate response carried out by the lamp. The response could

be a change in colour, dimming the illumination, switching on/off, etc.

Additionally, there has been an influx of wireless connected devices. Technologies such as WiFi,

Bluetooth and ZigBee are now found in many devices, improving their ease-of-use and

capabilities. The rapid market adoption of smartphones and tablet computers is not only a

prime example of this trend, but has also initiated a change in the way people control devices.

This indicates that industry has made a huge leap in the electronics sector. The association of

electronics with lighting has a vast array of advantages such as reduction in the energy

consumption and thus the cost associated with it, increasing comfort for users, and widespread

functionalities.

Moreover, the adoption of LEDs as genuine light sources is the most promising aspect of the

smart lighting industry. LED production has driven the emergence of a number of

semiconductor companies into the smart lighting market.

Once the industry comes to term with eradicating the compatibility issues between different

electronic components and lights fixtures the opportunities are vast for the industry.




2 SMART LIGHTING MARKET BY LIGHTING TYPE

2.1 INTRODUCTION

The lighting industry has undergone profound transformations ever since the first incandescent

lamp, an artificial source of light, was developed by Edison back in the 1879. With advancing

technologies and the inclination of the lighting industry towards becoming an electronics

industry, the incandescent bulb will indeed, if not yet, become an antique in the coming years.

The concept of smart lighting has brought forth the feature of having high quality illumination

while minimizing the energy consumption.

A proper definition of smart lights will be those light sources that help conserve energy and

operate for an extended period compared to conventional light sources while producing desired

illumination levels. There are certain pain points that effect the adoption of smart lights on a

wider scale such as r high initial cost investment compared to incandescent light sources,

however, smart lights ensure an early and high levels of ROI (Return on Investment) owing to

their energy efficiency and long life.

FIGURE 1

THE TYPES OF SMART LIGHTS

Source: BIS Research




The market enjoys the presence of a large number of players from a diverse range of industry

verticals. The smart lighting market is broken down into different lighting types such as LEDs,

Fluorescent lamps, etc. The next sections will be discussing the market scenario, dynamics and

key players for the different lighting type namely-LEDs, Fluorescent Light, Compact

Fluorescent lights, and HIDs.

2.1.1 MARKET STATISTICS

TABLE 1

FIXTURE MARKET REVENUE BY TYPE ($BILLION), 2015-2020

Fixture 2014 2015 2016 2017 2018 2019 2020 CAGR

LED XX XX XX XX XX XX XX XX%

HID XX XX XX XX XX XX XX XX%

Total XX XX XX XX XX XX XX XX%


The global smart lighting fixture market accounted for revenue of $XX billion in 2014,

comprising of only LEDs and HID lamps and luminaries. The year 2014 marked the hegemony

of HID lamps, primarily due to its higher cost and voluminous demand, but the trend will take

a back flip in the favour of LED fixtures. LEDs will be responsible for revenue of $XX billion by

2020 at an estimated CAGR of XX% from 2015 to 2020.




2.2 VALUE CHAIN ANALYSIS OF THE GLOBAL LED MARKET (LED COMPONNET INDUSTRY)

FIGURE 2

VALUE CHAIN ANALYSIS FOR GLOBAL LED COMPONENT INDUSTRY

Source: BIS Research, Hindawi Publications




2.3 HIGH INTENSITY DISCHARGHE LAMPS

2.3.1 MARKET STATISTICS

TABLE 2

COMMERCIAL HID FIXTURE MARKET VALUE ($ BILLION), 2015-2020

Application 2014 2015 2016 2017 2018 2019 2020 CAGR

Office Buildings XX XX XX XX XX XX XX XX%

Retail XX XX XX XX XX XX XX XX%

Hospitality XX XX XX XX XX XX XX XX%



HID lamps find little or no application in commercial setups such as office buildings, hotels etc.

The total market size for commercial applications employing HID fixtures accounted for

approximately $XX billion in 2014, which is expected to fall down to $XX at a negative CAGR of

XX%.

TABLE 3

OTHERS HID FIXTURE MARKET VALUE ($ BILLION), 2015-2020

Application 2014 2015 2016 2017 2018 2019 2020 CAGR

Industrial XX XX XX XX XX XX XX XX%

Architectural XX XX XX XX XX XX XX XX%

Outdoor XX XX XX XX XX XX XX XX%






Street lighting and infrastructural applications such as airports, parks etc find the maximum

applicability among all other end-uses and therefore this segment bagged the market share of

$XX billion in 2014. However, with the massive proliferation of LEDs in outdoor applications,

the market share is expected to drop profoundly, reaching $XX billion by 2020 at a negative

CAGR of XX% from 2015 to 2020




3 SMART LIGHT MARKET BY COMPONENTS

FIGURE 3

SMART LIGHT COMPONENTS


This segment delves with the major components incorporated in a Smart Light Control system.

Each component serves a different purpose for controlling the lighting system and is

captivating the interest of electronics component manufacturers across the globe. These

components are relays and timers, actuators, sensors, ballasts, microcontrollers and

accessories (remote control, touch screen, etc.).




4 SMART LIGHTING & CONTROL SYSTEM APPLICATION MARKET

FIGURE 4

CLASSIFICATION OF SMART LIGHTING & CONTROL MARKET,

BY APPLICATION


This segment will provide an in-depth analysis of the application verticals for smart lighting and

control market. The commercial applications discussed in the segment are commercial and

residential, wherein commercial applications are further divided into hospitality, retail, office

buildings, institutional, and others.




FIGURE 5

LIGHTING REQUIREMENTS IN HOTELS


It might not be necessary that the above elements are an absolute must for every hotel, but

for a XX star hotel, spa resort, etc most of them are usually present. In fact the companies

such as Futronix, Osram provide individual lighting and control solutions for such applications.

Companies such as Leviton, took a step ahead with innovative wireless products to make the

existing lighting smart lights. The Self-Powered Lighting Control Solutions by LevNet RF

(Leviton), are easy to add wireless control for lighting, heating, and cooling for guest’s

comfort.




FIGURE 6

WHY CONVENTIONAL STREET LIGHTING SYSTEM WILL BECOME

OBSOLETE IN THE FUTURE?


The issues revolving around the conventional street lights are being addressed with the

proliferation of solid state lighting (LEDs), control systems, and advanced software solution in

the market. Certain developments from the leading market players have further aggravated

the market scenario, with strategic collaborations and acquisitions. For instance in 2014 itself,

Networking giant Cisco partnered with Sensity Systems to target the increasingly vibrant smart

city market, with a solution to convert street lighting infrastructure into a sensor network to

support many applications. Yet another collaboration between two monoliths of the lighting

and communication technology market, Philips and Ericson respectively took place in 2014.

The companies joined hands to provide the mushrooming cities with better mobile broadband

connectivity and brighter streets, through smart street lighting.




5 SMART LIGHTING MARKET BY GEOGRAPHY

5.1 INTRODUCTION

This segment covers the region-wise trends in the smart lighting and control market. The

chapter identifies key growth enablers based on a detailed push and pull force analysis.

The segment analyses the market dynamics of the industry in the various geographical regions

by probing into the past and present government regulations, the macro and micro economic

factors and the various completed, ongoing and future projects. It also takes into consideration

the mega events taking place in the respective geographies and the impact these events will

have on the industry.

The geographies are segmented as follows:

FIGURE 7

SMART LIGHT AND CONTROL SEGMENTATION BY GEOGRAPHY





6 COMPETITIVE LANDSCAPE (CONTROLS)

6.1 MARKET ENTROPY

6.1.1 PRODUCT DEVELOPMENT

This category includes new product launches by the company as well as upgrade of existing

products. Product development has accounted for the largest chunk amongst all categories

resulting in XX% of the developments. Thus, it can be concluded that companies in the Smart

Light Controls industry are striving hard to achieve groundbreaking advanced solutions. This

means that the industry is at its embryonic stage and more and more products will be

introduced in the market as the market seeks to mature. It is, thus vital for companies to

develop new products and commercialize them in order to maintain or grow the market size.

With automation systems and a diverse range of control systems finding critical applications in

the lighting industry, the Smart Light and Control market is set to take the world by a storm.

The control industry includes such asdimmers, gateways, and sensors among others that have

not only helped optimize the consumption of light but are presenting an entirely new prospect

of Human Centric Lighting. The Smart Lighting and Control industry in itself is an emerging

industry which is expected to grow at the rate of knots over the next decade. Further, Human

Centric Lighting is a relatively new concept that acquires approximately XX% of the present

market. However, it is expected to grow and take over XX% of the market over the next five

years. So, it is anticipated that the product development segment will continue to rise in the

coming years.

XX%

13%

XX%

XX%XX%

34%

Product Development

He

Ac

Ea

Ma

NX

Oth





6.2 COMPETITIVE BENCHMARKING

The percentage share of various development activities undertaken by a company does not

give true picture of the impact of those development activities on the company and the

market. For this reason through our analysis and inputs from industry experts we have arrived

at a weighted score by attributing specific score to different development activity. The score

has been given on a scale of XX to XX. The allotment scores product launch-XX, partnership/

joint venture/collaboration-XX, funding-XX, product upgrade-XX, business expansion/contract-

XX, mergers/acquisitions-XX, and events-XX.

XXXXXXXXXXXXXXXXXX

Weighted Score


Based on our calculations we have arrived at weighted score for each key players identified in

the Lighting Control market. The weighted scores have been segmented into three clusters.




7 COMPANY PROFILES (COMPONENT MANUFACTURERS)

7.1 ACUITY BRANDS

7.1.1 FINANCIALS

FIGURE 8

ACUITY BRANDS OVERALL FINANCIALS ($ MILLION), 2011-2013

XX

XX

XX

XX

XX

XX

XXXXXXXXXXXXXXXXXXXXXXXX

2011 2012 2013$M

illio

n

$Mill

ion

Net Revenue Operating Income Net income

Source: Acuity Brands Inc. Annual Report, BIS Research




7.1.2 SWOT ANALYSIS

The following figure gives a SWOT analysis of Acuity Brands:

FIGURE 9

SWOT ANALYSIS OF ACUITY BRANDS

XXXX XXXX XXXX XXXX

XXXX XXXX XXXX

XXXX

STRENGTHS

OPPORTUNITIESWEAKNESSES

THREATS

XXXX XXXX XXXX


The company boasts of a strong and well renowned brand portfolio including the likes of

Acculamp, Carandini, Gotham Lighting, ROAM, Power Sentry, and Sun Optics among others.

Acuity Brands along with its various brands has succeeded in reducing the electrical

consumption to as much as XX percent since 2006. Acuity majorly gains its revenues from the

North American market and managed net sales of over $XX Billion in the fiscal year 2013.




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