Light Up the Workplace

By: Gurumukh Uttamchandani, Executive Director, SYSKA Group

Overview

The lighting industry has seen a rapid shift in the past five years as the industry has moved towards light emitting diode (LED) products. This shift has brought with it intense price competition that has proven difficult for vendors, with some having chosen to exit the market entirely. Fortunately, the vendors who have stayed, have withstood the newfound price competition have found that the LED lighting industry has brought many new opportunities that would not have been possible using traditional lighting technology.

Market Research Engine predicts intelligent LED lighting lamps will dominate the smart commercial lighting market. As per the study, Smart Commercial Lighting market will see a significant growth in the coming years due to the growing number of global smart cities and growing awareness regarding energy efficient lighting solutions. The smart commercial lighting market is a highly competitive market and it is estimated to reach $ 48.0 billion by 2022.

Globally, Retail and Healthcare will be the leading industry verticals which will be spending a lot in the smart commercial lighting market. Smart CFL and LED lighting lamps will slowly replace the global outdoor lighting such as street lighting and sports stadiums in coming years.

In the coming years, smart commercial market is going to witness double-digit growth in developing economies of Asia-Pacific, Middle East and Africa (MEA). Increase infrastructure spending and government push are few factors supporting the growth of market in these economies.

The above statistic represents a forecast for the global lighting market between 2011 and 2020, broken down by product category. It is estimated that green traditional products will have a market volume of around 37 billion Euros in 2016.

The global lighting fixtures market should hit $26 billion in 2017 and is anticipated to reach more than $76 billion by the end of 2025, according to a new research report published by Persistence Market Research.

Trends to Watch Out for

Below is a list of top commercial lighting trends. Each highlights how technology-driven the industry has become and indicates the direction we see lighting systems take as part of the broader smart building and IoT world. 

• Data-driven lighting design

Smart lighting systems will continue to enable IoT applications. As the prevalence of sensors and connectivity increases in lighting systems, holistic lighting solutions will be designed for the explicit purpose of collecting, analyzing, and utilizing the data gathered by the lighting system, thus driving efficiency and productivity gains within the spaces these holistic solutions are used.

This data-driven approach to lighting design will go hand-in-hand with an increased focus on smart lighting apps by vendors, and unique use cases which can be created by leveraging a holistic lighting solution comprised of sensors, controls, connectivity, and intelligence.

• Platforms and partnerships

Not all lighting companies are looking to (or are able to) offer a complete lighting solution. Indeed, there are many who specialize and excel in particular product categories. In 2018, the need for platforms and partnerships will increase as lighting moves from a product-based industry to a service- and data-based industry.

• Simplify Daylight Harvesting

With the emphasis on simplicity of installation, expect to address daylight harvesting more easily with new lighting control systems that offer easy setup and commissioning tools and support. The desire to bring as much natural light into a space as possible, meet code and reap the associated energy savings benefits will become easier.  

Daylight harvesting uses a lighting control system to dim artificial lighting in response to changing daylight availability. Automated lighting control systems measure the amount of natural light in a space using light sensors, and dim or switch off artificial light levels when sufficient ambient light is present. A consistent and optimum level of light is realized while simultaneously reducing energy consumption.    

• Energy efficiency still king

IHS Markit estimates that in 2017, only 8% of the total installed base of luminaires was LED. This leaves 92%, or around 35 billion lighting fixtures, still to be upgraded to LED. Needless to say, the energy savings made by switching to LED will continue to finance the growth of smart lighting systems for the foreseeable future.

• Smart Lights to Guide Shoppers

Shoppers, who use a fitting room are 71% more likely to make a purchase than those that simply browse? Moreover, research shows their purchases are typically two times that of someone who foregoes a fitting room — and results in fewer returns.

As such, retailers are increasingly turning to new technology to make the experience of trying on clothes more rewarding. One of the tools helping them get there? Commercial LED lighting.

Forward-thinking retailers are installing “smart” mirrors featuring LED modules in their fitting rooms. These that allow shoppers to adjust the lighting in the room to reflect different times of the day, so they can see how their outfit will look in each light. Talk about smart shopping!

Other stories expected to impact 2018 include: consolidation for lighting companies as vendors look to offer a complete lighting solution, including the fixtures, controls, sensors, and software; an increased importance placed on applications that drive productivity, including asset tracking and space utilization apps, all enabled by the aforementioned total lighting solution; PoE to continue to grow market share in new-build construction; horticultural lighting to move from niche market to mainstream market; and LED to take >75% of total market revenues for the first time.