Reading time: 5 minutes
Businesses and facility managers are focusing on adaptive, human-centered lighting, using artificial intelligence (AI) and the Internet of Things (IoT) to improve both well-being and productivity. In horticulture, precise lighting and spectral tuning are helping plants grow better and making agriculture more efficient. Wireless and interoperable lighting controls are making buildings smarter by linking up easily with HVAC, security, and energy management systems, which also improves scalability and user experience. Manufacturers are adopting circular lighting principles, prioritizing designs that are modular, recyclable, and built to last, supporting long-term sustainability. Additionally, emergency lighting is becoming more advanced, with features like self-testing and diagnostics that boost safety and ensure compliance.
The Frost & Sullivan report identifies the following top 7 growth opportunities:
- Intelligent and Adaptive Lighting
The COVID-19 pandemic has led facility managers to prioritize occupant well-being, driving investments in solutions like daylighting strategies, desk management, and human-centric lighting. Compliance with healthy building standards, such as WELL (WELL Building Standard) and BREEAM (Building Research Establishment Environmental Assessment Method), is now a key focus, not only in offices but also in healthcare, education, and hospitality sectors. The adoption of connected and intelligent lighting systems is growing as organizations recognize the impact of lighting on human health. Lighting service providers have opportunities to collaborate with wellness professionals to design advanced lighting systems that support specific health needs, such as improving circadian rhythms and reducing stress. Additionally, by offering data-driven insights on energy use and wellness outcomes, these providers can deliver lasting value to building occupants and facility managers.
- Precision Lighting and Control in Horticulture
The horticulture lighting market, primarily powered by LED technology, is expected to reach a plateau within the next three to four years. To remain competitive and profitable, manufacturers need to move beyond simple on/off controls and adopt advanced solutions. Vertical farms currently use significantly more energy per kilogram of produce than greenhouses, and many do not employ energy-saving strategies. Future growth opportunities include investing in technology for automated precision control systems, collaborating with growers and researchers to develop better lighting solutions, and advocating for policy standards to improve product quality and sustainability. Additionally, lighting OEMs can work with utilities to provide energy consulting and financing for advanced controls in vertical farming operations.
- Interoperable Lighting Control Protocols
Interoperable lighting controls are increasingly forming the backbone of smart buildings, allowing seamless integration with other systems such as HVAC, security, and energy management for enhanced efficiency and adaptability. Industry protocols such as Matter, the industry-wide standard for the smart home , and the TALQ protocol, the dedicated interface standard for smart cities, facilitate cross-platform compatibility, making deployment easier. The adoption of wireless technologies like Bluetooth Mesh and Thread is accelerating this trend by boosting system reliability, scalability, and cost-effectiveness. These interoperable lighting systems also provide substantial energy savings by adjusting lighting based on occupancy, daylight, and usage, which reduces costs and supports sustainability by lowering energy consumption and carbon emissions.
As buildings become more data-driven, interoperable lighting will be essential for improving occupant comfort, operational efficiency, and environmental outcomes. Addressing cybersecurity through encryption and secure commissioning will increase trust in these systems, while robust certification programs will ensure products meet security standards and ease integration concerns for users.
- Wireless Lighting and Controls
The growing demand for intelligent building automation and Internet of Things (IoT) solutions is driving the adoption of wireless lighting, as businesses and facility managers look for flexible and easily upgradable options that work well with other building systems. Advances in interoperability across wireless communication standards for IoT and smart homes, such as Bluetooth Mesh, Zigbee, Wi-Fi, and Thread, are improving system reliability and reducing integration challenges.
Security concerns related to wireless networks are being mitigated through better encryption, enhanced cybersecurity frameworks, and cloud-based monitoring, making wireless lighting suitable for mission-critical uses. To capitalize on growth opportunities, lighting manufacturers need to focus on increasing the responsiveness and robustness of wireless systems to rival wired alternatives, particularly in large-scale commercial and industrial settings. Additionally, educational initiatives, including case studies and demonstrations, can effectively raise awareness about the reliability and benefits of wireless lighting among skeptical audiences.
- Circular Lighting
Circularity in the lighting industry centers on prolonging product lifecycles, minimizing waste, and encouraging reusability through innovative designs and new business models. The adoption of modular, service-based, and sustainable lighting solutions is increasing as companies respond to regulatory pressures and seek cost savings. Stricter extended producer responsibility laws and the European Union's Circular Economy Action Plan are motivating manufacturers to create lighting products with longer lifespans and recyclable parts. While Europe leads in circular practices, North America and Asia-Pacific are making progress in implementing these principles. Leading companies such as Signify and Zumtobel are now offering luminaires with replaceable components, which avoids the need to discard entire fixtures. To achieve sustainability goals, manufacturers are encouraged to follow the example of market leaders, incorporate circularity from the design stage, prioritize recyclable materials, and establish take-back programs for recovering valuable components from end-of-life products.
- Enhanced Emergency Lighting
The emergency lighting market is benefiting from increased construction activity, a focus on safety, and technological progress. Stricter building safety regulations worldwide are driving steady growth in demand for advanced emergency lighting solutions, with authorities enforcing compliance with standards such as NFPA 101, EN 1838, and IEC 60598-2-22. While North America and Europe have well-defined building codes and are expected to maintain growth, countries like Mexico and some Southeast Asian nations lack clear regulations and require further clarity.
The market is shifting from basic exit signs to intelligent, adaptive lighting systems that improve visibility and safety while conserving energy. Companies investing in connected, self-testing emergency lighting technologies are well-positioned to capitalize on this trend. Manufacturers are encouraged to create interoperable, adaptive evacuation solutions with dynamic signage to achieve fully integrated life safety systems. Emergency lighting systems featuring built-in connectivity enable remote monitoring, automated testing, and predictive maintenance, offering valuable data and insights for building owners and facility managers.
- Lighting as a Service
The lighting industry is shifting from selling products to offering sustainable, service-based solutions, with lighting-as-a-service (LaaS) expected to become common. Through subscription models, companies can access advanced LED technologies without large upfront costs while enjoying reduced energy expenses and maintenance handled by service providers. Many LED systems installed before 2016 are nearing end-of-life by 2025, creating opportunities for upgrades to more efficient and connected lighting. The digital lighting services market is projected to grow significantly, reaching over $1.1 billion by 2028. Industry participants are encouraged to manage the disposal and recycling of old LED luminaires in line with circular economy principles, utilize AI-driven monitoring to extend LED lifespan, and target sectors with strong regulatory and ESG requirements—such as industrial, retail, commercial offices, healthcare, and municipalities—for the greatest benefits in cost savings and sustainability.
