This article, which I wrote for the January 2019 issue of tED Magazine, describes trends in residential smart lighting. Reprinted with permission.
Valuing the residential smart lighting market at $1.5 billion in 2017, market research firm IHS Markit predicted growth to over $4.5 billion in 2021, making it one of the fastest-growing areas of smart lighting.
“The residential lighting market is at the beginning of a new wave of innovation that will drastically improve how consumers experience their homes,” said Erik Charlton, CEO, Noon Home. “Demand for smart lighting is increasing significantly thanks to voice assistants in the home.”
Key to this positive outlook is that smart homes and smart lighting promote and facilitate each other. Smart lighting is a simple, tangible first step to building a smart home, while smart home technology, notably voice control and growth in smart home offerings (e.g., Amazon’s Alexa, Apple’s HomeKit, Google’s Nest, Samsung’s SmartThings), is enhancing opportunities for implementing smart lighting.
“The residential smart lighting market is just one part of a huge opportunity for distributors as more and more consumers integrate voice control like Alexa and Google Assistant into their daily lives,” said Dr. Manuel Bauer, Global Head of Innovation & SMART, LEDVANCE. “Before, the smart home was seen as futuristic. Now it is becoming more and more of a common expectation. Lighting is just one part of that.”
The market, however, is complicated, Charlton pointed out. “The number of solutions in the marketplace is overwhelming for consumers, and the vast amount of bulbs and fixture choices makes compatibility and installation a significant pain point,” he said. “There is a huge opportunity to use technology and product design to make the lighting experience better for consumers starting with installation, compatibility, setup, and everyday use.”
Charlton explained there are several approaches to smart lighting in the home, with options including smart lamps, switches, plugs, and complete home automation systems. Smart lamps are simple to install and provide dimming and often color control, though they require an app that is controllable only by the owner, and if the switch is OFF, the lamps are no longer controllable by the app. Smart plugs are a relatively simple retrofit that adds smart control for lamps, but the plug is typically limited to a single lamp. Smart switches provide smart operation for all lamps and may not require an app, but require more effort to install. A unified home automation system integrates lighting with other home systems within a single switch or touchpad, but is more complex and costly, Charlton noted. These options may be powered by line voltage or battery, while connecting wirelessly.
Market complexity is challenging, but it’s also a good opportunity for distributors to compete by demonstrating expertise. “Stay informed about the changes in LED lighting, issues with LED compatibility and control, and the solutions they can provide to their customers,” said Michael Smith, Vice President of Sales, Lutron Electronics. “Be a problem solver for every customer. Make sure you are the subject matter expert. Show contractors how wireless control can add value for their ‘do it for me’ clients. In just a few minutes, you can add an additional control location, create a simple wireless system, and open a homeowner’s eyes to what’s possible in their home.”
“Just the words ‘home automation’ can scare people,” Bauer added. “Show how simple it is. Explain the tangible benefits the end-user can relate to like security, style, and savings by being able to ensure you don’t leave the lights ON when not needed.”
In short, sell solutions to problems rather than technology. Want to make sure your kids don’t come home to a dark house? Turn the lights ON remotely, set up a schedule, or use a geofencing feature to let the lights automatically respond to occupant presence. Do your kids leave the lights ON? Sweep them OFF. Do you want to set a special mood for entertaining or home theater? Set up scenes. Want to check your lights or control them while away on vacation? Experiment with circadian lighting approaches? Confirm your kids’ lights are OFF after bedtime? Automatically adjust blinds to minimize glare? Wake up to gently increasing light levels?
“It all starts with the ability to create the right environment for each customer,” Smith said. “Smart lighting solutions put control easily at the customer’s fingertips.”
Image courtesy of NOON Home.
Trends
The big trends in smart lighting are the proliferation of the LED source, wireless control, voice control, and evolving customer interests.
LED adoption is growing. The Department of Energy estimates that LED A-type lamps will achieve a 29 percent penetration in the installed stock by 2020 and 56 percent by 2025. Smith noted, “As LEDs continue to get lower in cost and higher in functionality, they will also deliver greater convenience, comfort, aesthetics, and control options that homeowners demand.”
Voice assistants are growing in popularity. “Predictive recommendations and routines are emerging, thanks to voice assistants like Alexa,” said Charlton. “Smart lighting continues to be the #1 use case for voice assistants, but combining commands or activities and natural language control will become more prevalent.”
“Voice control is becoming fundamental for all kinds of smart home devices,” Bauer added. “You will see more and more direct integration of voice control into lighting form factors, including luminaires.”
Wireless is gaining. “Wireless smart solutions represent tremendous market growth,” said Smith. “Wireless technology makes life easier by allowing homeowners to control lights from their smart device.”
Wellbeing may become an important demand driver. Our understanding of the relationship between light exposure and circadian rhythms may be becoming actionable, leading to interest in lights that support circadian health. “Health and wellness is driving home builders to consider better lighting options for their homes,” Charlton said. “This includes tunable light, coordinated dimming, and smart controls.”
Smart home hubs are gaining in influence. “Ultimately, I see Amazon and Google replacing the unified home automation system because of the countless developers working on skills that add additional value to their ecosystems,” Bauer said.
Final word
“Homeowners want to easily control their lights in every room and space in their home,” Smith said. “Wireless control solutions, matched with compatible lights and shades, help customers get the flexible, comfortable, efficient home experience they’re looking for. And once you create that need, you create a customer for life.”
“Smart lighting is the future,” Bauer added, “but the future is now.”
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