Lighting Contactor Market Research Report and Outlook by 2028

The Lighting Contactor sector is projected to expand from US$ 895.62 million in 2022 to US$ 1,479.39 million by 2028, reflecting a compound annual growth rate (CAGR) of 8.7% during this period.

The lighting sector has undergone remarkable advancements, with modern lighting solutions now featuring capabilities such as software-based control, Bluetooth connectivity, and Wi-Fi integration. Looking ahead, the Internet of Things (IoT) is anticipated to transform the industry significantly. IoT-enabled lighting systems are interconnected and could potentially revolutionize the lighting contactor sector. Certain lighting products are equipped with sensors that gather insightful data, such as tracking the duration a customer spends observing a specific item in a retail environment. These lighting systems can be conveniently controlled via mobile applications or web platforms, allowing users to modify brightness levels or alter colors. The commercial sector exhibits a strong demand for IoT-integrated lighting solutions, with companies like Philips and Wipro providing a variety of products that have fueled the expansion of the lighting contactor market. In August 2021, Signify launched the Wiz smart lighting range, which includes LED smart downlighters, T-Bulbs, T-Beamers, and Battens, thereby enhancing its Philips smart Wi-Fi ecosystem in India. Such product introductions have spurred demand for contactors, further propelling growth in the lighting contactor market.

Effects of the COVID-19 Pandemic on the Lighting Contactor Market

The lighting contactor market in the Middle East and Africa (MEA) region faced adverse effects due to the unprecedented challenges posed by the COVID-19 pandemic, leading to diminished economic growth and a decline in investments in lighting system advancements. Nevertheless, despite facing significant hurdles such as semiconductor shortages and disruptions in supply chains, the lighting contactor market is now on a path to recovery. Regulatory authorities in the region have relaxed travel restrictions, facilitating transportation while adhering to safety protocols and social distancing measures. In 2021, the MEA region experienced an uptick in the adoption of lighting systems for new construction projects in both indoor and outdoor markets. This growth is primarily attributed to ongoing projects and governmental initiatives aimed at enhancing energy efficiency. Furthermore, the increasing environmental awareness in the Middle East has opened avenues for advancements in energy optimization through the deployment of innovative energy-efficient lighting systems and sustainable energy technologies. Consequently, the lighting contactor market is steadily progressing in this region.

The Asia Pacific lighting contactor market is segmented into various regions, including China, India, Japan, South Korea, Australia, and the Rest of Asia Pacific. China, India, and Australia are the primary contributors to the market's growth in this area, driven by the implementation of energy-saving initiatives by both governmental and commercial entities. Programs such as Make in India and Make in China are promoting energy-efficient lighting solutions, particularly in the context of expanding smart city projects, which have prompted major semiconductor manufacturers to create energy-efficient devices with reduced energy consumption. In January 2020, Opple Lighting unveiled a new range of lighting solutions in India, featuring its Smart Bulb with a lifespan of 15,000 hours, making it ideal for various settings such as offices, shopping centers, conference halls, airports, and lobbies. The Asia Pacific region is witnessing rapid urbanization, with a growing population and increasing energy demands, accounting for over 50% of global energy consumption. Developments in sustainable energy are propelling the growth of the lighting contactor market in this region.

Over the past two decades, China's lighting industry has experienced substantial growth, positioning the country as a global leader in lighting types and consumption. Lighting is essential for infrastructure facilities, including airports, railways, ports, and urban rail transit systems. The use of floodlighting has expanded from major cities to smaller towns, enhancing public spaces such as city squares, parks, roadways, and buildings. The potential demand for public lighting projects in urban areas across China is immense as the nation continues to urbanize. China is poised to become a semiconductor superpower, driven by increasing domestic demand in the semiconductor sector. According to the Semiconductor Industry Association and Boston Consulting Group, China accounts for approximately 60% of the growth in the global semiconductor market. Additionally, city planners in China are strategizing to implement smart connected lighting systems to mitigate carbon emissions. The country's dual carbon strategy aims to achieve significant advancements, with lighting upgrades being recognized as one of the most cost-effective and rapid methods to meet these objectives. These factors are significantly boosting the demand for lighting contactors utilized in lighting upgrades throughout China.

Key players in the lighting contactor market include ABB Limited, Eaton Corporation, Hager Group, Hitachi Industrial Equipment Systems Co., Ltd., Larsen and Toubro Ltd., NSI Industries, LLC, Ripley Lighting Controls, Rockwell Automation, Inc., Schneider Electric SE, and Siemens AG. These market participants are employing both organic and inorganic growth strategies to maintain their competitive advantage. For example, in 2021, Eaton acquired a 50% stake in HuanYu Group's subsidiary, HuanYu High Tech, which specializes in manufacturing contactors and low-voltage circuit breakers.

The analysis of the lighting contactor market has been conducted through both primary and secondary research methodologies. The research process commenced with extensive secondary research, leveraging both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach aimed to provide a comprehensive overview and forecast of the lighting contactor market size across all segments. Additionally, industry participants and experts conducted numerous primary interviews to validate the findings and gain deeper analytical insights. The study involved participants such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the market.