The Lighting Contactor market is expected to grow from US$ 895.62 million in 2022 to US$ 1,479.39 million by 2028; it is estimated to grow at a CAGR of 8.7% from 2022 to 2028.
The lighting industry has advanced significantly, with lights now having numerous features like software-enabled control, Bluetooth, and Wi-Fi. In the future, the IoT is expected to revolutionize the industry. IoT-enabled lights are network-connected and could be a game-changer for the lighting contactor market. Some lights have sensors that provide valuable information, such as detecting how long a customer spent looking at a particular product in a retail store aisle. These lights can be easily managed through mobile apps or the web to adjust brightness or change color. The commercial sector has a high demand for IoT-enabled lights, and companies like Philips and Wipro offer various options, which have contributed to the growth of the lighting contactor market. In August 2021, Signify introduced the Wiz smart light range, which includes LED smart downlighters, T-Bulbs, T-Beamers, and Battens, and expanded its Philips smart Wi-Fi ecosystem in India. Such product launches have increased demand for contactors, driving growth in the lighting contactor market.
Impact of COVID-19 Pandemic on Lighting Contactor Market Size
The lighting contactor market in the MEA region was negatively impacted by the unprecedented effects of the COVID-19 pandemic, resulting in reduced economic growth and decreased investments in lighting system developments. However, despite significant challenges such as semiconductor shortage and supply chain disruption, the lighting contactor market is now beginning to recover. The governing bodies in the region have eased travel restrictions, enabling transportation with safety measures and social distancing norms. The MEA region has witnessed growth in the adoption of lighting systems in new construction projects for the indoor and outdoor market in 2021. This growth is mostly due to ongoing projects and government initiatives for energy efficiency. Additionally, the Middle East's rising environmental consciousness has created opportunities to expand and lead in terms of energy optimization through the introduction of technologically advanced energy-efficient lighting systems and sustainable energy technology applications. Therefore, the lighting contactor market is steadily growing in the region.
The Asia Pacific lighting contactor market is divided into several regions, including China, India, Japan, South Korea, Australia, and the Rest of Asia Pacific. China, India, and Australia are the leading contributors to the market size in the region due to their implementation of energy-saving programs by both government and commercial sectors. Initiatives like Make in India and Make in China promote energy-efficient lighting solutions in increasing smart city projects, leading major semiconductor industry manufacturers to develop energy-efficient devices with lower energy consumption. In January 2020, Opple Lighting launched a new lineup of lighting solutions in India, including its Smart Bulb with a lifetime of 15,000 hours, making it suitable for offices, shopping centers, conference halls, airports, lobbies, and more. The Asia Pacific region is experiencing rapid urbanization, with an increasing population and energy needs, accounting for over 50% of global energy consumption. Development in sustainable energy is driving the growth of the lighting contactor market in the region.
China's lighting industry has grown significantly in the previous 20 years, and the country has risen to become a world leader in lighting type ion and consumption. Lighting is required in infrastructure facilities, including airports, railways, ports, and urban rail transportation systems. Floodlighting has extended from significant to small and medium-sized cities in city squares, green areas, roadways, and buildings. The potential demand for public lighting projects in towns and cities in China is enormous as the country continues to urbanize. China is set to become the leading semiconductor superpower as it has witnessed growing demand in the semiconductor industry for domestic applications. As reported by Semiconductor Industry Association and Boston Consulting Group, China accounts for ~60% of growth in the global semiconductor industry. Moreover, City planners in the country are planning to install smart connected lighting systems to reduce carbon emissions. China's dual carbon strategy aims to make advancements where the lighting upgrades are carried out as they are the cheapest and fastest way for China to achieve its goals. These factors are bolstering the demand for lighting contactors used in lighting upgrades in China.
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 are a few companies profiled in the lighting contactor market study. The market players are following organic and inorganic growth strategies to sustain the competitive edge. For instance, in 2021, Eaton acquired 50% stake in HuanYu Group's subsidiary HuanYu High Tech. HuanYu High Tech manufactures contactors and low-voltage circuit breakers.
The lighting contactor market analysis has been conducted using both primary and secondary sources. The research process began with exhaustive secondary research, utilizing internal and external sources to obtain qualitative and quantitative information related to the market. The process aimed to obtain an overview and forecast of the lighting contactor market size with respect to all market segments. In addition, industry participants and commentators conducted multiple primary interviews to validate the data and obtain more analytical insights. The participants involved in the study typically included VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders who specialize in the market.