Europe Smart Lighting Market Size and Forecast 2026–2034

The Europe smart lighting market is entering a high-growth phase, supported by rising energy-efficiency mandates, smart city initiatives, and widespread integration of Internet of Things (IoT) technologies. Governments across the region are prioritizing carbon reduction and sustainable urban development, accelerating demand for connected lighting solutions.

According to Renub Research, the Europe smart lighting market is projected to grow from US$ 4.17 Billion in 2025 to US$ 17.95 Billion by 2034, expanding at a remarkable Compound Annual Growth Rate (CAGR) of 17.61% from 2026 to 2034. Regulatory backing, digital infrastructure readiness, and increasing adoption across residential and commercial sectors are expected to sustain this rapid growth trajectory.

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Europe Smart Lighting Market Overview

Smart lighting refers to advanced lighting systems that use connected technologies such as sensors, wireless communication, automation software, and remote controls to optimize illumination dynamically. These systems allow users to adjust brightness, color temperature, and schedules through mobile applications, voice commands, or building management platforms.

Smart lighting enhances energy efficiency by:

Automatically dimming lights based on occupancy
Adjusting brightness depending on natural daylight
Enabling remote monitoring and control
Reducing operational and maintenance costs

In Europe, stringent environmental regulations and strong public awareness regarding climate change have fueled widespread adoption. Governments are implementing smart lighting in public infrastructure, including streets, offices, and transportation hubs, to reduce carbon emissions and electricity consumption.

Additionally, Europe’s advanced broadband penetration and smart device adoption are accelerating the integration of lighting systems into smart homes and connected buildings. The focus on green buildings and sustainable urban planning further strengthens market expansion.

Growth Drivers in the European Smart Lighting Market

Stringent Energy Efficiency Regulations and Sustainability Goals

Europe’s regulatory framework is a major driver of smart lighting adoption. The European Green Deal and Ecodesign Directive aim to achieve carbon neutrality by 2050, compelling industries and municipalities to adopt energy-efficient technologies.

Smart lighting systems significantly reduce electricity consumption through automation, motion detection, and daylight harvesting. Public infrastructure projects, especially street lighting upgrades, are increasingly shifting toward connected LED systems.

In 2023, the Bulgarian government invested approximately US$ 34.08 million in energy-efficient street lighting projects, illustrating strong public-sector commitment. Pilot programs in cities like Amsterdam and Munich demonstrated energy consumption reductions of up to 15% using smart lighting technologies.

Integration with 5G networks and IoT platforms enhances real-time control and monitoring, making smart lighting an integral part of Europe’s sustainability agenda.

Expansion of Smart Cities and Urban Infrastructure Projects

The rise of smart city projects across Europe is another powerful growth catalyst. Municipalities are deploying smart infrastructure to enhance energy management, improve safety, and optimize urban operations.

The EU Horizon Mission “Climate-Neutral and Smart Cities by 2030” has allocated more than €98 million to accelerate systemic transitions in over 100 European cities. These cities serve as innovation hubs, promoting scalable smart lighting solutions across the region.

Smart lighting forms a core element of urban digital transformation, enabling predictive maintenance, data analytics, and remote control of lighting networks. As urban populations continue to expand, cities are prioritizing intelligent lighting systems to manage energy costs and improve service quality.

Growing Adoption of Smart Homes and IoT Integration

The increasing popularity of smart home ecosystems is significantly boosting residential demand. European homeowners are seeking lighting systems that offer automation, customization, and energy savings.

Smart lighting solutions integrate seamlessly with voice assistants, mobile apps, and home automation systems, enhancing user convenience. Renovation and retrofitting projects in older European buildings also present significant opportunities for smart lighting upgrades.

In September 2024, Honeywell International Inc. secured a multi-year contract to implement IoT-enabled LED lighting solutions at Frankfurt Airport. The project highlights the growing adoption of advanced smart lighting technologies in major public infrastructure settings.

As electricity costs rise and sustainability awareness deepens, consumers increasingly view smart lighting as both an economic and lifestyle investment.

Challenges in the Europe Smart Lighting Market

High Initial Installation and Integration Costs

Despite long-term energy savings, smart lighting systems require substantial upfront investments. Advanced hardware, sensors, control modules, and software integration can be more expensive than conventional lighting solutions.

Retrofitting older buildings, common across Europe, can present compatibility and wiring challenges. For smaller businesses and local authorities with limited budgets, the long payback period may discourage adoption.

Interoperability and Cybersecurity Concerns

Interoperability remains a challenge due to the presence of multiple communication protocols and proprietary systems. Lack of standardization can complicate integration and scalability.

Furthermore, connected lighting systems are vulnerable to cybersecurity risks. Data privacy and network security concerns are particularly critical in public infrastructure and commercial applications.

Segment Analysis

Europe Smart Lighting Software Market

Software plays a central role in enabling intelligent lighting control and optimization. Smart lighting software allows centralized monitoring, occupancy detection, predictive maintenance, and energy analytics.

Cloud-based solutions are gaining traction due to scalability, remote access, and simplified maintenance. Artificial intelligence and analytics integration further enhance system performance, making software a high-value segment within the market.

Europe Wireless Smart Lighting Market

Wireless smart lighting solutions are witnessing rapid growth because of easy installation and flexibility. These systems eliminate extensive wiring requirements, making them suitable for both new constructions and retrofit projects.

Europe’s robust digital connectivity and widespread IoT adoption support wireless deployment across residential, commercial, and public sectors. Faster installation and reduced infrastructure costs strengthen their appeal.

Europe Smart Lighting New Installation Market

New construction projects across residential, commercial, and public infrastructure segments are increasingly incorporating smart lighting during the design phase. Compliance with energy-efficient building codes drives early-stage integration.

Smart offices, hospitals, schools, and urban development projects are key contributors to new installation growth, enabling seamless automation from inception.

Europe Smart LED Lamps Market

The region’s transition toward LED technology significantly supports smart LED lamp adoption. Smart LEDs offer:

Lower power consumption
Longer lifespan
Dimming and color temperature adjustments
Compatibility with smart home systems

Plug-and-play functionality makes smart LED lamps especially attractive for residential and small commercial users.

Europe Indoor Smart Lighting Market

Indoor smart lighting is expanding across offices, retail outlets, institutions, and homes. Adaptive lighting enhances employee productivity and customer experience, while occupancy sensors reduce energy waste.

Green building initiatives and workplace efficiency goals further stimulate demand.

Europe Residential Smart Lighting Market

The residential segment is growing steadily as smart home ecosystems gain popularity. Consumers value remote access, scheduling, energy savings, and personalized ambiance control.

Rising electricity prices and environmental consciousness are reinforcing household adoption across Europe.

Country-Level Insights

France

France’s smart lighting market benefits from strong sustainability policies and urban modernization programs. Public infrastructure projects increasingly incorporate connected lighting systems.

In November 2024, Itron, Inc. partnered with Cielis to manage nearly 200,000 smart streetlights in Paris, reinforcing France’s leadership in intelligent urban lighting.

United Kingdom

The UK market is characterized by high smart home adoption and advanced digital infrastructure. Retrofitting projects in older buildings create strong growth opportunities.

In December 2025, Govee expanded its retail presence in the UK through partnerships with major retailers, increasing accessibility of smart lighting products.

Netherlands

The Netherlands emphasizes innovation and smart city initiatives. In June 2024, Aqara launched its Amazon brand store in the Netherlands, enhancing availability of smart home lighting solutions.

Strong digital connectivity and sustainability policies make the Netherlands a progressive smart lighting market.

Germany

Germany’s market growth is driven by strict energy regulations and industrial modernization. In February 2023, Signify implemented intelligent street lighting in Eichenzell using its BrightSites solution, supporting 5G and IoT integration.

Germany’s robust engineering ecosystem supports continuous innovation in smart lighting technologies.

Market Segmentation

By Offering

Hardware
Software
Services

By Technology

Wireless
Wired

By Installation Type

New Installation
Retrofit Installation

By Light Source

LED Lamps
Fluorescent Lamps
Compact Fluorescent Lamps
High-Intensity Discharge Lamps
Others

By Application

Indoor
Outdoor

By End User

Commercial
Residential
Public Infrastructure
Others

By Country
France, Germany, Italy, Spain, United Kingdom, Belgium, Netherlands, Russia, Poland, Greece, Norway, Romania, Portugal, Rest of Europe.

Competitive Landscape

Key players shaping the Europe smart lighting market include:

Cree, Inc.
Philips Lighting
Honeywell International Inc.
Wipro Limited
Acuity Brands, Inc.
Eaton Corporation Plc.
Legrand S.A.
General Electric
OSRAM Licht AG

Each company is evaluated across five viewpoints: overview, key persons, recent developments, SWOT analysis, and revenue performance.

Final Thoughts

The Europe smart lighting market is poised for dynamic expansion through 2034. With Renub Research projecting growth from US$ 4.17 Billion in 2025 to US$ 17.95 Billion by 2034 at a CAGR of 17.61%, the sector stands at the forefront of Europe’s digital and sustainable transformation.

Driven by strict energy regulations, smart city investments, IoT integration, and residential adoption, smart lighting is rapidly becoming a foundational element of intelligent infrastructure. While cost and interoperability challenges persist, technological advancements and supportive policies are expected to maintain strong growth momentum.

As Europe advances toward carbon neutrality and smart urban ecosystems, smart lighting will remain a critical pillar of its energy-efficient future.

Europe’s Smart Lighting Revolution: Energy, IoT, and Smart Cities Drive 17.61%