According to the new research report on "Lighting Contactor Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to reach US$ 1,479.39 million by 2028, registering a CAGR of 8.7% from 2022 to 2028.
The usage of horticulture lights is on the rise, as they are installed above plants to promote their growth when natural light is insufficient. Countries such as Germany and Kazakhstan rely heavily on agriculture but experience fewer sunny days during winter. Therefore, horticulture lights can be a useful solution in such cases. Prominent companies like Samsung Electronics and Ushio Group are offering horticulture lights, and in April 2021, Agnetix launched Zenith, the first horticulture light with plant health sensors and imaging technologies. Several lighting contactor market players, including EDEN Horticulture, are offering contactors specially designed for horticulture lights. The trend of using artificial light for plants is expected to increase installations, subsequently driving the growth of the lighting contactor market.
The lighting contactor market is categorized into two types: electrically held and mechanically held. In 2021, the electrically held segment dominated the market share. This can be attributed to the fact that electrically held contactors are more cost-effective than their mechanically held counterparts, which drives the growth of this segment. Electrically held lighting contactors are commonly used in smart residential, commercial, and industrial sectors where lighting systems are extensively utilized.
The global lighting contactor market is categorized into three end-user segments, namely commercial, residential, and industrial. As of 2021, the commercial segment holds the largest market share in the lighting contactor market. There is a constant increase in investments in commercial infrastructures, such as office premises, healthcare centers, and shopping malls, which is driving the demand for lighting solutions and switches. The Federal Energy Management Program (FEMP) initiative is also contributing to the growth of the commercial segment. The FEMP provides guidance for the acquisition of commercial LED luminaires that meet the FEMP efficiency requirements, resulting in increased consumption of energy-efficient lighting solutions by commercial buildings. This trend is anticipated to continue during the forecast period, leading to a surge in the demand for lighting contactors in the commercial segment.
The global lighting contactor market is divided into two main applications: indoor and outdoor. In 2021, the indoor segment dominated the market share for lighting contactors. The increasing adoption of lighting contactors in smart lighting systems is anticipated to drive the demand for lighting contactors in the indoor segment. Wipro, for example, has launched a range of smart lighting solutions for indoor applications. Indoor lighting solutions that create a soothing environment can be utilized for energy efficiency and productivity in various settings, including workspaces, hallways, conference rooms, and recreational areas.
Key Findings of Lighting Contactor Market Study
The adoption of lights due to urbanization across Europe is leading to the increasing utilization of technological advancements for the integration of IoT in lighting products in different industries. Europe comprises several developed economies, including Germany, France, Italy, the UK, and Russia. In 2022, Dutch cities decided to use inteliLIGHT's ZHAGA NB-IoT smart lighting controllers, enhancing their smart city infrastructure. European nations are focused on sustainable alternatives to traditional lighting systems, such as halogen incandescent lights, compact fluorescent lamps (CFL), and light-emitting diodes (LED), aiming towards net-zero emissions by 2050. Consequently, the industrial sector is investing in improving lighting solutions for better energy efficiency. Lighting contactor manufacturers are adopting and innovating products to comply with environmental standards.
The construction of new buildings and public facilities across various industrial sectors is leading to an increase in demand for newly installed lighting systems in Europe. In addition, the European government has initiated several smart city programs and strict energy regulations. For example, in 2022, the European Commission proposed the Sustainable Products Initiative (SPI), which aims to ensure that only environmentally friendly products are sold in Europe as part of the Commission's flagship Green Deal. This proposal under the SPI for Ecodesign is highly relevant to the lighting industry. These factors are expected to drive the growth of the lighting contactor market in Europe during the forecast period.
The lighting contactor market size in Germany is expected to be boosted by government initiatives aimed at replacing traditional light bulbs and lamps with modern smart lighting systems integrated with IoT. Favorable financing conditions for residential development activities since 2021 have contributed to the rise of residential and commercial buildings in Germany, which is expected to drive the demand for lighting contactors and promote growth in the lighting industry. The presence of key market players such as Honeywell and Osram GmbH is also expected to augment the lighting contactor market growth in the coming years. In January 2022, Mila announced a partnership with LEDVANCE, wherein Mila's over 10,000 technicians across Switzerland, Germany, Austria, France, and the UK will provide services to LEDVANCE customers in Germany, further boosting the adoption of smart lighting solutions for residential and commercial installations. Germany is a leader in the development of green technology and has the most vigorous energy-saving program in energy consumption, with a 30% share of energy efficiency in all of Europe. The progress in energy efficiency made by Germany is expected to contribute to the growth of the lighting contactor market by providing solutions to accelerate energy efficiency within the scope of 2020 to 2030 targets.
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