Human Centric Lighting Market

Human Centric Lighting Market Size

The global Human Centric Lighting Market size was valued at USD 3.91 billion in 2023 and is projected to grow from USD 4.84 billion in 2024 to USD 22.90 billion by 2031, exhibiting a CAGR of 24.88% during the forecast period. The market is experiencing robust growth, driven by advancements in smart lighting technologies and the growing emphasis on health and well-being in various sectors.

Increasing integration of lighting systems with IoT and building automation is enhancing energy efficiency and customization. Moreover, rising investments in R&D for innovative lighting solutions tailored to specific user needs, such as dynamic color temperature control, are propelling market expansion.

In the scope of work, the report includes solutions offered by companies such as ACUITY BRANDS, INC., ams-OSRAM AG, Cree Lighting USA LLC, Eaton, Fagerhults Belysning AB, Helvar, Hubbell, LEDVANCE GmbH, Lutron Electronics Co., Inc, Signify Holding, and others.

The increasing adoption of LED lighting systems across various industries is poised to boost the development of the human centric lighting market. The global demand for LEDs is primarily fueled by their environmental benefits and reduced power consumption.

• According to Climate Group, lighting accounts for approximately 6% of global CO2 emissions. The transition to energy-efficient LEDs is expected to save an impressive 1,400 million tons of CO2 emissions by 2030, eliminating the need for 1,250 power stations.

Additionally, the rising awareness of the impact of lighting on health and productivity is driving interest in human-centric lighting solutions.

Human centric lighting (HCL) is an advanced lighting concept designed to align with human biological rhythms and enhance well-being by mimicking the natural progression of sunlight throughout the day. It adjusts light intensity and color temperature to support the body’s circadian rhythm, influencing sleep patterns, mood, and overall productivity.

HCL systems are widely adopted in workplaces, healthcare, and educational settings to improve focus, reduce fatigue, and promote healthier sleep. By creating dynamic, personalized lighting environments, HCL contributes to improved physical and mental health, making it a crucial aspect of modern lighting solutions focused on human wellness and energy efficiency.

Analyst’s Review

The human centric lighting market is undergoing significant transformation as key players continually launch innovative products to meet rising demand.

• In January 2024, Signify Holding expanded its Philips Hue portfolio with new customizable lighting solutions and accessories. Notable additions include the Philips Hue Dymera wall light, which features independent controls for upward and downward lighting, making it ideal for both indoor and outdoor applications.

Additionally, signify has introduced 3D-printed pendant cords and connectors for the Philips Hue Perifo track system, offering enhanced design flexibility.

Moreover, the corporate sector’s increasing focus on employee well-being is driving demand for human-centric lighting solutions. In response, industry players are forming strategic partnerships to advance innovation.

• In January 2023, Acuity Brands Lighting Inc. partnered with Biological Innovations and Optimization Systems (BIOS) LLC, through the BIOS ILLUMINATED program. Acuity integrated BIOS’s human wellness-focused LED components into its architectural lighting products and secured global rights to utilize the BIOS trademark, promoting its lighting solutions that feature the advanced BIOS SkyBlue technology.

These initiatives underscore of the importance of human-centric lighting, thereby fueling market growth with product innovation and strategic collaborations.

Human Centric Lighting Market Growth Factors

The increasing awareness of the impact of lighting on circadian rhythms and overall health is propelling the growth of the human centric lighting industry. Businesses and healthcare facilities are increasingly recognizing the benefits of optimized lighting in improving employee productivity and supporting patient recovery. This surge in demand for lighting systems that enhance well-being, reduce fatigue, and promote natural sleep cycles is fueling widespread adoption across various sectors.

• In June 2024, Signify launched its newest Philips Hue Twilight Sleep and Wake-Up light, designed to support circadian rhythms with the new Sunset Go to Sleep automation feature. These latest smart lighting products from Philips Hue offer advanced human-centric lighting capabilities, focusing on enhancing circadian rhythm alignment while improving energy efficiency.

Manufacturers are responding to this growing demand by innovating and developing more advanced, customizable HCL products, thereby contributing to the expansion of the market.

The development of the human centric lighting market is hindered by the high initial costs associated with advanced technologies, which can deter adoption, especially among smaller businesses and residential users. Additionally, limited consumer awareness regarding the benefits of human-centric lighting hampers market growth.

To mitigate these challenges, key players are investing heavily in educational initiatives aimed at raising awareness of the advantages of such lighting solutions. Companies such as Lutron and Signify are offering training programs and resources for installers and end-users. Furthermore, they are forming strategic partnerships to reduce costs, develop more affordable product lines, and highlight energy-saving benefits to encourage wider adoption.

Human Centric Lighting Industry Trends

The integration of human centric lighting with smart building management systems is driving significant market growth by offering enhanced automation and personalization. The expansion of the human centric lighting market is further fueled by rising demand for smart lighting solutions, as businesses and homeowners seek more efficient and adaptive environments.

Automated lighting systems that adjust based on occupancy, time of day, and individual preferences are improving comfort, productivity, and energy efficiency. This growing trend is prompting manufacturers to innovate in connected lighting technologies, leading to widespread adoption across commercial, residential, and industrial sectors.

• In October 2023, Lutron Electronics Co., Inc. launched the myRoom XC system, designed specifically for the hospitality industry. This cloud-enabled platform provides centralized management of guestrooms, communal areas, event spaces, and private residences through a unified dashboard. The introduction of myRoom XC highlights Lutron’s commitment to lighting innovation and its dedication to enhancing operational efficiency and guest experience within the hospitality sector.

The ability to optimize lighting for well-being while reducing energy consumption is supporting market expansion.

A growing trend in the human centric lighting industry is the rising demand for versatile and adaptive solutions that cater to diverse environments, allowing users to customize lighting for both functional and aesthetic purposes.

• In August 2023, Juno, a well-known lighting manufacturer, introduced its Trac-Master New Narrow Profile LED Wall Wash Track Fixtures, featuring 90-degree vertical aiming and 360-degree horizontal rotation for seamless integration and reduced visual clutter.

The focus on advanced features, such as adjustable angles and integrated control systems, is augmenting the progress of the human centric lighting industry by offering enhanced lighting experiences across commercial, residential, and industrial spaces.

• In June 2023, Mark Architectural Lighting launched Magellan, a large-format architectural luminaire that offers soft illumination for intimate settings and expansive lighting for larger areas. Magellan also features nLight and nLight air control options, providing embedded lighting controls for a seamless and luminous aesthetic experience.

These innovations reflect the broader industry trend toward adaptable, customizable lighting solutions. This trend is prompting manufacturers to innovate and develop more sophisticated lighting systems that meet the needs of modern environments, thereby contributing to the expansion of the market.

Segmentation Analysis

The global market has been segmented based on type, installation, application, and geography.

By Type

Based on type, the market has been categorized into hardware, software, and services. The hardware segment led the human centric lighting market in 2023, reaching a valuation of USD 2.65 billion. This segment encompasses LED fixtures, tunable white lights, and circadian rhythm-based lighting systems that enable dynamic adjustments in intensity and color temperature. The increasing adoption of LED technology, known for its energy efficiency and longevity, is contributing significantly to segmental expansion.

Additionally, the integration of IoT and sensor-based control systems allows for automated and user-specific lighting adjustments, boosting demand in commercial, residential, and healthcare applications. Growing investments in R&D to enhance product innovation and improve compatibility with smart systems are further supporting segmental growth.

By Installation

Based on installation, the market has been categorized into new and retrofit. The new segment captured the largest share of 62.53% in 2023. This segment includes lighting management software, mobile applications, and cloud-based platforms that enable users to customize and automate lighting environments based on real-time data, occupancy, and user preferences.

The rise of smart buildings and IoT integration is propelling the growth of the segment, as software solutions play a critical role in optimizing energy efficiency and enhancing user comfort.

• In August 2023, Signify introduced a revolutionary new feature to its growing Interact connected lighting portfolio: Interact Space Analysis. Utilizing advanced sensors, Interact Space Analysis provides a data-driven solution that equips facility owners with valuable insights, helping them optimize the working environment for employees.

Increasing focus on developing intuitive, user-friendly interfaces and remote monitoring capabilities is further fueling segmental growth.

By Application

Based on application, the market has been categorized into residential, commercial, and industrial. The residential segment is expected to garner the highest revenue of USD 12.25 billion by 2031. This notable growth is largely attributed to increasing consumer awareness of the benefits of lighting that supports health and well-being.

Homeowners are increasingly adopting HCL solutions to improve sleep quality, mood, and daily productivity by aligning indoor lighting with natural circadian rhythms. The rising popularity of smart home systems further boosts demand, as residents seek personalized, automated lighting controls integrated with voice assistants and mobile apps.

• In August 2023, Legrand's luxury residential lighting control brand, Vantage, announced the availability of its LHUMAN KolorTune capability in the Vantage Design Center software. LHUMAN KolorTune enables a wide range of tunable fixtures to be integrated into a lighting control system, providing controllable profiles for creating lighting scenes with precise color temperature. This feature expands design possibilities, offering simplicity and affordability for achieving tunable and human-centric lighting (HCL) solutions.

Energy-efficient LED fixtures, coupled with adjustable lighting systems, are becoming standard in modern homes. Additionally, as remote work continues to expand, an increasing number of people are investing in HCL to create healthier and more adaptive home environments, thus aiding the growth of the segment.

Human Centric Lighting Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America human centric lighting market captured the largest share of 32.58% in 2023, with a valuation of USD 1.27 billion. This dominance is reinforced by increasing awareness of the health benefits associated with optimal lighting.

The region's robust investment in smart building technologies, combined with a notable shift toward energy-efficient solutions, is fostering the adoption of HCL systems across commercial and residential sectors. Moreover, a growing emphasis on sustainability and wellness in workplace design is prompting businesses to seek innovative lighting solutions that improve employee well-being and productivity.

• In July 2022, Legrand acquired Encelium, an Ontario, Canada-based manufacturer of advanced commercial lighting controls. This acquisition underscores Legrand’s strategic emphasis on enhancing commercial lighting capabilities and aligns with its goal to strengthen its position in the lighting control industry.

These factors are expected to support the development of the North America market through the estimated timeframe.

Europe is anticipated to witness fastest growth, registering a CAGR of 26.63% over the forecast period. The growing emphasis on energy efficiency and sustainability is leading to increased demand for innovative lighting solutions that meet stringent environmental regulations. Additionally, the increasing integration of smart technologies in lighting systems highlights consumers' preferences for products that enhance comfort and ambiance in both residential and commercial settings.

• In June 2023, Helvar, a provider of lighting control systems, partnered with BUCK Lighting, a premium LED manufacturer from Germany.

This collaboration focuses on delivering smart, energy-efficient lighting solutions that promote environmental sustainability, thereby bolstering the growth of the Europe human-centric lighting market.

Competitive Landscape

The global human centric lighting market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Human Centric Lighting Market

• ACUITY BRANDS, INC.
• ams-OSRAM AG
• Cree Lighting USA LLC
• Eaton
• Fagerhults Belysning AB
• Helvar
• Hubbell
• LEDVANCE GmbH
• Lutron Electronics Co., Inc
• Signify Holding

Key Industry Developments

• January 2024 (Product Launch): Lutron Electronics Co., Inc. launched its Maestro dual controls, which incorporate the cutting-edge LED+ advanced dimming technology. These versatile 2-in-1 devices are available in both dimmer/switch and dimmer/timer configurations, providing exceptional dimming capabilities for various lighting types, including LED, incandescent, and halogen bulbs. Enhanced with Lutron's proprietary LED+ technology, these devices ensure smooth and precise dimming of LED bulbs, eliminating any flickering or shimmering effects.

The global human centric lighting market is segmented as:

By Type

• Hardware
• Software
• Services

By Installation

• New
• Retrofit

By Application

• Residential
• Commercial
• Industrial

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America