All You Need to Know About Lighting – An Inevitable Part of Human Lives

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All You Need to Know About Lighting – An Inevitable Part of Human Lives

February 23
16:10 2023
All You Need to Know About Lighting - An Inevitable Part of Human Lives
Lighting In Human Life
Shedding Light on the Importance of Lighting: Everything You Need to Know

The advent of energy-efficient lighting has unpredictably created a significant transformation in human lives and has improved communication between lighting devices across various end-use sectors. The convergence of smart lighting with network communication and digital controls has opened new possibilities for smart cities and smart buildings.

Over the last decade, the global lighting industry has seen a paradigm shift. Conventional lighting sources such as incandescent, fluorescent, and high-intensity discharge are being replaced by solid-state light-emitting diode (LED) technology, enabling energy savings with increased adoption.

Overview of Lighting Ecosystem:

Key Facts:

  • The US Energy Information Administration (EIA) estimates in the Annual Energy Outlook 2022 that in 2021, the US residential and commercial sectors collectively used about 211 billion kilowatt-hours (kWh) of electricity for lighting. This was about 8% of the total electricity consumption by both of these sectors and about 5% of the total US electricity consumption by all sectors.
  • In 2019, the US commercial sector, which includes public street illumination, used 141 billion kilowatt-hours of electricity for lighting. At the national average cost of 11.07 cents per kilowatt-hour, this usage equates to a national street energy cost of USD 15.6 billion a year.
  • Smart lighting (LEDs) can reduce this energy cost by an average of 70% and offers a seven-year payback for a bulb lasting 20 years.

Post-analyzing the above statistics, we can say that smart lighting would not only be beneficial from an economic perspective but also an environmental perspective.

Upgrade to LED Lighting:

 LED lighting outperforms several baseline technologies in energy efficiency, lifetime, versatility, and color quality. Households worldwide are increasingly switching to LEDs; according to a recent report from the Residential Energy Consumption Survey (RECS), in 2020, the US alone reported that about 47% of the users adopt LEDs for indoor lighting, compared to only 4% in 2015.

Key Facts:

  • The share of US homes using mostly compact fluorescent (CFL) bulbs for their indoor lighting fell from 32% in 2015 to 12% in 2020. Households using incandescent or halogen bulbs for most of their indoor lighting fell from 31% of the total in 2015 to 15% in 2020.
  • LED lighting enabled 1.1 quads of energy savings in 2017, resulting in USD 12 billion in savings for US consumers. By 2035, LED lamps and luminaires are anticipated to hold the majority of lighting installations, comprising more than 80% of all applications.
  • If LED lighting installations continue to grow at the current pace, a total annual energy savings of 4.8 quads is possible by 2035. From 2017 to 2035, a total cumulative energy savings of 78 quads is possible, which is equivalent to ~USD 890 billion over that period.

In a nutshell, LED lighting is a significant game changer over its conventional counterparts.

Renewables are the New Trend:

Solar energy is evolving from an alternative to a traditional energy source as a cost-effective solution. The installation of solar-powered lighting does not require the complicated infrastructure, trenching, and wiring expenses necessary for electrical hook-ups. Long-term maintenance and operational costs are reduced using electronic components, easy-to-clean solar panels, LED luminaires, and recyclable batteries. Solar lighting is an increasingly attractive option when it comes to powering remote areas, servicing construction sites, and combatting rising electricity rates.

As per the report from SOL, a leading solar lighting brand in North America, today, the US has about 38 million streetlights using 31 MWh of electricity per year. If just half of those lights were switched to solar power with LED bulbs, the environmental impact would equate to the removal of more than 2 million cars from the road. It has been observed that the growing adoption of solar lighting in both residential and outdoor facilities is a new trend to browse nowadays.  

Niche Lighting Applications:

These days, horticulture lighting, Power over Ethernet lighting (PoE), and human-centric lighting applications are gaining more traction.

Key Facts:

  • If all horticultural lighting today was converted to LED technology, annual horticultural lighting consumption would be reduced to 6.3 TWh, or 60 TBtu (trillion British thermal units) of source energy, which represents lighting energy savings of 34% or USD 350 million annually.
  • Based on the current performance, for supplemented greenhouse and high-intensity sole-source farms, LED lighting offers a 31% to 35% reduction in site electricity consumption per ft2 of grow area compared to conventional lighting technologies.
  • In 2019, vertical farms witnessed the highest adoption of LED lighting, with virtually 100% LED adoption in commercial vertical farms, while LED products make up only 2% of lighting-supplemented greenhouses and 11% of lighting in high-intensity sole-source farms.
  • In PoE lighting, the light source and sensors are connected to a PoE switch, which is the only AC-powered device in the entire system. The switch sends the power as well as control signals through the DC-powered CAT6 cables, which eliminate multiple cables and make installation and maintenance easier and faster, initially and over a long period. PoE lighting, along with CCTV, IPTV, VoIP, access points, etc. bring the lighting system onto the LAN cable infrastructure, to enable a true IoT where things can talk to each other without human interference.
  • With the right light at the right time at the right place, human-centric lighting (HCL) creates a working environment that simulates the changes in natural daylight with its visual, biological, and emotional effects. To achieve this, the luminaires are controlled by an intelligent control system with appropriate light profiles. Through color temperatures and illuminance levels, human-centric lighting (HCL) can simulate the course of natural daylight in such a way that it provides positive support for the human circadian rhythm (our inner clock). A neutral or cold white light color, for example, can energize in the morning. Warm white light is relaxing and ideal for the evening. HCL supports health, well-being, and performance.
  • Human-centric lighting promotes and supports the most valuable resource for any commercial facility, i.e., employees. According to a report by LEDVANCE GmbH, in the UK, human-centric lighting resulted in positive changes in productivity as mentioned below:
    • 12% higher employee performance in offices
    • Worker productivity increases by up to 18 %
    • 14% improvement in learning and better grades
    • Up to 25% increase in sales

Noticeable Players in Lighting Ecosystem


Signify Holding (Philips Lighting N.V.) (Netherlands) is an industry leader in the lighting market. The company’s market experience and brand name allow it to capitalize on the fundamental market dynamics in the lighting industry and deliver innovative solutions that create value and ensure its growth. The company has a huge advantage over its competitors in the smart lighting market, due to its extensive product portfolio, with lighting systems compatible with various connecting technologies ranging from DALI, KNX, and BACnet to ZigBee and EnOcean.


Legrand S.A. (France) is a global specialist in electrical and digital building infrastructures. The company has a strong product portfolio pertaining to the smart lighting market. This enables the company to maintain its leading position in this market. Legrand focuses on growth strategies such as acquisitions, partnerships, and product launches. For instance, in May 2019, the company launched wireless DLM systems, which were designed for easy installation, which, in turn, save cost and time; and thereby, benefit engineers, electrical contractors, and facility managers needing reliable, code-compliant lighting controls.

Acuity Brands:

Acuity Brands, Inc (US) has identified the demand for energy-efficient lighting technologies in the North American market and is aggressively positioning itself to meet this demand. The company offers a wide range of lighting products at multiple price points and for a variety of applications. It is further introducing new or improved versions of its successful products to satisfy the evolving needs of its customers.

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