According to ABI research the smart lightbulb market is set to rapidly increase by 2020.
As the price of LED lighting begins to decrease smart lighting systems are predicted to become a lot more popular. The amount of shipments for smart bulbs in 2013 was less than 2.5 million but is predicted to rise to 223 million by 2020.
Lighting manufacturers will begin to focus on smart LEDs which means that smart bulb purchases will make up 30% of LED revenue. Manufacturers will have to focus on smart bulbs' high upfront costs, maintenance requirements and security concerns in order for them to be fully integrated in to the consumer market.
Practice Director at ABI Research, Malik Saadi, said: "Because of the additional dimensions smart lighting brings to the consumer lifestyle, including lighting automation and because of its carbon footprint efficiency, this industry will rapidly become one of the key technologies that could bring IoE (Internet of Everything) closer to consumers. Overall LED lightbulb sales are currently driven by new additions but as the market saturates, industry players will increasingly use connectivity to bring added value features and services to residential lighting systems and attempt to boost consumers interest in upgrading to a smarter lighting environment."
Traditional lighting manufacturers such as Philips, GE Lighting and Osram as well as consumer-funded start-ups such as LIFX are leading the way in the current market and giving the first glimpse of what smart lighting can achieve.