A new report from Guidehouse Insights explores the global market for lighting controls in commercial and industrial (C&I) buildings.

Advanced lighting control strategies, such as time scheduling, occupancy sensing, and daylight harvesting, have the potential to reduce lighting energy consumption substantially in C&I buildings. According to a new report from Guidehouse Insights, the global lighting controls market for occupancy sensors, photosensors, multifeature sensors, relays, and switches is expected to grow from $7.4 billion in 2023 to $10.8 billion in 2032, at a compound annual growth rate (CAGR) of 4.3%.

“As energy efficient LED lighting systems become increasingly widespread and opportunities to improve light source efficiency become more limited, increased proliferation of lighting controls can become an important mechanism for reducing the energy consumed by lighting,” says Wendy Davis, senior research analyst with Guidehouse Insights. “Energy and building codes mandating the use of lighting controls in C&I buildings strongly drive this market. Efforts to reduce energy consumption and concomitant greenhouse gas (GHG) emissions have resulted in the adoption of increasingly stringent codes that apply to a broader range of building projects.”

While this market has considerable growth potential, multiple challenges limit the size of the lighting controls market over the next decade. Energy and building codes are increasingly mandating the use of lighting controls in C&I, which is fueling growth in lighting control deployments, but the industry faces resistance to the total cost of lighting controls system installation and concerns about how the complexity of these systems will impact building operations, according to the report.