The rising demand from residential and commercial segments opens up new growth opportunities for LED smart lighting companies in the years to come. As a result, the market competition in the LED smart lighting category has been skyrocketing at an unprecedented rate with several companies competing to produce and sell innovative LED smart lighting solutions for household, administrative, and business uses. As exciting as this new segment in the lighting industry looks, it is not completely free of glaring issues that must be tackled. Experts at Infiniti Research conducted a comprehensive SWOT analysis to help companies identify opportunities and address issues and key challenges in the sector.
Strengths of LED smart lights: Smart innovation
A decade back, who would have thought that technology will enable controlling light bulbs with the help of a smartphone! Using LED smart lighting technology, bulbs can connect to a smart device using wireless technology. Motion sensors can also be set up on these lights to switch them on or off based on a person’s proximity to the sensor. Such innovations give the user complete control of their lighting system and this is one of the major benefits of LED smart lights. Another major benefit of LED smart lighting technology is the reduced electricity consumption. Due to the increased sustainability, smart LED lights manufacturers can expect greater government incentives to support their operations. Although this is a breakthrough innovation, the setup of these smart bulbs is as simple as it can get. Once the bulb gets inserted into the light source, all it takes is to download an appropriate app and set up the wireless connectivity, making it simple and easy to use.
Weaknesses of LED smart lights: Barriers to market entry
Since this technology is relatively new, not a lot of people are aware of these bulbs. Furthermore, some of the top companies producing LED smart lights also deal with conventional bulbs, making this a tough market to battle against. As such, smart lighting companies must focus more on the tech-savvy population, especially millennials who have an affinity towards such innovations. Moreover, as the pricing of these bulbs are on the higher side, there are greater chances of reluctance from customers to buy this product. Another important drawback of an LED smart bulb is that not all of these bulbs follow the same setup process. While most models use wireless technology to connect, some of them may require additional hubs or switches to function as expected. Such complicated installation processes make it even more difficult to make such technology mainstream.
Opportunities for LED smart lights: Market expansion and growth
The rising government incentives for energy-saving products is an opportunity for LED smart lighting companies to expand their business operations by making more products available to the market. Factors such as rapid urbanization and the rising need for mobility could also largely fuel the growth of this industry. Furthermore, companies in the sector can also plan to move beyond catering to domestic needs and expand at an industrial or organizational scale. As a greater number of companies are trying to incorporate sustainable practices and the benefits of longer-lasting bulbs is a key incentive to attract corporate clients.
Threats facing LED smart lights: Traditional products remain market dominants
The lighting industry is characterized by cut-throat competition, with market players offering similar products and aiming to be leaders in the smart lighting segment. However, traditional bulbs continue to dominate the market with only a small population of buyers for smart bulbs currently. Moreover, the traditional lighting options are much cheaper than the smart lighting solutions, making it a more favored segment among buyers. Another major barrier is the complications involved in the set-up and usage of smart bulbs. Due to the relatively complex procedures involved, buyers may choose to go with the traditional options available.