As the world is currently going through energy crisis, the focus on energy efficiency has risen considerably. Governments of various countries have implemented stringent regulations and policies regarding the same. Ascribed to this, the demand for energy efficient lighting solutions has risen all across the globe. Such solutions further aid in reducing costs in a number of sectors, owing to which, their adoption rate is projected to rise in the years to come.

Owing to these factors, the global ambient lighting market is predicted to reach a value of $156.5 billion by 2030, increasing from $60.8 billion in 2019, progressing at a 9.2% CAGR during the forecast period (2020–2030), as stated by a P&S Intelligence report. In addition to strict government policies, the rising demand for smart lighting has also been resulting in the growth of the domain. LEDs have been registering significant adoption in different industries, owing to design structure and energy efficiency.

Furthermore, the increasing penetration of IoT and the rise of Industry 4.0 have been encouraging companies in the domain to experiment more with LED lights. These days, energy conservation and connected devices have become highly common. Because of this, manufacturers are widely introducing solutions which make use of latest technologies for enhancing performance, functionality, and aesthetics. This will further pave the way for the development of smart lighting solutions in the near future.

Different types of ambient lighting are surface-mounted lights, strip lights, track lights, recessed lights, and suspended lights, out of which, recessed lights have been the most in the demand in the past. These ambient lighting solutions can be utilized in a number of settings, such as commercial and industrial. Recessed lights also improve the quality of lighting and provide better look and feel of the place. The major components of ambient lighting solutions are software & service and hardware, between which, the demand for software & services is projected to increase considerably.

The demand for software that can control lighting in different settings, according to the ambience needed by the user, is growing rapidly. Lighting control software provides advanced functionalities, such as the adjustment of color and brightness. The key end users of ambient lighting are automotive, residential, corporate, healthcare, hospitality & retail, and industrial. The automotive industry is expected to create substantial demand for ambient lighting solutions in the coming years, owing to the growing vehicle production and increasing use of interior lighting in vehicles.