Lighting: “digital – customized – networked”.

This year we visited the world’s largest trade fair for lighting and building technology “Light + Building” in Frankfurt and thus stay up to date in the very dynamic and partly disruptive lighting industry. This year’s motto of the “Light + Building” was “digital – customized – networked” and impressively showed the further growing importance of smart system solutions and modern design in lighting, electrical engineering and home and building automation. With the increasing digitalization of light, new topics such as smart home, sensor technology and Internet of Things (IoT) are playing an ever greater role.

The technical shift towards LEDs as a light source, which continue to gain market share at the expense of conventional lighting technologies, is fundamentally changing the lighting market. In the short and medium term, the switch of private and commercial users to the innovative energy-efficient technology is leading to product- and technology-based market growth. At the same time, however, the use of the significantly longer-lasting LEDs results in a decline in luminaire maintenance and replacement business with light sources in the longer term.

LED technology and smart home development are also changing the core competencies of luminaire manufacturers. They often have to acquire new technological know-how, including control, programming, thermal management, etc., and invest heavily in research & development accordingly. The change in technology is undoubtedly forcing “lighting suppliers” to undergo strategic reorientation, often to the point of hard restructuring. This primarily affects medium-sized companies. Consolidation will continue; luminaire and illuminant business are increasingly growing together. Luminaire manufacturers are increasing their competence in LED and control (also via acquisitions) or are expanding their radius of action via vertical integration or acquisitions abroad.

All stages of the value chain in the lighting industry are facing new challenges as a result of progressing LED technology. At the same time, LEDs are awakening new demand among customers through constant innovations, digital networking and new lighting design possibilities. As a result, they are also creating new sources of revenue for the lighting industry: for example, the development of intelligent illumination concepts or by means of lighting systems which are integrated into building management. In neighboring segments such as smart home, security technology and energy management, potential can be tapped, e.g. via smart home-capable luminaires or other products that can be marketed together with luminaires as a package. In the case of smart homes, more and more feasible and market-ready concepts are coming onto the market. The intelligence is contained in more and more devices and systems that are not only “smart” individually, but can and must also work together. The application possibilities are complex; smart devices and digital networking enable the control of all important functions in the home – from household management and safe living, to entertainment & lifestyle, work & communication, and health & nutrition.