Lighting Market Shines Brightly in 2020 & Beyond

CE Pro’s Lighting Deep Dive Study reveals average project sizes, costs, profits and number of devices for lighting controls, fixtures and motorized shade projects, with double-digit growth predicted for 2021.

A lot has changed in the lighting market since CE Pro conducted its first Lighting Deep Dive Study back in 2018. The focus of the study two years ago was primarily on control of artificial light. Today, the lighting market for integrators has evolved to include control of both artificial and natural light via motorized shades, as well as the installation of low-voltage LED fixtures.

That broadened market has made lighting one of the fastest growth categories in the market, according to the most recent CE Pro State of the Industry Study.

This year, the typical custom integration company expects exactly half (50%) of all their projects to include some form of lighting control, whether that is controls, fixtures or motorized shades, according to the 2020 CE Pro Lighting Deep Dive Study. More specifically, dealers will perform a median 18 lighting control/fixture installations and 11 motorized shade control installations this year.

That data would indicate dealers are on track to do a median number of 58 new installations per company in 2020, up from 50 in 2019. Just 2% of integration companies do not do lighting control installations, and only 7% of dealers report they do not perform motorized shade installations.

Dealers report they are much more familiar with lighting controls these days. The average integrator has been installing hardwired lighting controls for 13 years, according to the survey. That compares to nine years installing wireless lighting controls, eight years installing motorized shades, seven years installing LED lighting and three years working with human-centric lighting (HCL).

So what does the average lighting installation look like today? The typical lighting control system has 18 devices (touchpanels, switches, fans or dimmers) and 11 fixtures. It has a median sales price fully installed for $13,413 and takes 16 manhours to install, or about 52 minutes per device. Meanwhile, the average motorized shade installation has six shades and sells for $11,500 and takes 12 manhours to install, or two hours per shade.

Just over half (51%) of all lighting control installations are whole-house projects. That compares to just 29% of shading projects that are for the entire house. Indeed, 71% of shade installations are only for a specific room in the home. Half of all lighting control projects are new construction. For existing homes, 14% of projects are upgrades to a previously installed lighting control system, while 27% are new lighting controls being introduced for the first time in an existing home.

Which rooms are most likely to have lighting and shading installations? For shades, the most common area is den/ family room, followed by the master suite, formal living, dining room and kitchen. For lighting controls and fixtures, the most common room is the kitchen, followed by the media/great room, and then outdoors.

Voice control is another interesting area to watch. Two years ago, 13% of lighting control systems had voice control integration. In 2020, that figure is 21% — a 50% jump. Meanwhile, dealers anticipate in 2021 that 28% of their lighting installations will be voice controllable. The percentages are not as high for motorized shades being controlled by voice, but they are also on the upswing. Dealers report 20% of their shading projects had voice control integration this year, and they anticipate it to increase to 24% of jobs next year.