• More Than Illumination: The Strategic Value of Smart Commercial Lighting

    Lighting makes work possible—and connected lighting systems are delivering improvements in efficiency, longevity, and strategy. Here’s what you need to know about the value of good lighting.
    July 11, 2025
    4 min read

    Often taken for granted, lighting shapes our entire world by making modern work and production possible across commercial and industrial domains, enhancing both the function and form of these spaces. Lighting technology has progressed dramatically, from oil, gas, and incandescent sources to modern LEDs. This progression has steadily improved illumination while delivering substantial energy efficiency and longevity gains.

    Today, the Internet of Things (IoT) is transforming lighting further, creating smarter, networked environments. As building owners and managers increasingly seek data-driven ways to optimize space utilization and enhance operational intelligence, connected lighting is far more than just illumination. For commercial buildings, this transformation means connected lighting is now a strategic asset and is the perfect opportunity to see how far smart lighting technology has advanced and the significant value it now delivers.

    Efficiency Through Connectivity

    Lighting can consume as much as 25% of a commercial building's energy, so optimizing it is essential. Modern solutions like LEDs, which use semiconductor technology to convert electricity directly into light with high efficiency, provide a fundamental improvement over traditional sources, offering significantly extended operational lifetimes (10-20 times longer) and inherent energy savings.

    Likewise, incorporating wireless connectivity into luminaires, sensors, and controls unlocks capabilities beyond traditional wired systems. By eliminating the need for dedicated control wiring runs to each device, wireless significantly simplifies installation and reduces associated labor and material costs. This newfound flexibility in placement also makes it easier to deploy advanced sensors for sophisticated automation and control strategies. Powering these capabilities are established low-power wireless standards like Bluetooth mesh and Zigbee. These protocols reliably connect vast networks of devices (lights, sensors, switches) and form the system's communication backbone, often linking via gateways to cloud platforms for advanced control and data analysis. This increasingly includes data from sensors monitoring environmental conditions like temperature, humidity, and indoor air quality for use by other building services.

    Smart lighting systems leverage this networked communication. For instance, sensors can detect occupancy and harvest daylight (using natural light levels to adjust artificial lights), which enables the system to automatically dim or switch off lights, thereby minimizing waste and reducing operating expenses.

    Furthermore, integrating these smart systems also helps facility managers meet evolving regulatory requirements. California’s Title 24, for example, mandates automated lighting controls based on occupancy and ambient light in new non-residential constructions, making intelligent lighting not just beneficial but increasingly necessary for compliance.

    More Than Illumination: Value-Added Services

    The benefits of connected lighting infrastructure extend far beyond energy efficiency. This network effectively becomes a building-wide platform capable of supporting various value-added services and enhancing overall building intelligence by enabling customizable experiences tailored to the owner's preferences and operational needs. For example, the occupancy sensors deployed for lighting control generate data that can be analyzed to understand space utilization trends, much like how analyzing traffic patterns reveals road usage. This helps to optimize facility layouts and resource management based on the movement of people within the building.

    The wireless network itself, often leveraging Bluetooth technology embedded in luminaires, can be used for precise asset tracking by monitoring signals from tagged equipment, allowing these tagged items to appear as moving icons on a digital building map. This same infrastructure can also enable indoor navigation systems; the fixed lighting points serve as beacons for wayfinding applications on smartphones, displaying the user's real-time position on an indoor map and providing turn-by-turn directions to guide occupants through complex spaces.

    Advancing Lighting Through Silicon Innovation

    Driving this transformation are solution providers who design the System-on-Chip (SoC) platforms central to smart luminaires and controls. These advanced SoCs play a key role by integrating multi-protocol wireless connectivity (such as Bluetooth, Zigbee, and Thread for Matter compatibility), powerful processing cores, ample memory, and robust security features.

    Continuous innovation in silicon design—including the move to smaller manufacturing processes—enables higher performance and greater integration. For instance, these modern platforms provide the necessary compute power for complex tasks, significantly larger memory to support future upgrades, concurrent multi-protocol support, enhanced security features, and even integrate specific components like LED control circuits and pre-drivers directly on-chip. These advancements make the next generation of sophisticated, future-proof, and valuable smart lighting applications possible.

    The Integrated Future of Commercial Lighting

    Progress in SoCs, sensors, and analytics empowers lighting networks to become core parts of larger building management and IoT ecosystems, enabling complex data sharing and coordinated actions. This deeper integration directly translates into significant energy and cost savings, adds valuable operational insights, and fosters more intelligent, responsive commercial environments. As this technological foundation strengthens, expect even greater levels of automation and building intelligence.

    About the Author

    Mikko Savolainen

    Mikko Savolainen is Senior Product Line Director Silicon Labs’ Industrial and Commercial business unit, responsible for commercial applications. Silicon Labs’ commercial applications include for example: Electronic Shelf Labels, Commercial Lighting, Enterprise Access Points, Automotive and Asset Tracking. 

    Mikko joined Silicon Labs in February 2015 after the acquisition of Bluegiga Technologies, a Finnish Bluetooth and Wi-Fi module and stack manufacturer. Mikko first started as a product manager of Silicon Labs’ Bluetooth software and later oversaw the Bluetooth business unit until moving to the current role in Industrial and Commercial business unit.

    Mr. Savolainen completed engineering M.Sc. studies in the Aalto University in Espoo, Finland

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