What Transformation Has the Decorative Lighting Market Undergone?
The decorative lighting market has seen considerable growth due to a variety of factors.
• The market size for decorative lighting has been on a stable growth trajectory over the past few years. It is projected to experience growth from $40.82 billion in 2024 to $42.23 billion in 2025, yielding a compound annual growth rate (CAGR) of 3.5%.
Factors contributing to the growth during the historic period include urban and infrastructure development, the expansion of hospitality and retail sectors, changes in consumer spending habits, real estate advancements, aesthetic choices, and architectural and interior design trends.
What Does Future Hold for The Decorative Lighting Market Size?
The decorative lighting market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size for decorative lighting is predicted to experience consistent growth. The projections suggest an increase to $49.91 billion in 2029, with a compound annual growth rate (CAGR) of 4.3%.
The advancement during this period is believed to be driven by factors such as the incorporation into smart homes, focus on health and wellness, surge in online retail channels, energy efficiency initiatives by government, and the trend toward open-concept living. Key market trends to watch during this period include the integration of smart lighting, energy-saving LED technology, customization and personalization options, a resurgence of vintage and retro styles, and design innovations in wireless, cordless, and material finishes.
What Are The Primary Growth Drivers In The Decorative Lighting Market?
The rise of remodeling and renovation endeavors is predicted to fuel the expansion of the decorative lighting market. The terms 'remodeling' and 'renovation' imply altering the layout's structure and improving it to an acceptable condition. The pandemic situation caused by the COVID-19 virus has witnessed an increased refurbishment of confined areas such as bedrooms and kitchens due to the rise of remote working and social isolation. Decorative lighting becomes pivotal during contemporary renovation tasks as it facilitates highlighting distinct objects or spaces within a room. The perception of size and area can be modified by the use of diverse shades and colors of fixtures and fittings. For example, the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University released the Leading Indicator of Remodeling Activity (LIRA), which showed an annual increase of 9% in repair and improvement expenditure in the final quarter of 2021. It is also predicted that this rhythm will be maintained in 2022, with the expectation that annual repair and improvement expenses will touch $400 billion by the third quarter of 2022. Hence, the surge in renovation and remodeling activities will potentially be a catalyst for the growth of the decorative lighting market.
What Is The Segmentation Of The Global Decorative Lighting Market?
The decorative lighting market covered in this report is segmented –
1) By Product: Ceiling, Wall-Mounted, Other Products
2) By Light Source: Light Emitting Diode (LED), Fluorescent, Incandescent, Other Light Sources
3) By Distribution Channel: Offline, Online
4) By End Use: Commercial, Household
Subsegments:
1) By Ceiling: Chandeliers, Pendant Lights, Flush Mounts, Ceiling Fans With Lights
2) By Wall-Mounted Lighting: Wall Sconces, Picture Lights, Decorative Wall Lamps
3) By Other Products: Floor Lamps, Table Lamps, Outdoor Decorative Lighting, String Lights
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What Emerging Trends Are Shaping The Decorative Lighting Market Landscape?
Leading entities within the decorative lighting industry are transitioning towards advanced smart technologies like AI-based lighting to improve consumer experience and gain a competitive edge. The AI-based lighting systems enable responsive adjustments based on emotions that are customized according to individual preferences and activities. In an example from April 2024, the US firm Lepro, known for its AI lighting innovations, introduced an unprecedented technology called LightGPM, which is a Generative Pretrained Model for Lighting. This pioneering development allows smart lights to adjust as per the user's emotions and commands, offering highly accurate customization of lighting effects. Lepro's newest additions boast over 12,000 dynamic effects and leverage AI to recognize voice and facial expressions, ensuring a highly tailored experience. Incorporating LightBeats Music Sync and the Lepro+ app, the new products provide enhanced usability, letting users modify scenes and moods effortlessly. LightGPM signifies the beginning of an innovative stage for smart lighting that aligns with human emotional states and preferences, revolutionizing domestic lighting interactions.
Who Are the Key Players in the Decorative Lighting Market?
Major companies operating in the decorative lighting market include:
• The Home Depot Inc.
• General Electric Co.
• Lowe's Companies Inc.
• Signify NV
• Hubbell Incorporated
• OSRAM Light AG
• Acuity Brands Lighting Inc.
• Havells India Limited
• Fagerhults Belysing AB
• LSI Industries Inc.
• Electronic Theatre Controls Inc.
• Artemide S.p.A.
• Flos S.p.A.
• Generation Brands LLC
• Cree Lighting Inc.
• Savant Systems Inc.
• Juno Lighting LLC
• Amerlux LLC
• Maxim Lighting International
• Crest LED Lighting Manufacturing Company
• Fagerhult Group
What are the Regional Insights into the Decorative Lighting Market?
North America was the largest region in the decorative lighting market in 2024. Asia- pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the decorative lighting market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
