LED (Light-Emitting Diode) Neon Lights Market Report 2026

The led (light-emitting diode) neon lights market size has grown strongly in recent years. It will grow from $1.39 billion in 2025 to $1.48 billion in 2026 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to rise in decorative lighting installations, increased demand for energy-efficient neon alternatives, expansion of flexible pvc and silicone-based lighting, early adoption in commercial ambience design, growth in home décor lighting applications.

The led (light-emitting diode) neon lights market size is expected to see strong growth in the next few years. It will grow to $1.94 billion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to increasing demand for customizable neon lighting, expansion of e-commerce distribution, rising adoption of smart neon systems, growth in commercial signage upgrades, development of advanced flexible neon lighting technologies. Major trends in the forecast period include increasing adoption of sustainable led neon materials, expansion of IoT-enabled decorative lighting systems, development of cloud-controlled neon lighting platforms, integration of AI-based dynamic lighting effects, growth of immersive lighting experiences.

The increasing number of commercial and non-commercial buildings is anticipated to drive the growth of the LED neon lights market in the future. A commercial building is defined as any non-residential structure that does not fall under agricultural, industrial, or institutional categories. In contrast, a non-commercial building refers to any structure that is not utilized for a commercial enterprise or as a residence. LED neon lights provide an innovative solution for achieving brighter and more uniform illumination. For example, in October 2024, the University of Michigan's Center for Sustainable Systems, a US-based organization focused on developing systems analysis techniques, models, and indicators for creating sustainable futures, projected that the total floor space of commercial buildings in the US is expected to reach 124.6 billion square feet by 2050, representing a 29% increase from 2022. Thus, the growth of commercial and non-commercial buildings is driving the expansion of the LED neon lights market.

Leading entities in the LED neon lights market are actively engaged in forging strategic alliances to fortify their market presence. These alliances, taking diverse forms, aim to deliver mutual benefits and bolster the market positions of the involved companies. Illustratively, in December 2023, NeonWill, a burgeoning LED neon sign creator headquartered in New York, announced an exciting collaboration with Valioart, a distinguished US-based illustrator known for captivating cat illustrations cherished worldwide. This innovative partnership seeks to transmute Valioart's charming cat illustrations into vibrant LED neon signs, blending captivating artwork with cutting-edge lighting technology. NeonWill has consistently spearheaded inventive lighting solutions and found an ideal collaborator in Valioart's universally beloved artistry. This fusion of creativity aims to illuminate spaces with a delightful, inviting glow, captivating both enthusiasts of feline companions and aficionados of art.

In July 2023, Environmental Lights, a leading US-based provider of LED lighting solutions, successfully acquired City Theatrical Inc., a prominent UK-based manufacturer specializing in LED neon lights. The acquisition, executed for an undisclosed amount, positions Environmental Lights as the market leader in the scenic market and solidifies its standing as the premier provider of entertainment lighting solutions. This strategic move is expected to deliver a host of compelling advantages to clients associated with both businesses.

Major companies operating in the led (light-emitting diode) neon lights market are OSRAM Licht AG, Everlight Electronics Co., Ltd., Sylvania Lighting, Lightstec Co., Ltd., Elstar Electronic Co., Ltd., North Star Lighting LLC, Nova Flex LED, Beyond LED Technology, NeonPlus, Custom Neon, Shenzhen Ipixel LED Light Co., Ltd., Neon Poodle, Elemental LED Inc., LEDYi Lighting, Guangzhou RC Lighting Co., Ltd., Inciseon LLC, LED Neon Flex, SGI Lighting Inc., Solid Apollo LED, Tekhol Optoelectronic Technology Co., Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have increased the cost of imported LEDs, PVC materials, silicone compounds, and electronic control components vital to LED neon light production. Commercial décor, household installations, and signage across Asia-Pacific, Europe, and North America are facing higher procurement costs and extended delivery times. However, tariffs are also prompting manufacturers to localize materials sourcing, strengthen domestic supply chains, and innovate more efficient LED neon designs that reduce long-term dependency on international suppliers.

The LED (light-emitting diode) neon lights market research report is one of a series of new reports that provides LED (light-emitting diode) neon lights market statistics, including LED (light-emitting diode) neon lights industry global market size, regional shares, competitors with an LED (light-emitting diode) neon lights market share, detailed LED (light-emitting diode) neon lights market segments, market trends and opportunities, and any further data you may need to thrive in the LED (light-emitting diode) neon lights industry. This LED (light-emitting diode) neon lights market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

LED neon lights, incorporating Light-Emitting Diode (LED) technology, leverage LED diodes encased in flexible PVC plastic to achieve a distinctive neon aesthetic. Widely adopted for both commercial and residential purposes, these lighting fixtures are favored for their energy efficiency, longevity, and robustness.

The primary variants of LED neon lights encompass silicone, PVC (polyvinyl chloride), and other materials. Silicone, a polymer featuring silicon and oxygen chains, serves as a crucial component in LED diffusers for neon lights. Functioning as a protective layer for LED chips and other components, silicone-based neon lights find applications in households and commercial settings. These products are available through diverse distribution channels, including retail or wholesale avenues, direct sales, and E-commerce platforms.Asia-Pacific was the largest region in the LED (light-emitting diode) neon lights market in 2025. The regions covered in the led (light-emitting diode) neon lights market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the led (light-emitting diode) neon lights market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The LED (Light-Emitting Diode) neon lights market consists of sales of neon drivers, custom-made LED neon signs, and neon flex. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.