Global Decorative Lighting Market Overview, 2024-29

In today's world, decorative lighting has transcended its functional purpose to become a vital element of interior design, architecture, and ambiance creation. From elegant chandeliers adorning grand halls to sleek pendant lights illuminating modern homes, decorative lighting plays a pivotal role in enhancing spaces and creating captivating environments. Interior designers play a crucial role in setting trends and shaping consumer preferences in the home decor industry. Their innovative designs, creative concepts, and expert knowledge of aesthetics influence homeowners, architects, and businesses alike, leading to increased demand for specific styles of decorative lighting fixtures.

Furthermore, interior designers often share their design projects, including decorative lighting installations, on social media platforms such as Instagram, Pinterest, and Houzz. Their curated content, eye-catching visuals, and engaging narratives inspire followers, generate buzz, and drive consumer interest in specific lighting styles, trends, and brands, ultimately influencing purchasing decisions and driving demand in the decorative lighting market. Rapid urbanisation and infrastructure development in emerging markets present lucrative opportunities for the global decorative lighting market. As urban populations grow, demand for decorative lighting solutions for residential complexes, commercial buildings, and public spaces such as parks, streets, and landmarks is expected to increase. Economic growth often leads to higher levels of disposable income among consumers. As people's purchasing power increases, they are more likely to spend on non-essential items such as home decor, including decorative lighting. This rise in disposable income enables consumers to invest in upgrading their living spaces, renovating their homes, or enhancing the ambiance of their commercial establishments with decorative lighting fixtures. Economic growth is often accompanied by the expansion of the middle class, particularly in emerging markets. The rise of an affluent middle-class segment with aspirational lifestyles and a desire for luxury and comfort contributes to increased demand for high-quality decorative lighting products. Middle-class consumers prioritise aesthetics, functionality, and style in their homes and commercial spaces, driving demand for premium decorative lighting solutions.

According to the report “Global Decorative Lighting Market Outlook, 2029”, the market is anticipated to cross USD 55 Billion by 2029, increasing from USD 40.41 Billion in 2023. The market is expected to grow with 6.07% CAGR by 2024-29.Economic prosperity stimulates demand for decorative lighting as consumers have higher disposable incomes to spend on home improvement and renovation projects. Increased construction activities, real estate development, and hospitality sector growth also contribute to the demand for decorative lighting in both residential and commercial settings.

Growing awareness of environmental sustainability encourages consumers to choose energy-efficient and eco-friendly lighting solutions. Manufacturers respond to this demand by offering decorative lighting fixtures with LED technology, recyclable materials, and energy-saving features, appealing to environmentally conscious consumers. The hospitality and tourism industry drives demand for decorative lighting in hotels, restaurants, resorts, and entertainment venues. Lighting plays a crucial role in creating ambiance, setting the mood, and enhancing guest experiences, prompting businesses to invest in decorative lighting solutions that reflect their brand identity and attract customers.

Market Drivers

• Urbanisation: The ongoing trend of urbanisation worldwide drives demand for decorative lighting as more people move into urban areas, leading to increased construction activities, infrastructure development, and demand for residential and commercial properties.
• Interior Design Trends: Evolving interior design trends influence consumer preferences for decorative lighting, with demand driven by changing styles and preferences and the desire for aesthetically pleasing lighting solutions that enhance living spaces.

Market Challenges

• Rising Costs of Raw Materials: Fluctuations in the prices of raw materials such as metals, plastics, and electronic components can affect manufacturing costs and profit margins for decorative lighting manufacturers. Rising costs of raw materials may require manufacturers to adjust pricing strategies or seek alternative sourcing options to remain competitive.
• Design and Innovation Pressures: Continuous innovation and differentiation are essential to staying competitive in the decorative lighting market. Manufacturers face pressure to develop new designs, incorporate innovative features, and anticipate changing consumer preferences while maintaining product quality and affordability.

Market Opportunity

• Technological Advancements: Ongoing advancements in lighting technology, such as LED lighting, smart lighting systems, and IoT (Internet of Things) integration, present opportunities for manufacturers to develop innovative decorative lighting solutions with enhanced features, functionality, and connectivity. Smart lighting systems offer opportunities for customisation, energy efficiency, and remote control, catering to the growing demand for smart home automation and personalised lighting experiences.
• Customisation and Personalisation: There is increasing demand for customisable and personalised decorative lighting solutions that allow consumers to express their individual style and preferences. Manufacturers can capitalise on this trend by offering customisable options in terms of design, colour, size, and functionality, enabling consumers to create unique lighting arrangements that suit their specific needs and tastes.

Based on product types, they are segmented into sconces, chandeliers, pendants, flush mounts, and others. Furthermore, in terms of the light source, they are segmented into LED, fluorescent, incandescent, and others.

Flush Mount is growing at the highest rate during the forecast period. Flush Mount fixtures are space-efficient, making them ideal for rooms with low ceilings or limited overhead clearance. In urban areas where space is at a premium, such as apartments, condos, and small homes, flush-mount lighting provides functional illumination without encroaching on valuable living space. Furthermore, contemporary design trends favour clean lines, minimalist aesthetics, and unobtrusive lighting fixtures, making flush-mount lighting a preferred choice for modern interiors. As more consumers embrace modern design sensibilities characterised by simplicity, functionality, and understated elegance, the demand for flush-mount fixtures continues to grow.

Flush-mount fixtures are versatile and adaptable to a wide range of spaces, including bedrooms, kitchens, bathrooms, hallways, and offices. Their ability to provide ambient, task, or accent lighting makes them suitable for various applications, contributing to their widespread adoption in residential and commercial environments worldwide. Furthermore, LED lighting contributes the highest market share. LED lighting is highly energy-efficient, consuming significantly less energy than traditional incandescent and fluorescent lighting sources. LEDs convert a higher percentage of electrical energy into visible light, resulting in lower energy bills for consumers and reduced environmental impact due to decreased electricity consumption. Many LED lighting fixtures are dimmable and offer advanced control options, allowing consumers to adjust the brightness, colour, and intensity of their lighting according to their preferences. Smart LED lighting systems enable remote control via smartphones or voice commands, providing convenience and flexibility in lighting control.

In terms of the application, it is segmented into commercial and household. Furthermore, based on the report, the distribution channels are segmented into specialty stores, supermarkets and hypermarkets, online stores, and others. .

As homeowners seek to enhance the aesthetic appeal and functionality of their living spaces, decorative lighting plays a crucial role in creating ambiance, accentuating architectural features, and expressing personal style. Home improvement and renovation projects drive demand for decorative lighting fixtures to update and upgrade interiors, resulting in increased sales in the household segment. Homeowners seek decorative lighting fixtures that reflect their individual tastes, preferences, and lifestyle needs. With a wide range of styles, designs, finishes, and features available on the market, households have the flexibility to personalise their lighting choices to align with their interior decor, design themes, and desired ambiance.

Real estate trends, such as new home construction, home staging, and property flipping, drive demand for decorative lighting fixtures as essential elements in showcasing and enhancing the value of residential properties. Decorative lighting fixtures contribute to creating attractive, marketable interiors that appeal to potential buyers and increase property value. Furthermore, online stores significantly contribute to the market; online stores typically offer a much wider selection of decorative lighting products compared to brick-and-mortar stores. Consumers have access to a vast array of lighting fixtures in various styles, designs, sizes, and price ranges from both local and international brands, providing them with more options to find the perfect lighting solution for their needs. Some online stores offer concierge services and virtual design assistance to help consumers with their decorative lighting projects. These services include personalised recommendations, virtual consultations with lighting experts, and assistance with product selection, placement, and installation, enhancing the shopping experience and providing added value to consumers.

Based on the report, the five regions covered in the report include North America, Europe, Asia Pacific, South America, the Middle East, and Africa.

The Middle East and Africa significantly contribute to the decorative lighting market. The MEA region is undergoing rapid urbanisation, with increasing urban populations and rising levels of disposable income. Urbanisation drives demand for residential and commercial properties, leading to greater investment in interior design and decorative lighting to enhance living spaces and commercial establishments. Significant infrastructure development projects, including the construction of residential complexes, commercial buildings, hotels, and public facilities, create demand for decorative lighting fixtures.

As new developments emerge and existing infrastructure is upgraded, there is a need for aesthetically pleasing lighting solutions to illuminate these spaces. Economic growth and rising disposable incomes in the MEA region contribute to higher consumer spending on luxury goods and home decor items, including decorative lighting. As consumers seek to upgrade their living standards and invest in their homes, there is a growing demand for stylish and high-quality lighting fixtures. Lighting holds cultural significance in many countries in the MEA region, where traditional and ornate lighting fixtures are used for religious ceremonies, festivals, and celebrations. This cultural appreciation for decorative lighting contributes to sustained demand for decorative lighting products across various segments of society. The MEA region is influenced by international design trends and lifestyle preferences, leading to a demand for modern, contemporary, and innovative decorative lighting solutions. Consumers in the region seek lighting fixtures that reflect global design aesthetics while incorporating local cultural influences.

Some of the key players operating in the market are Acuity, Philips (Signify), Home Depot, Hubbell, Generation Brands, Juno, Lowe’s, GE Lighting, LSI, Osram, Cree, Amerlux, Littmann, ETC, Columbia, AZZ, and Intense. Manufacturers have been keen on innovating products by making them smart and artificial intelligent compatible. For instance, Swarovski launched smart chandelier light pendants in July 2018. The multi-functional piece is controlled by a mobile application. It can be used as a fully functional light while reading or other similar kinds of work. The intensity of illuminance can be regulated using the app according to the ambiance expected.

• In May 2022, Signify (Philips), the world’s leading company in lighting completed the acquisition of Fluence. The transaction strengthens the global agriculture lighting growth platform and extends the position of Signify in the horticultural lighting market.
• In March 2022, the corporation bought back 850,000 shares worth EUR 35.5 million. The stock buyback was done by the company because of its repurchase program, which began on February 24th 2022, and ends on February 24th2023. The shares will be used in paying the liabilities related to Signify's employee share plans and incentive performance share plans.
• In January 2022, Acuity Brands Inc. plans to expand its partnership with Microsoft to add additional features to its lighting controls, building automation products, and smart lighting.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Decorative Lighting market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type

• Sconce
• Chandeliers
• Pendants
• Flush Mount
• Others(Track Lighting, Recessed Lighting, Rope Lighting, String Lights, Wall Washers)

By Light Source

• LED
• Fluorescent
• Incandescent
• Others(halogen bulbs, high-intensity discharge (HID) lamps, and neon lights)

By Application

• Commercial
• Household

By Distribution Channel

• Specialty Stores
• Supermarkets and Hypermarkets
• Online Stores
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Decorative Lighting industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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