Global Decorative Lighting Market Outlook, 2029

The decorative lighting industry plays a pivotal role in shaping the ambiance of homes, offices, public spaces, and various other environments. Beyond their practical utility, decorative lights serve as artistic expressions that enhance the aesthetic appeal of spaces, creating unique atmospheres and moods. This article delves into the multifaceted world of the decorative lighting industry, exploring its evolution, trends, and the impact of technological advancements. The history of decorative lighting dates back to the use of candles and oil lamps in ancient times, serving both functional and aesthetic purposes.

With the advent of electricity in the late 19th century, the lighting industry underwent a revolution, giving birth to electric lighting fixtures. The early 20th century saw the emergence of iconic designs by pioneers like Louis Comfort Tiffany and Art Nouveau movements, setting the stage for a dynamic and innovative industry. Today, the decorative lighting industry is a thriving global market, driven by a combination of design innovation, technological advancements, and a growing demand for personalized and unique lighting solutions. The market encompasses a wide range of products, including chandeliers, pendant lights, wall sconces, floor lamps, and table lamps, each contributing to the overall visual appeal of a space. At the heart of the decorative lighting industry is a culture of relentless design innovation. Designers within the industry are not merely creating functional fixtures; they are crafting works of art that enhance the aesthetic appeal of spaces. The design process involves a deep exploration of materials, forms, and lighting effects, pushing the boundaries of creativity to produce unique and visually stunning pieces. The culture encourages experimentation, risk-taking, and a dedication to staying ahead of trends. The production of decorative lighting fixtures is a labor-intensive process that requires skilled craftsmanship and attention to detail. From the shaping of materials to the assembly of intricate components, artisans contribute their expertise to transform designs into tangible masterpieces. The culture values the traditional techniques passed down through generations, while also embracing modern technologies that enhance precision and efficiency. This fusion of old-world craftsmanship and cutting-edge technology creates lighting fixtures that are both timeless and contemporary. The culture of the decorative lighting industry is a melting pot of global influences and diverse design aesthetics. Designers draw inspiration from various cultural traditions, historical periods, and contemporary art movements, resulting in a rich and eclectic array of styles. This cultural diversity is not only reflected in the designs themselves but also in the international collaborations that take place within the industry, fostering a global exchange of ideas and influences.

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. As global incomes rise and lifestyles evolve, there is an increasing focus on home aesthetics and interior design. Consumers are more inclined to invest in home decor, considering lighting as a crucial element in creating a visually appealing and comfortable living space. Growing environmental awareness has influenced consumer choices, with a preference for sustainable and eco-friendly products.

Manufacturers in the decorative lighting industry are responding by incorporating energy-efficient LED bulbs, recyclable materials, and sustainable production processes into their designs, attracting environmentally conscious consumers. Consumers are increasingly seeking unique and personalized home decor items, including decorative lighting fixtures. The industry is responding with customizable options, allowing customers to choose from a variety of finishes, colors, and designs to match their individual tastes and interior preferences. Rapid urbanization and increased real estate development activities contribute to the growth of the decorative lighting market. New constructions and renovations often involve the selection of stylish and contemporary lighting fixtures, driving demand for a diverse range of decorative lighting products. In addition to that, the hospitality and commercial sectors play a significant role in driving demand for decorative lighting. Hotels, restaurants, retail spaces, and offices are increasingly investing in high-quality and aesthetically pleasing lighting solutions to enhance their environments and create memorable experiences for customers and clients. The cross-cultural exchange of design influences, facilitated by globalization, contributes to a diverse and dynamic range of decorative lighting styles. Consumers are drawn to unique and culturally inspired designs, leading to a broader market for of decorative lighting products.

Market Drivers

• Technological Advancements: Continuous advancements in lighting technologies, such as LED and smart lighting solutions, have been a significant driver for the decorative lighting market. LED lighting, in particular, are offering energy efficiency, longer lifespan, and design flexibility. Consumers are increasingly adopting decorative lighting solutions that incorporate smart features, allowing for customization, remote control, and integration with other smart home systems.
• Growing Urbanization and Real Estate Development: Rapid urbanization and increased construction activities, especially in emerging economies, contribute to the demand for decorative lighting in residential, commercial, and hospitality sectors. As urban spaces expand and real estate development continues, the market for decorative lighting is likely to see sustained growth, driven by the need for aesthetically pleasing and customizable lighting solutions.

Market Challenges

• Cost Constraints: The initial cost of high-quality decorative lighting solutions, especially those incorporating advanced technologies, can be a barrier for some consumers and businesses. Market penetration may be hindered, particularly in price-sensitive segments. Manufacturers and suppliers need to address cost concerns to widen their customer base.
• Environmental Concerns: Increasing awareness of environmental sustainability is putting pressure on the lighting industry to reduce energy consumption, minimize waste, and use eco-friendly materials. Manufacturers face the challenge of developing and promoting environmentally friendly decorative lighting solutions, meeting both regulatory requirements and consumer expectations.

Market Trends

• Smart Lighting Integration: The integration of smart technologies in decorative lighting continues to grow. This includes features like smartphone app control, voice activation, and integration with smart home ecosystems. Consumers are increasingly interested in personalized and connected lighting experiences, driving the adoption of smart decorative lighting solutions.
• Customization and Personalization: There is a rising demand for customizable and unique decorative lighting solutions. Consumers seek products that allow them to express their individual style and preferences. Manufacturers are focusing on offering a wide range of design options, allowing customers to tailor lighting fixtures to match their specific aesthetic preferences.

COVID-19 Impacts

The global supply chain faced disruptions due to lockdowns, restrictions, and reduced production capacities. This affected the availability of raw materials, components, and finished products for the decorative lighting industry. Many construction and renovation projects were delayed or canceled as a result of lockdowns and economic uncertainties. This had a direct impact on the demand for decorative lighting in commercial and residential spaces. With economic uncertainties and changes in lifestyle due to the pandemic, consumer priorities shifted. Non-essential purchases, including decorative lighting, might have been deprioritized in favor of essential goods and services.

Retail outlets, including lighting stores, experienced disruptions in operations due to lockdowns and social distancing measures. This impacted both the sale of decorative lighting products and the ability of consumers to physically browse and purchase items. On the positive side, the pandemic accelerated the adoption of e-commerce channels. Online platforms became essential for retailers, including those in the decorative lighting industry, to reach consumers who were hesitant to visit physical stores. The shift to remote work influenced the demand for home office lighting solutions. Consumers sought decorative lighting fixtures that could enhance the aesthetics of their home workspaces. Many businesses in the decorative lighting industry faced financial challenges due to decreased revenue, increased costs associated with health and safety measures, and the need to adapt to new market conditions.

Sconce led the market and accounted for major market share in 2023. The growth of the segment is attributed to its ability to provide accent, ambient, as well as decorative lighting.

Sconces are known for their aesthetic appeal and versatility in design. They come in a wide range of styles, shapes, and materials, allowing consumers to find options that match various interior design preferences. Their ability to enhance the ambiance of a space makes them popular choices for both residential and commercial applications. Sconces are wall-mounted fixtures, making them ideal for spaces where floor or table space is limited. Their space-saving design allows for the incorporation of decorative lighting without occupying valuable floor or surface areas. Sconces serve both decorative and functional purposes. They can provide ambient lighting, accent lighting, or task lighting, depending on the design and placement.

This versatility makes them suitable for various settings, including living rooms, bedrooms, hallways, and outdoor spaces. Sconces are often used to highlight and enhance architectural features of a room or building. They can be strategically placed to draw attention to artwork, textured walls, or other design elements, contributing to the overall aesthetic appeal of a space. The transition to LED technology has significantly contributed to the popularity of sconces. LED sconces are offering energy efficiency, longer lifespan, and design flexibility. Consumers are increasingly drawn to LED fixtures for their cost savings and eco-friendly characteristics. The integration of smart lighting features has boosted the appeal of sconces. Many modern sconces come with smart controls, allowing users to adjust brightness, color temperature, and even control the fixtures remotely through smartphones or smart home systems. Manufacturers often offer a wide range of customization options for sconces, allowing consumers to choose from different finishes, materials, and design features. This customization aspect aligns with the growing trend of personalized home decor. Sconces are widely used in commercial and hospitality settings, such as hotels, restaurants, and retail spaces. Their ability to create a warm and inviting atmosphere makes them popular choices for these environments.

LED sourced decorative lightings accounted for major market share in 2023. The growth of the segment is attributed to the supportive regulatory policies made by governments from across the globe.

The market for LED decorative lighting has been driven by the rising knowledge of the advantages of LED Lighting, including its energy efficiency, longer lifespan, and little environmental effect. Also, the cost of LED lights has decreased, making them more accessible and increasing consumer adoption. Also, the popularity of smart LED lighting systems is growing as a result of the emerging trends of smart homes and the Internet of Things (IoT). The convenience and attraction of LED decorative lights have been enhanced by the ability to control the lighting through smartphone applications, voice assistants, and other smart devices, which has increased demand for the product.

LEDs do not emit forward heat like the other traditional light sources, which makes them safer for use. Additionally, the intensity of the light in LED sourced decorative lightings can be regulated, which provides an upper hand to the consumers in setting up the appropriate ambiance. Most innovations regarding smart decorative lighting are happening with LED source products, which make it the first choice of both manufacturers and customers. Throughout the projection period, the halogen segment is anticipated to experience considerable expansion. Halogen lights are a common option for decorative lighting in high-end residential and commercial settings because they have a greater color rendering index (CRI) and more intense lighting than LED lights. Halogen bulbs are also readily accessible and reasonably priced, which is anticipated to aid in their expansion in the decorative lighting industry.

Commercial applications for decorative lighting lead the market due to a confluence of factors that contribute to the widespread adoption of these lighting solutions in various business environments.

Primary reasons for the prominence of decorative lighting in commercial settings, such as offices, retail spaces, hospitality establishments, and public venues are lying in its ability to enhance ambiance and aesthetics. The visual appeal created by well-designed lighting fixtures plays a crucial role in establishing a unique brand identity and attracting customers or clients. In retail spaces, decorative lighting is strategically employed to highlight merchandise, creating focal points that encourage customers to explore and make purchases. The customization options offered by decorative lighting fixtures allow businesses to align lighting choices with their brand theme, style, or the overall design concept of the commercial space.

This flexibility ensures that businesses can differentiate themselves from competitors and leave a lasting impression on their clientele. Furthermore, the utilization of decorative lighting is not solely for aesthetic purposes; it also contributes to creating a welcoming environment. In hospitality settings like hotels, restaurants, and cafes, the right lighting design enhances the overall experience for guests. Commercial establishments also leverage decorative lighting to meet regulatory requirements related to safety and building standards, ensuring compliance while maintaining a visually pleasing atmosphere. The incorporation of smart lighting solutions has added another dimension to commercial applications, allowing dynamic control of lighting levels, colors, and effects. In corporate offices, decorative lighting contributes to employee well-being by creating comfortable and inspiring workspaces, positively influencing mood and productivity. In event venues, conference centers, and entertainment spaces, decorative lighting adds flair to events, enhances the visual appeal of stages, and contributes to the overall atmosphere during performances or gatherings.

Specialty stores are dedicated to specific product categories, including decorative lighting. This specialization allows them to have in-depth knowledge about various lighting fixtures, designs, and trends.

Customers often appreciate the expertise provided by knowledgeable staff who can guide them in choosing the right decorative lighting solutions for their needs. Specialty stores typically offer a wide and curated selection of decorative lighting products. This diversity allows customers to explore various styles, designs, and price points, catering to different preferences and budgets. The extensive product range provides customers with ample choices to find fixtures that suit their specific requirements. Decorative lighting is inherently tied to aesthetics and design. Specialty stores place a strong emphasis on offering products that are not only functional but also stylish and visually appealing.

This focus on design aligns with the expectations of customers looking for unique and aesthetically pleasing lighting solutions. Specialty stores often provide a higher level of personalized customer service compared to larger retail outlets. Customers can receive expert advice, recommendations, and assistance in selecting decorative lighting fixtures that complement their interior design or meet specific requirements. The personalized experience contributes to customer satisfaction and loyalty. Specialty stores are typically more attuned to design trends and innovations in the decorative lighting industry. They frequently update their product offerings to align with the latest styles, technologies, and materials. This ensures that customers have access to cutting-edge and trendy decorative lighting options. Specialty stores often carry exclusive or unique products that may not be readily available in general retail outlets. This exclusivity attracts customers who are seeking one-of-a-kind decorative lighting fixtures to make a distinctive statement in their homes or businesses. The atmosphere within specialty stores is curated to enhance the overall shopping experience. Thoughtful lighting displays and well-designed showrooms allow customers to visualize how different decorative lighting fixtures can complement their spaces. This immersive experience adds value to the shopping process.

North America was the largest market due to the reach of electricity to every single household of the U.S., Canada, and Mexico plays a crucial role in the adoption of creative ways of decorative lighting.

North America has often been a leading region in the decorative lighting market, and this leadership can be attributed to a combination of various factors. One key driver is the region's robust and dynamic consumer market, characterized by a high level of disposable income and a strong emphasis on home aesthetics. The cultural significance placed on interior design and the desire for personalized and stylish living spaces contributes to the steady demand for decorative lighting solutions in North America. Additionally, the presence of a well-established and innovative design industry in the region fuels a constant influx of new and trend-setting designs, further stimulating consumer interest.

Moreover, North America benefits from the widespread adoption of advanced lighting technologies, particularly LED lighting. The region has been quick to embrace energy-efficient and environmentally friendly lighting solutions, aligning with a broader global trend toward sustainability. The integration of smart lighting features, which allow users to customize and control lighting remotely, has also gained popularity in North America, contributing to the region's leadership in decorative lighting trends. The retail landscape in North America plays a crucial role in driving the decorative lighting market, with a multitude of specialty stores, home improvement retailers, and e-commerce platforms catering to diverse consumer preferences. The competitive nature of the market fosters innovation and ensures a wide variety of products, from classic to contemporary, is readily available to consumers. The accessibility of these products through online channels further expands the reach of decorative lighting options to a broad audience. Additionally, the construction and real estate sectors in North America, experiencing consistent growth and development, contribute significantly to the demand for decorative lighting in both residential and commercial spaces. As urbanization and renovation projects continue the need for aesthetically pleasing lighting fixtures remains high, driving market growth.

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 Research Report 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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