Architectural Lighting Market Opportunities and Strategies to 2034

This report describes and explains the architectural lighting market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global architectural lighting market reached a value of nearly $8.95 billion in 2024, having grown at a compound annual growth rate (CAGR) of 3.80% since 2019. The market is expected to grow from $8.95 billion in 2024 to $12.69 billion in 2029 at a rate of 7.24%. The market is then expected to grow at a CAGR of 6.73% from 2029 and reach $17.58 billion in 2034.

Growth in the historic period resulted from expansion of e-commerce and retail sector, rising smart city initiatives and growing renovation and remodeling projects. Factors that negatively affected growth in the historic period were the limited availability of skilled lighting designers and regulatory complexity across regions.

Going forward, growing investments in infrastructure, increasing demand for energy-efficient solutions, growth in the construction industry and growth in hospitality sector will drive growth. Factor that could hinder the growth of the architectural lighting market in the future include high customization requirements for premium projects, limited retrofit opportunities in aged infrastructure and impact of trade war and tariff.

Asia-Pacific was the largest region in the architectural lighting market, accounting for 33.77% or $3.02 billion of the total in 2024. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the architectural lighting market will be Eastern Europe and Asia-Pacific where growth will be at CAGRs of 9.01% and 7.84% respectively. These will be followed by South America and Middle East where the markets are expected to grow at CAGRs of 7.79% and 7.14% respectively.

The global architectural lighting market is fairly fragmented, with a large number of small players operating in the market. The top 10 competitors in the market made up 21.75% of the total market in 2024. Signify N.V. (formerly Philips Lighting N.V.) was the largest competitor with a 3.75% share of the market, followed by IHI Corporation (Hauzer Techno Coating) with 3.19%, Eaton Corporation plc with 2.96%, ERCO Lighting, with 2.78%, ams-OSRAM AG, with 2.21%, Zumtobel Group AG with 2.11%, Current Lighting Solutions, LLC. with 1.68%, Focal Point Lights with 1.30%, Cree Lighting with 0.91%. and Lumenpulse with 0.86%.

The architectural lighting market is segmented by type into light emitting diode (LED) lights and other types. The light emitting diode (LED) lights market was the largest segment of the architectural lighting market segmented by type, accounting for 91.84% or $8.22 billion of the total in 2024. Going forward, the light emitting diode (LED) lights segment is expected to be the fastest growing segment in the architectural lighting market segmented by type, at a CAGR of 7.76% during 2024-2029.

The architectural lighting market is segmented by product into indoor and outdoor. The indoor market was the largest segment of the architectural lighting market segmented by type, accounting for 71.33% or $6.38 billion of the total in 2024. Going forward, the indoor segment is expected to be the fastest growing segment in the architectural lighting market segmented by type, at a CAGR of 7.29% during 2024-2029.

The architectural lighting market is segmented by end-user into residential, commercial and other end-users. The commercial market was the largest segment of the architectural lighting market segmented by end-user, accounting for 50.53% or $4.52 billion of the total in 2024. Going forward, the commercial segment is expected to be the fastest growing segment in the architectural lighting market segmented by end-user, at a CAGR of 8.57% during 2024-2029.

The top opportunities in the architectural lighting market segmented by type will arise in the light emitting diode (LED) lights segment, which will gain $3.72 billion of global annual sales by 2029. The top opportunities in the architectural lighting market segmented by product will arise in the indoor segment, which will gain $2.69 billion of global annual sales by 2029. The top opportunities in the architectural lighting market segmented by end-user will arise in the commercial segment, which will gain $2.29 billion of global annual sales by 2029. The architectural lighting market size will gain the most in the USA at $877.86 million.

Market-trend-based strategies for the architectural lighting market include development of smart and adaptive lighting solutions, focus on expanding design-centric product lines for modern interiors, integration of artificial intelligence in lighting solutions, focus on developing modular and configurable lighting solutions, advancements of architectural lighting systems in kitchen applications, focus on launch of advanced high power lighting solutions and innovations in smart lighting solutions.

Player-adopted strategies in the architectural lighting market include focus on new launches to enhance its business offerings and expanding its gambling business through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the architectural lighting market companies to focus on developing smart and adaptive lighting solutions, focus on expanding design-centric architectural lighting portfolios, focus on adopting AI-driven lighting technologies, focus on expanding modular and configurable lighting systems, focus on developing integrated kitchen lighting solutions, focus on developing advanced high-power lighting solutions, focus on innovating smart lighting solutions, focus on expanding LED lighting solutions, focus on expanding indoor architectural lighting, expand in emerging markets, focus on expanding and diversifying distribution channels, focus on strategic and flexible pricing models, focus on targeted and multi-channel promotion, focus on collaborative and educational promotion and focus on expanding commercial architectural lighting.