Indoor Architectural Lighting Market Report 2026

The indoor architectural lighting market size has grown strongly in recent years. It will grow from $22.71 billion in 2025 to $24.61 billion in 2026 at a compound annual growth rate (CAGR) of 8.4%. The growth in the historic period can be attributed to increasing adoption of led technology, growing residential and commercial construction, rising awareness of energy-efficient lighting, advancements in lighting design software, government incentives for sustainable buildings.

The indoor architectural lighting market size is expected to see strong growth in the next few years. It will grow to $33.53 billion in 2030 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to integration of AI in lighting controls, rise in smart building projects, adoption of connected lighting solutions, demand for customizable lighting experiences, expansion of commercial and hospitality infrastructure. Major trends in the forecast period include smart adaptive lighting systems, energy-efficient architectural lighting, connected lighting & iot integration, AI-driven lighting design, intelligent building lighting management.

The rise in smart city initiatives is expected to drive the growth of the indoor architectural lighting market going forward. Smart city initiatives involve the integration of digital technologies and intelligent infrastructure to improve efficiency, sustainability, and the overall quality of urban living. These initiatives are increasing due to the global push for urban modernization, as cities adopt advanced technologies to enhance resource management and public services. Indoor architectural lighting supports smart city goals by incorporating energy-efficient LEDs and smart sensors to reduce power consumption. It integrates seamlessly with intelligent systems to adjust lighting based on occupancy and daylight, contributing to more sustainable urban environments. For example, in March 2024, according to AXA Investment Managers, a France-based investment management firm, the global smart cities sector is projected to reach a valuation of US$3.7 trillion by 2030, highlighting significant growth potential and strong investment opportunities. Therefore, the rise in smart city initiatives is fueling the growth of the indoor architectural lighting market.

Leading companies in the indoor architectural lighting market are concentrating on developing advanced products such as smart lighting to boost energy efficiency and promote sustainable building practices. Smart lighting systems employ sensors, apps, or voice controls to automate and remotely manage lighting. They adjust brightness, color, and timing based on the environment or user preferences, enhancing energy savings and comfort. For instance, in September 2024, Signify, an Indonesia-based provider of connected LED lighting systems, launched WiZ in Indonesia. This product line easily connects with smart home systems and can be controlled via smartphone, voice commands, or remotely. Through this launch, Signify aims to advance Indonesia’s digital transformation and strengthen its leadership in connected lighting solutions. WiZ offers smart lighting products featuring 16 million color options, from various shades of white to a full color spectrum. The system highlights plug-and-play convenience and user-friendly controls, making it easy for users to customize home lighting and moods.

In September 2023, Bukas Lighting Group, a US-based provider of high-end lighting solutions, acquired iWorks for an undisclosed amount. This acquisition is intended to utilize iWorks’ advanced design and fabrication expertise to deliver customized lighting installations for luxury interior spaces. It also enables Bukas to broaden its presence in large-scale decorative lighting projects by combining innovation, craftsmanship, and design flexibility. iWorks is a US-based company specializing in indoor architectural lighting solutions for premium interiors and iconic venues.

Major companies operating in the indoor architectural lighting market are Panasonic Corporation, Toshiba Corporation, Eaton Corporation plc, Legrand, Signify N.V., OSRAM Licht AG, Hubbell Incorporated, Acuity Brands Inc., Havells India Ltd., Zumtobel Group AG, Opple Lighting Co. Ltd., Fagerhult, Lutron Electronics Co. Inc., Cree Inc., RAB Lighting Inc., Delta Light, NVC Lighting Technology Corporation, XAL, Current Lighting, ERCO Lighting.

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 impacted the indoor architectural lighting market by increasing costs of imported components such as led modules, drivers, and smart sensors, leading to higher production expenses and delayed project timelines. Commercial and residential segments, especially in north america and europe, are most affected due to dependency on imported high-quality lighting products. While the tariffs pose challenges, they encourage local manufacturing and sourcing of components, potentially boosting domestic production capabilities and innovation in energy-efficient and smart lighting solutions.

The indoor architectural lighting market research report is one of a series of new reports that provides indoor architectural lighting market statistics, including the indoor architectural lighting industry global market size, regional shares, competitors with the indoor architectural lighting market share, detailed indoor architectural lighting market segments, market trends, and opportunities, and any further data you may need to thrive in the indoor architectural lighting industry. This indoor architectural lighting market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Indoor architectural lighting involves the use of lighting within interior environments to enhance aesthetics, functionality, and the perception of space. It incorporates light sources such as ambient, task, and accent lighting into the architectural design to complement structural features, materials, and the purpose of the room. The main goals of indoor architectural lighting are to enhance visual comfort, emphasize architectural details, and establish a specific mood or atmosphere within the area.

The main product types of indoor architectural lighting include recessed lighting, surface-mounted lighting, suspended lighting, track lighting, and others. Recessed lighting consists of fixtures installed within ceilings or walls, providing clean, unobtrusive illumination without any visible components. Light sources, including LEDs, fluorescent, incandescent, and others, are made available through various distribution channels such as online stores, specialty stores, supermarkets or hypermarkets, among others. These lighting products serve multiple applications, such as residential, commercial, industrial, and more.Asia-Pacific was the largest region in the indoor architectural lighting market in 2025. The regions covered in the indoor architectural lighting market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the indoor architectural lighting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The indoor architectural lighting market consists of sales of wall grazers, pendant cluster lights, integrated shelf lighting, and decorative lighting. 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.

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