Indoor Architectural Lighting Market Report 2025

The indoor architectural lighting market size has grown strongly in recent years. It will grow from $20.93 billion in 2024 to $22.71 billion in 2025 at a compound annual growth rate (CAGR) of 8.5%. The growth during the historic period can be attributed to increasing renovation activities in the residential sector, a growing focus on creating sustainable indoor environments, heightened usage of smart home devices, a rising preference for ambiance-enhancing lighting, and greater integration of lighting with contemporary interior design trends.

The indoor architectural lighting market size is expected to see strong growth in the next few years. It will grow to $31.08 billion in 2029 at a compound annual growth rate (CAGR) of 8.2%. The forecast growth is expected to be driven by rising demand for smart lighting solutions in commercial spaces, accelerated adoption of IoT-enabled lighting systems, increased emphasis on green building certifications, substantial investments in infrastructure development, and a stronger focus on energy conservation and sustainability. Key trends in the forecast period include advancements in wireless lighting control systems, development of tunable white lighting solutions, innovations in human-centric lighting designs, progress in AI-powered lighting automation, and the emergence of modular, customizable lighting fixtures.

The increasing adoption of smart city initiatives is expected to drive the growth of the indoor architectural lighting market moving forward. Smart city initiatives involve integrating digital technologies and intelligent infrastructure to improve the efficiency, sustainability, and quality of urban life. This rise is fueled by a global push toward urban modernization, with cities adopting advanced technologies to optimize resource management and public services. Indoor architectural lighting supports smart city objectives by utilizing energy-efficient LEDs and smart sensors to reduce power consumption. It integrates seamlessly with intelligent systems to adjust lighting according to occupancy and natural light, fostering sustainable urban environments. For example, in April 2023, the International Institute for Management Development, a Switzerland-based business school, reported that the number of smart cities worldwide grew from 118 in 2021 to 141 in 2023. Thus, the growth of smart city initiatives is contributing to the expansion 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 players 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, and ERCO Lighting.

Asia-Pacific was the largest region in the indoor architectural lighting market in 2024. The regions covered in indoor architectural lighting report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the indoor architectural lighting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

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.

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.

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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