Decorative Lighting Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, Japan, UK - Size and Forecast 2024-2028

Decorative Lighting Market Size 2024-2028

The decorative lighting market size is forecast to increase by USD 8.65 billion at a CAGR of 4.52% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Firstly, there is a trend towards premiumization in lighting product design, as consumers seek high-quality, aesthetically pleasing options for their homes and businesses. Secondly, there is a growing demand for energy-efficient products, as sustainability becomes a priority for many individuals and organizations. Lastly, the development of smart cities is creating new opportunities, as these systems integrate advanced technology to enhance the visual appeal and functionality of urban spaces. These factors are collectively driving the growth of the market. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.

Market Forecasting and Size

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Market Dynamics

The market encompasses a wide range of lighting fixtures designed to enhance the Room Ambiance and complement Modern Décor. Producers prioritize Functionality and Design, offering various options such as Fiber Fixtures made of Ceramic, Glass, Bamboo, or Carved Wood. LED Filament and LED Lights are popular choices due to their Energy Efficiency and Smart Lighting Systems capabilities. Pendants, String Lights, Tape Lights, and Lamps are essential Decorative Fixtures for Home Décor. Wireless Technology enables Rising Disposable and Convenient options like LED Decorative Lighting and Incandescent Decorative alternatives. Service Quality is crucial, with Flush Mount and Sconce Lightings providing Ceiling Lighting solutions for different spaces. The market offers a diverse range of Fixtures, including Fiber, Ceramic, Glass, Bamboo, Carved Wood, LED Filament, and LED Light options. These solutions cater to various tastes and preferences, ensuring a perfect match for any Home Décor style. Our researchers studied the market research and growth data for years, with 2023 as the base year along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver - Evolving lighting product design concepts leading to premiumization

Products with distinct designs and various prices are widely available. Growing demand for luxury products among premium customers has encouraged manufacturers to come up with new and unique designs in this category. 

Interior designers introduce innovative and attractive design concepts such as traditional, modern, contemporary, and transitional. The products, such as luxury chandeliers designed by interior designers, are available at premium prices. These chandeliers enjoy huge demand among high-net-worth residential users. Several luxurious products are manufactured in Italy, the UK, Spain, Germany, and the US. Thus, the premiumization of products through distinctive design concepts has led to increased adoption by premium customers contributing to market growth.

Significant Market Trends - Increasing the use of smart lighting systems

The use of smart lighting systems is increasing in residential places as they offer control over lighting products. Smart lighting systems also integrate the concept of the internet of things (IoT), as it helps the customers control the lighting products through the apps installed on their mobile devices. The vendors are focusing on such concepts to attract more tech-savvy customers who want to keep themselves updated with emerging modern technologies. 

Smart lighting systems are used such as chandeliers, lamps, string or tape lights, and pendants in which smart LEDs are used. For instance, Signify (formerly known as Philips Lighting) came up with Philips Hue, a smart lighting system that uses wireless technology for smart connectivity. Under this category, smart light bulbs, lamps, light strips, starter kits, switches, and sensors are offered to customers in the market. In addition, Philips Hue's smart lighting system can be controlled through voice-control platforms such as Amazon Alexa, Siri (by Apple), Google Assistant, and Cortana (by Microsoft).

Major Market Challenge - Perceived value gap of customers

The global market is highly fragmented, with the presence of many international and regional brands offering lights for residential use. Customers demand superior-quality, innovative, and unique-designed lights because they offer a high aesthetic appeal.

As it is not a brand-driven market, the knowledge of established brands is low in the market. However, retailers offer diverse designs, which makes this a more design-driven market. The only driving factor that attracts customers is the innovative designs of lighting products. This creates a challenge for brands and influences them to lower the prices of their products, hindering market growth during the forecast period.

Market Segmentation

By Distribution Channel 

The market share growth by the offline segment will be significant during the forecast period. Products sold through physical stores are considered offline sales. Physical stores allow buyers to check the products before making a purchase. Also, the large product portfolio and support and information on products offered at offline stores help increase sales through this medium.

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The offline segment accounted for USD 27.74 billion in 2018. These include retail formats, such as specialty lighting and electrical stores, furniture stores and antique stores, department stores, do-it-yourself (DIY)/home improvement stores and hardware stores, hypermarkets and supermarkets, warehouse clubs and wholesalers, contractors, distributors, and direct sales from vendors. Customers opt for retail lighting stores, especially specialty stores, due to the insights and personal assistance that the salesforce provides. This helps them understand innovative features, the latest designs, patterns, and technology integrated into the products. These factors will drive the growth of the segment during the forecast period.

By Product 

The ceiling segment includes various types of fixtures mounted or hung from the ceiling, such as chandeliers, pendant lights, semi-flush and flush-mounted lights, pool table lights, buffet lamps, kitchen island lights, and outdoor ceiling lights. Chandeliers are versatile ceiling lights found in different sizes, designs, and brands, commonly used in dining and living rooms. They feature multiple arms holding electric bulbs and are popular in residential and commercial spaces. Pendant lights, on the other hand, direct light downwards and come in attractive designs. Flush mount lights seamlessly attach to the ceiling, while semi-flush mount lights have supporting parts creating a small gap. Additionally, kitchen island lights, pool table lights, buffet lamps, and outdoor ceiling lights offer contemporary, transitional, and modern designs. These products contribute to the segment's growth.

By Region

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APAC is estimated to contribute 49% to the growth during the forecast year.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.

APAC is one of the emerging markets in the global market. Moreover, rising disposable income, growing urbanization, growth in living standards of households, increase in online shopping trends, and growing hospitality sector are some of the influencing factors for the growth of the market in China, Japan, and India.

Several manufacturers of decorative lights in this region are from China and Japan. The market in APAC is highly fragmented and competitive due to the presence of many domestic brands that offer a wide variety of products. Japan and China are also known for offering LED lighting products. This is because the competitors in these countries are currently focusing more on energy-efficient lighting products which will not hamper the environment.

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Hubbell Inc.- The company offers a full line of decorative, affordable luminaires for a variety of residential and light commercial projects.

Honeywell International Inc.- The company offers various types of indoor ceiling decorative LED lighting solutions.

We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:

Acuity Brands Inc., Amerlux LLC, Bridgelux Inc., Capital Lighting Fixture Co., Crenshaw Lighting, Current Lighting Solutions LLC, Fagerhults Belysning AB, Feit Electric Co. Inc., Generation Lighting, Honeywell International Inc., Hubbell Inc., Hudson Valley Lighting Inc., IDEAL INDUSTRIES Inc., Jaquar India, Lowes Co. Inc., Maxim Lighting International, OSRAM Licht AG, Shimera Project Lighting Pvt. Ltd., Signify NV, and Voylite

Technavio market forecast the an in-depth analysis of the market growth analysis, market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Distribution Channel Outlook
  • Offline
  • Online
• Product Outlook
  • Ceiling
  • Wall mounted
  • Others
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

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Market Analyst Overview

Decorative lighting is a significant segment in the global lighting market, characterized by the use of various designs and technologies to enhance interior and exterior spaces. Fixtures such as chandeliers, table lamps, wall sconces, and string lights are popular choices. The market is driven by factors like increasing disposable income, growing urbanization, and the trend towards energy-efficient lighting solutions. Homes and commercial spaces alike prioritize decorative lighting to create ambiance and improve aesthetics. Modern technology, including LED and smart lighting, is also influencing the market, offering features like color customization and remote control. Spas, hotels, and restaurants are major consumers, as they aim to provide unique and memorable experiences for their clients. The market is expected to grow steadily in the coming years, with a focus on sustainability, design innovation, and cost-effectiveness.

Moreover, the market encompasses a wide range of lighting solutions for various spaces, including floors, shops, malls, libraries, workstations, and residential areas. These lighting systems incorporate fabrics for shades and covers, offering aesthetic value and functionality. Traditional lighting sources like incandescent bulbs have given way to more energy-efficient alternatives, such as accent lighting using LEDs, light-emitting diodes, compact fluorescent, and specialized electronic ballasts. Modern lighting systems also include horticulture lighting and advanced lighting controllers for customized illumination. The solutions extend beyond basic functionality, with offerings in traditional light, art lamps, and fluorescent and halogen alternatives. The market continues to evolve, integrating the latest technology to enhance the overall lighting experience.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the decorative lighting market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, Europe, North America, South America, and Middle East and Africa
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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