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The Decorative Lighting Market size is estimated to grow at a CAGR of 5.34% between 2022 and 2027. The size of the market is forecast to increase by USD 9.99 billion. Evolving lighting product design concepts leading to premiumization, growing demand for energy-efficient decorative lighting products, and the development of smart cities are the prominent factors driving the market growth.
This report extensively covers market segmentation by distribution channel (offline and online), product (ceiling, wall mounted, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Decorative Lighting Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Evolving lighting product design concepts leading to premiumization is a major factor driving market growth. Decorative lighting products with distinct designs and various prices are widely available. Growing demand for luxury decorative lighting 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. Decorative lighting 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 decorative lighting products are manufactured in Italy, the UK, Spain, Germany, and the US. Thus, the premiumization of decorative lighting products through distinctive design concepts has led to increased adoption by premium customers contributing to market growth.
Increasing the use of smart lighting systems is a major trend in the decorative lighting market. 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 in decorative lighting products 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).
The perceived value gap of customers is a major factor hindering the market growth. The global decorative lighting 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.
Vendors 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 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
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 was valued at USD 26.95 billion in 2017 and continued to grow until 2021. Decorative lights are largely sold through the offline distribution channel. 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.
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.
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APAC is estimated to contribute 49% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
APAC is one of the emerging markets in the global decorative lighting 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 decorative lighting market in China, Japan, and India.
Several manufacturers of decorative lights in this region are from China and Japan. The decorative lighting 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.
In 2020, the outbreak of COVID-19 led to the temporary closure of manufacturing units of decorative lighting products as well as the temporary halt in their offline retail sales in the region. However, in 2021, the initiation of large-scale COVID-19 vaccination drives led to the lifting of lockdown restrictions and the resumption of activities in offline retail channels. This led to a recovery in the demand for decorative lighting products from offline channels. Such factors are expected to drive the growth of the regional market during the forecast period.
The decorative lighting market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Decorative Lighting Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.34% |
Market growth 2023-2027 |
USD 9.99 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.13 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Fagerhult, Acuity Brands Inc., Amerlux LLC, Bridgelux Inc., Capital Lighting Fixture Co., Crenshaw Lighting, Feit Electric Co. Inc., GE CURRENT A DAINTREE COMPANY, Generation Lighting, Honeywell International Inc., Hubbell Inc., Hudson Valley Lighting Inc., IDEAL INDUSTRIES Inc., Lowes Co. Inc, Maxim Lighting International, OSRAM GmbH, Shimera Project Lighting Pvt. Ltd., Signify NV, The Jaquar Group, and Voylite |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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