Lamps Market Size 2024-2028
The lamps market size is forecast to increase by USD 3.29 billion at a CAGR of 4.3% between 2023 and 2028.
- The market is experiencing significant growth due to the increasing adoption of smart lighting technologies. With the integration of voice assistants like Google Home, automated lighting systems have become more accessible and convenient for consumers. Illumination solutions are no longer just about providing light; they are now essential components of home automation systems. The market is driven by rising household income and government initiatives promoting energy efficiency and sustainability.
- However, product recalls due to safety concerns may pose a challenge to market growth. Smart lighting, as part of the Internet of Things (IoT), offers customizable and energy-efficient solutions, making it an attractive option for both residential and commercial applications. The market is expected to continue its expansion as technology advances and consumer demand for smart devices increases.
What will be the Size of the Market During the Forecast Period?
- The lighting market is a significant sector within the larger construction industry, encompassing various applications such as commercial, residential, and outdoor spaces. This market is driven by several factors, including the increasing demand for energy efficiency, the integration of technology, and the growing preference for visually appealing lighting solutions. Commercial lighting design is a critical aspect of the market, with businesses and organizations investing in lighting systems to enhance their spaces and improve productivity. Lighting retailers and manufacturers cater to this demand, offering a range of lighting options, from contemporary to traditional, for various commercial applications, including bathroom lighting, kitchen lighting, and task lighting.
- Moreover, residential spaces also represent a significant portion of the lighting market. Homeowners are increasingly seeking energy-efficient and smart lighting solutions for their homes. LED lamps have gained popularity due to their energy savings and long lifespan. Lighting automation systems, mobile device control, and programmable lighting are also popular trends in residential lighting. Outdoor lighting is another growing segment of the market. Homeowners and businesses alike invest in outdoor lighting to enhance the aesthetics of their properties and ensure safety and security. Lighting projects for outdoor spaces often involve the use of energy-efficient and long-lasting lighting solutions, such as LED lamps.
- Also, lighting technology advancements continue to shape the market, with smart lighting solutions gaining traction. Smart lamp integration, lighting control systems, and lighting automation systems are becoming increasingly common in both residential and commercial applications. These systems offer energy savings, convenience, and enhanced functionality. The lighting market also caters to specific industries, such as healthcare and education. Lighting for healthcare facilities is essential for creating a comfortable and therapeutic environment. Energy-efficient lighting and lighting retrofits are popular solutions for reducing energy consumption and costs. In the education sector, energy-efficient lighting advantages, such as cost savings and reduced maintenance, make it an attractive investment.
- In summary, lighting design trends continue to evolve, with modern lighting and smart lighting solutions gaining popularity. Contemporary lighting designs offer a sleek and minimalist look, while smart lighting solutions offer the convenience of remote control and energy savings. In conclusion, the lighting market is a dynamic and evolving industry, driven by factors such as energy efficiency, technology integration, and design trends. The market caters to various applications, including commercial, residential, and outdoor spaces, and offers a range of lighting solutions to meet the unique needs of each application. Lighting technology advancements continue to shape the market, with smart lighting solutions gaining traction and offering enhanced functionality and energy savings.
How is this market segmented and which is the largest segment?
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.
- Type
- Decorative lamp
- Reading lamp
- Application
- Residential
- Commercial
- Geography
- APAC
- China
- India
- Japan
- Europe
- Germany
- UK
- France
- Italy
- North America
- Canada
- US
- Middle East and Africa
- South America
- APAC
By Type Insights
- The decorative lamp segment is estimated to witness significant growth during the forecast period.
The decorative lamp segment is a significant portion of The market, recognized for its emphasis on visual appeal and design creativity. In May 2022, the US Department of Energy (DOE) implemented new regulations, mandating a minimum energy efficiency threshold of 45 lumens per watt (Lm/W) for all general service lamps, including decorative ones, to be enforced by July 2023. This regulation eliminated previous exemptions for specialty lamps, compelling manufacturers to improve the energy efficiency of their decorative lamp offerings.
Moreover, decorative lamps, which encompass various styles like chandeliers, floor lamps, and wall sconces, must now meet the same energy efficiency standards as other general service lamps. This regulatory change offers an opportunity for manufacturers to innovate and create budget-friendly, energy-efficient lighting solutions that maintain the elegance and aesthetic appeal consumers desire. This trend is expected to drive growth in the decorative market, as consumers seek stylish and sustainable lighting options for their homes and businesses.
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The decorative lamp segment was valued at USD 8.22 billion in 2018 and showed a gradual increase during the forecast period.
Regional Analysis
- APAC is estimated to contribute 54% to the growth of the global market during the forecast period.
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The Asia Pacific (APAC) region exhibits substantial growth potential for the market due to expanding economies and rising disposable incomes. For instance, India's per capita disposable income is projected to reach USD2,536 during the fiscal year 2023-24. Notably, the country's revised GDP data indicates an 8% increase in per capita disposable income in FY24, following a 13.3% growth in the preceding year.
Furthermore, gross national disposable income is projected to expand by 8.9% in FY24, following a 14.5% growth in FY23. These economic indicators suggest a strong economic expansion in the region, leading to increased purchasing power. This trend is likely to fuel demand for various lighting solutions, including lamps, offering opportunities for customized lighting experiences using cutting-edge lighting technologies and integration with smart home devices.
Market Dynamics
Our researchers analyzed the data 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.
What are the key market drivers leading to the rise in adoption of Lamps Market?
Rising household income is the key driver of the market.
- The market is experiencing notable growth due to the upward trend in disposable income among major economies. In the first quarter of 2024, real household income per capita in the OECD increased by 0.9%, marking a substantial improvement from the previous quarter's 0.3% rise. This income growth is anticipated to stimulate consumer spending on home improvement products, including lamps. All G7 economies reported an increase in real household income per capita during this period. Italy experienced the most significant growth with a 3.4% rise, attributed to higher employee compensation and social transfers, reversing the previous quarter's decline. Germany also reported a substantial wage increase of around 5%.
- As a result, the demand for both decorative and protective casing lamps is expected to rise, catering to various lighting levels and reading lamp needs. This trend is set to continue, providing ample opportunities for market growth.
What are the market trends shaping the Lamps Market?
Government initiatives toward sustainability is the upcoming trend in the market.
- The market is witnessing significant growth due to increasing government initiatives promoting energy conservation and sustainability. For instance, in November 2024, the Indian Army's Spear Corps collaborated with Sunbird Trust to distribute 700 solar lamps to underprivileged individuals in Assam, India.
- Moreover, this initiative underscores a broader trend of governments and organizations prioritizing sustainable lighting solutions to meet energy demands and minimize environmental impact. These initiatives not only cater to immediate lighting requirements but also foster long-term sustainability by encouraging the use of renewable energy sources.
What challenges does Lamps Market face during the growth?
Product recalls are key challenges affecting the market growth.
- In the dynamic world of smart lighting, product recalls pose a significant challenge for market players in the United States, including Tala North America. In November 2024, Tala North America experienced a recall of its Tala Muse Portable Lamps due to a fire hazard caused by battery overheating. This incident resulted in a replacement program for affected customers to mitigate potential risks.
- However, recalls not only entail direct costs, such as logistics and replacement expenses, but also expose manufacturers to potential legal liabilities and reputational damage. These events underscore the importance of ensuring product safety and quality in the rapidly evolving market for smart lighting, Google Home, and automated lighting systems.
Exclusive Customer Landscape
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Acuity Brands Inc.
- ams OSRAM AG
- Cree LED
- Crompton Greaves Consumer Electricals Ltd.
- Eaton Corp plc
- Foshan Electrical and Lighting Co Ltd.
- General Electric Co.
- Havells India Ltd.
- Heliospectra AB
- Koninklijke Philips N.V.
- LEDtronics Inc.
- MillerKnoll Inc.
- NVC Lighting Ltd.
- Opple Lighting Co. Ltd.
- Panasonic Holdings Corp.
- Patriot Lighting
- Samsung Electronics Co. Ltd.
- Schneider Electric SE
- SORAA
- Toshiba Corp.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Research Analyst Overview
The global lighting market is witnessing significant growth due to the increasing demand for functional lighting solutions that offer customizable lighting experiences. Energy efficiency is a key factor driving the market, with consumers seeking affordable lighting solutions that minimize energy consumption. The market caters to various lighting needs, from elegant floor lamps for living rooms to compact fluorescent lamps for budget-friendly options. Customizable lighting experiences are gaining popularity, with consumers opting for LED lighting products that offer programmable color temperature and intensity. Materials and finishes are also essential considerations, with many manufacturers integrating smart home devices and home automation systems for added convenience.
In summary, directional lighting is another trend, with consumers looking for lighting solutions that provide illumination where it's needed most. Smart lighting systems, such as those compatible with Google Home and other smart devices, offer automated lighting control and energy conservation. Budget-friendly lamps and decorative lamps cater to different consumer preferences, with many options available in various materials and finishes. Protective casing and lighting levels are also essential considerations for reading lamps and lighting scenes. Overall, the market offers a wide range of lighting solutions to meet diverse consumer needs and preferences.
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Market Scope |
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Report Coverage |
Details |
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Page number |
202 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.3% |
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Market growth 2024-2028 |
USD 3.29 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.9 |
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Key countries |
China, US, Japan, Taiwan, UK, Germany, Canada, India, France, and Italy |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Market Research and Growth Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
- Precise estimation of the size of the market and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
- Growth of the market across APAC, Europe, North America, Middle East and Africa, and South America
- Thorough analysis 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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