Decorative Lighting Market

Decorative Lighting Market Size and Share:

The global decorative lighting market size was valued at USD 42.69 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 55.5 Billion by 2033, exhibiting a CAGR of 3.0% from 2025-2033. North America currently dominates the market, holding a significant share of 37.6% in 2024. The increasing interest in home decor, the rising trend of smart homes, heightened environmental consciousness, rapid technological advancements, the expansion of the hospitality sector, and shifting a preference for customized lighting solutions are key factors propelling the market growth.

Decorative lighting has proven to play an essential role in enhancing the beauty of any place. In fact, with advanced and more efficient light emitting diode (LED) and organic light emitting diode (OLED), old traditional lights, including incandescent and fluorescent bulbs, are being phased out. LEDs are revolutionizing decorative lighting with long lifespan, reduced energy consumption, and a capacity to produce color and intensity differences. With its flexibility, LEDs can be applied to numerous designs for residential, commercial, and outdoor purposes in decorative lighting. Smart lighting technologies further push the growth of the market due to developments in it.

The United States has emerged as a major region in the decorative lighting market due to many important factors. With technology evolving, smart home devices, including decorative lighting solutions, are in high demand in the country. The smart home concept, where all daily devices are connected through the internet, has been widely adopted by people because of its convenience, energy-saving ability, and security features. This trend is dominated by decorative lighting, which brightens up the space but offers the versatility of remote control and automation. The high level of efficiency and personalization, making smart decorative lighting an essential part of the modern home in the US. According to the predictions of the IMARC Group, the US smart lighting market is expected to exhibit a growth rate (CAGR) of 15.28% during 2024-2032.

Decorative Lighting Market Trends:

Smart homes and technology integration

The introduction of technology into decorative lighting is shifting the market as it provides buyers with unique, energy-efficient lighting options. Smart homes, integrated with automated systems, offer homeowners freedom to adjust their lighting systems by using smartphones or voice commands, making it convenient while saving energy. Global smart homes market size stood at USD 123.8 Billion in 2023. This extends to lighting systems that are now able to automatically adjust with the level of natural light available or pre-programmed settings for the optimization of energy use and for creating ambiance. Moreover, connectivity technologies and Internet of Things technologies in decorative lighting not only bring ease to control but also an enhanced user experience through customization, interaction with the other smart devices in the smart home.

Heightened interest in home décor

The rising demand for home furnishings is a major factor propelling the worldwide market. As individuals seek to personalize their living environments, decorative lighting plays a significant role in enhancing the beauty and ambiance of a home. Reports indicate that 74% of Gen Z, 67% of Millennials, 61% of Gen X, and 57% of Baby Boomers show interest in customized products. Furthermore, due to progress in design and technology, decorative lighting choices have become more varied, providing an extensive selection of styles, colors, and functionalities to meet different preferences and requirements. The increasing popularity of smart home systems has boosted the need for decorative lighting, as individuals seek creative methods to incorporate lighting solutions into their home automation arrangements.

Rapid urbanization and infrastructure expansion

Urbanization plays a pivotal role in propelling the growth of the market. Since more people are moving to urban areas, the need for residential and commercial buildings increases and leads to requirements for decorative lighting solutions catering to the newly developed structures. The United Nations report said, 55% of the world's population lives in urban areas today, and by 2050, this number is expected to rise to 68%. The infrastructure of emerging markets is being expanded with shopping centers, offices, and hospitality venues, requiring creative lighting designs that are attractive and functional. Most cities look to amalgamate aesthetics and efficiency, ensuring that decorative lighting is not merely a source of illumination but contributes to the whole ambiance of city architecture. Given this shift to urbanization, especially in countries with emerging economies, the scope for this industry is unprecedented for the decorative lighting industry to come up with and fulfill the necessities of modern life in an urban setting.

Decorative Lighting Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global decorative lighting market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on product type, light source, distribution channel, and end user.

Analysis by Product Type:

• Chandelier
• Pendant
• Sconce
• Flush Mount
• Ceiling Mount
• Wall Mount
• Others

Sconce led the market in 2024, accounting for a market share of 34.7%. The sconce segment is driven by the growing popularity of accent lighting in interior design. Sconces are both functional and aesthetically pleasing, as they softly illuminate spaces and create a warm, inviting atmosphere. Their versatility for indoor and outdoor use, combined with a wide range of styles, from vintage to modern, drives their appeal in the decorative lighting market. Sconces can greatly enhance the aesthetic appeal of a room. They are offered in various designs, styles, and materials that can match nearly any décor. Whether you're looking for something sleek and modern or a more ornate look, sconces can serve both as a useful lighting source and a decorative piece. The proper sconce can bring warmth, character, and ambiance to a room, all while blending with the aesthetic of the rest of the room.

Analysis by Light Source:

• LED
• Fluorescent
• Incandescent
• Others

LED held the largest market share of 39.8% in 2024. The light-emitting diode (LED) segment is being driven by a growing demand for energy-efficient and long-lasting lighting solutions. They offer superior energy efficiency, have a longer lifespan compared to traditional lighting technologies, and can operate within a wide range of temperatures without affecting their luminosity or lifespan. Other factors that make LEDs popular include the environmental benefits: carbon emissions are reduced, and there is no toxic element, such as mercury. The advancement in LED technology has also significantly reduced the cost, making them more accessible to a wider population. The growth of LED lighting can be attributed to its versatility. It can be integrated into a wide range of designs and applications, from residential lighting to large-scale commercial and industrial installations.

Analysis by Distribution Channel:

• Supermarkets and Hypermarkets
• Specialty Stores
• Online Stores
• Others

The increasing buyer’s desire for one-stop shopping experiences also drives the need for supermarkets and hypermarkets, through which a comprehensive assortment of decorative lighting products are available under a single roof. The benefits from these retail behemoths are immediate availability, the possibility to physically inspect before buying, and usually competitive prices because of scale economies. The availability of staff who are qualified to give advice and assistance increases the appeal of this segment as a convenient source of value.

Specialized stores benefit from the increased demand for different, superior-quality decorative lighting goods that will respond to various tastes and needs. Here, special selected lighting products offer expert knowledge that makes this particular shopping process very personalized and specific for customers' interests. Emphasis on specialist lightings in line with "ecological and craftsmanship" varieties would attract an ideal niche target customer seeking excellence at the price for the same value, therefore the growth.

The growth of the online stores segment is influenced by increased buyer comfort with e-commerce, convenience in shopping from anywhere at any time, and the wider variety of options compared to physical stores. Online platforms provide extensive catalogs with detailed product descriptions and customer reviews, which help people make better decisions. Its use offers the consumers home delivery plus offers them access for comparison to view the site product prices of competitors. Online shopping stores became popular means when purchasing decorative lights.

Analysis by End User:

• Commercial
• Household

Commercial held the largest market share of 62.8% in 2024. The commercial segment of decorative lighting has been driven by the increasing need to create inviting and brand-aligned environments in retail, hospitality, and office spaces. Businesses are realizing that decorative lighting can contribute to customer experiences, enhance brand perception, and create a favorable work environment. In retail and hospitality, lighting is crucial to attract customers, set the mood, and present products or services. Office spaces call for productivity enhancement and employee wellness through proper comfort lighting. On the other hand, business sustainability demands energy efficiency lighting solutions compatible with corporate social responsibility objectives, as well as lower operational cost. Decorative lighting can highlight and focus on architecture elements in the commercial space. Lighting can be used to highlight design details such as arches, columns, artwork, or sculptures in venues such as hotels, museums, and art galleries. This not only enhances the beauty but also calls attention to the elements that define the space.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

North America accounted for the largest market share of 37.6% in 2024. There's a growing incorporation of smart home technologies and stringent emphasis on an energy-efficient environment in North America, which continues to drive decorative lighting. Such a market experiences growth due to the presence of leading technology players and startups aiming at innovative illumination solutions. Sustainable living practices combined with aesthetic preferences for personal spaces further fuel interest in decorative lighting. High disposable incomes and the propensity to renovate and personalize homes also play an important role in the growth of the decorative lighting market in this region. Today, people want to make their living spaces unique and personalized. Decorative lighting provides an excellent solution by giving people the chance to create an atmosphere they prefer in their homes or businesses. Be it a soft, intimate warmth for a living room or bright, colorful lighting for a party or event, decorative lighting can be planned to match any need and ambiance. In 2024, the city of Windsor indicated that they would install decorative lighting along Ouellette Avenue as part of their Downtown Windsor Revitalization Project in conjunction with the Downtown Windsor Business Improvement Association (DWBIA).

Key Regional Takeaways:

United States Decorative Lighting Market Analysis

In 2024, the United States held a market share of 80% in the North America Market. The U.S. decorative lighting market is experiencing robust growth, driven by technological advancements, increasing consumer demand for energy-efficient solutions, and growing awareness of sustainable living. The rapid adoption of LED lighting, known for its longevity and energy efficiency, has become a key factor in this expansion. Additionally, the shift toward smart homes and connected devices has spurred demand for advanced lighting systems that offer voice control, app functionalities, and customizable settings. The growing home renovation trend, fueled by a desire for modern and aesthetically appealing spaces, also contributes to the market's momentum. Moreover, rising disposable incomes have led to greater spending on premium, customized lighting solutions for both residential and commercial sectors. For example, the U.S. construction equipment market, valued at USD 43.53 Billion in 2023, highlights the overall expansion of sectors driving demand for decorative lighting, particularly in the commercial and infrastructure segments. The hospitality industry’s demand for unique lighting fixtures that create memorable experiences further supports market growth. As consumers place more emphasis on both aesthetics and sustainability, energy-efficient products are becoming the preferred choice, and government initiatives promoting eco-friendly solutions are expected to drive continued market expansion.

Europe Decorative Lighting Market Analysis

The European decorative lighting market is driven by a combination of design innovation, sustainability trends, and technological advancements. Consumer demand for personalized, energy-efficient lighting solutions is rising, particularly as the region places greater emphasis on environmental sustainability. According to industry reports, 90% of European consumers were particularly attentive to the sustainability of products in 2022, with 91% of French consumers highlighting this preference. This growing awareness is especially strong in product categories like household appliances and high-tech devices, which is now influencing lighting choices as well. LED lighting, known for its energy efficiency and long lifespan, has become a key driver of market growth. Additionally, Europe’s strong design culture fuels demand for stylish and premium lighting fixtures that complement interior aesthetics. The increasing adoption of smart lighting solutions, driven by the growing connected home market, further supports expansion. The hospitality and retail industries also contribute to the market’s growth, as businesses seek to create unique environments using innovative lighting designs. As consumers continue to prioritize sustainability, there is a clear shift towards eco-friendly, functional, and stylish lighting solutions across the region.

Asia Pacific Decorative Lighting Market Analysis

The decorative lighting market in the APAC region is undergoing significant growth, urged by rapid urbanization, rising disposable incomes, and the heightened demand for energy-efficient solutions. According to the World Bank, East Asia and the Pacific is the world’s most rapidly urbanizing region, with an annual urbanization rate of 3%. This rapid urban expansion, particularly in countries like China and India, creates a strong demand for aesthetically designed lighting in both residential and commercial sectors. Furthermore, the adoption of energy-efficient and environmentally friendly lighting, such as LEDs, is being driven by government regulations focused on reducing energy consumption and carbon emissions. The growing popularity of smart homes and connected lighting solutions further boosts market demand, as consumers seek more customizable and functional lighting. Additionally, the expanding hospitality and retail industries, which rely on distinctive lighting designs to create unique atmospheres, also contribute significantly to market growth in the region.

Latin America Decorative Lighting Market Analysis

The decorative lighting sector in Latin America is expanding swiftly, driven by urban growth, increasing disposable incomes, and a shift towards energy-efficient lighting options. Research indicates that urbanization in Latin American nations has approached approximately 80%, exceeding levels found in many other areas. This urban expansion is increasing the need for contemporary, attractive lighting in residential and commercial areas. With the growth of the middle class, consumers are more frequently spending on premium, tailored lighting options. The transition to eco-friendly lighting solutions like LEDs, along with the growing trend of smart home technologies, additionally drives market expansion in the area.

Middle East and Africa Decorative Lighting Market Analysis

The Middle East and Africa decorative lighting market is driven by rapid urbanization, increasing disposable income, and the growth of the hospitality and retail industries. According to the World Bank, the Middle East and North Africa (MENA) region is already 64% urbanized, contributing to a higher demand for modern, aesthetically pleasing lighting solutions. The UAE smart lighting market, valued at USD 75.8 Million in 2023, is a key example of this trend. Luxury consumers in the region seek unique and premium lighting designs, further fueling market growth. Additionally, the adoption of smart lighting systems and government initiatives promoting energy efficiency support the transition to sustainable lighting technologies.

Competitive Landscape:

In manufacturing and retail sectors, businesses are increasingly adopting automation technologies to optimize production processes, reduce costs, and improve output quality. Additionally, robotics and AI-driven systems help companies speed up production, improve supply chain management, and reduce human error. These technologies also allow businesses to predict trends and manage inventory more effectively, resulting in cost savings and enhanced operational efficiency. Companies across industries are utilizing big data analytics to gain deeper insights into customer preferences, behaviors, and buying patterns. By analyzing large volumes of data, market players can make more informed decisions regarding product development, marketing strategies, and customer engagement. This not only improves customer satisfaction but also leads to more targeted and effective campaigns that drive higher conversion rates. Key market players are also launching new products to expand their product portfolio. For instance, in 2024, Tisva introduced a fresh collection of decorative lighting, the Arbor and Adamas. This collection adds the smart and luxury elements into home decors.

The report provides a comprehensive analysis of the competitive landscape in the decorative lighting market with detailed profiles of all major companies, including:

• Acuity Brands Inc.
• Bridgelux Inc.
• Crest LED Lighting
• Fagerhults Belysning AB
• General Electric Company
• Honeywell International Inc.
• Hubbell Incorporated
• Ideal Industries Inc.
• Maxim Lighting
• Nichia Corporation
• Osram Licht AG (ams AG)
• Signify Holding

Latest News and Developments:

• December 2024: Crompton Greaves Consumer Electricals Limited has introduced its new Wallsmile Wall Light Series, designed to enhance both minimalist and luxurious interiors. Combining elegance and functionality, these wall lights cater to the growing consumer demand for stylish and versatile lighting solutions. Suitable for corridors, garden walls, and indoor spaces, the series helps create a welcoming atmosphere while adding depth and visual interest to any room.
• June 2024: FIG Living has introduced its award-winning pendant lighting designs in India, featuring handcrafted products like DIY lamps, viral cloud lamps, and raffia designs. Known for their modern, Scandinavian, and Japanese aesthetics, the brand offers a premium alternative to Chinese imports, catering to both residential and commercial spaces.

Decorative Lighting Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the decorative lighting market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global decorative lighting market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the decorative lighting industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.