Global Decorative Lighting Market Expected to Reach USD 55.5 Billion by 2033 - IMARC Group

Global Decorative Lighting Market Statistics, Outlook and Regional Analysis 2025-2033

The global decorative lighting market size was valued at USD 42.7 Billion in 2024, and it is expected to reach USD 55.5 Billion by 2033, exhibiting a growth rate (CAGR) of 3% from 2025 to 2033.

Many people are looking for lightings that not only improve the visual attractiveness of their spaces but also provide functional features. This transition towards designs that merge elegance with practicality is leading to the creation of a wide array of decorative lighting choices appropriate for different interior styles, ranging from minimalist to opulent. Moreover, the presence of decorative lights in both retail stores and online shopping sites underscores the increasing availability via various sales avenues. The ease of buying through e-commerce platforms, along with extensive availability in physical shops, extends the accessibility of these products to a larger user audience. In 2024, Crompton Greaves launched its newest range of decorative wall lights, showcasing the Wallsmile Wall Light Series, designed to enhance both simple and luxurious interiors. The collection offers various lighting options, including Wall Lamps, Ball Lights, K Lights, and Telescopic Lights, combining elegance and functionality. These dust-proof, water-resistant lights are available in retail shops and e-commerce websites, with prices ranging from INR 700 to INR 1800.

Furthermore, the increasing focus on sustainability is driving the need for energy-efficient decorative lighting. Producers are creating lighting products using sustainable materials, minimal energy utilization, and extended lifetimes, attracting eco-aware buyers. This corresponds with wider trends in the construction and home enhancement sectors, which emphasize sustainable methods. In addition to this, people are choosing lighting solutions that provide improved control and customization. Intelligent lighting solutions, controllable via mobile applications or voice-activated assistants, enable users to modify settings, alter colors, and design vibrant lighting effects for various events or emotions. This transition to integrated and personalized lighting options mirrors wider trends in home automation and provides users with increased convenience and flexibility. In 2024, Govee launched its Outdoor Laser Projector Lights globally, designed to project colorful RGB patterns and Aurora effects onto walls, fences, or lawns. The intelligent light can be managed through the Govee app or voice assistants, providing more than 50 scene modes and effects. Featuring an IP65 rating for weatherproofing, it is perfect for outdoor applications and costs $129.99.

Global Decorative Lighting Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest segment driven by the high adoption of advanced technologies, increasing user demand for energy-efficient solutions, and the growing preference for smart lighting systems.

North America Decorative Lighting Market Trends:

North America dominates the market, supported by a rising need for creative and energy-efficient lighting options. The area's emphasis on smart home technologies is leading to an increased popularity of smart decorative lighting among individuals. Furthermore, the robust hospitality and retail sectors are driving the demand for both aesthetic and practical lighting options. Additionally, the ongoing progress in LED and intelligent lighting technologies guarantees that North America continues to be a significant participant in the market. In 2024, Philips Hue introduced the Ensis smart pendant light in the US, featuring two LED light sources for tailored white and colored illumination. With a peak brightness of 5,400 lumens and a lifespan of 25,000 hours, the illumination can be managed through the Philips Hue app. The pendant, offered in matte black and white, retails for $479.99 and is perfect for dining areas or other locations.

Asia-Pacific Decorative Lighting Market Trends:

The Asia Pacific area is experiencing swift growth, supported by the increasing demand for trendy and contemporary lighting options. Nations in the area are facing a growing need for creative decorative lighting in residential and commercial markets. The swift progression of the hospitality sector, especially in high-end hotels and resorts, is bolstering the market growth.

Europe Decorative Lighting Market Trends:

Europe represents a vital part of the market, distinguished by a significant focus on design and aesthetics. The increasing need for elegant, high-quality lighting solutions for residential and commercial uses is impelling the market growth. Furthermore, the appeal of design-focused lighting solutions in retail, hospitality, and residential areas increasing the demand for decorative lighting across Europe.

Latin America Decorative Lighting Market Trends:

In Latin America, the decorative lighting market is growing, supported by an increased appreciation for home décor and design in the region. There is a higher interest in outdoor and architectural lighting, especially for gardens, patios, and other communal spaces. The region's retail and hospitality sectors are also significant contributors, as businesses seek to create appealing environments to attract clients. Individual in the region are also becoming more open to integrating smart lighting technologies, which is driving the demand for high-tech, decorative lighting products.

Middle East and Africa Decorative Lighting Market Trends:

The Middle East and Africa are emerging as key markets, driven by a rise in high-end construction projects, particularly in the hospitality and commercial sectors. Luxury hotels, resorts, and retail spaces are incorporating decorative lighting to enhance their aesthetics and ambiance. The area's diverse cultural legacy further enhances the appeal of decorative lighting in festive and cultural occasions. Additionally, the increasing use of energy-saving and intelligent lighting options is providing a positive market perspective.

Top Companies Leading in the Decorative Lighting Industry

Some of the leading decorative lighting market companies include 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, among many others. In 2024, Signify launched the Philips Smart Light Hub in Indore, covering 700 square feet and featuring more than 250 Philips lighting items. The hub provides various decorative and practical lighting options, featuring smart lights that utilize WiZ Smart technology.

Global Decorative Lighting Market Segmentation Coverage

• On the basis of the product type, the market has been categorized into chandelier, pendant, sconce, flush mount, ceiling mount, wall mount, and others, wherein sconce represents the leading segment. The sconce segment leads the market because of its versatility and aesthetic appeal. Wall-mounted sconce is highly favored for its ability to provide both ambient and accent lighting in various spaces, including living rooms, hallways, and bathrooms. Its compact layout makes it perfect for tighter spaces where floor area is restricted. Moreover, sconce comes in a variety of styles, from traditional to contemporary, enabling it to enhance various interior aesthetics. Its energy efficiency and ease of installation further contribute to its popularity.
• Based on the light source, the market is segregated into LED, fluorescent, incandescent, and others. Amongst these, LED dominates the market. LED holds the biggest market share due to its energy efficiency, longer lifespan, and versatility. LED employs less energy than traditional incandescent and fluorescent alternatives, making it an eco-friendly option. It comes in a variety of colors and designs, providing enhanced customization for decorative lighting uses. Moreover, the declining price of LED technology and its incorporation into smart lighting systems enhances its appeal.
• Based on the distribution channel, the market is classified into supermarkets and hypermarkets, specialty stores, online stores, and others. Supermarkets and hypermarkets offer convenience and a broad range of lighting products at competitive prices, attracting budget-conscious shoppers. Specialty stores provide a curated selection of high-end, designer lighting solutions, appealing to buyers seeking unique and premium options. Online stores are increasingly popular, offering the convenience of shopping from home, extensive product choices, and easy price comparisons. Others include niche outlets such as direct sales and wholesale, serving specialized client needs and fostering growth in unique segments of the market.
• On the basis of the end user, the market has been bifurcated into commercial and household, wherein, commercial accounts for the majority of the market share. Commercial exhibits a clear dominance in the market driven by the growing demand for aesthetic and functional lighting solutions in businesses. Commercial environments like hotels, restaurants, retail shops, and office structures need decorative lighting to establish welcoming atmospheres and improve client experiences. Additionally, the rise of experiential marketing and visual merchandising is making decorative lighting an essential element for businesses looking to attract and retain clients, further increasing its prominence in the commercial sector.