Decorative Lighting

Global Decorative Lighting Market to Reach US$46.2 Billion by 2030

The global market for Decorative Lighting estimated at US$40.4 Billion in the year 2024, is expected to reach US$46.2 Billion by 2030, growing at a CAGR of 2.3% over the analysis period 2024-2030. Sconce Decorative Lighting, one of the segments analyzed in the report, is expected to record a 2.7% CAGR and reach US$18.1 Billion by the end of the analysis period. Growth in the Flush Mount Decorative Lighting segment is estimated at 2.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$11.0 Billion While China is Forecast to Grow at 4.3% CAGR

The Decorative Lighting market in the U.S. is estimated at US$11.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$8.7 Billion by the year 2030 trailing a CAGR of 4.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 0.9% and 2.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.3% CAGR.

Global Decorative Lighting Market – Key Trends & Drivers Summarized

What Is Fueling the Surging Demand for Decorative Lighting?

The decorative lighting market has witnessed an exponential rise in demand, primarily driven by shifting consumer preferences and an increasing focus on aesthetic appeal in both residential and commercial spaces. Modern consumers are not just seeking illumination; they desire fixtures that complement interior design, enhance ambiance, and serve as statement pieces. This has led to an influx of innovative lighting solutions, including chandeliers, pendant lights, wall sconces, and smart lighting systems that offer customizable brightness and color temperatures. Additionally, urbanization and rising disposable incomes, particularly in emerging economies, have played a pivotal role in boosting market growth. As homeowners invest in luxury interiors, demand for high-end decorative lighting fixtures is surging. The hospitality sector has also been a key driver, with hotels, restaurants, and high-end retail outlets opting for aesthetically appealing lighting to enhance customer experience. The growing emphasis on energy efficiency and sustainable lighting solutions, including LED-based decorative lighting, is further revolutionizing the industry, offering both cost savings and environmental benefits.

How Are Smart Lighting and IoT Transforming the Market?

The integration of smart lighting technology and the Internet of Things (IoT) has revolutionized the decorative lighting market, making way for connected and intelligent lighting systems. Consumers are increasingly opting for Wi-Fi-enabled and Bluetooth-controlled lighting fixtures that can be remotely operated via smartphones or voice assistants. The advent of artificial intelligence (AI) in lighting has further expanded possibilities, allowing lights to adjust brightness and color based on user behavior, time of day, or even mood settings. Moreover, adaptive lighting solutions that sync with music or video content have gained immense popularity in residential and commercial entertainment spaces. The demand for automation in luxury homes, smart offices, and premium hospitality environments has pushed manufacturers to develop lighting fixtures embedded with motion sensors, dimmable features, and AI-powered customization. Additionally, advancements in LED technology have enabled manufacturers to produce energy-efficient yet visually stunning designs, further contributing to the sector’s evolution.

Is the Industry Embracing Sustainable and Eco-Friendly Innovations?

Sustainability has become a cornerstone of the decorative lighting industry, with manufacturers increasingly adopting eco-friendly materials and energy-efficient technologies. The rising global emphasis on reducing carbon footprints has led to a strong shift towards LED-based decorative lighting, which consumes significantly less energy compared to traditional incandescent or halogen bulbs. Additionally, recycled and sustainable materials such as bamboo, glass, and biodegradable plastics are being incorporated into fixture designs to align with environmentally conscious consumer preferences. Another key trend gaining traction is solar-powered decorative lighting, particularly in outdoor applications such as garden lighting, patio décor, and landscape enhancements. As government regulations on energy efficiency and carbon emissions become stricter, manufacturers are focusing on compliance while ensuring high-end aesthetic appeal in their product offerings. Furthermore, the growing popularity of minimalistic and Scandinavian-inspired lighting designs, which emphasize simplicity and sustainability, has further propelled the demand for eco-conscious decorative lighting solutions.

What Are the Key Growth Drivers Propelling the Market Forward?

The growth in the decorative lighting market is driven by several factors, including rising disposable incomes, increasing urbanization, and a heightened focus on interior aesthetics. The booming real estate and hospitality industries are major contributors, as new construction and renovation projects continuously demand sophisticated lighting solutions. Smart home adoption is another significant driver, with tech-savvy consumers seeking intelligent lighting systems integrated with IoT. Additionally, shifting consumer preferences towards energy-efficient and eco-friendly solutions have led to the widespread adoption of LED-based decorative lighting. The influence of social media and home décor trends has also played a crucial role in shaping consumer purchasing behavior, as platforms like Instagram and Pinterest inspire buyers to invest in stylish, designer lighting. Lastly, government incentives promoting energy-efficient lighting technologies and the rapid expansion of e-commerce platforms have further fueled the market, making decorative lighting more accessible to a broader consumer base.

SCOPE OF STUDY:

The report analyzes the Decorative Lighting market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product (Sconce Decorative Lighting, Flush Mount Decorative Lighting, Chandelier Decorative Lighting, Pendant Decorative Lighting, Other Products); Light Source (LED Light Source, Fluorescent Light Source, Incandescent Light Source, Other Light Sources); Application (Commercial Application, Household Application)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 48 Featured) -

• Acuity Brands, Inc.
• ams OSRAM
• Artemide
• Astro Lighting
• Bover
• Bridgelux, Inc.
• Catellani & Smith
• Fagerhult Group
• Flos
• Hubbell Incorporated
• Hudson Valley Lighting Group
• Ingo Maurer GmbH
• Louis Poulsen
• Luceplan
• Marset
• Maxim Lighting International
• Nichia Corporation
• Signify (formerly Philips Lighting)
• Tom Dixon
• Vibia

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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