The decorative lighting market size was USD 79.36 million in 2019 and expected to reach USD 137.27 million by 2027; this converts into a compound annual growth rate (CAGR) of 7.09% for the forecast period.
By light source:
By distribution channel:
Based on geography, the market is segmented as below:
A lighting fixture, which either provides general illumination or accents other lightings, decorative in design is known as a decorative lighting. These lights can be powered using a battery, solar energy or can be plugged into an outlet.
The lighting market is driven by the rising demand for innovative fixtures. Increase in income levels and growth of the construction industry will further bolster its expansion. While the pandemic did have an adverse effect, the market is predicted to bounce back post-lockdown.
The use of LEDs and fluorescent lights, as compared to the traditional incandescent ones, saves up to 90% of the energy consumption. These lights also require lower maintenance and last longer. Advancement in technology such as IoT, AI, ML, cloud, etc. is boosting the construction of smart homes. These technologies offer the advantage of modifying the light colour and intensity with the help of a remote device. Therefore, the growing awareness regarding energy conservation and demand for smart homes will drive the decorative lighting market forward. On the flip side, slow growth in real estate implies lower demand for light fixtures. Thus, the market will be adversely impacted with the decelerated growth of the sector.
Energy efficient, longer life span, environment friendly and more have resulted in the dominance of the LED segment. Besides consumers, the adoption of these lights among organizations has also been a major contributor. Nevertheless, the fluorescent tubes are gaining popularity due to its low cost as well as good selection of desired colour temperatures. The segment is anticipated to register an approximate 8% CAGR.
The wall mounted segment is projected to expand at the fastest rate, on account of the surge in use of these light fixtures to light up hallways, staircases, floorings, etc. along with the development of new styles, therefore attracting customers. The ceiling type of lights are widely used to illuminate a variety of spaces such as kitchens, bedrooms, offices, bathrooms, foyer, etc. It is hence, no surprise that the segment secured around 40% of the decorative lighting market in 2019.
Commercial spaces such as restaurants, hotels, malls, pubs, museums and more often use lights to enhance customer experience or to set a particular mood. Thus, the demand for light fixtures is significantly more than that generated by households. Consequently, the commercial segment captured majority of the market in 2019. However, the household segment is estimated to witness a CAGR of around 7.5%, during the forecast timeline, due to increasing consumer awareness regarding improved visual appeal and functionality of adopting decorative lights.
The offline distribution channel, being the oldest and conventional source of procuring lights, held over 90% of the market in 2019. The transition towards digitization has been one of the major factors promoting the development of e-commerce. Also, the advantages that the online distribution channel provides is unmatched. As a result, the online segment is expected to register the highest CAGR among all other segmentations of the decorative lighting market.
Asia-Pacific accounted for a large part of the market in 2019. Several factors such as growing population, rapid urbanization, increased disposable incomes, rising tourism and more assisted in garnering majority of the market. These factors are also responsible for the region’s approximate 7.5% CAGR between 2020 and 2027. Energy conservation regulations will propel the European market growth, while North America will expand owing to the wider reach of electricity and high demand from the hospitality sector.
A few key players include, but not limited to: Acuity Brands Lighting Inc., Generation Brands, Maxim Lighting, GE Lighting, Fagerhult Group, Bridgelux Inc., Osram, Amerlux, Endon Lighting, Columbia Lighting, Besa Lighting.