Decorative Lighting Market By Light Source (LED, Fluorescent, Incandescent, Other), By Product (Ceiling, Wall Mounted, Other), By End-User (Commercial, Household), By Distribution Channel (Offline, Online) and By Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2017 To 2027

Decorative Lighting Market definition and estimation:

Decorative lighting can be referred to a lighting fixture that is decorative in design or nature. These lightings provide general illumination or accent other lightings. It can be hardwired or plugged into an outlet or can be powered using a battery or solar energy. They come in various shapes, colours, designs and other attractive elements.

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.

Decorative Lighting Market Overview:

The lighting market is characterized by continuous innovation in designs, colours, materials and more. The growing need for lights and the demand for unique fixtures is driving the decorative lighting market. The availability of different styles and increase in income levels will support the market’s growth. The market has registered a steady growth in the previous years, however there seems to be a slight decline in growth rate due to the pandemic. The adverse effects on the construction industry have reduced the demand for light fixtures and therefore caused a deceleration in growth rates.

The Decorative Lighting Market is segmented to include:

By Light Source:

• LED
• Fluorescent
• Incandescent
• Other

By Product:

• Ceiling
• Wall mounted
• Other

By End-user:

• Commercial
• Household

By Distribution Channel:

• Offline (hypermarkets, supermarkets, specialty stores)
• Online

The light-emitting diode (LED) segment accounted for over USD 40 million in 2019. Such lights are energy efficient as compared to its counterparts and hence supported by governments across the world. Backing its popularity among consumers, besides saving almost 90% of the energy consumption, LEDs have a longer life span. Moreover, these lights are environmentally friendly and recyclable as they do not contain mercury. Fluorescent lights are extensively used as tube lights due to a number of factors like low cost, good selection of desired colour temperature, diffused lights, etc. These factors are pushing for the expansion of the segment during the forecast timeline. The segment is envisaged to grow at a CAGR of nearly 8%.

Ceiling lights range from the simplest of designs to bold ones, while also illuminating the area. These lightings can be used in a variety of spaces such as bedrooms, bathrooms, dining rooms, hallway, foyer, kitchen, office, etc. Their versatility has led to their widespread adoption. Therefore, the ceiling product type segment held close to 40% of the decorative lighting market in 2019. Wall-mounted light fixtures are finding increasing applications to light up hallways, staircases, floorings, and more. The introduction of new styles is further bolstering its growth. The segment is predicted to witness a CAGR of over 7% between 2020 and 2027.

Lighting plays an essential role in enhancing customer experience at restaurants, hotels, malls, retail shops, libraries, pubs, museums, and more. For instance, warm decorative lighting is used in restaurants to create a welcoming and engaging experience. As a result of the extensive use, the commercial segment garnered more than USD 55.5 million in revenues in 2019. The increase in income levels and growing demand for well-designed houses are encouraging the use of decorative lightings in households. The segment is anticipated to expand at an approximate 7.5% CAGR on account of the rising demand for these lightings and their benefits such as improved visual appeal and functionality.

The offline distribution channel secured over 90% of the decorative lighting market in 2019. The oldest and conventional source of purchasing lights, offline stores such as hypermarkets, supermarkets, and speciality stores provide customers the ability to view a variety of lightings and their effects before purchase. However, the shift towards digitization has developed the e-commerce mode of shopping. It offers convenience, access to numerous styles from across the globe, the ability to compare prices and procure items from distant places at reduced costs, etc. Hence, the online segment is projected to register a staggering 12% CAGR from 2020 to 2027.

Decorative Lighting Market by Geography Overview:

Based on geography, the market is segmented as below:

• North America
• Europe
• APAC
• Latin America (LATAM)
• Middle East & Africa (MEA)

Asia-Pacific captured close to 40% of the market in 2019. The region is also expected to grow at a CAGR of more than 7.5% during the forecast period. Factors such as growing population, rapid urbanization, increased disposable incomes, improved standard of living, rising tourism, high demand from the commercial sector and more are contributing to the region’s significant growth.

The wider reach of electricity, as well as a large number of malls and hotels, will positively influence the market in North America. The hospitality sector of the region is presumed to propel the market in the coming years. The implementation of stringent regulations for energy conservation in Europe will drive the market forward. Stabilized economic conditions will further boost the growth.

Decorative Lighting Market Dynamics:

Drivers:

The adoption of LEDs and fluorescent lights ensures a reduction of up to 90% in energy consumption. They also offer lower maintenance and last longer. The reduced energy consumption leads to a lower electricity bill. Due to these factors, numerous organizations are replacing the traditional incandescent with energy-efficient lights to increase savings. The rising affordability is boosting the demand for these lights among individual consumers. Hence, the increasing need for energy-efficient lights will push for decorative lighting market progress during the forecast years.

The development of advanced technologies such as IoT, artificial intelligence and cloud-based systems have led to the construction of smart homes. These homes include intelligent lighting whose colour and intensity can be changed using a remote device. The growth of the smart home sector and the growing demand for such lighting features will fuel the market growth.

 Restraints:

The construction and real estate sector plays a vital role in the augmentation of the decorative lighting market. Both these sectors have been witnessing slow growth in recent times. The pandemic has further had an adverse effect on their growth. The slow growth of the real estate industry is predicted to reduce demand and hence, restrict the market expansion.

The market is studied by analyzing all the key market participants across the ecosystem. The 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

Recent News and Developments in the Decorative Lighting market:

1. Acuity Brands Lighting Inc., in October 2020, announced its collaboration with Violet Defence LLC, an innovator of patented germicidal UV lighting technology, and Puro Lighting LLC, a lighting and technology company that creates UV disinfection solutions using Violet Defence’s technology. The partnership will expand the company’s portfolio of UV disinfection products and aid in the development of next-generation UV lighting products.
2. GE Lighting was awarded its first ENERGY STAR Partner of the Year – Sustained Excellence Award in April 2021.
3. In April 2021, Fagerhult Group and Sony collaborated to provide better overviews and control off flows in larger buildings. The collaboration will involve the use of Fagerhult’s wireless lighting control system, Organic Response, and Sony’s navigation system, Nimway.

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