Decorative Lighting Market Forecast to Reach USD 96.52 Billion by 2031 with Rising Smart-Home Adoption and LED Integration

Decorative Lighting Market Overview 

According to Mordor Intelligence, the decorative lighting market size was valued at USD 75.88 billion in 2025 and is projected to grow from USD 78.98 billion in 2026 to USD 96.52 billion by 2031, reflecting a CAGR of 4.09% during the forecast period. This growth is driven by falling LED costs, increasing adoption of smart-home systems, and a steady rise in residential and commercial renovations. As voice-controlled ecosystems become more common, manufacturers are shifting from standalone decorative fixtures to products that seamlessly support Matter and Thread standards, turning lighting into an integrated element of smart homes and commercial IoT networks. 

Decorative Lighting Market Growth Drivers 

Smart-Home Connectivity for Decorative Lighting 

Matter and Thread standards now let a single decorative fixture sync with Amazon, Google, and Apple hubs. Hotels and commercial spaces use centralized dashboards to control ambiance, while remote troubleshooting reduces maintenance costs. These trends are shaping the Decorative Lighting Industry, combining aesthetics with functional smart-home integration. 

LED Efficiency and Cost Advantages 

LED prices have dropped significantly, enabling decorative fixtures to offer up to 75% energy savings and extended lifespans. Filament-style LEDs preserve vintage looks while reducing power use, supporting rapid Decorative Lighting Market Growth. Designers can now create sculptural lamps without compromising performance. 

AR and VR Visualization Tools 

Augmented reality planners and virtual reality showrooms help consumers preview lighting at scale, reducing returns and boosting average order values. Data from these tools informs production and demand trends, contributing to detailed Decorative Lighting Market Analysis for both manufacturers and retailers. 

DIY Lighting Trends Post-COVID 

Consumers increasingly adopt plug-and-play, rechargeable, and app-enabled decorative lights for flexible home upgrades. Social media and installation guides drive this DIY boom, influencing Decorative Lighting Market Share as buyers seek convenient and stylish lighting solutions. 

Decorative Lighting Market Segmentation Analysis 

By Product Type 

• Ceiling Lights & Chandeliers 
• Pendants 
• Wall Sconces 
• Table & Floor Lamps 
• Track Lights 
• Other Product Types 

By Light Source 

• LED 
• Incandescent 
• Fluorescent & CFL 
• Halogen 
• Others (OLED, Solar, etc.) 

By End-User 

• Residential 
• Commercial 

By Distribution Channel 

B2C/Retail Channels 

• Hypermarkets and Supermarkets 
• Home Centers 
• Specialty Lighting Stores 
• Online 
• Other Distribution Channels 

B2B/Direct Sales & Projects 

By Geography 

North America 

• United States 
• Canada 
• Mexico 

South America 

• Brazil 
• Argentina 
• Chile 
• Peru 
• Rest of South America 

Europe 

• United Kingdom 
• Germany 
• France 
• Italy 
• Spain 
• BENELUX (Belgium, Netherlands, Luxembourg) 
• NORDICS (Denmark, Finland, Iceland, Norway, Sweden) 
• Rest of Europe 

Asia-Pacific 

• China 
• India 
• Japan 
• South Korea 
• Australia 
• South-East Asia (Singapore, Malaysia, Thailand, Indonesia, Vietnam, Philippines) 
• Rest of Asia-Pacific 

Middle East and Africa 

• United Arab Emirates 
• Saudi Arabia 
• South Africa 
• Nigeria 
• Rest of Middle East and Africa 

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/decorative-lighting-market?utm_source=industrytoday.uk 

Key Players in the Decorative Lighting Industry 

• Acuity Brands Lighting, Inc. 
• Signify (Philips Lighting) 
• Osram Licht AG (ams-OSRAM) 
• Hubbell Lighting 
• Eglo Leuchten GmbH 

Conclusion 

The global decorative lighting market is set for steady growth over the forecast period, driven by falling LED costs, rising smart-home adoption, and increased consumer focus on home and commercial aesthetics. Residential and commercial segments alike are embracing advanced lighting solutions, from Matter- and Thread-enabled smart fixtures to cordless and solar-powered options, reflecting evolving preferences for flexibility, efficiency, and visual appeal. 

Explore more insights on the Decorative Lighting Market: https://www.mordorintelligence.com/industry-reports/decorative-lighting-market?utm_source=industrytoday.uk 

Industry Related Reports 

1. Asia-Pacific DIY Home Improvement Market: https://www.mordorintelligence.com/industry-reports/asia-pacific-diy-home-improvement-market?utm_source=industrytoday.uk 

2. North America Decorative and Illuminated Mirror Market: https://www.mordorintelligence.com/industry-reports/north-america-decorative-and-illuminated-mirror-market?utm_source=industrytoday.uk 

3. Table And Floor Lamps Market: https://www.mordorintelligence.com/industry-reports/table-and-floor-lamps-market?utm_source=industrytoday.uk

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