Decorative Lighting Market Projected to Achieve $55.5 Billion by 2033, Expanding at 3.0% CAGR

Market Overview:

The decorative lighting market is experiencing rapid growth, driven by rising demand for home aesthetics, energy-efficient led technology, and growth in hospitality and commercial sectors. According to IMARC Group's latest research publication, “Decorative Lighting Market: Global Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2025-2033,” The global decorative lighting market size was valued at USD 42.69 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 55.5 Billion by 2033, exhibiting a CAGR of 3.0% from 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes: 

• Market Dynamics
• Market Trends And Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors Driving the Decorative Lighting Industry

• Rising Demand for Home Aesthetics:

People are pouring more money into making their homes look stylish, and decorative lighting is a big part of that. With more folks living in cities and earning higher disposable incomes, they’re investing in lighting to jazz up their living spaces. For instance, the global decorative lighting market was valued at $41.60 billion recently, showing how much consumers are spending on home decor. Social media platforms like Instagram and Pinterest are fueling this trend, with users sharing trendy home designs that feature chic lighting fixtures like chandeliers or pendant lights. This push for personalized, visually appealing homes is driving demand for unique lighting solutions that add both function and flair, especially in urban areas where modern living spaces are booming.

• Energy-Efficient LED Technology:

Energy-efficient LED lighting is a game-changer for the decorative lighting industry. Consumers and businesses are switching to LEDs because they use up to 80% less energy than traditional bulbs and last way longer. This shift is backed by government programs like India’s UJALA scheme, which has distributed over 370 million LED bulbs to promote sustainability. LEDs also offer design flexibility, letting manufacturers create sleek, colorful fixtures for homes and commercial spaces. The lower energy bills and eco-friendly appeal are huge draws, especially as people become more environmentally conscious. Plus, businesses like hotels and restaurants are adopting LEDs to cut costs while keeping their spaces looking sharp, boosting the market for decorative yet efficient lighting solutions.

• Growth in Hospitality and Commercial Sectors:

The hospitality and commercial sectors are lighting up the decorative lighting market. Hotels, restaurants, and retail spaces are using fancy lighting to create inviting vibes that align with their branding. For example, there are over 54,200 hotels in the U.S. alone, many using decorative lighting to craft a luxurious atmosphere. The rise in urban infrastructure, like shopping malls and offices, is also driving demand for lighting that’s both functional and stylish. Companies like Surya Roshni recently launched a festive collection with products like Jagmag String Lights, designed for easy installation and low power use, catering to these commercial needs. As businesses aim to stand out and create memorable experiences, decorative lighting is becoming a go-to solution.

Trends in the Global Decorative Lighting Market

• Smart Lighting Systems:

Smart lighting is taking the decorative lighting world by storm, blending tech with style. These systems let users control brightness, color, and schedules via apps or voice assistants like Alexa. For instance, Philips Hue offers bulbs that switch from warm to cool tones, making it easy to set the mood. With 116,108 malls in the U.S. using accent lighting to create welcoming spaces, smart lighting is a hit for both homes and businesses. The trend is growing fast as smart home adoption rises, with consumers loving the convenience and energy savings. Plus, these systems integrate with IoT, allowing seamless control, which makes them a hot pick for tech-savvy buyers looking to personalize their spaces.

• Sustainable and Eco-Friendly Designs:

Sustainability is a big deal in decorative lighting, with folks leaning toward eco-friendly options. Consumers want fixtures made from recycled materials or energy-saving LEDs to cut their environmental footprint. For example, LEDs use 70% less energy than traditional bulbs and contain no harmful mercury. Manufacturers are jumping on this trend, with companies like Signify launching eco-conscious Philips Hue bulbs that focus on low energy use. This push aligns with global efforts to reduce electricity consumption, which lighting accounts for 15-18% worldwide. As green certifications gain traction, buyers are prioritizing sustainable lighting that looks good and feels good for the planet, especially in regions like Europe with strict environmental standards.

• Wellness-Focused Lighting:

Lighting that boosts health and mood is an emerging favorite. Known as human-centric or circadian lighting, these fixtures mimic natural daylight to improve well-being and productivity. For instance, tunable LED lights adjust color temperature throughout the day, helping regulate sleep cycles. This trend is huge in offices and homes, where people spend long hours indoors. Companies like Luminis recently introduced the Jaki series, offering versatile fixtures that enhance ambiance while supporting wellness. With urban populations growing—55% of people live in cities, expected to hit 68% by 2050—demand for lighting that promotes health is soaring. It’s a practical yet stylish solution for modern, health-conscious consumers.

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Leading Companies Operating in the Global Decorative Lighting Industry:

• 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

Decorative Lighting Market Segmentation:

Breakup by Product Type:

• Chandelier
• Pendant
• Sconce
• Flush Mount
• Ceiling Mount
• Wall Mount
• Others

The sconce segment is driven by the growing popularity of accent lighting in interior design. 

Breakup by Light Source:

• LED
• Fluorescent
• Incandescent
• Others

LED held the largest market share of 39.8% in 2024. The light-emitting diode (LED) segment is being driven by a growing demand for energy-efficient and long-lasting lighting solutions.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Specialty Stores
• Online Stores
• Others

The increasing buyer’s desire for one-stop shopping experiences also drives the need for supermarkets and hypermarkets, through which a comprehensive assortment of decorative lighting products are available under a single roof.

Breakup by End User:

• Commercial
• Household

Commercial held the largest market share of 62.8% in 2024. The commercial segment of decorative lighting has been driven by the increasing need to create inviting and brand-aligned environments in retail, hospitality, and office spaces.

Breakup by Region:

• North America (United States, Canada)
• Europe (Germany, France, United Kingdom, Italy, Spain, Others)
• Asia Pacific (China, Japan, India, Australia, Indonesia, Korea, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa (United Arab Emirates, Saudi Arabia, Qatar, Iraq, Other)

North America accounted for the largest market share of 37.6% in 2024. There's a growing incorporation of smart home technologies and stringent emphasis on an energy-efficient environment in North America, which continues to drive decorative lighting.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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