Decorative Lighting Market Analysis

ID: MRFR/CG/10129-HCR

128 Pages

Varsha More

October 2025

Decorative Lighting Market Research Report Information By Distribution Channel (Offline and Online), By Product (Ceiling, Wall mounted, and Others), and By Region (North America, Europe, Asia-Pacific, and Rest of The World) – Market Forecast Till 2035

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Market Analysis

In-depth Analysis of Decorative Lighting Market Industry Landscape

The decorative lighting market constitutes a vibrant industry shaped by a combination of aesthetic trends, technology breakthroughs, and shifting customer tastes. Decorative lighting, which focuses on appearance and mood, includes a diverse variety of goods such as lighting, hanging lights, ceiling lamps, as well as lamps for tables. Client demands of distinctive and individualized decorating ideas fuel the industry, resulting in an ongoing need for creative and elegant light solutions. Since consumers and companies strive for unique environments, producers react by offering a wide range of styles, substances, and smart lighting capabilities. Patterns in design serve an important part in developing the particular decorative lighting market or industry. This sector is defined with an ongoing cycle of creative breakthroughs and resurgences. Vintage as well as classic styles frequently make a reappearance, but modern and simple designs are ageless. Companies actively watch design trends, hues, and architecture types to guarantee the goods they sell meet modern consumer tastes. The marketplace's response to fashion patterns maintains it alive and ever-changing, featuring a steady stream of novel products catering to a wide range of preferences. Advances in technology have a profound impact on the sales dynamics for decorative lighting. The incorporation of intelligent lighting systems has grown in popularity, enabling customers to manage the color, magnitude, and additionally schedule their lighting via smartphone or tablet apps or controlled by voice gadgets. The introduction of power-efficient light bulbs additionally changed the sector, giving customers ecologically friendly solutions that minimize energy usage while delivering a diverse range of choices for lighting. As automation in homes grows in appeal, companies must include innovative characteristics into their goods in order to remain relevant within a industry that is constantly shifting. Awareness among customers and a focus on ecology are now important drivers for decorative lighting market or business. Given a growing emphasis on sustainable and environmentally friendly remedies, customers want items that reflect their environmental beliefs. It has pushed producers to look into environmentally friendly supplies, cost-effective technology, and recyclable containers. Sustainability procedures, including the utilization of reused components as well as fewer fossil fuels in production procedures, are now critical factors in the business, mirroring a larger cultural movement toward mindful shopping. The retail environment has a significant impact upon decorative lighting market or sector. Although physical shops are still significant, the growth of online shopping has transformed how customers explore and buy light items. Internet-based platforms allow users to easily explore a variety of products, browse evaluations, and find out costs. To remain successful within the age of digital commerce, businesses and manufacturers need to improve their website, which includes precise product details, excellent images, plus a frictionless purchasing procedure. Diversification has additionally had an impact upon decorative lighting market or business, giving customers exposure to international styles and trends. Global style inspirations & partnerships among producers from various locations add to the breadth of goods accessible. This worldwide interchange between concepts and sensibilities guarantees that buyers offer a diverse range of options, from conventional layouts based on cultural history to the latest along with contemporary inventions. The decorative lighting market industry is fiercely competitive, featuring existing as well as emerging firms striving for market leadership. Effective advertising, positioning of brands, & the capacity to predict and adjust to shifting consumer tastes constitute essential successful elements in this rapidly evolving sector. Businesses frequently distinguish them via unique looks, technical advancements, plus advertising approaches which connect with their intended consumers. To summarize, decorative lighting market or industry is distinguished by a harmonic combination of architectural developments, technology breakthroughs, environmental concerns, and an adversarial retailing environment. Since customers concentrate both the visual and practical features of illumination when designing their home and office environments, producers must constantly innovate to remain competitive in this ever-changing marketplace. The interaction of aesthetics, technology, long-term viability and worldwide factors guarantees overall decorative lighting market or business stays a fascinating and ever-changing segment of the larger residential and decorating industries.

Market Highlights

Author

Varsha More

Research Analyst

Experienced business professional with a demonstrated history of working in the CFnB industry. Skilled in market research, and market estimation. Strong professional with a Masters focused in marketing management.

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FAQs

What is the current valuation of the Decorative Lighting Market in 2025?

The Decorative Lighting Market is valued at 40.0 USD Billion in 2024 and is projected to grow to 58.41 USD Billion by 2035.

What is the expected CAGR for the Decorative Lighting Market from 2025 to 2035?

The expected CAGR for the Decorative Lighting Market during the forecast period 2025 - 2035 is 3.5%.

Which distribution channel shows higher revenue in the Decorative Lighting Market?

In 2024, the Offline distribution channel generated 30.0 USD Billion, while the Online channel accounted for 10.0 USD Billion.

What are the key product segments in the Decorative Lighting Market?

The key product segments include Ceiling lighting, Wall Mounted lighting, and Others, with valuations of 15.0 USD Billion, 10.0 USD Billion, and 15.0 USD Billion respectively in 2024.

Who are the leading players in the Decorative Lighting Market?

Key players in the Decorative Lighting Market include Philips, General Electric, Osram, Cree, Acuity Brands, Signify, Havells, Zumtobel, and Foscarini.

How does the revenue from Ceiling lighting compare to Wall Mounted lighting?

In 2024, Ceiling lighting generated 15.0 USD Billion, whereas Wall Mounted lighting produced 10.0 USD Billion.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the Decorative Lighting Market Size was estimated at 40.0 USD Billion in 2024. The Decorative Lighting industry is projected to grow from 41.4 USD Billion in 2025 to 58.41 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 3.5 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Decorative Lighting Market is experiencing a dynamic shift towards sustainability and smart technology integration.

North America remains the largest market for decorative lighting, driven by a strong demand for aesthetic appeal.
Asia-Pacific is emerging as the fastest-growing region, reflecting a rising interest in innovative lighting solutions.
The offline segment continues to dominate sales, while the online segment is rapidly gaining traction among consumers.
Key market drivers include the growing interest in sustainable lighting solutions and the expansion of the hospitality sector.

Decorative Lighting Market

CAGR

3.5%

Market Size & Forecast

2024 Market Size	40.0 (USD Billion)
2035 Market Size	58.41 (USD Billion)
CAGR (2025 - 2035)	3.5%
Largest Regional Market Share in 2024	North America

Major Players

Philips (NL), General Electric (US), Osram (DE), Cree (US), Acuity Brands (US), Signify (NL), Havells (IN), Zumtobel (AT), Foscarini (IT)

Market Trends

The Decorative Lighting Market is currently experiencing a dynamic evolution, driven by a confluence of aesthetic preferences and technological advancements. Consumers increasingly seek unique and personalized lighting solutions that not only illuminate spaces but also enhance the overall ambiance. This trend is reflected in the growing popularity of decorative fixtures that blend functionality with artistic design. As sustainability becomes a focal point, eco-friendly materials and energy-efficient technologies are gaining traction, appealing to environmentally conscious consumers. Furthermore, the rise of smart home technology is influencing the market, as consumers look for lighting options that can be integrated into their connected living environments. In addition to aesthetic and technological factors, the Decorative Lighting Market is also shaped by changing consumer lifestyles and preferences. The demand for versatile lighting solutions that cater to various settings, from residential to commercial spaces, is on the rise. This shift indicates a broader trend towards multifunctional designs that can adapt to different occasions and moods. As the market continues to evolve, manufacturers are likely to focus on innovation and customization, ensuring that their offerings resonate with the diverse needs of consumers. Overall, the Decorative Lighting Market appears poised for continued growth, driven by a blend of creativity, sustainability, and technological integration.

Sustainability in Design

The emphasis on eco-friendly materials and energy-efficient technologies is becoming increasingly prominent in the Decorative Lighting Market. Consumers are gravitating towards products that not only enhance aesthetics but also align with their values regarding environmental responsibility. This trend suggests a shift towards sustainable practices in manufacturing and design.

Integration of Smart Technology

The incorporation of smart technology into decorative lighting solutions is transforming consumer expectations. As homes become more connected, there is a growing demand for lighting that can be controlled remotely and customized to fit individual preferences. This trend indicates a potential for innovation in the market.

Versatile Aesthetic Solutions

The desire for multifunctional and adaptable lighting designs is shaping the Decorative Lighting Market. Consumers are increasingly seeking products that can serve various purposes and fit different environments, from intimate home settings to expansive commercial spaces. This trend highlights the importance of flexibility in design.

Decorative Lighting Market Market Drivers

Rising Demand for Aesthetic Appeal

The Decorative Lighting Market experiences a notable surge in demand driven by consumers' increasing desire for aesthetic appeal in their living and working spaces. As individuals seek to create unique atmospheres, decorative lighting solutions are becoming essential elements in interior design. This trend is reflected in the market data, which indicates that the decorative lighting segment is projected to grow at a compound annual growth rate of approximately 6.5% over the next five years. The emphasis on aesthetics is not limited to residential spaces; commercial establishments are also investing in decorative lighting to enhance customer experiences. This growing focus on visual appeal suggests that manufacturers must innovate continuously to meet evolving consumer preferences, thereby shaping the future landscape of the Decorative Lighting Market.

Expansion of the Hospitality Sector

The expansion of the hospitality sector significantly influences the Decorative Lighting Market. As hotels, restaurants, and other hospitality venues strive to create memorable experiences for their guests, the demand for decorative lighting solutions has surged. Market data indicates that the hospitality industry is projected to grow at a rate of 5% annually, driving the need for innovative lighting designs that enhance ambiance. Decorative lighting is increasingly viewed as a key element in establishing a brand identity and attracting customers. This trend encourages manufacturers to develop customized lighting solutions tailored to the unique themes and aesthetics of various establishments. The ongoing growth of the hospitality sector suggests a robust opportunity for the Decorative Lighting Market, as it aligns with the industry's focus on enhancing guest experiences through thoughtful design.

Technological Advancements in Lighting Solutions

Technological advancements play a pivotal role in shaping the Decorative Lighting Market. The integration of LED technology has revolutionized the sector, offering energy-efficient and long-lasting lighting solutions. As consumers become more environmentally conscious, the demand for energy-efficient products is on the rise. Market data indicates that LED lighting accounted for over 50% of the decorative lighting market share in recent years, highlighting its dominance. Furthermore, innovations such as smart lighting systems, which allow users to control lighting through mobile applications, are gaining traction. These advancements not only enhance user convenience but also contribute to energy savings, making them attractive to both residential and commercial consumers. The ongoing evolution of technology in decorative lighting suggests a promising future for the industry, as it adapts to meet the needs of a tech-savvy consumer base.

Growing Interest in Sustainable Lighting Solutions

Sustainability has emerged as a critical driver in the Decorative Lighting Market. Consumers are increasingly prioritizing eco-friendly products, leading to a rise in demand for sustainable lighting solutions. This trend is evident in the growing popularity of products made from recycled materials and those that utilize energy-efficient technologies. Market data reveals that the sustainable lighting segment is expected to witness a growth rate of around 7% annually, reflecting a shift in consumer preferences towards environmentally responsible choices. Manufacturers are responding by developing innovative designs that not only meet aesthetic standards but also adhere to sustainability principles. This focus on sustainability is likely to reshape the competitive landscape of the Decorative Lighting Market, as companies that prioritize eco-friendly practices may gain a competitive edge.

Increased Focus on Home Renovation and Improvement

The Decorative Lighting Market is experiencing a boost due to the increased focus on home renovation and improvement projects. As homeowners seek to enhance their living spaces, decorative lighting has become a focal point in interior design. Market data indicates that the home improvement sector is expected to grow by approximately 4.5% annually, with lighting solutions playing a crucial role in these projects. Consumers are increasingly investing in decorative lighting to create ambiance and functionality in their homes. This trend is further fueled by the rise of social media platforms, where homeowners showcase their renovation projects, inspiring others to invest in decorative lighting. The growing emphasis on home aesthetics suggests that the Decorative Lighting Market will continue to thrive as consumers prioritize creating inviting and stylish environments.

Market Segment Insights

By Distribution Channel: Offline (Largest) vs. Online (Fastest-Growing)

In the Decorative Lighting Market, the distribution channel plays a critical role in how products reach consumers. The offline segment continues to dominate, providing customers with a tactile shopping experience that allows them to see, touch, and test the lighting products before purchasing. Retail stores and showrooms have emerged as crucial avenues for consumers searching for the perfect lighting solution, accounting for a significant portion of market share.

Distribution Channels: Offline (Dominant) vs. Online (Emerging)

The offline distribution channel remains dominant in the Decorative Lighting Market, as many consumers prefer the traditional retail experience. Physical stores offer immediate access to products, knowledgeable staff, and the ability to visualize how the lighting fits in their space. In contrast, the online segment has seen exponential growth, particularly due to the convenience of shopping from home and the influx of e-commerce platforms. With a rising number of consumers embracing online shopping, the online channel is emerging as a strong competitor, driven by innovations in AR technology, enhanced delivery services, and personalized shopping experiences that cater to individual preferences.

By Product: Ceiling (Largest) vs. Wall Mounted (Fastest-Growing)

The Decorative Lighting Market is segmented into three primary categories: Ceiling, Wall Mounted, and Others. Among these, Ceiling lighting dominates the market, holding substantial portions due to its versatility and numerous styling options that appeal to various interior designs. Wall Mounted lighting, however, is emerging rapidly as consumers increasingly seek innovative ways to maximize their space and ambiance, reflecting a shift in design preferences toward integrated lighting solutions.

Ceiling (Dominant) vs. Wall Mounted (Emerging)

Ceiling lighting is characterized by its broad application in residential and commercial spaces, providing ambient illumination while enhancing the aesthetic appeal of interiors. Its dominance stems from the wide range of options available, catering to diverse tastes and preferences. In contrast, Wall Mounted lighting has gained traction, driven by trends favoring space-saving designs and customizable angles. This segment appeals particularly to urban dwellers who prefer functional yet chic solutions for smaller living environments. As wall-mounted fixtures continue to evolve, they combine utility with artistic expression, making them an attractive choice for modern interior design.

Get more detailed insights about Decorative Lighting Market Research Report—Global Forecast till 2035

Regional Insights

North America : Innovation and Sustainability Focus

North America is the largest market for decorative lighting, holding approximately 40% of the global share. The region's growth is driven by increasing consumer demand for energy-efficient lighting solutions and smart home technologies. Regulatory support, such as energy efficiency standards, further catalyzes market expansion. The U.S. and Canada are the primary contributors, with a strong emphasis on sustainability and innovation in lighting design. The competitive landscape in North America features key players like Philips, General Electric, and Cree, who are at the forefront of technological advancements. The presence of established brands and a growing trend towards smart lighting solutions are shaping the market dynamics. Additionally, the region's focus on eco-friendly products is pushing companies to innovate, ensuring a robust market environment.

Europe : Cultural Heritage Meets Modern Design

Europe is the second-largest market for decorative lighting, accounting for around 30% of the global market share. The region's growth is fueled by a rich cultural heritage that influences design trends, alongside increasing investments in energy-efficient lighting solutions. Regulatory frameworks, such as the EU's Ecodesign Directive, promote sustainable practices, driving demand for innovative lighting products across residential and commercial sectors. Leading countries in Europe include Germany, France, and Italy, where companies like Osram and Foscarini thrive. The competitive landscape is characterized by a blend of traditional craftsmanship and modern technology, with a strong emphasis on aesthetics and functionality. The presence of numerous design fairs and exhibitions further enhances market visibility, allowing brands to showcase their latest innovations and connect with consumers.

Asia-Pacific : Rapid Urbanization and Growth

Asia-Pacific is witnessing rapid growth in the decorative lighting market, holding approximately 25% of the global share. The region's expansion is driven by urbanization, rising disposable incomes, and a growing middle class that demands aesthetically pleasing lighting solutions. Government initiatives promoting energy efficiency and smart city projects are also significant catalysts for market growth, particularly in countries like China and India. China is the largest market in the region, followed by India and Japan, with key players such as Havells and Signify leading the charge. The competitive landscape is marked by a mix of local and international brands, focusing on innovative designs and energy-efficient products. The increasing trend towards smart homes and IoT integration is further shaping the market, creating opportunities for growth and development in the decorative lighting sector.

Middle East and Africa : Diverse Markets and Opportunities

The Middle East and Africa region is emerging as a significant player in the decorative lighting market, accounting for about 5% of the global share. The growth is driven by increasing urbanization, infrastructure development, and a rising demand for luxury and decorative lighting solutions in both residential and commercial sectors. Government investments in smart city initiatives and tourism are also contributing to market expansion, particularly in the UAE and South Africa. Leading countries in this region include the UAE, South Africa, and Saudi Arabia, where the presence of key players like Zumtobel and local manufacturers is notable. The competitive landscape is characterized by a mix of international brands and regional players, focusing on innovative designs and energy-efficient solutions. The growing interest in sustainable and aesthetically pleasing lighting options is shaping the market dynamics, creating new opportunities for growth.

Key Players and Competitive Insights

The Decorative Lighting Market is currently characterized by a dynamic competitive landscape, driven by innovation, sustainability, and digital transformation. Major players such as Philips (NL), General Electric (US), and Signify (NL) are at the forefront, each adopting distinct strategies to enhance their market positioning. Philips (NL) emphasizes innovation in energy-efficient lighting solutions, while General Electric (US) focuses on expanding its smart lighting portfolio. Signify (NL), on the other hand, is leveraging its expertise in connected lighting to cater to the growing demand for smart home solutions. Collectively, these strategies not only enhance their competitive edge but also contribute to a rapidly evolving market environment.

In terms of business tactics, companies are increasingly localizing manufacturing to reduce lead times and optimize supply chains. This approach appears to be particularly effective in a moderately fragmented market, where the collective influence of key players shapes pricing strategies and product offerings. The emphasis on sustainability and energy efficiency is also becoming a critical factor in market structure, as consumers increasingly demand eco-friendly solutions.

In August 2025, Philips (NL) announced the launch of its new line of solar-powered decorative lights, aimed at enhancing outdoor aesthetics while promoting sustainability. This strategic move not only aligns with global trends towards renewable energy but also positions Philips as a leader in eco-conscious lighting solutions. The introduction of solar-powered options could potentially attract environmentally aware consumers, thereby expanding Philips' market share.

In September 2025, General Electric (US) unveiled a partnership with a leading smart home technology firm to integrate its lighting solutions with advanced home automation systems. This collaboration is likely to enhance the functionality of GE's products, making them more appealing to tech-savvy consumers. By aligning with a technology partner, GE may strengthen its competitive position in the smart lighting segment, which is witnessing significant growth.

In July 2025, Signify (NL) launched an innovative AI-driven lighting control system designed to optimize energy consumption in commercial spaces. This initiative not only underscores Signify's commitment to sustainability but also highlights the increasing role of artificial intelligence in enhancing operational efficiency. The integration of AI into lighting solutions could provide Signify with a competitive advantage, as businesses seek to reduce energy costs and improve sustainability metrics.

As of October 2025, the Decorative Lighting Market is witnessing trends that emphasize digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances are becoming increasingly prevalent, as companies recognize the need to collaborate to enhance their technological capabilities. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology integration, and supply chain reliability. This shift suggests that companies that prioritize these aspects may emerge as leaders in the Decorative Lighting Market.

Key Companies in the Decorative Lighting Market market include

Industry Developments

March 2022: The company repurchased 850,000 shares for 35.5 million euros. The company's repurchase program, which started on February 24th, 2022 and concludes on February 24th, 2023, was the reason for the stock buyback. The shares will be used to settle obligations arising from the employee share plans and incentive performance share plans of Signify.

April 2021: Together with Sony, Fagerhult Group improved overviews and off-flow management in larger buildings. Both Sony's Nimway and Fagerhult's Organic Response wireless lighting control system will be used in the partnership.

Future Outlook

Decorative Lighting Market Future Outlook

The Decorative Lighting Market is projected to grow at a 3.5% CAGR from 2024 to 2035, driven by technological advancements, increasing consumer demand, and sustainability trends.

New opportunities lie in:

Expansion into smart lighting solutions for residential applications.
Development of eco-friendly materials for decorative fixtures.
Partnerships with interior designers for customized lighting solutions.

By 2035, the market is expected to achieve robust growth, reflecting evolving consumer preferences and innovative product offerings.

Market Segmentation

Decorative Lighting Market Product Outlook

Ceiling
Wall Mounted
Others

Decorative Lighting Market Distribution Channel Outlook

Offline
Online

Report Scope

MARKET SIZE 2024	40.0(USD Billion)
MARKET SIZE 2025	41.4(USD Billion)
MARKET SIZE 2035	58.41(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	3.5% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Market analysis in progress
Segments Covered	Market segmentation analysis in progress
Key Market Opportunities	Integration of smart technology in the Decorative Lighting Market enhances consumer engagement and customization.
Key Market Dynamics	Rising consumer preference for energy-efficient decorative lighting solutions drives innovation and competition among manufacturers.
Countries Covered	North America, Europe, APAC, South America, MEA