Decorative Lighting Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 107.22 Billion
CAGR (2026-2031)	6.85%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 159.56 Billion

Market Overview

The Global Decorative Lighting Market will grow from USD 107.22 Billion in 2025 to USD 159.56 Billion by 2031 at a 6.85% CAGR. The Global Decorative Lighting Market consists of lighting fixtures such as chandeliers, pendants, and sconces designed to enhance the aesthetic appeal of residential and commercial environments rather than serving solely functional purposes. Key drivers propelling this industry include rapid urbanization and rising disposable incomes which allow for increased investment in interior decor. Moreover, the sector is experiencing significant growth due to the widespread transition toward energy-efficient technologies. To highlight this trend, according to the International Energy Agency, in 2024, LED technology accounted for approximately 50% of global residential lighting sales.

Despite these favorable conditions, the market faces a substantial hurdle regarding the high initial installation costs associated with premium and smart lighting systems. This pricing barrier often deters cost-sensitive consumers and complicates the adoption of advanced fixtures in emerging economies, thereby presenting a notable challenge that could impede the broader expansion of the global decorative lighting sector.

Key Market Drivers

The surge in residential renovation and retrofitting activities constitutes a primary force expanding the Global Decorative Lighting Market. Homeowners are increasingly prioritizing interior aesthetics, replacing outdated fixtures with modern decorative elements to enhance property value and visual appeal. This trend is fueled by the aging housing stock in developed regions, prompting consumers to invest heavily in remodeling projects that feature statement lighting such as pendants and chandeliers as focal points. Highlighting this expenditure, according to Houzz, March 2024, in the '2024 U.S. Houzz & Home Study', the median spend for home renovations in the United States reached $24,000 in 2023. This significant capital injection into home improvement directly correlates with higher sales volumes for premium decorative lighting solutions.

The integration of smart home systems and IoT-enabled lighting serves as the second major catalyst for industry progress. Consumers are shifting toward connected lighting ecosystems that offer customizable ambiance, energy management, and seamless control via mobile applications, thereby driving replacement cycles. Validating this technological shift, according to Signify, February 2024, in the 'Annual Report 2023', the company's installed base of connected light points grew to approximately 124 million. Furthermore, the overall demand for these advanced fixtures is sustained by robust construction activity which necessitates new installations. According to the U.S. Census Bureau, in 2024, privately-owned housing completions were at a seasonally adjusted annual rate of 1,788,000 in August, ensuring a continuous stream of opportunities for the lighting sector.

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Key Market Challenges

The high initial installation costs associated with premium and smart lighting systems significantly impede the growth of the global decorative lighting market. This pricing barrier discourages cost-sensitive consumers and commercial clients from investing in advanced aesthetic fixtures, leading them to prioritize basic functional lighting instead. In emerging economies where price sensitivity is acute, this cost disparity effectively blocks the widespread adoption of modern lighting solutions. Consequently, manufacturers struggle to expand their customer base beyond a niche luxury segment, directly stalling overall market volume and revenue progression.

This financial challenge is intensified by broader economic factors that reduce the budget available for interior decor. When foundational building costs rise, the capital allocated for finishing touches like decorative lighting often diminishes. According to the National Association of Home Builders, in 2024, construction costs accounted for 64.4% of the average price of a new home, leaving a restricted margin for discretionary upgrades. This financial strain makes the premium price of smart decorative lighting difficult to justify for many buyers, thereby dampening demand and hampering the sector's expansion.

Key Market Trends

The adoption of sustainable and recycled material fixtures is fundamentally reshaping the global decorative lighting market as manufacturers prioritize circular economy principles. This trend involves a strategic shift from linear production models to the creation of serviceable, upgradable, and recyclable luminaires designed to minimize environmental impact. Major industry players are aggressively integrating bio-circular materials and 3D-printing technologies to reduce waste and carbon footprints. Validating this industry-wide commitment, according to Signify, February 2025, in the 'Annual Report 2024', the company's circular revenues stood at 35% of total sales, maintaining a level well above their 2025 sustainability target.

Simultaneously, there is a marked resurgence of mid-century modern and vintage aesthetics, characterized by a consumer preference for warm metallic finishes and nostalgic forms. This aesthetic shift moves away from the sterile minimalism of recent years, favoring fixtures that incorporate materials like copper, brass, and gold to evoke warmth and timeless elegance. Homeowners are increasingly selecting statement pieces that serve as artistic focal points, blending retro designs with modern functionality. Highlighting this demand, according to Houzz, May 2025, in the '2025 Houzz U.S. Emerging Summer Trends Report', search interest for 'copper pendant lighting' increased by 3.5 times compared to the previous year.

Segmental Insights

The online segment is currently positioned as the fastest-growing distribution channel within the global decorative lighting market. This rapid expansion is primarily driven by the increasing penetration of e-commerce platforms and the convenience of browsing extensive product catalogs from remote locations. Consumers are shifting toward digital purchasing due to the ability to easily compare prices and specifications across multiple brands. Furthermore, advancements in secure logistics for fragile items have significantly reduced delivery concerns, encouraging more buyers to source aesthetic lighting fixtures through internet-based retailers rather than traditional physical stores.

Regional Insights

North America maintains a dominant position in the Global Decorative Lighting Market, driven by high disposable income and substantial investment in residential and commercial infrastructure. Continuous renovation activities and new real estate developments fuel consistent demand for aesthetic fixtures across the region. Additionally, the U.S. Department of Energy (DOE) enforces rigorous efficiency standards that accelerate the adoption of energy-saving LED and smart lighting technologies. This regulatory support, alongside a well-established retail sector and rising consumer preference for connected home systems, solidifies the region's leadership in the global sector.

Recent Developments

In October 2025, Signify launched the Philips Aura Floodlight in India, a product specifically designed to blend professional illumination with decorative festive aesthetics. The new fixture featured a unique border-lit design capable of displaying cultural motifs, serving as a decorative element during the day and a powerful light source at night. Engineered for durability with high surge protection and weather resistance, the product addressed the regional market need for reliable, permanent lighting solutions in public and religious spaces. This launch reinforced the company's strategy to provide localized, innovative lighting products that enhance the visual appeal of architectural and community settings.
In June 2025, Lutron Electronics acquired Orluna LED Technologies, a UK-based manufacturer known for its premium architectural lighting fixtures. This strategic acquisition marked the company's first major expansion into the fixture market outside North America, effectively adding high-performance downlights and track lighting to its global portfolio. The move was intended to complement the company’s existing lighting control and shading solutions, providing a unified offering for luxury residential and hospitality projects across Europe and the Middle East. By integrating these specialized fixtures, the company aimed to deliver superior dimming performance and optical precision to high-end clients globally.
In October 2024, Visual Comfort & Co. announced a strategic partnership with Waterford, a renowned luxury crystal manufacturer, to launch an exclusive decorative lighting collection. This collaboration merged the company's proficiency in designer lighting with the partner's traditional crystal craftsmanship, resulting in a new range of chandeliers, pendants, wall sconces, and floor lamps. The collection, which was introduced at the High Point Market, featured elegant finishes such as natural brass and polished nickel, designed to elevate interior environments through the sophisticated interplay of light and crystal. This initiative highlighted the company's commitment to combining timeless elegance with modern design in the high-end decorative market.
In October 2024, Louis Poulsen introduced a limited edition of the PH 2/1 Table Lamp, distinguished by its unique terracotta-colored glass shades. This product launch celebrated the company's design heritage, utilizing a four-layer mouth-blown glass technique to create a warm, inviting glow suited for contemporary interiors. The fixture included an aged brass frame with a brushed finish, adding a refined, vintage aesthetic to the brand's classic glare-free three-shade system. Available only for a short duration, this release aimed to offer design aficionados a collectible piece that balanced functional illumination with distinctive decorative appeal for residential spaces.

Key Market Players

Acuity Brands, Inc.
Cree Lighting USA LLC.
Kichler Lighting LLC
Hinkley, Inc.
Hudson Valley Lighting, Inc.
Lutron Electronics Co., Inc
Maxim Lighting International
Elk Lighting, Inc.
Nichia Corporation
Visual Comfort & Co.

By Product	By Application	By Sales Channel	By Region
Sconce Flush Mount Others	Commercial Household	Specialty Stores Online Hypermarkets/Supermarkets Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Decorative Lighting Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Decorative Lighting Market, By Product:

Sconce
Flush Mount
Others

Decorative Lighting Market, By Application:

Commercial
Household

Decorative Lighting Market, By Sales Channel:

Specialty Stores
Online
Hypermarkets/Supermarkets
Others

Decorative Lighting Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Decorative Lighting Market.

Available Customizations:

Global Decorative Lighting Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Decorative Lighting Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Decorative Lighting Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Product (Sconce, Flush Mount, Others)

5.2.2. By Application (Commercial, Household)

5.2.3. By Sales Channel (Specialty Stores, Online, Hypermarkets/Supermarkets, Others)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Decorative Lighting Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Product

6.2.2. By Application

6.2.3. By Sales Channel

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Decorative Lighting Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Product

6.3.1.2.2. By Application

6.3.1.2.3. By Sales Channel

6.3.2. Canada Decorative Lighting Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Product

6.3.2.2.2. By Application

6.3.2.2.3. By Sales Channel

6.3.3. Mexico Decorative Lighting Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Product

6.3.3.2.2. By Application

6.3.3.2.3. By Sales Channel

7. Europe Decorative Lighting Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Product

7.2.2. By Application

7.2.3. By Sales Channel

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Decorative Lighting Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Product

7.3.1.2.2. By Application

7.3.1.2.3. By Sales Channel

7.3.2. France Decorative Lighting Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Product

7.3.2.2.2. By Application

7.3.2.2.3. By Sales Channel

7.3.3. United Kingdom Decorative Lighting Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Product

7.3.3.2.2. By Application

7.3.3.2.3. By Sales Channel

7.3.4. Italy Decorative Lighting Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Product

7.3.4.2.2. By Application

7.3.4.2.3. By Sales Channel

7.3.5. Spain Decorative Lighting Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Product

7.3.5.2.2. By Application

7.3.5.2.3. By Sales Channel

8. Asia Pacific Decorative Lighting Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Product

8.2.2. By Application

8.2.3. By Sales Channel

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Decorative Lighting Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Product

8.3.1.2.2. By Application

8.3.1.2.3. By Sales Channel

8.3.2. India Decorative Lighting Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Product

8.3.2.2.2. By Application

8.3.2.2.3. By Sales Channel

8.3.3. Japan Decorative Lighting Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Product

8.3.3.2.2. By Application

8.3.3.2.3. By Sales Channel

8.3.4. South Korea Decorative Lighting Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Product

8.3.4.2.2. By Application

8.3.4.2.3. By Sales Channel

8.3.5. Australia Decorative Lighting Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Product

8.3.5.2.2. By Application

8.3.5.2.3. By Sales Channel

9. Middle East & Africa Decorative Lighting Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Product

9.2.2. By Application

9.2.3. By Sales Channel

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Decorative Lighting Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Product

9.3.1.2.2. By Application

9.3.1.2.3. By Sales Channel

9.3.2. UAE Decorative Lighting Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Product

9.3.2.2.2. By Application

9.3.2.2.3. By Sales Channel

9.3.3. South Africa Decorative Lighting Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Product

9.3.3.2.2. By Application

9.3.3.2.3. By Sales Channel

10. South America Decorative Lighting Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Product

10.2.2. By Application

10.2.3. By Sales Channel

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Decorative Lighting Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Product

10.3.1.2.2. By Application

10.3.1.2.3. By Sales Channel

10.3.2. Colombia Decorative Lighting Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Product

10.3.2.2.2. By Application

10.3.2.2.3. By Sales Channel

10.3.3. Argentina Decorative Lighting Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Product

10.3.3.2.2. By Application

10.3.3.2.3. By Sales Channel

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Decorative Lighting Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Acuity Brands, Inc.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Cree Lighting USA LLC.

15.3. Kichler Lighting LLC

15.4. Hinkley, Inc.

15.5. Hudson Valley Lighting, Inc.

15.6. Lutron Electronics Co., Inc

15.7. Maxim Lighting International

15.8. Elk Lighting, Inc.

15.9. Nichia Corporation

15.10. Visual Comfort & Co.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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