Decorative Lighting Market Size & Share Report - 2034 | Growth Forecast

According to the report by Expert Market Research (EMR), the global decorative lighting market is projected to grow at a compound annual growth rate (CAGR) of 3.20% during the forecast period from 2025 to 2034. The market is driven by increasing urbanisation, rising disposable incomes, and the growing emphasis on aesthetic and functional lighting solutions in residential, commercial, and public spaces. Decorative lighting, which includes a variety of products such as chandeliers, pendant lights, wall sconces, and outdoor lighting, is increasingly being adopted to enhance ambience, architectural aesthetics, and outdoor landscapes.

The growing preference for smart and energy-efficient lighting solutions has further propelled the decorative lighting market. LED technology and the integration of IoT (Internet of Things) in lighting systems have transformed the market by enabling customised lighting, improved energy savings, and extended product life. These innovations have made decorative lighting not only visually appealing but also environmentally sustainable.

The rising demand from the hospitality and real estate sectors, coupled with increasing consumer spending on home improvement and interior décor, is anticipated to be significant growth drivers. Moreover, the expanding adoption of decorative lighting in festivals, events, and urban beautification projects is expected to boost market expansion over the next decade.

Decorative Lighting Market

Download a Complimentary Sample Report

Market Size

The decorative lighting market has demonstrated consistent growth in recent years. Though exact current market valuations vary by source, the segment’s expansion aligns with rising consumer interest in home décor and increasing investments in infrastructure development globally. The market size is expected to steadily increase as manufacturers and suppliers broaden their product offerings and reach, particularly in emerging economies where urbanisation and lifestyle changes are rapidly evolving.

Asia-Pacific is currently one of the largest markets for decorative lighting due to rapid urban development in countries such as China, India, and Southeast Asian nations. Europe and North America also hold significant market shares, driven by strong demand in residential remodeling and commercial projects. In these mature markets, consumers are increasingly prioritising energy efficiency and smart control features.

Market Share

The decorative lighting market is highly competitive and moderately fragmented, with numerous global and regional players vying for market share. Leading manufacturers are focusing on innovation, quality, and sustainability to differentiate their products. LED-based decorative lighting dominates the market owing to its energy efficiency, versatility, and long lifespan.

The residential sector remains the largest consumer of decorative lighting products, accounting for the majority of market share, followed by commercial and hospitality sectors. Retail establishments and entertainment venues also constitute a considerable share, where decorative lighting enhances brand experience and ambience. Geographically, Asia-Pacific accounts for a significant portion of the market share, followed by North America and Europe.

Market Trends

A prominent trend shaping the decorative lighting market is the increasing adoption of smart lighting systems that offer remote control, colour customization, and automation features. Integration with home automation systems and voice-activated assistants is becoming more common, attracting tech-savvy consumers seeking convenience and personalised lighting environments.

Sustainability is another critical trend, with LED and solar-powered decorative lights gaining traction. Governments worldwide are promoting energy-efficient lighting through regulations and incentive programs, pushing manufacturers to innovate with eco-friendly products.

Minimalist and multifunctional lighting designs are growing in popularity, reflecting evolving consumer tastes. Decorative lighting is no longer solely about illumination but also serves as a statement piece, blending art with functionality. Additionally, outdoor decorative lighting, especially in urban and commercial landscapes, is receiving increased attention to enhance security and aesthetics.

Drivers of Growth

Several factors are driving the growth of the decorative lighting market:

Rising Urbanisation and Infrastructure Development – Expansion of cities and growing investments in residential, commercial, and public infrastructure are generating strong demand for decorative lighting solutions that combine aesthetics and functionality.

Increasing Consumer Awareness and Spending on Interior Décor – Higher disposable incomes and lifestyle changes are encouraging consumers to invest in premium decorative lighting to enhance their living and working spaces.

Technological Advancements – Innovations in LED technology, smart lighting systems, and IoT integration are making decorative lighting more energy-efficient, customizable, and user-friendly.

Government Initiatives for Energy Efficiency – Regulations aimed at reducing carbon footprints and promoting sustainable lighting solutions are pushing manufacturers and consumers towards eco-friendly decorative lighting.

Growth of the Hospitality and Retail Sectors – Hotels, restaurants, malls, and entertainment venues are investing in decorative lighting to create appealing environments and attract customers.

Market Key Players

Key companies operating in the global decorative lighting market include:

• Acuity Brands Lighting Inc.

• Maxim Lighting International, Inc.

• Generation Lighting

• Savant Systems, Inc.

• Lowe's Companies, Inc.

• Others

These market leaders are focusing on product innovation, expanding their product portfolios, and forming strategic partnerships to strengthen their global presence. The emphasis on sustainability and smart lighting technology has led to significant R&D investments. Many players are also exploring mergers and acquisitions to enhance their competitive edge.

Challenges and Opportunities

The decorative lighting market faces several challenges including high initial investment costs for advanced lighting technologies, complexity in integrating smart systems, and fluctuating raw material prices that can affect manufacturing costs. Additionally, inconsistent regulations across regions regarding energy standards and import-export restrictions may hinder market penetration in certain areas.

Consumer preference variability and rapidly changing design trends pose another challenge for manufacturers to keep up with evolving demands. Moreover, the economic uncertainties due to global factors such as pandemics or geopolitical tensions can impact construction and renovation activities, affecting market growth.

Despite these challenges, the market offers numerous opportunities. Growing awareness about energy conservation and increasing adoption of green building standards can boost demand for energy-efficient decorative lighting. The rise of e-commerce platforms presents new channels for product distribution and direct consumer engagement. Additionally, emerging markets in Latin America, Africa, and Southeast Asia offer untapped potential owing to urbanisation and improving economic conditions.

Innovations such as solar-powered decorative lighting and integration with smart city initiatives present new avenues for growth. Customisable and modular lighting designs also create scope for product differentiation and premium pricing.

Market Forecast

The global decorative lighting market is expected to continue its steady growth through 2034, with a CAGR of approximately 3.20%. Increasing urban development projects, a shift towards smart homes, and the growing importance of aesthetics in both residential and commercial spaces will sustain demand.

Asia-Pacific is forecast to lead growth due to rapid urbanisation, infrastructure expansion, and a rising middle-class population with increasing purchasing power. North America and Europe are expected to maintain stable growth driven by technology adoption and sustainability initiatives.

Manufacturers that invest in innovation, sustainability, and flexible business models will be well-positioned to capture market share. The convergence of design, technology, and environmental consciousness will be the defining theme of the decorative lighting market’s evolution in the coming decade.