Decorative Lighting Market Report 2026

The decorative lighting market size has grown steadily in recent years. It will grow from $41.86 billion in 2025 to $43.55 billion in 2026 at a compound annual growth rate (CAGR) of 4%. The growth in the historic period can be attributed to growth in residential construction activities, increasing urbanization trends, rising consumer spending on home décor, expansion of commercial interior renovation projects, availability of affordable decorative lighting products.

The decorative lighting market size is expected to see steady growth in the next few years. It will grow to $50.74 billion in 2030 at a compound annual growth rate (CAGR) of 3.9%. The growth in the forecast period can be attributed to growing adoption of smart home ecosystems, rising focus on sustainable lighting solutions, increasing demand for premium interior aesthetics, expansion of e-commerce furniture and décor platforms, growing investments in energy-efficient building solutions. Major trends in the forecast period include increasing adoption of smart decorative lighting solutions, rising demand for energy-efficient led fixtures, expansion of customizable lighting designs, growing popularity of online lighting sales channels, enhanced focus on aesthetic home ambiance.

The expansion of urban populations is expected to support the growth of the decorative lighting market in the coming years. The urban population refers to the share of people in a country or region who live in cities or towns, which typically feature higher population density and more developed infrastructure than rural areas. Decorative lighting in urban settings serves several purposes, including enhancing aesthetics, improving safety, stimulating economic activity, and fostering community engagement. For example, in 2023, data from Statbase.org, a U.S.-based global data platform, showed that the global share of people living in urban areas rose to 57.26%, reflecting continued urbanization and an expanding base of consumers residing in cities. Therefore, the growing urban population is contributing to the expansion of the decorative lighting market.

Companies in the decorative lighting market are increasingly adopting smart, adaptive solutions such as AI-driven lighting technology to improve user experiences and strengthen their competitive edge. AI-enabled lighting systems make dynamic, emotion-responsive adjustments that customize illumination to match individual preferences and activities. For instance, in April 2024, Lepro, a U.S.-based AI lighting innovator, introduced its groundbreaking LightGPM technology, a generative pretrained model for lighting. This pioneering advancement allows smart lighting to adapt to users’ moods and commands, personalizing lighting effects with high precision. Lepro’s new lineup features more than 12,000 dynamic effects and uses AI for voice and facial recognition, providing a deeply personalized experience. The integration of LightBeats Music Sync and the Lepro+ app further enhances usability, enabling effortless control of scenes and ambiance. LightGPM represents a new era of intuitive, responsive smart lighting aligned with human emotions and preferences, transforming how people interact with home lighting.

In February 2024, Kingswood Capital Management LP, a U.S.-based private investment firm focused on the home and building products sector, acquired Progress Lighting LLC for an undisclosed sum. The acquisition is intended to support Progress Lighting’s growth as a standalone company, emphasizing design-forward, energy-efficient lighting solutions for residential and light commercial applications, while expanding service to homebuilders, showrooms, electrical contractors, retailers, and e-commerce partners across North America. Progress Lighting LLC is a U.S.-based provider of decorative lighting products, offering thousands of fixture designs that blend visual appeal with performance across renovation, new construction, and remodeling projects.

Major companies operating in the decorative lighting market are The Home Depot Inc., General Electric Co., Lowe's Companies Inc., Signify NV, Hubbell Incorporated, OSRAM Light AG, Acuity Brands Lighting Inc., Havells India Limited, Fagerhults Belysing AB, LSI Industries Inc., Electronic Theatre Controls Inc., Artemide S.p.A., Flos S.p.A., Generation Brands LLC, Cree Lighting Inc., Savant Systems Inc., Juno Lighting LLC, Amerlux LLC, Maxim Lighting International, Crest LED Lighting Manufacturing Company, Fagerhult Group.

North America was the largest region in the decorative lighting market in 2025. Asia- pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the decorative lighting market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the decorative lighting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The decorative lighting market consists of sales of chandelier, hall and foyer lights, pendant lights, track lights, recessed lights, rail lights, and cove lights. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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