Energy-Efficient Lighting Market Report 2026

The energy-efficient lighting market size has grown strongly in recent years. It will grow from $59.8 billion in 2025 to $64.22 billion in 2026 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to rising need for energy savings in homes, government incentives promoting efficient lighting, decline in led production costs, replacement of incandescent bulbs, growth in household renovation and lighting upgrades.

The energy-efficient lighting market size is expected to see strong growth in the next few years. It will grow to $85.36 billion in 2030 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to increasing adoption of smart home ecosystems, growing preference for adaptive brightness technologies, rising integration of occupancy and ambient sensors, expansion of solar hybrid home lighting systems, rising focus on reducing residential electricity consumption. Major trends in the forecast period include growing adoption of led based lighting solutions, increasing demand for smart app controlled lighting, rising shift toward human centric lighting design, expansion of solar powered residential lighting, growing use of dimmable and color tunable lighting systems.

The government's energy-efficiency initiatives are expected to drive the growth of the energy-efficient lighting market in the coming years. Energy-efficiency initiatives encompass programs, policies, or actions aimed at reducing energy consumption and improving energy efficiency. These government efforts play a crucial role in advancing energy-efficient lighting by establishing standards, supporting research and development, and encouraging cross-sector collaboration. For example, in March 2024, the Department for Energy Security and Net Zero, a UK-based government body, reported that in 2023, approximately 318,600 energy efficiency measures were implemented through government programs, marking a 49% increase compared to 2022. As a result, the government's energy-efficiency initiatives are driving the growth of the energy-efficient lighting market.

Key companies in the energy-efficient lighting market are focusing on developing technological advancements such as high-efficacy LED luminaires with smart controls to enhance energy savings, improve lighting quality, and support sustainable building operations. A high-efficacy LED luminaire combines advanced LED modules, optimized optics, and smart sensors - delivering significantly higher light output per watt, tunable white lighting, and dynamic control compared to traditional fluorescent or incandescent systems, while also reducing maintenance and energy costs. For example, in April 2024, Signify N.V., a Netherlands-based lighting company, introduced the Philips PowerBalance UltraEfficient LED Luminaire range. The product provides up to 21.7% more energy savings than standard LED luminaires, offers high-quality tunable white lighting, supports modular retrofit installation, and incorporates 3D-printed components to optimize material usage and thermal performance.

In March 2025, Elemental LED, Inc., a U.S.-based provider of engineered LED lighting solutions, acquired Gammalux Lighting Systems for an undisclosed amount. This acquisition broadens the company's portfolio in architectural and commercial energy-efficient lighting, strengthens its position in the U.S. market, enhances its offerings with specification-grade linear LED luminaires, and positions it to capitalize on opportunities in advanced energy-efficient lighting solutions. Gammalux Lighting Systems is a U.S.-based manufacturer specializing in architectural linear LED luminaires.

Major companies operating in the energy-efficient lighting market are General Electric Company, Schneider Electric SE, ABB Group, Toshiba corporation, Philips Lighting, Eaton Corporation, Signify N.V., OSRAM GmbH, Hubbell Lighting Inc., Acuity Brands, Zumtobel Group AG, Seoul Semiconductor Co. Ltd., Cree Inc., Bajaj Electricals Ltd., Leviton Manufacturing Co. Inc., Dialight, Lumileds Holding B.V., Cooper Lighting, The Lighting Quotient, Bridgelux Inc., Soraa Inc., Advanced Lighting Technologies Australia Inc., Nichia Corporation, Savant Systems Inc.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electronic components, LED chips, lighting fixtures, and raw materials have raised production costs for energy efficient lighting products, especially LED lamps and fixtures sourced from major Asian manufacturing hubs. These cost hikes affect residential, commercial, and outdoor applications in regions dependent on imports such as North America and Europe. However, tariffs are also driving domestic LED manufacturing investments, encouraging regional supply chain development, and accelerating innovation in cost effective, sustainable lighting technologies.

The energy-efficient lighting market research report is one of a series of new reports that provides energy-efficient lighting market statistics, including energy-efficient lighting industry global market size, regional shares, competitors with a energy-efficient lighting market share, detailed energy-efficient lighting market segments, market trends and opportunities, and any further data you may need to thrive in the energy-efficient lighting industry. This energy-efficient lighting market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Energy-efficient lighting pertains to lighting technologies and solutions designed to consume less energy while delivering the same or enhanced level of illumination compared to conventional lighting options. These lighting solutions find extensive use in homes for various applications, encompassing general illumination, task lighting, accent lighting, and outdoor lighting.

The primary categories of energy-efficient lighting include high-intensity discharge lamps (HID), linear fluorescent lamps (LFL), light-emitting diodes (LED), and other alternatives. High-intensity discharge lamps (HID) represent a type of electric gas-discharge lamp that generates light through the passage of an electric current between tungsten electrodes within a gas-filled arc tube. These lamps are applied in diverse settings, including residential, commercial, industrial, outdoor environments, among others. End-users for such lighting solutions span various sectors such as government, healthcare, education, retail, hospitality, and others.Europe was the largest region in the energy-efficient lighting market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the energy-efficient 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 energy-efficient lighting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The energy-efficient lighting market consists of sales of LED bulbs and fixtures, smart lighting systems, daylight harvesting controls, and energy-efficient outdoor lighting solutions. 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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