Decorative Lighting Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Decorative Lighting Market is projected to expand from USD 107.22 Billion in 2025 to USD 159.56 Billion by 2031, reflecting a CAGR of 6.85%. This market comprises lighting fixtures such as sconces, pendants, and chandeliers that are crafted to elevate the aesthetic appeal of commercial and residential environments rather than serving merely functional needs. Key drivers propelling this industry include rising disposable incomes and rapid urbanization, which enable increased investment in interior decor. Additionally, the sector is growing due to a massive transition toward energy-efficient technologies; for instance, the International Energy Agency reported that LED technology represented approximately 50% of global residential lighting sales in 2024.

Despite these favorable conditions, the market confronts a significant obstacle regarding the steep upfront installation costs linked to smart and premium lighting systems. This pricing barrier frequently discourages cost-sensitive consumers and complicates the adoption of sophisticated fixtures in emerging economies, presenting a notable challenge that could impede the broader expansion of the global decorative lighting sector.

Market Drivers

A primary force expanding the Global Decorative Lighting Market is the surge in residential retrofitting and renovation activities, as homeowners increasingly prioritize interior aesthetics by replacing outdated fixtures with modern decorative elements to boost property value and visual appeal.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, Houzz's '2024 U.S. Houzz & Home Study' from March 2024 noted that the median spend for home renovations in the United States reached $24,000 in 2023, a significant capital injection that directly correlates with higher sales volumes for premium decorative lighting solutions.

The integration of IoT-enabled lighting and smart home systems serves as the second major catalyst for industry progress, with consumers shifting toward connected ecosystems that offer seamless control, energy management, and customizable ambiance via mobile applications. This technological shift is validated by Signify's 'Annual Report 2023' from February 2024, which revealed that 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 necessitating new installations; according to the U.S. Census Bureau, privately-owned housing completions stood at a seasonally adjusted annual rate of 1,788,000 in August 2024, ensuring a continuous stream of opportunities for the lighting sector.

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 commercial clients and cost-sensitive consumers 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, causing manufacturers to struggle in expanding their customer base beyond a niche luxury segment, which directly stalls revenue progression and overall market volume.

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

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, with major industry players aggressively integrating 3D-printing technologies and bio-circular materials to reduce waste and carbon footprints. Validating this industry-wide commitment, Signify's 'Annual Report 2024' from February 2025 reported that 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, with homeowners increasingly selecting statement pieces that serve as artistic focal points blending modern functionality with retro designs. Highlighting this demand, the '2025 Houzz U.S. Emerging Summer Trends Report' from May 2025 noted that search interest for 'copper pendant lighting' increased by 3.5 times compared to the previous year.

Key Players Profiled in the Decorative Lighting Market

• 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.

Report Scope

In this report, the Global Decorative Lighting Market has been segmented into the following categories:

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
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

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

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

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

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