The decorative lighting market attained a value of USD 46.57 Billion in 2025. The market is expected to grow at a CAGR of 3.90% during the forecast period of 2026-2035. By 2035, the market is expected to reach USD 68.28 Billion.
Personalised smart decorative lighting is emerging as a key niche driver in the global decorative lighting market. Consumers increasingly seek lighting solutions that reflect mood, occasion, and style through app-based or voice-controlled customization. This trend integrates aesthetics with technology for immersive home experiences. For instance, in April 2024, Lepro introduced its AI-driven “LightGPM” decorative lighting system, featuring emotion recognition and 12,000+ dynamic effects to personalize ambiance. The system’s adaptive colour schemes and energy-efficient design cater to tech-savvy homeowners prioritizing comfort and creativity. As connected home ecosystems expand, such intelligent lighting innovations enhance both functionality and interior design appeal, positioning personalised smart lighting as a defining trend shaping premium home décor preferences globally.
Social media platforms like Instagram, Pinterest, and YouTube play a vital role in shaping the decorative lighting market trends. Influencers, interior designers, and lifestyle bloggers frequently showcase lighting installations that inspire their followers. Online videos, DIY tutorials, and home tours give visibility to brands and emerging styles. As a result, consumers are more aware of the latest lighting trends and are willing to replicate them in their own homes. This powerful form of visual marketing continues to be a significant growth driver in the decorative lighting space.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
3.9%
Value in USD Billion
2026-2035
*this image is indicative*
One of the key drivers for the decorative lighting industry is the increasing focus on interior aesthetics in both residential and commercial spaces. The integration of lighting with modern architectural elements and furnishings has become central to interior design. Social media platforms and design influencers further inspire customers to adopt visually appealing lighting solutions. As a result, the demand for stylish chandeliers, pendant lights, and wall sconces has risen significantly, especially in urban households and high-end hospitality sectors.
Urbanization continues to accelerate, especially in developing regions like Asia-Pacific and Africa. As per the Asian Development Bank, over 55% of Asia’s population is likely to be urban by 2030. This has led to a surge in residential construction, creating a direct demand for decorative lighting fixtures. New homeowners, particularly in urban middle- and upper-class demographics, are investing more in home décor, including lighting. Real estate developers are also incorporating stylish and modern lighting solutions in their projects to attract buyers.
Technological innovation is transforming the decorative lighting market dynamics. The shift from incandescent and fluorescent bulbs to LEDs is allowing designers to experiment with smaller, more flexible, and energy-efficient forms. Smart lighting technologies have also elevated the user experience. In August 2025, Philips unveils a smart lighting hub featuring advanced motion detection and energy-saving technology, enhancing home automation and reducing power consumption. Such innovations not only improve functionality but also open creative possibilities, thus broadening consumer interest and expanding the market growth.
Environmental sustainability is a growing concern globally, and consumers are increasingly conscious of their energy usage. Decorative lighting manufacturers are responding by developing energy-efficient fixtures, particularly those using LED and solar technologies. In August 2025, Graham & Green introduced USB-rechargeable, adjustable-temperature LED bottle-stopper lamps. Energy-saving lighting appeals to eco-conscious consumers and helps reduce long-term costs, making it an attractive option for residential and commercial buyers.
The growth of e-commerce has revolutionized the decorative lighting industry. Consumers now have access to a vast array of designs, brands, and price points from the comfort of their homes. Online platforms like Amazon, Wayfair, and specialty lighting stores have expanded market reach and enhanced product visibility. Virtual reality (VR) and augmented reality (AR) tools on e-commerce sites also allow users to visualize lighting fixtures in their space. This ease of comparison and convenience of doorstep delivery is fuelling market growth.
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The EMR’s report titled “Decorative Lighting Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Light Source
Key Insight: The LED segment dominates the decorative lighting space due to energy efficiency, longevity, and design flexibility. Modern homes and commercial spaces use LED chandeliers, pendant lights, and string lights for vibrant, color-customizable ambiance. In February 2025, Haichang Optotech introduced an Outdoor LED Ball Light, a rechargeable glowing globe ideal for ambient decorative lighting in gardens, pools, patios, and events. LEDs also reduce energy consumption by up to 80% compared to incandescent bulbs.
Market Breakup by Product
Key Insight: The ceiling segment forms the backbone of the decorative lighting industry owing to its rising penetration in homes, hotels, and commercial spaces. Chandeliers, pendant lights, and flush mounts fall under this category. For example, statement LED chandeliers in hotel lobbies or cluster pendant lighting in modern dining rooms combine function with luxury. Energy-efficient ceiling fixtures with smart controls are further gaining popularity in premium real estate projects.
Market Breakup by End Use
Key Insight: The commercial sector significantly drives demand for decorative lighting, particularly in hospitality, retail, and corporate spaces. Hotels use statement chandeliers in lobbies and mood lighting in guest rooms to create luxurious atmospheres. In September 2024, DPA Lighting used layered lighting with decorative elements for JW Marriott, London, for creating soft ambience, sparkle, and vibrant visual energy throughout spaces. Meanwhile, offices increasingly incorporate modern, energy-efficient lighting to improve ambiance and employee well-being.
Market Breakup by Distribution Channel
Key Insight: Offline channels, including lighting showrooms, hardware stores, and specialty décor outlets, remain important for the decorative lighting market, especially in Tier 2 and Tier 3 cities. Physical inspection of design, brightness, and build quality plays a key role in purchase decisions. Premium buyers also rely on designer-led consultations and customized fittings from stores. Partnerships with architects and interior designers further drive showroom traffic.
Market Breakup by Region
Key Insight: The North American market is driven by high consumer awareness, interior design trends, and smart home integration. In luxury residential and hospitality projects, chandeliers, pendant lights, and layered wall lighting are popular for their aesthetic and ambient value. Sustainability, modern aesthetics, and IoT-enabled fixtures are key preferences. In September 2024, Hisummer launched in North America, offering innovative ceiling fans with integrated decorative lighting for enhanced home comfort. Retro and industrial-style designs also find strong appeal among urban consumers and designers.
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Fluorescent & Incandescent Decorative Lighting to Gain Preference
Fluorescent lights are adding to the decorative lighting market revenue due to uses in backlit fixtures, vanity mirrors, and commercial spaces to offer cost-effectiveness and diffuse lighting. Fluorescents remain preferred for consistent, soft illumination in areas requiring even light distribution. Innovations in compact fluorescent lamps also contribute to their sustained presence, particularly in budget-conscious projects where energy efficiency and upfront costs are critical considerations.
Incandescent lights are favoured for their warm, nostalgic glow, often used in vintage-style fixtures, Edison bulbs, and rustic décor. Though energy-intensive and less durable, they remain popular in heritage settings, cafés, and boutique interiors. In October 2024, Satco Nuvo launched the Reminiscent Series, a collection of LED filament bulbs designed to evoke the classic look of incandescent lighting. However, tightening energy regulations globally are pushing this segment into decline.
Surging Demand for Wall Mounted Decorative Lighting
Wall lights are contributing to the decorative lighting market share as they blend practicality with style while being used for accent lighting, art highlighting, or bedside illumination. Brands offer wall-mounted solutions that are compact, dimmable, and stylish, ideal for small rooms or hallways where ceiling lighting is limited. In July 2025, Govee introduced the Outdoor UpDown Wall Light, the first-ever all-around dynamic outdoor wall light with independently adjustable colors on all four sides.
Rising Decorative Lighting Applications in Household
The household segment sees widespread adoption of decorative lighting for functional and aesthetic purposes. From warm LED ceiling lights in living rooms to fairy lights in children's bedrooms, homes use a variety of styles to personalize spaces. Smart bulbs like Philips Hue or Wipro Smart LED are becoming household staples, offering app-controlled lighting scenes. Key insight: Consumers are increasingly choosing energy-efficient, stylish, and easy-to-install lighting for living spaces, driven by DIY trends and home décor awareness.
Online Channels to Boost Decorative Lighting Sales
Online platforms and specialized lighting e-commerce sites are rapidly growing in popularity, adding to the decorative lighting industry value. In April 2025, GILE adopted e-commerce trends, enhancing online sales and digital marketing to reach wider audiences and boost lighting product accessibility. Smart lighting products often launch online first. Flash sales, influencer marketing, and virtual visualization tools are further boosting online decorative lighting sales, especially among millennials and Gen Z.
Thriving Decorative Lighting Industry in Europe & Asia Pacific
Europe emphasizes sustainability, heritage design, and energy efficiency in decorative lighting. Germany and the Netherlands lead in LED adoption and eco-certifications, aligning with strict energy regulations. The market favours minimalist and Nordic-inspired lighting with clean lines and natural materials. In Paris or Milan, design-forward hotels showcase statement lighting pieces blending tradition and innovation. Smart lighting also sees steady growth, particularly in Northern Europe, where smart home adoption and energy-conscious consumers dominate demand.
Asia Pacific is the fastest-growing decorative lighting market, fuelled by rapid urbanization and increasing home ownership. In India and China, decorative lighting sees spikes during festivals with strong sales of LED strip lights, lanterns, and ambient fixtures. Japan and South Korea emphasize smart, compact, and minimalist lighting for tech-savvy urban dwellers. In March 2025, Seoul Semiconductor introduced SunLike, a radical full-spectrum LED technology that emulates natural sunlight. E-commerce is further enabling wide access to trendy, budget-friendly lighting.
Key players in the decorative lighting market are employing a range of strategies to stay competitive and meet evolving consumer demands. With product innovation, firms are investing in smart lighting technology, energy efficiency, and sustainable materials to appeal to environmentally conscious consumers. Design differentiation is also crucial, as brands collaborate with well-known designers to create distinctive, trend-setting collections that stand out in a crowded market. Another key strategy is omnichannel distribution, where companies strengthen both online and offline sales channels to increase market reach.
Many brands enhance their digital presence through e-commerce platforms, virtual showrooms, and social media marketing to attract tech-savvy and design-focused customers.
Strategic partnerships and acquisitions help expand product portfolios and enter new markets. Additionally, customer experience is prioritized, with a focus on customization, after-sales service, and virtual consultation options.
Founded in 2001 and headquartered in Atlanta, the United States, Acuity Brands Lighting is a leader in advanced lighting and building management solutions. The company is recognized for its innovations in smart lighting, IoT integration, and energy-efficient systems, offering solutions for both commercial and industrial markets across North America and beyond.
Maxim Lighting International, Inc., established in 1970 and based in Southern California, the United States, has become a prominent name in decorative lighting. Maxim offers a broad range of indoor and outdoor fixtures. Their design-focused approach and trend-driven products have earned strong industry recognition over the decades.
Launched in 2019, Generation Lighting is headquartered in Skokie, the United States, and combines modern aesthetics with timeless design, partnering with top designers to deliver high-quality residential lighting. The brand’s integration of technology and design has strengthened its position in contemporary lighting markets.
Founded in 2005 and based in Hyannis, the United States, Savant Systems is a pioneer in smart home automation. The company is celebrated for its innovation in whole-home control systems, seamlessly integrating lighting, entertainment, climate, and security. Their user-friendly interfaces and customization capabilities continue to push boundaries in home technology.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the decorative lighting market are Lowe's Companies, Inc., among others.
Discover how innovation and design trends are transforming the Global Decorative Lighting Market 2026–2035. Access comprehensive insights, detailed forecasts, and key company strategies to stay ahead of the curve. Download a free sample report or contact our team for tailored consultation on global decorative lighting market trends.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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The market is projected to grow at a CAGR of 3.90% between 2026 and 2035.
The key strategies driving the market include innovation in energy-efficient and smart lighting technologies, expanding e-commerce presence, customization for residential and commercial aesthetics, strategic collaborations with designers, and seasonal/festival-specific product launches. Sustainability, brand differentiation, and strong retail distribution networks also play crucial roles in capturing diverse consumer segments globally.
The key trends propelling the market growth include the growing trend of bedroom decorative lighting and the increasing preference for smart decorative lighting.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The major light sources considered in the market report are LED, fluorescent, and incandescent, among others.
The leading products of decorative lighting in the market are ceiling and wall mounted, among others.
The various end uses of decorative lighting are commercial and household.
The significant distribution channels in the market are offline and online.
The key players in the market report include Acuity Brands Lighting Inc., Maxim Lighting International, Inc., Generation Lighting, Savant Systems, Inc., and Lowe's Companies, Inc., among others.
In 2025, the market reached an approximate value of USD 46.57 Billion.
The LED segment dominates the market due to energy efficiency, longevity, and design flexibility.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Light Source |
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| Breakup by Product |
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| Breakup by End Use |
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| Breakup by Distribution Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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