Commercial Lighting Market

 Global Commercial Lighting Market Size (2024 to 2032)

The size of the global commercial lighting market was worth USD 12.55 billion in 2023. The global market is anticipated to grow at a CAGR of 5.98% from 2024 to 2032 and be worth USD 21.17 billion by 2032 from USD 13.3 billion in 2024.

Current Scenario Of The Global Commercial Lighting Market

The commercial lighting market is constantly evolving, with latest trends and technologies emerging to fulfil the demands of modern businesses. Ranging from energy efficiency to the integration of intelligent technologies, these trends are improving visual appeal and functionality of commercial spaces, and at the same time, promoting sustainability and reducing cost. Among the most notable patterns in this market persist in the transition to energy and environment saving LED lighting. LEDs have been positioned as the go-to option for companies because of their lengthy lifetime, deceasing the consumption of electricity, and reduces upkeep and repair expenses than standard lighting choices.

Moreover, sustainability is a lot more than just a popular term, it serves as a catalyst for design. Eco-friendly lighting solutions are poised to become the focal point as 43 per cent of the interior designers aim to emphasize sustainability for their projects in 2025.

MARKET DRIVERS

Smart lighting systems drives the growth of the commercial lighting market. Combining unique technology with this type of lighting devices has been another main trend in 2024. Intelligent lighting enables companies to manage their illumination remotely through centralised systems or apps, providing higher control and adaptability. These systems can modify lighting according to time of day, natural illumination levels, and conditions, maximising power savings and improving comfort. Also, characteristics like scheduling, colour tuning, and dimming can be personalised to fit particular requirements, enhancing the ambiance and functionality of business property’s. Internet of Things (IoT) in this sphere is also expanding, allowing more productive and interlinked building management. Hence, it fuels the market growth rate.

Enhanced controls and automation is another factor accelerating the progress of this market. High-tech lighting management and machining systems more transforming are more popular in business or retail lighting. These systems facilitate accurate control over illumination settings, which helps in better power conservation and usage and making more lively or energetic lighting conditions. Therefore, recent technological advancements is one of the key factors propelling the market growth.

Currently, there are several smart city projects underway around the world that provide opportunities for technology companies, technology service providers, public service providers, and consulting firms. The efficient use of electricity is one of the main objectives of the infrastructure of smart cities. Smart cities are considered the engine of sustainable economic growth in a country. Energy efficiency, resource sustainability, and advances in digital technologies have led to the emergence of the concept of smart cities. Smart lighting application is expected to play an important role in achieving sustainability and energy saving.

Biophilic design is one of the emerging trends, holding significant opportunity for the expansion of the commercial lighting market. It among the principal movements expected to proliferate in the coming years across the globe. The inception of biophilic design is for the application of making a harmonious relation between outdoors and indoors, as well as utilised as an instrument to imitate nature. Further, it is anticipated that lighting fixtures to possess or consist of organic materials such as hand-blown glass, bamboo, and rattan, providing a natural  and earthy aesthetics in both residentials and non-residential spaces. The market is set to see the incorporation of natural elements like ocean motifs, and tropical leaf patterns, showcasing the essence or allure of nature. This shift centers around elevating well-being and shaping settings that feel calm, rejuvenating, and related to the environment.

MARKET RESTRAINTS

The initial cost of smart lighting, along with the cost of integration and installation services, is high. Smart lights include hardware components such as dimmers, switches, sensors, control systems, and software. Therefore, the installation cost of smart lighting is higher than that of conventional lighting. This is primarily due to the need for very expensive software, control systems, and LED light sources for smart lighting solutions. This makes it difficult to adopt smart lighting control systems.

Significant reliance on fossil fuels, such as natural gas, oil, and coal, is one of the major problems in traditional street light systems hindering the expansion of the commercial lighting market. Global warming or climate crisis is sped up by the discharge of greenhouse gases, which are largely due to this dependency. Furthermore, these challenges constitute a severe risk to environment when elements such as incandescent and sodium bulbs usually end up in dumping grounds. Mercury and other hazardous substances present in these bulbs have the ability to lead to major leakage into the atmosphere and degrade ecological systems. These system’s joint impact make the global environmental issues worse.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Commercial lighting Market Analysis By Product

The LED luminaires segment was the largest segment and accounted for 56% of global market share in 2023. The luminaires are widely used in the commercial and industrial lighting segments. They are more expensive than conventional LED lamps; therefore, luminaires represent a larger market share than LED lamps. The new facilities primarily stimulate growth. It includes lights used in street lighting, tall windows, downlights, floor lamps, troffers, and pendant lights for various applications. Fixtures provide more light per power output and are easier to control, allowing optical designers to use them more efficiently and use less light to illuminate the same area.

Global Commercial lighting Market Analysis By Application

The indoor lighting segment is projected to hit the highest CAGR in the forecast period. Increasing construction of buildings is likely to propel the demand of the market.  Another reason behind the increase in market share of this segment is surge in electricity, fuel, and natural gas prices, which urged the people to use less of long lights. The outdoor lighting segment is positioned second in leading the largest shares of the commercial lighting market. In addition, patio string lights are gaining popularity, which offers personalised warm atmospheres that resonate with outdoor illumination trends in 2024. These budget-friendly exterior lighting solution enable homeowners to customise their spaces according to their aesthetic tastes.

Global Commercial lighting Market Analysis By End-User

The smart interior lighting market is expected to occupy the largest share due to high demand in commercial spaces. In these applications, smart lighting is an essential element in creating a modern workspace that appeals to clients with changing preferences. It continues to help owners create a flexible work environment, reduce expenses, improve work efficiency, and create quality lighting that enhances the occupant experience. Therefore, the adoption of smart lighting in commercial spaces is gaining popularity and presents great opportunities in the near future due to smart city initiatives from governments around the world.

REGIONAL ANALYSIS

North America ruled the commercial lighting market worldwide in 2023 and is expected to continue the domination throughout the forecast period. Increasing economic and rising disposable income in urban areas are boosting up the demand for the commercial lighting market in North America. Growing prevalence for modern technologies is ascribed to bolster the growth rate of the market in this region.

Asia Pacific (APAC) is expected to be the fastest-growing market for the commercial lighting market. Projects related to modernization and infrastructure development, such as smart cities, in the region, would also stimulate demand for smart street lighting, thus driving the growth of the commercial smart lighting market in this region. The increasing number of smart cities and infrastructure projects undertaken by governments will create several new opportunities for energy-efficient lighting and advanced lighting systems in the years to come. Moreover, the commercial lighting business in India is advancing at a rate of around 20 per cent. The big companies or organizations in the country continue to their strategy of executing strategic mergers and acquisitions. Like, Wipro Consumer Care & Lighting ended the FY 2024 with the proceeds of 10,300 crore rupees and is eager to do more purchases in the emerging markets. In South-East Asia region, the company will remain keen on buys in growing markets like Philippine, Vietnam, or Indonesia.

Europe is another key commercial lighting market and is witnessing notable changes. In the last 25 years, European countries has noticeably brightened and adopted a bluer tone as it hastens its shift to energy-efficient LED lights for nighttime use.

KEY PLAYERS IN THE GLOBAL COMMERCIAL LIGHTING MARKET

Companies playing a major role in the global commercial lighting market include Acuity Brands Lighting Inc., Cree Inc. (IDEAL INDUSTRIES INC.), Dialight, Digital Lumens Inc., GE Current, Hubbell, LSI Industries Inc., LumiGrow, Panasonic Corporation, Siteco GmbH, Signify Holding, Semiconductor Co. Ltd. (Seoul Semiconductor) and Zumtobel Group AG.

RECENT HAPPENINGS IN THE GLOBAL MARKET

• In October 2024, Eight Quarter Advisors (EQA), a transaction consulting company operating in the lower middle market, formally declared the successful purchase of Luxxbos by F&P Wquity Partners, situated in Milan (Italy), and its role in this acquisition. Luxxbox became part of its portfolio company, Panzeri Carlo S.r.l. (Panzari) which is a famous lighting designing firm. This was a tactical purchase signifying a major landmark in the lighting and acoustic design industry, uniting the merits of both firms to have a market footprint worldwide and accelerate product innovation.
• In September 2024, Kingswood Capital Management, LP reported via press release the acquisition of Kichler Lighting, LLC. It was previous owned by Masco Corporation. The Kingswood will merge Kichler with one of the companies under its belt, Progress Lighting, LLC to create among the prominent lighting platforms in the North America showcasing industry-recognised and complementary brands and labels. The combined entity will gain from enhanced distribution and service abilities, a strong product catalogue, namely, perfectly placed to cater consumers throughout the e-commerce sales channels, retail, showroom, trade, and homebuilder. Moreover, Kingswood is following its go-to-market strategy which will consist both the Kichler and Progress brands.

DETAILED SEGMENTATION OF THE GLOBAL COMMERCIAL LIGHTING MARKET INCLUDED IN THIS REPORT

This research report on the global commercial lighting market has been segmented and sub-segmented into the following categories.

By Product

• LED Lamps
• LED Fixture

By Application

• Indoor Lighting
• Outdoor Lighting

By End-User

• Industrial
• Commercial

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa