Architectural Lighting Market Size, Share, & Trends Analysis Report By Component, By Source, By Application, By End-use, And Segment Forecasts, 2024 - 2030

Architectural Lighting Market Size & Trends

The global architectural lighting market size was valued at USD 9.81 billion in 2023 and is anticipated to grow at a CAGR of 7.8% from 2024 to 2030. The rapid evolution of LED lighting is driving the growth of the architectural lighting market. LEDs have primarily replaced traditional lighting methods, such as incandescent and fluorescent bulbs, as they offer significant benefits. These benefits include greater energy efficiency, which means they consume less power while providing the same or even better illumination. Additionally, LEDs have a longer lifespan, reducing the need for frequent replacements and maintenance, making them a more cost-effective solution in the long run.

In addition to this, the integration of smart lighting solutions drives market growth. Smart lighting solutions play a key role in reducing energy consumption and heat dissipation and subsequently contribute to achieving sustainability and social equity goals. As such, companies operating in the market invest aggressively in R&D to develop advanced architectural lighting based on the latest technologies to attract potential business clients and enhance brand recognition. For instance, in May 2023, the smart lighting company Lumary launched the Smart UFO LED High Bay Light, equipped with voice control that supports Google Assistant and Alexa and is also controllable via the Lumary App. Lumary’s Smart UFO LED High Bay Light has a power rating of 150W but can be adjusted according to the color, temperature, and brightness using efficient 145Lm/W LED chips. The light can achieve 100% energy efficiency compared to 300W HPS lamps when a typical warehouse is lit for one hour. Such initiatives being pursued by the market players to launch new, innovative, smart architectural lighting indicate good market growth over the forecast period.

Moreover, the market growth can be attributed to the increasing prominence of architectural lighting across independent bungalows, condos, community houses, skyscrapers, residential buildings, malls, office space, hotels, public offices, and industrial lofts. Furthermore, architectural lighting is highly compatible with sensors that help manage lighting usage and save energy and money. Furthermore, the growing demand for decorative luxury lighting also augments the market's growth. Consumers striving to enhance the aesthetic appeal of their homes and other premises typically prefer premium decorative lighting.

The continued integration of Internet of Things (IoT) technology into architectural lighting solutions to enhance flexibility and ambiance drives the demand for smart architectural lighting. Smart architectural lighting comprises several components, including lighting fixtures, which enable users to adjust or control the lighting in line with the ambient lighting to ensure a comfortable ambiance. Smart architectural lighting uses wireless communication protocols, such as Wi-Fi, Digital Addressable Lighting Interface (DALI), Bluetooth, Sigfox, and EnOcean, to network the necessary components. Furthermore, the growing preference for smart and Wi-Fi-enabled lighting is emerging as one of the prominent drivers of growth in the market. Moreover, technological advances are simplifying the integration of various functions, such as voice control and ambient sensing, in lighting systems, thereby diversifying and widening the scope of smart architectural lighting end-users. These factors can further drive the market growth during the forecast period.

The adoption costs associated with architectural lighting typically include direct and indirect expenses incurred throughout the complete life cycle of using an architectural lighting product, from procurement and installation to deployment. Architectural lighting also needs regular maintenance to keep them running, which adds to their operational costs. This can lead to relatively higher adoption costs and discourage the adoption of architectural lighting. The lack of proper understanding and information about the capabilities of LED lighting and potential cost reductions can even lead to higher implementation costs. As a result, some consumers or organizations may not consider investing in LED lighting. A typical conventional consumer considers the product's pricing as crucial rather than focusing on the product's long-term benefits, which means relatively higher adoption costs can particularly restrain the adoption of LED architectural lighting. Nevertheless, adequate consumer education and efforts toward raising consumer awareness can gradually aid in eliminating this barrier.

Market Concentration & Characteristics

The technology environment in the architectural lighting market is rapidly evolving, and the adoption of smart lighting solutions is experiencing substantial growth within the architectural lighting industry. These advancements are driven by the increasing demand for energy-efficient, customizable, and easily controllable lighting systems. Smart lighting solutions offer features such as remote operation, automation, and integration with other smart home or building management systems, making them highly appealing in modern architectural projects. Adjusting lighting based on real-time data, such as occupancy, natural light levels, and user preferences, enhances energy efficiency and user experience. As a result, smart lighting is becoming a key component in new constructions and renovations, significantly influencing design choices and contributing to the overall growth of the architectural lighting market.

In architectural lighting, the threat of substitutes is relatively low due to the specialized nature of the products and their integration with the overall design and functionality of buildings. The growing focus on sustainability and energy efficiency in building standards reduces the appeal of traditional lighting technologies. Emerging technologies or innovative materials that could disrupt the market may pose a future threat. Still, the dominance of LED and smart lighting solutions makes the threat of substitutes minimal in this industry.

The construction industry has emerged as the most significant contributor to economic growth worldwide, especially after the global economy recovered gradually from the aftermath of the COVID-19 pandemic. The myriads of construction projects undertaken by various governments worldwide to accelerate economic growth drive the demand for architectural lighting. The notable increase in building construction activities, both residential and commercial, is one of the major factors driving the demand for architectural lighting solutions. Governments are launching multiple infrastructure development projects, including commercial buildings, residential complexes, bridges, and utility works, to create job opportunities and increase the GDP, which bodes well for the market's growth. For instance, in September 2021, the government of the U.K. announced a project worth USD 900 billion for infrastructure development and private & public construction to be pursued over the next ten years. The construction of various buildings and infrastructure undertaken as part of the project would propel the demand for architectural lighting solutions in the country through 2030.

Component Insights

The ballasts segment accounted for the largest market share, over 18%, in the architectural lighting market in 2023. The widespread adoption of LED and fluorescent lighting systems in architectural applications is a key factor driving the growth of the ballast segment. LEDs and fluorescent lamps often require ballasts to regulate the flow of electricity and ensure optimal operation. As these lighting technologies become more popular due to their energy efficiency, durability, and lower maintenance costs, the demand for compatible and high-performance ballasts is increasing.

The lamps segment is anticipated to grow at a CAGR of 10.1% during the forecast period. The segment's growth can be attributed to the growing demand for outdoor and indoor lighting solutions. The demand for lamps is particularly growing in line with the initiatives being pursued by several governments to light up public areas and ensure a convenient ambiance for the general public. Market players are adopting various business strategies to increase their customer base and cement their position in the market. For instance, in June 2023, professional lighting solution provider SGM Light launched i-1 Linear for architectural façade. The new light boasts a CX Marine corrosion-resistant body. It features a dynamic channel drive for maximum color intensity, two LED engines, three length options, seven different optics, and various output levels.

Source Insights

The light-emitting diode (LED) segment accounted for the largest market share of over 28% in 2023 in the architectural lighting market. The rapid evolution of LED technology has been a significant driver of its growth in architectural lighting. LEDs have become more efficient, reliable, and versatile, improving brightness, color accuracy, and durability. These advancements have made LEDs a viable alternative to traditional lighting options such as incandescent and fluorescent bulbs. Moreover, the cost of LED technology has decreased significantly over the years due to economies of scale and technological improvements, making LEDs more accessible to a broader market. As a result, architects and designers are increasingly choosing LED lighting for new constructions and retrofit projects.

The high-intensity discharge (HID) segment is anticipated to expand at a compound annual growth rate of 8.6% during the forecast period. HID lights are generally used by end-users, who require a high intensity of light covering a larger area. Hence, end-users particularly use these lights in public areas and large-sized spots, such as retail stores and stadiums. For instance, HIDs are used by retail store operators to enhance the shopping experience for consumers by ensuring a well-lit ambiance. The ability of HID lighting to cover larger areas and provide sharp beams is expected to drive the segment's growth. However, the segment is poised for slower growth due to the rising adoption of LED lighting.

Application Insights

The indoor segment accounted for the largest market share of over 76% in 2023 in the architectural lighting market. The number of residential projects undertaken worldwide is rising with the growing population and continued urbanization, thereby creating robust growth opportunities for architectural lighting for various indoor end-users, such as residential and commercial lighting, including office lighting. For instance, in April 2023, LSI Industries Inc., a visual image solution provider, announced its selection as the lightning partner for a newly launched Electric Vehicle (EV) battery manufacturing facility in the U.S. state of Kentucky. Plans envisaged LSI Industries Inc.'s LED lighting solutions to illuminate the EV battery complex's office and factory spaces. Such developments are expected to drive the demand for indoor architectural lighting over the forecast period.

The outdoor segment is anticipated to grow at a CAGR of 8.4% during the forecast period. The trend towards outdoor living contributes to the growth of architectural lighting for outdoor applications. Homeowners and developers are investing in outdoor spaces, such as patios, gardens, and terraces, to create extensions of indoor living areas. These outdoor spaces require appropriate lighting to be functional and enjoyable during the evening and night. Architectural lighting solutions that enhance the comfort and usability of these outdoor areas are in high demand, especially in the residential and hospitality sectors.

End-use Insights

The commercial segment accounted for the largest market share of over 56% in 2023 in the architectural lighting market. The steady commercial development, particularly in the hospitality industry, drives the demand for outdoor landscape and architectural lighting. The growing real estate business, backed by the continued infrastructural development, also indicates the segment's growth over the forecast period. For instance, in April 2023, Diversified Partners, Scottsdale real estate developers, announced the hotel restaurant, office, and retail space development over 11 acres of land in the Mercy Medical area in Gilbert, Arizona. The construction of such commercial properties is expected to propel the demand for architectural lighting in the region.

The residential segment is anticipated to grow at a CAGR of 8.6% during the forecast period. Homeowners are increasingly prioritizing aesthetics and interior design, leading to a growing demand for architectural lighting that complements and enhances the visual appeal of living spaces. Lighting is now seen as a critical element of interior design, used to highlight architectural features, create focal points, and set the mood within different rooms. From accent lighting that emphasizes art and furniture to ambient lighting that creates a warm and inviting atmosphere, the role of lighting in residential design has expanded significantly. This focus on home aesthetics drives the adoption of customizable and design-forward lighting solutions in the residential market.

Regional Insights

North America held a significant share of over 15% of the architectural lighting market in 2023. The growth of the North American architectural lighting market can be attributed to vast developments in LED technology over the years, which have resulted in increased efficiency, greater lifespans, and lower costs for LEDs. As a result, LED lighting has become an increasingly popular option for new building and retrofit projects. North America's stringent energy efficiency requirements and standards have pushed the use of energy-efficient lighting systems across applications, including architectural lighting.

U.S. Architectural Lighting Trends

The architectural lighting market in the U.S. is growing significantly, at a CAGR of 6.2% from 2024 to 2030. Integrating smart controls and IoT technology in lighting systems has emerged as a prominent trend in the industry. Smart lighting solutions feature remote control, automation, and customization, resulting in increased energy savings and a better user experience.

Europe Architectural Lighting Trends

The architectural lighting market in Europe is growing significantly at a CAGR of 6.7% from 2024 to 2030. Europe's stringent regulatory framework and energy-efficiency policies and standards significantly impact the region's architectural lighting sector. These laws require energy-efficient lighting technology and establish performance requirements for lighting systems. For instance, the EU Eco-Design Directive regulates energy efficiency requirements for lighting products, stimulating innovation and utilization of efficient lighting solutions.

The U.K. architectural lighting market is growing significantly at a CAGR of 6.5% from 2024 to 2030. The U.K. has a rich architectural heritage, including historical and contemporary constructions. Architectural lighting is utilized to draw attention to and enhance the aesthetic appeal of these structures, which range from famous monuments to historic cathedrals and palaces.

The architectural lighting market in Germany is growing significantly at a CAGR of 6.1% from 2024 to 2030. Germany emphasizes sustainable urban planning and architectural illumination as fundamental to developing environment-friendly urban spaces. The country aims to incorporate energy-efficient street lighting, pedestrian-friendly lighting designs, and green infrastructure. Such initiatives drive the growth of the market.

Asia Pacific Architectural Lighting Trends

The architectural lighting market in Asia Pacific is growing significantly at a CAGR of 8.5% from 2024 to 2030 due to rapid urbanization, with several cities undergoing immense growth and expansion. Architectural lighting is essential for upgrading urban landscapes, improving cityscapes, and creating attractive environments. Many APAC countries are concerned with energy savings and environmental sustainability, increasing the adoption of energy-efficient and innovative lighting solutions. As urban areas continue to expand and evolve, the demand for advanced architectural lighting is expected to grow, driven by the need for modern, sustainable, and visually impactful lighting solutions.

The China architectural lighting market is growing significantly at a CAGR of 7.7% from 2024 to 2030. With the growing middle class, the drive for high-quality, well-designed buildings and public spaces has increased. China has made significant investments in smart city programs, and architectural lighting is an important component of these efforts.

The architectural lighting market in Japan is growing significantly at a CAGR of 8.5% from 2024 to 2030. Japan is more inclined toward biodiversity and human-focused lighting. In architectural environments, lighting solutions that mirror daylight patterns and integrate elements of nature are utilized to improve well-being and productivity, and they are gaining popularity in Japan.

The India architectural lighting market is growing significantly at a CAGR of 9.2% from 2024 to 2030. The expansion of India's economy has resulted in significant real estate development comprising commercial, residential, and industrial structures, thus presenting growth opportunities for the architectural lighting market.

Middle East & Africa Architectural Lighting Trends

The architectural lighting market in the Middle East and Africa is growing significantly at a CAGR of 8.9% from 2024 to 2030. The region has been witnessing an increasing adoption of LED architectural lighting, as governments in the region are aggressively pursuing initiatives to encourage the adoption of energy-efficient lighting.

The Saudi Arabia architectural lighting market is growing significantly at a CAGR of 9.9% from 2024 to 2030. The market is evolving owing to a convergence of diverse technological breakthroughs and an open regulatory environment. The country's young population and rising disposable income are fueling the demand for architectural lighting designed to enrich the aesthetics of buildings and public places.

Key Architectural Lighting Company Insights

Some of the key companies operating in the market Signify Holding, OSRAM GmbH, Acuity Brands, Inc., and among others are some of the leading participants in the architectural lighting market.

• Acuity Brands, Inc. provides building and lighting technology solutions and services. Its product portfolio includes lighting controls, components, prismatic skylights, power supplies, fluorescent luminaires, LED lighting products, architectural lighting, high-intensity discharge luminaires, and embedded and standalone light control solutions. The company offers residential, industrial, commercial, infrastructure, life safety, and lighting control solutions. Its LED lighting products are available under brands such as Lithonia Lighting, Luminaire LED, Aculux, Eureka, and Mark Architectural Lighting.

• Signify Holding is a lighting solutions provider. The company’s portfolio includes IoT-based lighting products for residential and commercial customers. The company sells its products under brands such as Philips, Interact, Modular, and Luceplan. The company also offers lighting audits, maintenance, remote support, and lighting plans.

Hubbel, Delta Light, and Siteco GmbH are some of the emerging market participants in the architectural lighting market.

• Delta Light manufactures architectural lighting fixtures such as downlights, spotlights, walls, linear, pendant, and outdoor lighting. The company uses advanced LED technology, optics, and materials to develop energy-efficient lighting solutions with eye-catching designs. Delta Light also offers customers customization possibilities, allowing them to customize lighting solutions to specific project requirements.

• Hubbell engages in the design, manufacture, and sales of electrical and electronic products. The company supplies a broad range of products for residential and non-residential construction, architectural, and industrial applications. The company’s operations are divided into two segments, namely Electrical and Power. The Electrical segment covers LED lighting products and solutions sold under brands such as Kim Lighting, Spaulding Lighting, and Lite Control.

Recent Developments

• In July 2024, Environmental Lights launched the Cove Wash-Dual Bend LED lighting products, an innovative solution designed to enhance cove lighting installations. This new product line features a low-voltage design that simplifies the installation process while delivering high-lumen output, making it ideal for various applications in architectural and commercial settings.

• In August 2023, Acuity Brand, Inc. expanded its lighting product range by introducing new FMLR Round and FMLSQ Square Flush Mounts. These flush mounts provide flexible and attractive lighting options for various locations. They are available in circular and square shapes to suit different design preferences and uses, offering practicality and improved aesthetic appeal.

• In April 2023, Acuity Brand, Inc. announced a new DC2DC architecture, which provides a distributed low-voltage DC power solution for LED lighting systems. It helps simplify converting AC to DC power at the luminaire, thereby increasing the efficiency and reliability of LED lighting systems while reducing maintenance and operating costs.

Architectural Lighting Market Report Scope

Global Architectural Lighting Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the architectural lighting market report based on component, source, application, end-use, and region:

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Lamp Holders

  • Ballasts

  • Lamps

  • Lenses/Shades

  • Trims

  • Wiring

  • Reflectors

  • Others

• Source Outlook (Revenue, USD Billion, 2018 - 2030)

  • Incandescent Lights

  • Fluorescent Lights

  • Light-Emitting Diode (LED)

  • High-Intensity Discharge (HID)

  • Others

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Indoor

  • Outdoor

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Commercial

  • Residential

  • Industrial

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • U.A.E

    • Saudi Arabia

    • South Africa