PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1890752
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1890752
The global architectural lighting market continues to witness steady expansion, driven by increasing demand for energy-efficient lighting, smart building integration, and creative illumination solutions. As per 2024 data, the market was valued at USD 10.85 billion. It is expected to rise to USD 11.37 billion in 2025 and reach USD 16.26 billion by 2032, reflecting a sustained CAGR of 5.2% during the forecast period. This growth is supported by rapid advancements in LED technology, growing adoption of smart lighting systems, and rising emphasis on sustainable and visually engaging architectural designs.
Architectural lighting includes a broad range of solutions used across residential, commercial, industrial, hospitality, and institutional environments. Its purpose extends beyond functionality to enhancing aesthetics, ambiance, and energy performance of built spaces. Key manufacturers such as Signify Holding, OSRAM GmbH, Cree Lighting, Cooper Lighting, Lutron Electronics, and others continue to innovate and expand portfolios to meet evolving project requirements.
The COVID-19 pandemic initially slowed market activity due to supply chain disruptions and construction delays. However, the crisis significantly accelerated adoption of contactless, automated, and smart lighting systems, reflecting growing concerns related to hygiene, safety, and operational efficiency.
Impact of AI and Global Tariff Policies
Artificial intelligence is reshaping the architectural lighting market through advanced lighting automation, space-usage analytics, and intelligent energy management. AI-enabled lighting systems adjust brightness, color temperature, and operation schedules based on real-time occupancy and environmental cues, improving efficiency and user comfort. IBM reports that 74% of companies in the energy and utility sector are adopting AI to resolve data challenges, demonstrating the wider trend toward intelligent infrastructure and predictive maintenance in lighting applications.
Conversely, reciprocal tariffs have caused fluctuations in production and procurement costs. For instance, U.S. tariffs on imported lighting components are estimated to increase production costs by 4-6%, affecting both manufacturers and end-users. These challenges have encouraged companies to seek regional sourcing options and diversify supply chains to mitigate economic risks.
Market Trends
A major trend shaping the market is the rising demand for energy-efficient and sustainable lighting systems. LED lights consume up to 75% less energy than incandescent bulbs and 50% less than CFLs, making them central to green building initiatives. As per the International Energy Agency (2024), buildings account for 30% of global energy consumption and 25% of greenhouse gas emissions; smart technologies can reduce office energy use by up to 70%, significantly enhancing sustainability outcomes.
Another prominent trend is the adoption of human-centric lighting (HCL). The HCL market alone reached USD 3.53 billion in 2024, is projected to grow to USD 4.23 billion in 2025, and may reach USD 22.07 billion by 2032, highlighting soaring interest in lighting that supports circadian rhythms, productivity, and occupant wellbeing.
By Product Type
LED lighting dominates due to its longevity, performance, and cost benefits. Smart lighting ranks second, reflecting strong adoption in modern commercial and residential projects.
By Technology
Wireless systems lead the market owing to IoT compatibility and easy installation. Wired technology maintains relevance for large-scale, reliability-driven applications.
By Installation Type
New installations hold the largest share due to rising urbanization and construction activity, while retrofit installations continue to grow as aging infrastructures transition to efficient lighting solutions.
By Application
Indoor lighting leads, with strong demand for functional and aesthetic improvements. Outdoor lighting is projected to grow fastest due to urban infrastructure development, public safety initiatives, and smart city projects.
Asia Pacific dominates the market with a value of USD 4.02 billion in 2024, supported by construction growth, government sustainability initiatives, and widespread LED adoption. North America holds the second-largest share, fueled by energy regulations, renovation activity, and smart city investments. Europe follows closely, driven by strong sustainability mandates and advanced green building programs. South America and MEA display moderate growth due to varying economic conditions and slower adoption of smart lighting technologies.
Competitive Landscape
Leading companies-including Signify, OSRAM, Lutron, ERCO, Zumtobel, Fagerhult, Acuity, and others-are focusing on new product launches, sustainability innovations, and strategic collaborations. Recent developments include:
These advancements showcase the industry's commitment to energy efficiency, design innovation, and human-centric solutions.
Segmentation By Product Type
By Technology
By Installation Type
By Application
By End-user
By Region
Companies Profiled in the Report * Signify Holding (Netherlands)