Luminaires Market | Industry Analysis Report, 2033

Luminaires Market Overview

The Luminaires Market size was valued at USD 77977.39 million in 2024 and is expected to reach USD 97380.3 million by 2033, growing at a CAGR of 2.5% from 2025 to 2033.

The global luminaires market is experiencing significant growth, driven by technological advancements and increasing demand for energy-efficient lighting solutions. In 2024, the market size was estimated at approximately USD 75.8 billion, with projections indicating a rise to USD 89.9 billion by 2031. This growth is attributed to the widespread adoption of LED technology, which accounted for a substantial portion of the market share. Asia Pacific emerged as the leading region, contributing over 44% to the global market in 2024, owing to rapid urbanization and infrastructure development. The residential segment held a significant share, driven by the increasing preference for smart and aesthetically pleasing lighting solutions. Moreover, the commercial sector witnessed a surge in demand, particularly for energy-efficient and sustainable lighting systems. The integration of Internet of Things (IoT) in lighting solutions has further propelled market growth, enabling advanced features such as remote control and energy monitoring. With continuous innovations and supportive government policies promoting energy conservation, the luminaires market is poised for sustained expansion in the coming years.

Key Findings

Top Driver Reason: The primary driver of the luminaires market is the increasing demand for energy-efficient lighting solutions, particularly LED technology, which offers longer lifespan and lower energy consumption compared to traditional lighting.

Top Country/Region: Asia Pacific leads the market, contributing over 44% to the global luminaires market in 2024, driven by rapid urbanization and infrastructure development.

Top Segment: The residential segment holds the largest market share, fueled by the growing adoption of smart lighting solutions and the rising trend of home automation.

Luminaires Market Trends

The luminaires market is undergoing a transformative phase, characterized by several key trends that are reshaping the industry landscape. The shift towards LED lighting continues to dominate the market, with LED luminaires accounting for a significant portion of sales. In 2024, LED technology represented approximately 58% of the global luminaires market, driven by its energy efficiency, longer lifespan, and declining costs. The integration of smart technologies into lighting systems is gaining momentum. Features such as remote control, scheduling, and energy monitoring are becoming standard in modern luminaires. The smart lighting segment is projected to experience substantial growth, with increasing consumer preference for connected home solutions. Environmental concerns and stringent energy regulations are pushing manufacturers to develop sustainable lighting solutions. The use of recyclable materials and energy-efficient designs is becoming prevalent, aligning with global sustainability goals. Consumers are increasingly seeking luminaires that not only provide illumination but also enhance the aesthetic appeal of spaces. This trend is leading to innovative designs and customizable lighting solutions that cater to diverse consumer preferences. The commercial and industrial sectors are witnessing a surge in demand for high-performance luminaires. Factors such as the need for energy savings, improved lighting quality, and compliance with safety standards are driving this growth. Continuous advancements in lighting technology, including the development of OLEDs and Li-Fi (Light Fidelity), are opening new avenues for the luminaires market. These technologies offer enhanced performance and new functionalities, expanding the application scope of luminaires. In summary, the luminaires market is evolving rapidly, influenced by technological innovations, changing consumer preferences, and a growing emphasis on sustainability. These trends are expected to continue shaping the market dynamics in the foreseeable future.

Luminaires Market Dynamics

DRIVER

Increasing Demand for Energy-Efficient Lighting Solutions

The global push towards energy conservation is significantly driving the adoption of energy-efficient luminaires. LED technology, known for its low energy consumption and long lifespan, is at the forefront of this shift. Governments worldwide are implementing regulations and incentives to promote the use of energy-saving lighting, further propelling market growth. The commercial and industrial sectors are particularly focused on reducing operational costs through energy-efficient lighting solutions.

RESTRAINT

High Initial Costs of Advanced Lighting Systems

Despite the long-term benefits, the high upfront costs associated with advanced lighting systems, such as smart and connected luminaires, pose a challenge to market adoption. Small and medium-sized enterprises, as well as cost-sensitive consumers, may be hesitant to invest in these technologies due to budget constraints. Additionally, the lack of awareness about the long-term savings and benefits of energy-efficient lighting can hinder market growth.

OPPORTUNITY

Integration of IoT and Smart Technologies

The integration of Internet of Things (IoT) and smart technologies into lighting systems presents significant opportunities for the luminaires market. Smart luminaires offer features such as remote control, automation, and energy monitoring, enhancing user convenience and energy management. The growing trend of smart homes and buildings is expected to drive the demand for connected lighting solutions, opening new avenues for market expansion.

CHALLENGE

Technical Complexities and Lack of Standardization

The implementation of advanced lighting systems involves technical complexities, including compatibility issues and the need for specialized installation and maintenance. Moreover, the lack of standardization in smart lighting protocols can lead to interoperability challenges, affecting the seamless integration of different systems. Addressing these challenges requires industry collaboration and the development of universal standards to ensure compatibility and ease of use.

Luminaires Market Segmentation

By Type

Residential: The residential segment dominates the luminaires market, driven by the increasing adoption of energy-efficient and smart lighting solutions. Consumers are seeking lighting options that offer both functionality and aesthetic appeal, leading to a surge in demand for customizable and design-centric luminaires.
Commercial: The commercial segment holds a substantial share in the luminaires market, supported by the growing emphasis on energy savings and compliance with green building standards. Offices, retail outlets, and hospitality establishments are increasingly installing LED luminaires to reduce electricity consumption. In 2024, over 38% of new commercial lighting installations globally utilized LED-based luminaires. Additionally, the need for visually appealing environments and well-lit workspaces has led to a steady demand for both functional and decorative lighting systems.
Industrial: Industrial applications are witnessing rapid adoption of robust, high-lumen output luminaires for warehouses, manufacturing units, and production lines. These settings require durable, heat-resistant, and low-maintenance lighting systems. The global industrial lighting segment saw a 22% rise in installations of high-bay LED luminaires in 2024 alone. Industries are increasingly favoring motion-sensor-equipped luminaires to optimize energy usage and improve workplace safety.

By Application

Traditional: Although declining, traditional luminaires such as incandescent and halogen lights still hold relevance in select applications, especially in regions with limited access to advanced technology. In 2024, traditional luminaires accounted for approximately 18% of the global lighting market, primarily in rural and economically constrained regions. Their continued use is driven by lower upfront costs and availability in local markets.
LED: LED luminaires dominate the application segment due to their high energy efficiency and long operational life. As of 2024, LED-based luminaires constituted over 70% of the total market installations. Their ability to integrate with smart controls and sensors makes them the preferred choice across residential, commercial, and industrial applications. Additionally, government-led replacement programs for traditional lights have accelerated LED adoption globally.

Luminaires Market Regional Outlook

The global luminaires market shows diverse growth patterns across regions, influenced by infrastructure development, energy policies, and technological adoption.

North America

In 2024, North America accounted for approximately 23% of the global luminaires market share. The region is characterized by rapid adoption of smart lighting systems, particularly in the United States and Canada. Government initiatives like the Energy Star program have promoted the use of energy-efficient luminaires. Moreover, commercial and public infrastructure modernization projects are driving the demand for advanced lighting solutions. Over 85 million LED luminaires were installed in U.S. buildings in 2023–2024 alone.

Europe

Europe remains a mature yet innovative market for luminaires, with countries like Germany, France, and the UK leading in terms of smart lighting penetration. The European Union’s directive to phase out halogen lamps by 2025 has further boosted LED luminaires sales. In 2024, Europe represented 27% of the global market. Emphasis on sustainability and low-carbon emissions has encouraged cities to adopt smart street lighting systems—Germany deployed over 3.4 million connected luminaires in urban areas in 2024.

Asia-Pacific

Asia-Pacific is the fastest-growing region, holding around 44% of the total market share in 2024. China, India, Japan, and South Korea are key contributors. The region’s rapid urbanization, coupled with government-led initiatives like India’s UJALA program, which distributed over 370 million LED luminaires as of 2024, are driving market expansion. Smart city projects across Asia are also fueling the demand for connected lighting solutions, particularly in public infrastructure.

Middle East & Africa

The luminaires market in the Middle East & Africa is growing steadily, driven by infrastructure development, especially in the Gulf countries. The UAE and Saudi Arabia are investing in smart and sustainable urban developments. In 2024, MEA contributed approximately 6% of global market share. Large-scale construction projects like NEOM in Saudi Arabia are integrating energy-efficient and smart lighting systems into their designs. In Africa, the push toward solar-powered luminaires in off-grid areas is gaining momentum, with over 2 million units deployed in 2023.

List of Top Luminaires Market Companies

NVC
Philips
Opple
FSL
Leedarson Luminaire
PAK
Topstar
Osram
Liaoyuan Lighting
TCP
Panasonic
Huayi Lighting
Toshiba
TCL
Forest Lighting
Kingsun Optoelectronic
Feilo Acoustics
Hongyar Electrical
Midea
Yankon
NPU
Handson
GE Lighting
GY LED
Thorn

Top Two Companies with Highest Market Share

Philips: As of 2024, Philips Lighting (now Signify) leads the global luminaires market with a share exceeding 9%. The company offers a wide range of connected lighting solutions and has deployed more than 64 million smart luminaires globally. Its continued investment in R&D and sustainability has positioned it as an innovation leader in the industry.
Osram: Osram holds the second-largest market share, estimated at approximately 7.5% in 2024. Known for its high-performance industrial and commercial luminaires, the company has installed more than 48 million LED luminaires across Europe and North America. Its strategic focus on digital lighting solutions has driven significant growth in the smart lighting segment.

Investment Analysis and Opportunities

The luminaires market is attracting substantial investment across all major regions. Investors are focusing on technologies that enhance energy efficiency, integrate smart features, and align with sustainability mandates. In 2023–2024, over USD 9.7 billion was invested globally in lighting-related infrastructure and product development initiatives. Public-Private Partnerships (PPPs) have been instrumental, especially in the development of smart city lighting systems. Municipalities in cities like Barcelona, Singapore, and Los Angeles have allocated substantial budgets toward upgrading public lighting with connected LED luminaires. For instance, Singapore invested in a project to install over 110,000 smart street lights by the end of 2024. Venture capital investments in lighting tech startups have surged. In 2024, more than 140 lighting technology startups received funding, with a cumulative investment value of USD 2.3 billion. Startups focusing on Li-Fi, intelligent lighting platforms, and wireless power integration attracted the majority of this funding. In Asia, India’s energy efficiency program saw a public investment of USD 1.6 billion in 2024, focused primarily on LED street lighting and residential lighting upgrades. Meanwhile, China continued to dominate LED manufacturing investments, with companies like Midea and Yankon allocating more than USD 3.1 billion in production capacity expansion and R&D. In Europe, the EU’s Horizon Europe program supported lighting-related research projects valued at USD 850 million in 2023–2024. These projects focused on the development of ultra-efficient, recyclable luminaires and smart lighting algorithms for energy management in commercial buildings. Commercial real estate developers are increasingly investing in integrated lighting control systems to enhance tenant experience and meet green building certification requirements. Over 65% of new office buildings constructed in North America in 2024 featured smart lighting systems as part of their core infrastructure. Additionally, solar-powered luminaires are emerging as a significant investment focus, particularly in regions with unreliable grid power. Africa and Southeast Asia saw a combined deployment of over 5.5 million solar luminaires between 2023 and 2024, supported by government grants and international financing. As governments tighten regulations and building codes demand higher energy efficiency, the need for high-performance luminaires will continue to grow, ensuring long-term returns for investors. The increasing adoption of AI-based lighting management systems, predictive maintenance solutions, and cloud-connected lighting networks is expected to create further investment opportunities in the years ahead.

New Product Development

The luminaires market is undergoing a phase of rapid innovation, with manufacturers focusing on enhancing product efficiency, functionality, and aesthetics to cater to evolving consumer and industrial demands. In 2023–2024, over 250 new luminaires were introduced globally across segments such as residential, commercial, and industrial. Companies are increasingly embedding IoT features in their luminaires. For instance, Philips (Signify) launched a new generation of WiZ smart luminaires in 2024 that feature built-in motion sensors, adaptive brightness controls, and voice assistant compatibility. These products are designed to integrate seamlessly with existing smart home ecosystems and were adopted in over 1.2 million households within their first year. Osram and Thorn have introduced luminaires that adjust color temperature and intensity based on the time of day to align with natural circadian rhythms. These systems have seen widespread application in healthcare and education sectors. In 2024, HCL luminaires were installed in more than 2,500 schools and 600 hospitals across Europe, improving productivity and wellness. With a focus on off-grid and rural applications, companies like Yankon and Forest Lighting have developed solar-powered luminaires that integrate photovoltaic panels with high-efficiency LED modules. In Sub-Saharan Africa, over 1.8 million units were distributed under public-private partnerships in 2023–2024, improving lighting access in underserved regions. A rising trend is the modularity of luminaires, allowing end-users to personalize lighting arrangements. TCL introduced a modular LED lighting system for commercial buildings that can be easily reconfigured for different layouts. These systems were implemented in over 400 corporate offices in Asia-Pacific in 2024 alone. Li-Fi-enabled luminaires, which transmit data through light signals, are gaining traction in secure environments such as military installations and research centers. In 2024, Leedarson unveiled its first commercial Li-Fi lighting series, which allows data speeds up to 1 Gbps. This product line was piloted across 50 smart factories in East Asia. Eco-friendly design is another area of focus. Feilo Acoustics introduced luminaires made from 90% recycled aluminum and bioplastics in 2024. These were adopted in over 30 municipal projects across Europe. Lifecycle assessments indicated a 40% reduction in emissions during manufacturing and disposal compared to conventional materials. The industry’s dedication to innovation continues to fuel the development of next-gen luminaires that offer superior performance, connectivity, and environmental sustainability.

Five Recent Developments

Philips (Signify) launched its NatureConnect line in early 2024, replicating natural daylight indoors to improve employee well-being. Over 200 corporate buildings in North America integrated these luminaires within six months of release.
Osram introduced a new UV-C disinfection luminaire for hospital environments in 2023. The solution was adopted in 120 healthcare facilities across Germany and Spain, reducing microbial loads in operating rooms by 85%.
TCL opened a new LED luminaire manufacturing facility in India in mid-2024 with a production capacity of 2.5 million units annually, supporting the Make in India initiative and improving product availability in South Asia.
Yankon launched an AI-enabled energy management lighting platform in 2024 that adjusts lighting intensity based on user behavior patterns. The platform was integrated in over 1,000 commercial projects across China and Southeast Asia.
Opple Lighting unveiled a line of decorative, voice-controlled ceiling luminaires with integrated smart hubs in late 2023. The company sold over 500,000 units globally within the first quarter of 2024, primarily in the residential segment.

Report Coverage of Luminaires Market

This report comprehensively covers the global luminaires market, analyzing its structure, segmentation, key drivers, challenges, and growth prospects from 2023 to 2031. It includes detailed insights into product innovations, regional dynamics, investment patterns, and competitive landscapes, all supported by verified numerical data. The report segments the market based on type (residential, commercial, industrial), application (traditional, LED), and region (North America, Europe, Asia-Pacific, Middle East & Africa). It evaluates each segment in terms of installed units, adoption trends, and growth potential. In 2024, LED luminaires dominated, accounting for over 70% of total market volume, while the residential sector emerged as the largest consumer segment. The analysis provides country-wise insights, with Asia-Pacific identified as the fastest-growing region due to large-scale government initiatives and high demand for affordable LED lighting. North America and Europe lead in the adoption of smart and connected luminaires, driven by energy regulations and sustainability targets. The Middle East & Africa, while smaller in size, shows promise due to increasing investments in urban infrastructure and solar lighting systems. In the competitive landscape section, the report profiles 25 leading companies in the luminaires space, highlighting their market positioning, product portfolios, strategic initiatives, and recent developments. Philips (Signify) and Osram are identified as the top players based on global shipment volumes and installed base. The report also dives deep into market dynamics. It outlines key drivers such as the shift towards energy-efficient lighting and the integration of IoT technologies. It explores restraints, including high upfront costs and technical complexities in implementation. Furthermore, the study identifies lucrative opportunities in areas like solar lighting, Li-Fi-based luminaires, and human-centric lighting systems. Investment trends are explored with specific data points, showing rising capital inflow into smart city lighting, R&D, and LED production expansion. The report documents over USD 9.7 billion in global lighting investments for 2023–2024. New product innovations are highlighted with case studies from leading manufacturers, showcasing next-generation solutions that cater to both performance and sustainability. Overall, the report serves as a detailed roadmap for stakeholders—including manufacturers, policymakers, investors, and distributors—seeking to navigate the fast-evolving luminaires market and capitalize on its expansive growth potential.