Lighting Fixture Market Is Estimated to Witness High Growth Due to the Growing Infrastructural Development Projects and Rise in Construction Activities
The lighting fixture market is estimated to be valued at USD 240.34 Bn in 2024 and with CAGR of 13.1% over the forecast period 2024-2031. The market is witnessing steady growth due to the growing infrastructural development projects across both developed and developing countries. With increasing construction of commercial buildings, hospitals, malls, and offices, the demand for various lighting fixtures is on the rise.
Market Dynamics:
The lighting fixture market is driven by factors such as growing infrastructural development projects globally and rising construction activities. The growing investments in infrastructure development by governments worldwide to improve connectivity and build smart cities are driving the demand for lighting fixtures from the commercial sector. According to the World Bank, the global infrastructure spending is estimated to total USD 94 trillion by 2040. Moreover, rising disposable income and urbanization are increasing construction of residential buildings which is further augmenting the market growth. However, high initial installation cost of LED lighting fixtures and preference for existing lighting solutions continue to restraint the market to some extent. Nonetheless, supportive government policies and programs to promote energy efficient lighting coupled with increasing awareness about benefits of LEDs are expected to create growth opportunities for lighting fixture manufacturers during the forecast period.
Improving Living Standards is Driving Demand for Better Lighting Fixtures
As living standards continue to rise globally, consumers have more discretionary income to spend on home improvements and decor. This includes upgrading basic lighting fixtures to more attractive and functional designs. Many households that once relied solely on utilitarian bulb lighting now want decorative fixtures that also provide good illumination and match their interior styles. Manufacturers are responding by expanding product lines with a wider variety of design options, materials, and smart functionality. The growing demand for improved home aesthetics and advanced lighting control is a major driver fueling market growth.
Increasing Focus on Energy Efficiency is Encouraging the Adoption of LED Lighting
With greater environmental awareness and the desire to reduce monthly electricity bills, many consumers and commercial buyers are consciously opting for more energy-efficient lighting products. LED bulbs and fixtures have emerged as the preferred green alternative compared to older incandescent or CFL designs. Their significantly lower power consumption and longer lifespan make LED lighting a cost-effective choice over time. Strict policies banning inefficient bulbs and lighting standards are further accelerating the LED transition. As LED prices continue declining, their superior energy profile will remain a key factor propelling lighting fixture sales in coming years.
Volatility in Raw Material Prices can Impact Production Costs
The lighting fixture industry relies on various raw materials including metals, plastics, and electronic components. Unexpected price fluctuations in these commodities pose a risk to manufacturers' margins since lighting is a mass-produced good with tight profit margins. Temporary shortages or tariffs on imported materials can also disrupt supply chains and affect deliveries. While large established brands may be able to better manage raw material costs, smaller players have less purchasing power and bargaining ability with suppliers. Periodic price instability remains a restraint on consistent profitability and market expansion.
Dependence on Economic Conditions can Affect Demand
Being a discretionary purchase, lighting fixture sales are heavily dependent on broader economic conditions. During economic downturns or recessionary periods, consumers often cut back on home renovation and non-essential expenditures. Likewise, new commercial construction and facility upgrades which drive significant lighting purchases also slow down when GDP growth declines. Any significant and sustained dip in consumer confidence or business spending negatively impacts market demand. Rapid shifts in macroeconomic dynamics present an external challenge for industry players to smoothly align supply with fluctuating consumption patterns.
Growth of Smart Home Technologies Opens New Revenue Streams
The proliferation of smart home devices and connectivity standards is opening up exciting new opportunities for lighting fixture manufacturers. By integrating offerings with voice assistants, apps, and other smart home hubs, brands can capitalize on trends like lighting automation, outdoor security lighting control from mobile devices, and ambient lighting synchronization with entertainment. Players that successfully build IoT integrations into new product lines gain access to recurring software/services revenues in addition to one-time fixture sales. The rising smart home marketplace helps differentiate lighting portfolio and capture higher customer value.
Shift to E-commerce Enables Global Market Access
While lighting fixture shops were traditionally organized through physical retail distribution, e-commerce platforms have dramatically widened the potential customer base – both domestically as well as internationally. Online marketplaces allow global buyers to conveniently browse, compare and purchase products from all over the world. This presents lighting brands an opportunity to promote and sell their portfolio to a much larger consumer pool beyond local geographies. By leveraging digital channels, companies achieve expanded outreach at lower costs compared to establishing extensive brick-and-mortar networks. The ongoing digital transformation of retail opens immense scope for market access and growth.
In conclusion, while economic cycles and raw material price swings pose restraints, improved living standards, energy efficiency priorities, smart home technologies, and e-commerce transformation offer encouraging opportunities for continued expansion of the global lighting fixture industry in the foreseeable future.
Link - https://www.coherentmarketinsights.com/market-insight/lighting-fixture-market-1023
Key Developments:
- In April 2024, Zumtobel Group announces the launch of next-generation IoT-integrated lighting for public infrastructure.
- In March 2024, Osram rolls out AI-integrated adaptive lighting controls for large-scale commercial spaces. Signify expands partnerships with global developers to implement IoT-enabled lighting systems in new housing projects.
- In February 2024, Cree Lighting expands its presence in North America with its eco-friendly and connected LED products. GE Lighting introduces modular smart lighting for flexible home and office installations.
Key Players:
Acuity Brands, Inc., Zumtobel Lighting GmbH, Cooper Lighting, LLC, Panasonic Corporation, Eco Solutions Company, General Electric Company, OSRAM Licht AG, Koninklijke Philips N.V., LSI Industries Inc., Juno Lighting Group, and Hubbell Lighting, Inc.
