Architectural Lighting Market Size, Share and Trends Analysis Report By Light Type (LED, HID), By Application Area, By End User (Residential, Commercial), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global architectural lighting market size to be valued at USD 12.2 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 6.1% during the forecast period. The growing need to ensure a well-lit space, with appealing lighting for enhancing the interior artifacts and corners, is expected to drive the market. Consumer demands have inclined towards architectural lighting with attributes such as cost-saving, affordability, reliability, adjustable illumination power, and longer lifespan. Moreover, the necessity to illuminate rooms, stairs, walls, gardens, parking lot, walkways, corridors, and other areas of the building is boosting the adoption of architectural lighting across the commercial and residential sectors.

The technology-enabled and cost-effective lamps and fixtures have become an attraction in offices, luxurious houses, hotels, and restaurants. The transformation in light bulb sources from fluorescent to HID, and LED to OLED is continuously improving and increasing the application of light with the added advantage of low energy consumption, and reduced emission of infrared rays. Furthermore, the lens technology used in LEDs or OLEDs optimizes fixtures photometrically to cover and redirect the light onto the required spot in a targeted manner. The improved lighting source supported further designing fixtures that could fit into the cove of the ceiling design, thereby reducing the direct light and illuminating the room with a soft lighting ambiance. Thus, technological improvements in the manufacturing of lighting solutions are anticipated to foster market growth over the forecast period.

The market is driven by the growing demand and usage of LED bulbs in lamps and fixtures for commercial and residential buildings. LEDs have improved the design flexibility of the architectural lighting fixture and its application from the illumination light source to display light. The concept of communicative lighting entails the usage of architectural lighting as a form of visual communication imparting information to onlookers while enhancing the character and usage of the building’s exterior. The demand for communicative or medialized lighting on skyscrapers or tall buildings is another important factor boosting the adoption of architectural lighting.

Developing the architectural lighting solution optimized to required specifications, and stringent safety and energy-saving standards in a shorter time frame and as per end-user demand is one of the key challenges for the vendors. The high overhead cost of installation and customization increases the overall lighting project cost, thereby restricting the market growth. However, the higher return on investment owing to reduced pricing of LED lighting is expected to augment the market growth over the forecast period.

Architectural Lighting Market Trends

The market has witnessed expansions in the urban space, developments in the lighting technology, and an increasing demand for energy-efficient lighting devices. The transition from fluorescent to LED lighting systems has facilitated the lighting designers to incorporate different kind of lighting fixtures for both, residential and commercial buildings. As a result, architectural lighting is gaining immense popularity among interior designers. Architectural lights help to highlight each area of a large room, such as a movie theatre, museum, restaurant, or workplace, by improving the aesthetic appeal of the building. 

The installation and customization services provided by architectural lighting manufacturers are very expensive, which is expected to restrict the consumer spending in the market. The presence of modern electronics and sophisticated technology have increased the price of the products. Besides, the market growth is also dependent on the growth of real estate market. If there are any market fluctuations in the real estate it is likely to impact the performance of architectural market.

Companies involved in the market are introducing smart lighting solutions equipped with sensors to provide efficient on-demand lighting. The launching of smart lighting as well as control systems, provides intelligent control with less energy consumption, high performance and the ability to adjust light intensity based on the needs of the consumer are the growing opportunities for market expansion. Furthermore, the rising demand for energy-efficient systems, combined with increased investments in smart city infrastructure such as commercial buildings, roadways, and bridges, is propelling the architectural lighting market.

Light Type Insights

Based on light type, the market has been bifurcated into light-emitting diode (LED), high-intensity discharge (HID), and others. The LED light type segment accounted for USD 3.6 billion in 2019 and is expected to witness a CAGR of 12.5% from 2020 to 2027. The growth of the segment is attributed to the reduced energy consumption cost and availability of appealing LED lighting fixtures. Moreover, the increasing LED in architectural lighting across indoor and outdoor areas of buildings allows it to be incorporated into façade lighting, recessed floor light, decorative pendant, chandelier light, and strip light. 

The industry experienced a swift transformation with the emergence of LED lighting, leading to a decline in the market share of fluorescent, compact fluorescent lamps (CFL), linear fluorescent light (LFL), and HID. Various forms of HID lights used in the parking lots and auditoriums for better illumination are mercury vapor, low and high-pressure sodium and metal halide lamps, ceramic metal halide, and xenon short-arc lamps. The demand for HID lights has declined due to the higher emission of infrared light, UV radiation, and short lifespan. Additionally, HID lights are omnidirectional, which necessitates the need for accessory parts to reflect or focus the luminous output of the bulb. Additional parts not only increase the cost but also make light, and bulky.

Application Area Insights

Based on the application area, the architectural lighting market has been segmented into indoor and outdoor. The indoor application of architectural lighting illuminates the horizontal wall, vertical wall, surface corners, stairs, room curves, hallways, and large rooms. The outdoor application includes exterior fencing walls and stairs, and a patio. The indoor segment has emerged as the highest revenue contributor owing to the usage of a higher number of lights in the interior space of the building. Additionally, the indoor spaces require various forms of lighting, such as façade lighting, uplight, retrofits, wall wash light, pendants, and chandeliers, to improve the ambiance, which has contributed to the growth of the indoor segment. Also, the integration of IoT into lights has provided an impetus to the burgeoning demand for indoor architectural lighting.

The outdoor segment is expected to witness a higher growth rate of over 12.8% during the forecast period. The growth is attributed to the demand for illuminating exterior walls of the buildings, parking areas in the IT parks, and residential gardens due to security concerns across the buildings. A well-lit surrounding of the building ensures safety as well as enhances the exterior architecture of the building, which is an essential factor driving the outdoor lighting segment. The Burj Khalifa (Dubai), Chrysler Building (New York), Taipei 101 (Taiwan), Empire State Building (New York), Eiffel Tower, (Paris), CHUNGHA BUILDING (Seoul, South Korea) are some of the buildings known for their impressive exterior architectural lighting.

End-user Insights

On the basis of end-user, the market is segmented into residential and commercial. The commercial segment is anticipated to remain the highest revenue contributor over the forecast period and is likely to reach USD 9.6 billion by 2027. Increasing the use of lighting for enhanced interior and exterior architectural beauty of commercial buildings such as museums, airports, IT parks, hotels, spas and resorts, and restaurants are driving the segment growth. Moreover, the cost-saving and low energy consumption feature of architectural LED lighting has driven the demand in commercial buildings.

The residential segment is expected to grow at a faster rate of 12.9% over the forecast period. The utilization of architectural lighting in residential buildings was initially witnessed across high-end luxury villas and flats. However, the rise in purchasing power parity (PPP) led to an improved standard of living, thereby positively impacting the growth of the residential segment. Furthermore, the declining price of LED fixtures has also led to a staggering trajectory across the residential sector and is expected to augment over the forecast period.

Regional Insights

In Asia Pacific, the market was valued at USD 3.5 billion in 2019. The region is anticipated to hold the largest market share during the forecast period. The region has more than 40 countries, and most of them are identified by "The United Nations" as under-developing or developing nations. The infrastructure development in commercial buildings, public spaces, and high-end residential complexes in the developing nations of Asia is necessitating the need for innovative lighting solutions. This, in turn, is contributing to the increasing demand for the installation of appealing interiors and exterior architectural lighting. Moreover, improving lifestyle, growth in disposable income, and availability of economically priced architectural lights are driving the market across India.

In Europe, the market is expected to witness a significant CAGR over the forecast period. The growth can be attributed to the growing adoption of energy-efficient lighting systems coupled with advanced control systems across Europe. The ever-increasing demand for architectural lighting with modern design and temperature control features for areas of application such as homes, restaurants, theaters, museums, hotels, shops, and malls, are expected to drive market growth over the forecast period. Furthermore, the presence of many well-known organizations that are contributing to improved designs for architectural illumination including the Association des Concepteurs Lumière et Éclairagistes (ACE) in France, the Associazione Professionisti dell' Illuminazione (APIL) in Italy, Schweizerische Licht Gesellschaft (SLG) in Switzerland, and the Hellenic Illumination Committee (HIC) in Greece has paved the way for market progress.

Key Companies & Market Share Insights

The prominent vendors competing in the market include Acuity Brands Lighting Inc.; IDEAL INDUSTRIES INC.; Hubbell, Delta Light, GE Current, a Daintree company; Technical Consumer Products, Inc.; Siteco GmbH, Signify Holdings, Zumtobel Group AG, and GVA Lighting. The companies are offering affordable and unique design fixtures for indoor and outdoor applications catering to the demand for architectural lighting across the commercial and residential sectors. Moreover, the vendors have opted for a mix of inorganic and organic growth strategies to strengthen their market position. For instance, in February 2020, K-LITE Industries launched new series of LED architectural lighting, including billboard lighting, sleek polar lighting, facade lighting, in-ground luminaire, up-down lighting, area lighting poles vertical light bars, uplight, wall washers, and pathway lighting solutions.

Recent Developments

• In March 2022, GE Current launched the Arize range of horticultural LED solutions, the Arize intra-canopy lighting (ICL) fixture. The solution aims to help gardeners increase yields of high-wire crops like tomatoes, peppers, and cucumbers, by deploying light deep in the plant canopy, in a strategic way.

• In May 2022, OSRAM launched diffuse ginoled flex LED strips that can be used to make eye-catching lighting designs, such as those found on facades, light coves, and handrails.

• In January 2022, Orion Energy Systems Inc. declared the acquisition of Stay-Lite Lighting. The acquisition is expected to augment the growth of Orion Maintenance Services that provides customers with electrical and lighting services.

Architectural Lighting Market Report Scope

Global Architectural Lighting Market 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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global architectural lighting market report on the basis of light type, application area, end-user, and region.

• Light Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Light-Emitting Diode (LED)

  • High-Intensity Discharge (HID)

  • Others

• Application Area Outlook (Revenue, USD Million, 2016 - 2027)

  • Indoor

  • Outdoor

• End-User Outlook (Revenue, USD Million, 2016 - 2027)

  • Residential

  • Commercial

• Regional Outlook (Revenue, USD Million 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)