Residential Lighting Fixtures Market Size Report, By Source (Fluorescent, LED & OLED), By Product (Ceiling, Pendant & Chandeliers), By Distribution Channel, By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global residential lighting fixtures market size to be valued at USD 21.17 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% during the forecast period. Increasing demand for energy-efficient products is anticipated to boost the market growth over the forecast period. Energy-efficient and economical lighting fixtures are increasingly replacing traditional lighting devices. Furthermore, the introduction of the Internet of Things (IoT) has increased product visibility among millennial consumers. Lighting fixture is an important element in terms of home decoration, which is gaining popularity among smart homes. Consumers have been increasingly investing in home décor due to the rising purchasing power. Over the past few years, the demand for dimmable or brightness controllable lights has witnessed a significant rise, among the consumers as they can create the desired atmosphere using the lights.

Rapid urbanization in emerging economies, including China, India, and Brazil, is expected to drive the growth of the residential lighting fixtures market in the upcoming years owing to the increased income level and the changing lifestyle of consumers. In addition, availability of cost-effective and attractive lights is projected to further fuel the product demand.

Increased adoption of LED lights to replace the traditional incandescent lights has widened the opportunity for the manufacturers. Over the past few years, the manufacturers have been expanding their LED product portfolio by innovating new fixtures and by acquiring existing companies to cater to the growing demand.

Residential Lighting Fixtures Market Trends

Rapid urbanization and increased investment in the electronics industry have resulted in rising demand for decorative lighting in the residential segment. Products like LEDs are driving the demand for residential lighting fixtures.

The increased use of energy has resulted in enhanced carbon emissions, creating the need for energy sustainable products. Climate change concerns such as ozone depletion, and global warming have increased government efforts to reduce their carbon footprint. As per EPRI (Electric Power Research Institute), incorporating renewable energy sources into smart grids could reduce emissions of greenhouse gas by 30-37 million metric tonnes (MMT) per year by 2030. Governments are encouraging people and making them aware of energy savings through various initiatives. These rising concerns about GHG (greenhouse gases) emissions have caused the need for smart grids that generate energy from renewable sources, eventually increasing the use of smart grid residential lighting fixture systems thereby and driving the market growth.

Challenges

Safety and security concerns for IoT controlled lights have challenged the growth of this market. The automatic IoT controlled residential lighting systems include natural light detection sensors and activity recognition which require temperature control sensors, and proper insulation. When these sensors fail, the temperature in bulbs rises due to the increase in voltage, increasing the chances of a fire accident. This has become one of the safety concerns regarding residential lighting fixtures.

Light source standards and LED protocols are not well defined. As a result, manufacturers offer different products in different countries that comply with the relevant regulations. Also, the rise in levels of competition from cheaper products manufactured in China as well as a lack of proper installation, act as major constraints for the growth of the residential lighting market.

Opportunities

The growing use of LED lights instead of the traditional halogen bulbs is creating numerous market opportunities. Beneficial characteristics of LED lights such as low heat radiation, long life, and energy efficiency are fuelling global LED lighting acceptance. The government is taking steps to encourage people to use LED products which is expected to help the market grow during the forecast period.

Product Insights

In 2018, the ceiling and wall mounted segment accounted for more than 60% of the total market share in terms of revenue. These products are the most common solutions for overall room lighting among households. Wall-mounted fixtures balance the brightness of the entire room by bouncing off the light on ceilings and walls. They make a room feel larger and brighter while creating an attractive atmosphere. Furthermore, the availability of a wide variety of styles of ceiling and wall mounted lights suitable for every kind of homes and decorating scheme has fueled the sales of these products in the residential sector.

Pendant and chandeliers segment is expected to witness the fastest CAGR of 6.6% from 2019 to 2025. Rising spending on home décor supported by the increasing purchasing power of consumers is a key growth driver. Chandelier lights have been gaining significant popularity for the decoration of living rooms as they provide an attractive and elegant look to the place. Similarly, rising preference for pendant lights to enhance the look and brightness of the kitchen and dining rooms are expected to further fuel the segment growth.

Distribution Channel Insights

Offline channel held the largest market share of more than 80% in 2018. Provision of detail instructions about installation by the product specialists is the major factor driving the adoption of these distribution channels. Furthermore, the availability of the compatible lighting fixture accessories has been appealing to consumers to purchase from the offline distribution channel.

Online segment is projected to expand at the fastest CAGR of more than 8% from 2019 to 2025. Rapid growth of e-commerce in home appliance industry has been boosting online product sales. The U.S. has the highest penetration of e-commerce. However, e-commerce in the lighting fixtures is growing rapidly in countries from Asia Pacific such as India and China. In July 2017, Amazon, the e-commerce giant, acquired Souq, a Middle Eastern online retailer.

Source Insights

In 2018, the Light-emitting Diodes and Organic Light-emitting Diode (LED & OLED) segment held the largest market share, accounting for more than 50% of the total revenue. LED and OLED bulbs are highly energy-efficient and durable. These products consume up to 90% less power than incandescent lights. As a result, consumers have been increasingly replacing incandescent lights with LED lights. In several countries, the governments have implemented regulations on discontinuation and consumption of production of incandescent bulbs. As a result, the incandescent segment is expected to phase out in the upcoming years.

Since October 2012, China has banned sales and import of certain incandescent bulbs to promote the alternative power-saving lighting sources, such as LED. Similarly, various countries, including U.S., Russia, Norway, U.K., UAE, South Korea, Malaysia, Japan, South Africa, Brazil, and Egypt, have banned these bulbs completely or partially in the last few years. In addition, the faster price reduction of LED lights has been propelling the penetration of these products among the household.

Regional Insights

In 2018, Asia Pacific led the market, contributed to more than 45% of the global revenue. High population density in key markets including China and India is expected to remain a crucial factor for the regional growth. Furthermore, increasing spending on electrification and urbanization by the regional governments is expected to promote the utility of residential lighting fixtures.

Middle East and Africa is expected to expand the fastest growth CAGR of over 8% from 2019 to 2025. South Africa, UAE, Saudi Arabia, and Egypt are the key markets in terms of both production and consumption of lighting products. Around 64% of the rural population of South Africa has access to electricity. This reflects a huge opportunity for growth in these untapped markets over the next few years.

Key Companies & Market Share Insights

Key manufacturers include Koninklijke Philips N.V.; Cree Inc.; General Electric; Hubbell Lighting, Inc.; Acuity Brands, Inc.; Eaton Corporation; Panasonic Corporation; OSRAM Licht AG; Nichia Corporation; and Everlight Electronics Co., Ltd. Major companies have been acquiring existing LED businesses to cater to the rising demand. For instance, Acuity Brands, Inc. acquired two LED business, namely, eldoLED and Distech Controls, in 2013 and 2015 respectively.

Recent Developments

• In October 2021, Cree Lighting introduced the CPY500TM Series which is a completely new canopy lighting solution. This has constituted to benefit business canopies from its inventive and sleek design, which delivers visual comfort and energy efficiency. This lighting solution provides a sparkle for attracting the eye of consumers and creates a new form of comfort visual light

• In October 2021, Panasonic Life Solutions India, one of the country's largest manufacturers of ECM (electrical construction materials), introduced their latest range of protection devices and premium switchgear for Indian consumers those who are conscious regarding quality. The UNO Plus is an additional installment to the switchgear for the purpose of providing security and quality to product portfolio

• In August 2021, NICHIA, which is the world's largest manufacturer of high brightness white and blue LEDs, announced a combined product development partnership with Zumtobel to provide superior human centric lighting benefits using LED illumination. This partnership has been beneficial especially for Zumtobel in making new products available to its customers. As a result, there has been launch of ZUMTOBEL SPECTRUM with the use of technology of NICHIA for producing colour with the properties of daylight

Residential Lighting Fixtures Market Report Scope

Global Residential Lighting Fixtures 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 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global residential lighting fixtures market report based on source, product, distribution channel, and region:

• Source Outlook (Revenue, USD Million, 2015 - 2025)

  • Incandescent

  • Fluorescent

  • LED & OLED

• Product Outlook (Revenue, USD Million, 2015 - 2025)

  • Ceiling

  • Pendant & Chandeliers

  • Wall Mounted

  • Portable

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Offline

  • Online

• Region Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa