Commercial Lighting Market - Global Outlook & Forecast 2024-2029

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THE GLOBAL COMMERCIAL LIGHTING MARKET SIZE IS EXPECTED TO REACH USD 14.18 BILLION BY 2029 FROM USD 10.01 BILLION IN 2023, GROWING AT A CAGR OF 5.98% DURING THE FORECAST PERIOD.

The Commercial Lighting Market Size, Share, & Trends Analysis Report By

  • Type: Lamps and Luminaires
  • Application: Indoor and Outdoor
  • End User: Commercial and Industrial
  • Light Type: Commercial LED Battens, Emergency Lighting, Commercial Floodlights, Track Lighting, LED Panel Lights, and Others
  • Geography: North America, Europe, APAC, Latin America, and Middle East & Africa

Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2024–2029.

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COMMERCIAL LIGHTING MARKET REPORT SCOPE

REPORT ATTRIBUTEDETAILS
Market Size (2029)USD 14.18 Billion
Market Size (2023)USD 10.01 Billion
CAGR (2023-2029)5.98%
HISTORIC YEAR2020-2022
BASE YEAR2023
FORECAST YEAR2024-2029
SEGMENTS BYType, Application, End User, Light Type, Geography
GEOGRAPHIC ANALYSIS North America, Europe, APAC, Latin America, and Middle East & Africa
KEY PLAYERSAcuity Brands, ABB, Signify, OSRAM, Cree Lighting, WAC Lighting, Hubbell Incorporated, SITECO GmbH, Wipro Lighting, STANLEY ELECTRIC, and NICHIA CORPORATION
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MARKET OVERVIEW

The global commercial lighting market was valued at USD 10.01 billion in 2023 and is expected to reach USD 14.18 billion by 2029, growing at a CAGR of 5.98% during the forecast period. The market growth is being significantly powered by the ongoing and upcoming smart city plans in several countries, the increased focus of governments worldwide on energy consumption, the increasing demand for LED luminaires and lights for outdoor applications, and the expanding acceptance of standard procedures for lighting control systems.

Commercial light's primary function is to provide adequate illumination for various activities and tasks conducted within commercial spaces. This includes general lighting to ensure overall visibility, task lighting for specific work areas, and accent lighting to highlight merchandise or architectural features. Also, commercial lighting is customized to fit several facilities and their operations based on use. Maintenance requirements, warranties, and brightness levels are all significant factors in commercial lighting. Furthermore, the commercial lighting market is witnessing rapid technological advancements, particularly in LED lighting technology, smart lighting solutions, and IoT integration. LED lighting has become the dominant lighting technology due to its energy efficiency, longevity, and design flexibility.

MARKET TRENDS & OPPORTUNITIES

Rise in Commercial Construction and Projects
In the long run, the global construction industry is expected to experience steady growth due to low-interest rates in a few European countries and stable economic growth. Currently, developments in the construction industry are unstable and volatile due to the economic recession. However, they are expected to have a short-term impact as the fiscal stimulus and other measures are expected to be rolled out as soon as possible to get construction back on track. This is because it supports a large number of ancillary industries and also employs a large number of people. Hence, the revival is expected to materialize after 2023.

Among commercial and industrial sectors, the growth of the residential construction sector is gaining traction. New residential markets are expected to grow in countries such as Ireland, Portugal, Spain, Poland, and the Czech Republic due to investments in these countries because of low construction and labor costs compared to developed countries such as France, Germany, and the UK. Renovation is expected to increase in non-residential markets in countries such as Hungary, the Czech Republic, Poland, the Netherlands, and Spain. Investments made by global investors are significantly increasing. Shopping centers, office space segments, and expanding the industrial and land sectors are the growth enablers for the commercial lighting market.

Emergence of IoT and Product Innovations to Aid Replacements
The emergence of the Internet of Things (IoT) and advancements in product innovations are poised to revolutionize the replacement of commercial lights, driving efficiency, sustainability, and cost-effectiveness in commercial lighting systems. IoT technology enables the connectivity of lighting fixtures to the internet, allowing for remote monitoring, control, and data analytics. With IoT-enabled lighting systems, facility managers can easily identify faulty or inefficient fixtures, schedule maintenance tasks, and adjust lighting settings in real time from a centralized dashboard. This connectivity facilitates predictive maintenance, reducing downtime and extending the lifespan of lighting fixtures.

INDUSTRY RESTRAINTS

High Initial Cost
The high cost of LEDs is a significant restraint in the commercial lighting market, limiting their widespread adoption across various industries and applications. The manufacturing process of LEDs involves complex procedures and specialized materials, resulting in higher production costs compared to traditional mercury lamps. Consequently, the initial investment and operational expenses associated with LED-based systems are perceived as prohibitive, discouraging potential customers from embracing this technology.

SEGMENTATION INSIGHTS

INSIGHTS BY TYPE
The global commercial lighting market by type is segmented into lamps and luminaires. The lamps segment holds a dominant commercial lighting market share, driven by industrialization, urbanization, and infrastructure development. As cities expand and populations grow, an increasing demand to illuminate urban areas, streets, buildings, and public amenities is observed to ensure security, safety, and functionality. Companies are considering this and developing suitable lamp products. A major trend in the lamp industry is sustainable, energy-efficient designs that achieve environmental regulations and consumer preferences. Manufacturers use eco-friendly materials and daylight harvesting techniques to decrease energy consumption and environmental impact. Moreover, governments worldwide are implementing encouraging policy judgments to ensure the adoption of safer & more sustainable lighting options. For instance, according to IEA, the objective of achieving 100% LED lighting by 2025 has been positioned under the Net Zero Emissions by 2050 Scenario (NZE Scenario) to encourage sustainable lighting solutions. These factors help to boost the demand for the lamp-type lighting industry in the forecast period.

INSIGHTS BY APPLICATION
The global commercial lighting market by application is segmented into indoor and outdoor. The indoor segment dominated the market share in 2023. A prominent trend in the commercial lighting sector is the growing emphasis on sustainability and energy efficiency. The end users are becoming conscious of the environmental impact of their choices, particularly in the lighting. Indoor LED technology has emerged as the dominant product in the market, largely due to its lower energy consumption and longer lifespan than traditional fluorescent and incandescent bulbs. Additionally, there is a rising trend toward adopting smart indoor lighting systems, which offer advanced features and controls that enhance energy efficiency and customization options for users. Also, developing countries are witnessing robust economic growth and a rise in business activities, leading to the expansion of corporate offices, coworking spaces, and commercial complexes. As businesses expand their operations and invest in modern office facilities, there is a corresponding demand for high-quality lighting solutions that enhance indoor environments' productivity, comfort, and aesthetics.

INSIGHTS BY END USER
The commercial end-user segment holds the largest global commercial lighting market share in 2023. The growth of the segment is attributable to the development of affordable and flexible commercial lighting that matches the complex and dynamic infrastructure and helps reduce utility bills of institutions such as schools, colleges, sports complexes, and water parks that use renewable technologies to differentiate themselves and showcase their commitment to the reduction of their carbon footprint.

The application of commercial lights in indoor environments spans various sectors, each with specific lighting requirements tailored to their unique functions, aesthetics, and user needs. Expanding commercial spaces, including offices, retail stores, hospitality venues, and healthcare facilities, have fueled the demand for lighting solutions.

As businesses grow and new establishments are built, there is a continuous need for high-quality lighting systems to meet the diverse requirements of these spaces. Restaurants, hotels, spas, and recreation centers are the major end-users in the segment, which poses a strong growth prospect for the next five years. It is further accelerated by the growth in tourism, leisure activities, demographic factors, lifestyle modifications, and supportive incentives from the government to promote business activities. Also, coworking spaces are increasingly appealing to small companies, start-ups, and enterprise customers as flexible workspaces are designed to provide a pleasing work culture environment. This new and potential demand for cost-effective lighting systems is expected to boost the market growth in commercial sectors.

INSIGHTS BY LIGHT TYPE
The global commercial lighting market by light type is segmented into commercial LED battens, emergency lighting, commercial floodlights, track lighting, LED panel lights, and others. The commercial LED battens segment holds the most significant commercial lighting market share in 2023. LED batten lights offer significant energy savings compared to traditional lighting options. Many APAC and European countries have implemented stringent environmental regulations and sustainability initiatives to mitigate climate change and reduce greenhouse gas emissions. LED batten lights, being environmentally friendly with no hazardous materials like mercury, meet these regulatory requirements and align with the region's sustainability goals, driving their adoption among businesses. Further, the demand for commercial LED battens is witnessing a substantial increase, propelled by several key factors, such as a growing focus on energy efficiency and sustainability within commercial environments, driving the adoption of LED lighting solutions.

GEOGRAPHICAL ANALYSIS

APAC accounted for the highest share of the commercial lighting market, valued at over USD 3 billion in 2023. The region poses a higher market share due to the presence of countries like China, Japan, South Korea, India, and other emerging countries that are the manufacturing hubs for electronics. The demand for commercial lighting in APAC is driven by stringent regulations for emission standards, better fuel economy, and concerns over sustainability. Also, swift urbanization and infrastructure development in APAC cities create new commercial buildings, shopping centers, hotels, hospitals, and transportation hubs. Consequently, opportunities for commercial lighting applications abound as urban populations seek efficient and sustainable lighting solutions to bolster safety, productivity, and comfort in commercial environments.

Europe was the second-largest revenue contributor to the global commercial lighting market in 2023. Major factors spiking commercial lighting sales in Europe are rising average construction spending, increasing retail building construction projects, rising government spending on sustainable building development, industrial developments, rapid urbanization, changing climatic conditions, and growth in disposable income across European countries. Government regulations regarding eco-friendly refrigerants and energy-efficiency smart commercial lighting are expected to increase the demand for commercial lighting maintenance & service, particularly in Germany, the U.K., France, and Italy, due to the construction of buildings.

COMPETITIVE LANDSCAPE

The global commercial lighting market is highly competitive, with a large number of public and private companies. These vendors typically compete on key parameters such as product design, quality, reliability, support services, and price. Rapid technological advancements adversely impact vendors in the commercial lighting market as consumers expect continuous innovations and product upgrades. The present scenario drives vendors to alter and refine their unique value proposition to achieve a strong market presence.

Some major vendors dominating the global commercial lighting market include Signify NV (Philips Lighting), Acuity Brands Lighting, ABB Ltd, Honeywell LED Lighting and Wipro Lighting Limited. These brands have many product offerings and a widespread presence in the global market. The major vendors are adopting innovative technologies to retain their strong commercial lighting market position.

Frequently Asked Questions

How big is the commercial lighting market?

The global commercial lighting market was valued at USD 10.01 billion in 2023 and is expected to reach USD 14.18 billion by 2029.

What is the growth rate of the global commercial lighting market?

The global commercial lighting market is expected to grow at a CAGR of 5.98% from 2023 to 2029.

Who are the key players in the global commercial lighting market?

Acuity Brands, ABB, Signify, OSRAM, Cree Lighting, WAC Lighting, Hubbell Incorporated, SITECO GmbH, Wipro Lighting, STANLEY ELECTRIC, and NICHIA CORPORATION are the key players in the global commercial lighting market.

Which region dominates the global commercial lighting market share?

APAC held the largest global commercial lighting market share, valued at over USD 3 billion in 2023.

What are the significant trends in the commercial lighting market?

Profit volatility in APAC, the rise in commercial construction and projects, the rise of high-performance commercial lights in sports arenas, and the rise in disposable income are significant trends in the commercial lighting market.

The global commercial lighting market is expected to grow at a CAGR of approximately 5.98% from 2023 to 2029.

The following factors are likely to contribute to the growth of the global commercial lighting market during the forecast period:

  • Emergence of IoT and Product Innovations to Aid Replacements
  • Increased Construction in the Hospitality Industry
  • Favorable Government Policies and Incentives

Base Year: 2023

Forecast Year: 2024-2029

The report considers the present scenario of the global commercial lighting market and its market dynamics for 2024−2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and analyzes leading companies and several other prominent companies operating in the industry.

Key Company Profiles

  • Acuity Brands
    • Business Overview
    • Product Offerings
    • Key Strategies
    • Key Strengths
    • Key Opportunities
  • ABB
  • Signify
  • OSRAM
  • Cree Lighting
  • WAC Lighting
  • Hubbell Incorporated
  • SITECO GmbH
  • Wipro Lighting
  • STANLEY ELECTRIC
  • NICHIA CORPORATION

Other Prominent Vendors

  • Eaton Lighting
    • Business Overview
    • Product Offerings
  • Zumtobel Group
  • Lutron Electronics Co.
  • Fagerhult Group
  • Cooper Lighting Solutions
  • LEDVANCE
  • Trilux Group
  • Delta Light
  • XAL
  • ERCO Lighting
  • RAB Lighting
  • H.E. Williams
  • Fulham Co., Inc.
  • TCP Lighting
  • Lucifer Lighting Company
  • Glamox
  • Axis Lighting
  • Schréder Group
  • Selux AG
  • Legrand
  • Ligman Lighting
  • Bartco Lighting
  • OMS Lighting
  • Reggiani Lighting
  • Performance in Lighting
  • Hubble Lighting Hubbell Outdoor Lighting
  • Luceco
  • Lithonia Lighting
  • Kim Lighting
  • Sylvania Lighting Solutions
  • Liteline Corporation
  • Amerlux
  • Bega
  • Juno Lighting Group
  • Elliptipar
  • Eglo
  • NVC Lighting
  • Dialight

Segmentation by Type

  • Lamps
  • Luminaires

Segmentation by Application

  • Indoor
  • Outdoor

Segmentation by End User

  • Commercial
  • Industrial

Segmentation by Light Type

  • Commercial LED Battens
  • Emergency Lighting
  • Commercial Floodlights
  • Track Lighting
  • LED Panel Lights
  • Others

Segmentation by Geography

  • APAC
    • China
    • Japan
    • India
    • Australia
    • South Korea
  • Europe
    • Germany
    • France
    • Russia
    • UK
    • Norway
    • Denmark
    • Italy
    • Poland
    • Spain
  • North America
    • The U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa

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Frequently Asked Questions

How big is the commercial lighting market?

The global commercial lighting market was valued at USD 10.01 billion in 2023 and is expected to reach USD 14.18 billion by 2029.

What is the growth rate of the global commercial lighting market?

The global commercial lighting market is expected to grow at a CAGR of 5.98% from 2023 to 2029.

Who are the key players in the global commercial lighting market?

Acuity Brands, ABB, Signify, OSRAM, Cree Lighting, WAC Lighting, Hubbell Incorporated, SITECO GmbH, Wipro Lighting, STANLEY ELECTRIC, and NICHIA CORPORATION are the key players in the global commercial lighting market.

Which region dominates the global commercial lighting market share?

APAC held the largest global commercial lighting market share, valued at over USD 3 billion in 2023.

What are the significant trends in the commercial lighting market?

Profit volatility in APAC, the rise in commercial construction and projects, the rise of high-performance commercial lights in sports arenas, and the rise in disposable income are significant trends in the commercial lighting market.