The "Commercial Lighting Market - Global Outlook & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

The global commercial lighting market is expected to reach a value of $14.18 billion by 2029 from $10.01 billion in 2023, growing at a CAGR of 5.98%

The global commercial lighting market is highly competitive, with many 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.

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.

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:

Lamps: The lamps segment holds a dominant market share, driven by industrialization, urbanization, and infrastructure development. The demand for lamps is fueled by the need to illuminate urban areas, streets, buildings, and public amenities for security, safety, and functionality. There is a strong trend towards sustainable and energy-efficient lamp designs.

Luminaires: While the lamps segment leads in market share, luminaires also play a significant role. The focus is on integrating advanced lighting technologies and designs that cater to modern needs and preferences.

Insights by Application:

Indoor: The indoor segment dominated the market share in 2023. Key trends include a growing emphasis on sustainability and energy efficiency, with indoor LED technology leading due to its lower energy consumption and longer lifespan compared to traditional lighting. The rise of smart indoor lighting systems that offer advanced features and controls is also notable.

Outdoor: While the indoor segment is more dominant, outdoor lighting solutions are also in demand, driven by the need to enhance safety, security, and aesthetic appeal in public and private outdoor spaces.

Insights by End User:

Commercial: The commercial end-user segment holds the largest market share. The growth is driven by the development of affordable and flexible commercial lighting solutions that cater to diverse infrastructure needs. Institutions such as schools, colleges, sports complexes, and water parks use renewable technologies to reduce their carbon footprint, boosting demand. The expansion of commercial spaces like offices, retail stores, hospitality venues, and healthcare facilities contributes to the strong demand for high-quality lighting systems. The growth in tourism, leisure activities, and government incentives to promote business activities further supports market expansion.

Insights by Light Type:

Commercial LED Battens: This segment held the largest market share in 2023. LED batten lights offer significant energy savings compared to traditional options and align with environmental regulations and sustainability goals. The growing focus on energy efficiency and the shift towards environmentally friendly lighting solutions drive their adoption.

Emergency Lighting, Commercial Floodlights, Track Lighting, LED Panel Lights, and Others: These types also play important roles in the commercial lighting market, catering to specific needs and applications within various environments.

KEY QUESTIONS ANSWERED

• How big is the commercial lighting market?
• What is the growth rate of the global commercial lighting market?
• Who are the key players in the global commercial lighting market?
• Which region dominates the global commercial lighting market share?
• What are the significant trends in the commercial lighting market?

Key Attributes:

MARKET DYNAMICS

Market Opportunities & Trends

• Profit Volatility in APAC
• Market Dynamic of APAC
• Rise in Commercial Construction and Projects
• Rise of High-Performance Commercial Lights in Sports Arenas
• Rise in Disposable Income

Market Growth Enablers

• Emergence of IoT and Product Innovations to Aid Replacements
• Increased Construction in Hospitality Industry
• Rise in Focus on Energy Efficiency
• Favorable Government Policies and Incentives

Market Restraints

• High Initial Cost
• Turbulent Global Political and Trade Relations
• Low Awareness and Limited Education

Premium Insights

Overview

• Standardized Led-based Lighting Solutions and Sector Technological Advances
• Wide Range of Indoor Lighting Demand from Commercial and Industrial Sectors
• Technological Advances in Commercial Lights Industry

Growth Strategy of Key Vendors

Global Dynamics of Norms and Regulations

Distribution Channels

• Manufacturers and Suppliers
• Distributors and Wholesalers
• OEMs and System Integrators
• Retailers
• E-Commerce Platforms
• Direct Sales and OEM Partnerships

Global Electricity Consumption Highlights

Macroeconomic Effects

• Geopolitical Tensions
• Risk Factors

Key Competitive Highlights

Demand from Commercial Spaces

• Increase in Demand for Commercial Lights in Coworking Spaces
• Key Highlights for Global Construction Sector

Key Company Profiles

• Acuity Brands
• ABB
• Signify
• OSRAM
• Cree Lighting
• WAC Lighting
• Hubbell Incorporated
• SITECO GmbH
• Wipro Lighting
• STANLEY ELECTRIC
• NICHIA CORPORATION

Other Prominent Vendors

• Eaton Lighting
• 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
• Schreder 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

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