commercial lighting market Summary
As per MRFR Analysis, the Commercial Lighting Market was valued at 50.81 USD Billion in 2023 and is projected to grow to 85.0 USD Billion by 2035, reflecting a CAGR of 4.38% from 2025 to 2035. The market is driven by increasing urbanization, government initiatives for energy efficiency, and technological advancements in smart lighting solutions. The shift towards energy-efficient LED lighting and the integration of IoT technologies are key factors influencing market dynamics.
Key Market Trends & Highlights
The Commercial Lighting Market is experiencing transformative trends driven by sustainability and technology.
- Market Size in 2024: 53.03 USD Billion; projected to reach 85.0 USD Billion by 2035.
- Indoor Lighting segment valued at 20.12 USD Billion in 2024; expected to grow to 32.0 USD Billion by 2035.
- Smart Lighting segment anticipated to increase from 5.26 USD Billion in 2024 to 11.0 USD Billion by 2035.
- North America leads the market with a valuation of 20.0 USD Billion in 2024, projected to rise to 32.0 USD Billion by 2035.
Market Size & Forecast
2023 Market Size: USD 50.81 Billion
2024 Market Size: USD 53.03 Billion
2035 Market Size: USD 85.0 Billion
CAGR (2025-2035): 4.38%
Largest Regional Market Share in 2024: North America.
Major Players
Key players include Legrand, Cree, Signify, Samsung Electronics, Osram, GE Current, Hubbell Lighting, Acuity Brands, Schneider Electric, Eaton, LG Electronics, Lutron Electronics, Zumtobel Group, Panasonic.
Key Commercial Lighting Market Trends Highlighted
The Commercial Lighting Market is now growing quickly because of a few important factors. LED lighting solutions are becoming more popular as people become more concerned about energy efficiency and sustainability. Governments all across the world are putting strict rules in place to cut down on energy use. This makes companies switch to lighting systems that use less energy. This quest for energy-saving solutions not only cuts down on carbon footprints, but it also cuts down on running expenses. As smart lighting technologies become more popular, the Commercial Lighting Market is full of possibilities.
Lighting systems that use the Internet of Things (IoT) provide organizations more control and customization, which may help them run their enterprises more efficiently. These new technologies provide businesses a great chance to produce new solutions that make using them easier and help them control their energy consumption better. The movement toward smart cities and networked infrastructure also creates opportunities for commercial lighting systems that can work with larger urban development projects. There is a rising need for adaptable lighting systems that can work in changing contexts, especially in commercial venues like offices, stores, and hotels.
The emphasis is now on lighting that can change depending on how many people are in a room and how much natural light is coming in. This makes people more comfortable and saves electricity. Lighting's visual appeal has also grown more essential, which has led to the creation of flexible and attractive fixtures that suit design needs in high-end commercial environments. Overall, these trends show that commercial lighting systems are becoming smarter, more efficient, and better-looking all across the world.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Commercial Lighting Market Drivers
Increasing Demand for Energy-Efficient Solutions
The Commercial Lighting Market Industry is witnessing a significant shift towards energy-efficient lighting solutions, driven by growing concerns regarding energy consumption and environmental impact. According to the International Energy Agency, energy-efficient lighting products, such as Light Emitting Diodes (LEDs), can reduce energy consumption by up to 80% compared to traditional incandescent bulbs. Governments across various regions are implementing stringent energy efficiency standards and incentives for businesses to adopt such technologies.
For instance, the U.S. Department of Energy has reported that adopting LED technology in commercial spaces could save businesses approximately 4 USD Billion annually in energy costs by 2025. This rising focus on sustainability and cost-effectiveness strongly supports the demand for innovative lighting technologies, fueling growth in the Commercial Lighting Market Industry.
Rapid Urbanization and Infrastructure Development
Urbanization is rapidly reshaping the Commercial Lighting Market Industry as cities grow to accommodate increasing populations. The United Nations projects that by 2050, nearly 68% of the world's population will live in urban areas, compared to 55% in 2018. This urban expansion necessitates the development of sophisticated infrastructure, which includes advanced lighting systems in commercial spaces. Investments in smart city projects globally, such as those led by cities like Singapore and Barcelona, focus on integrating modern lighting solutions that improve usability, aesthetics, and energy efficiency.
This transition toward smarter infrastructure is expected to significantly enhance the demand for commercial lighting solutions, thereby driving market growth.
Technological Advancements and Smart Lighting Solutions
The Commercial Lighting Market Industry is significantly propelled by advancements in lighting technology, particularly smart lighting solutions. The market has observed a shift towards intelligent lighting systems that incorporate features like remote monitoring, automation, and connectivity through the Internet of Things (IoT). According to the National Institute of Standards and Technology, implementing smart lighting can lead to a 30% reduction in energy use in commercial buildings.
Companies like Philips and GE Lighting are pioneering this segment by creating integrated systems that can be remotely managed and optimized for energy efficiency. The rising trend toward automation in commercial spaces is further driving the need for more sophisticated lighting solutions, indicating substantial growth potential in the Commercial Lighting Market Industry.
Commercial Lighting Market Segment Insights:
Commercial Lighting Market Application Insights
The Commercial Lighting Market is poised for substantial growth, particularly within the Application segment which encompasses Indoor Lighting, Outdoor Lighting, Accent Lighting, Emergency Lighting, and Smart Lighting. With a market valuation of 53.03 USD Billion in 2024, it is projected to reach 85.0 USD Billion by 2035, showcasing a strong upward trend. The segmentation reveals that Indoor Lighting holds a majority share with an expected valuation of 24.0 USD Billion in 2024 and rising to 38.5 USD Billion by 2035. This dominance is driven by the growing demand for energy-efficient solutions in commercial spaces, emphasizing the necessity of a well-illuminated environment for productivity and safety in indoor settings.
Meanwhile, Outdoor Lighting is also significant, valued at 12.5 USD Billion in 2024 and anticipated to grow to 20.0 USD Billion by 2035. This growth can be attributed to increasing urbanization and the need for secure and well-lit public spaces, which enhance safety and visibility. Accent Lighting, valued at 7.0 USD Billion in 2024 and projected to rise to 11.0 USD Billion by 2035, is gaining traction due to its role in highlighting architectural features and enhancing aesthetic appeal in commercial establishments. Emergency Lighting, which is essential for safety standards, is expected to grow from 5.0 USD Billion in 2024 to 8.0 USD Billion by 2035, reflecting regulatory mandates requiring adequate safety measures in emergency situations.
Lastly, Smart Lighting, with a valuation of 4.53 USD Billion in 2024 projected to increase to 7.5 USD Billion by 2035, illustrates the increasing integration of technology in commercial lighting, driving improvements in energy efficiency and allowing for better control and automation in lighting solutions. The market's growth drivers include regulatory compliances, advancements in technology, and a shift toward sustainable practices, while challenges lie in the high initial costs associated with smart lighting installations. The Commercial Lighting Market thus presents significant opportunities for innovation and investment as businesses aim to enhance efficiency, safety, and aesthetic value through strategic lighting solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Commercial Lighting Market Light Source Insights
The Commercial Lighting Market, focusing on the Light Source segment, is poised for significant growth as the industry continues to evolve. By 2024, the market is expected to be valued at 53.03 USD Billion, reflecting the growing demand for efficient and sustainable lighting solutions across various sectors. Key contributors to this landscape include light sources such as LED, fluorescent, incandescent, halogen, and HID. Among these, LED technology stands out due to its energy efficiency and longevity, propelling its dominance in both commercial and industrial applications.
Fluorescent lighting, while historically popular, is gradually being overshadowed by advancements in LED technology. Incandescent and halogen lights, although still in use for specific applications, face challenges in terms of energy consumption and efficiency standards. HID lights, favored for larger spaces due to their high-intensity output, also play a crucial role in commercial settings. With increasing governmental regulations promoting energy efficiency and sustainability, the Commercial Lighting Market revenue is expected to benefit, creating opportunities for innovation and expansion within these light sources.
The growth drivers include a shift towards smart lighting solutions and a commitment to reducing carbon footprints globally, making this segment a focal point in the evolving landscape of commercial lighting.
Commercial Lighting Market End Use Insights
The Commercial Lighting Market is projected to achieve a valuation of 53.03 USD Billion by 2024, demonstrating significant growth driven by various end uses. The market's segmentation includes various critical sectors such as Retail, Office, Hospitality, Industrial, and Healthcare. Each of these areas plays a vital role in the overall demand for commercial lighting solutions. Retail environments utilize innovative lighting to enhance product visibility and create an appealing atmosphere, which in turn boosts consumer engagement. In office settings, effective lighting contributes to employee productivity and well-being, making it essential in modern workplace designs.
The hospitality sector relies on ambient lighting to generate a welcoming atmosphere for guests, thereby impacting customer satisfaction rates. Furthermore, the industrial applications of commercial lighting prioritize durability and energy efficiency, addressing the unique needs of manufacturing facilities. In the healthcare sector, lighting directly influences patient comfort and operational efficiency in medical environments. As various sectors increasingly seek energy-efficient and adaptable lighting solutions, the Commercial Lighting Market will likely witness growth opportunities driven by technological advancements and sustainability initiatives.
Commercial Lighting Market Installation Type Insights
The Commercial Lighting Market has been increasingly shaped by its installation types, including New Installation, Renovation, and Retrofitting, with each segment exhibiting unique characteristics and importance. As of 2024, the overall market is poised to be valued at 53.03 USD Billion, showcasing the substantial demand for various lighting solutions. New Installation often reflects burgeoning infrastructure development and modern architectural trends, positioning itself as a significant driver of market growth. Renovation plays a critical role in updating existing commercial facilities to match evolving energy standards and aesthetic preferences, while Retrofitting is essential for enhancing energy efficiency without extensive renovations.
The importance of these segments is underscored by a growing emphasis on sustainability and environmental responsibility, prompting organizations to invest in innovative lighting technologies. Government initiatives promoting energy-efficient retrofitting and modernization further amplify opportunities within these segments, reinforcing their vital contributions to the overall landscape of the Commercial Lighting Market revenue. Collectively, these installation types are pivotal in shaping market dynamics and responding to both consumer and regulatory demands for enhanced lighting solutions.
Commercial Lighting Market Regional Insights
The Commercial Lighting Market is projected to experience significant growth regionally, with North America leading the charge by holding a market value of 18.0 USD Billion in 2024, expected to rise to 28.0 USD Billion by 2035. This dominance is driven by rapid urbanization and advanced technology adoption. Europe follows closely, valued at 14.5 USD Billion in 2024 and growing to 22.0 USD Billion, benefiting from stringent energy efficiency regulations. In Asia Pacific, the market is valued at 13.0 USD Billion in 2024 and is expected to reach 20.0 USD Billion by 2035, reflecting robust infrastructure development and increasing investments in smart lighting solutions.
South America, with a valuation of 4.5 USD Billion in 2024 and projected growth to 7.0 USD Billion, represents a growing yet smaller portion of the market, spurred by emerging markets and urban projects. Meanwhile, the Middle East and Africa hold a market value of 3.03 USD Billion in 2024, with expectations of reaching 8.0 USD Billion by 2035, primarily driven by increasing construction activities and a focus on sustainable and energy-efficient lighting solutions. These regional dynamics indicate varied levels of competition and opportunity, with North America and Europe being the stronger players in the Commercial Lighting Market revenue landscape, reflecting strategic importance in terms of innovation and deployment of energy-efficient solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Commercial Lighting Market Key Players and Competitive Insights:
The Commercial Lighting Market is characterized by a dynamic landscape filled with competition among various industry players. This sector is driven by the increasing demand for energy-efficient lighting solutions, advancements in LED technology, and the rising trend of smart lighting systems. Companies are continually innovating and improving their product offerings to cater to the changing demands of consumers and businesses alike. The market is also witnessing a surge in strategic partnerships and collaborations, which enhance product distribution and service capabilities. With sustainability becoming a priority globally, organizations in the commercial lighting space are focusing on green technologies and practices to reduce their carbon footprint while maximizing efficiency. Overall, the competitive environment in this market is marked by rapid technological advancements and a persistent push towards more sustainable and cost-effective lighting solutions.
Legrand has established a notable presence in the Commercial Lighting Market, primarily due to its strong commitment to innovation and sustainability. The company boasts a comprehensive portfolio that includes a wide array of lighting control systems and smart lighting solutions designed to enhance both functionality and efficiency. Legrand's strengths lie in its extensive research and development capabilities, allowing the company to remain at the forefront of technological advancements in lighting. Additionally, its strong global distribution network enables Legrand to reach diverse markets effectively, ensuring that its products are accessible to a wide array of customers. This strategic presence combined with a focus on energy-efficient solutions has cemented Legrand’s position as a key player in the commercial lighting domain.
Cree has gained recognition in the Commercial Lighting Market for its focus on solid-state lighting and innovative LED technology. The company offers an extensive range of products, including commercial LED fixtures and smart lighting solutions that cater to various segments of the market. Cree's strengths include its robust research and development initiatives, which continuously push the boundaries of lighting efficiency and performance. The company's presence in global markets is further bolstered by strategic mergers and acquisitions that have enhanced its technological capabilities and broadened its customer base. These strategic moves allow Cree to remain competitive and responsive to the needs of an evolving market. By prioritizing quality and innovation, Cree solidifies its position in the commercial lighting sector while contributing to the overall growth of sustainable and energy-efficient lighting solutions.
Key Companies in the Commercial Lighting Market Include:
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Legrand
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Cree
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Signify
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Samsung Electronics
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Osram
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GE Current
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Hubbell Lighting
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Acuity Brands
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Schneider Electric
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Eaton
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LG Electronics
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Lutron Electronics
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Zumtobel Group
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Panasonic
Commercial Lighting Industry Developments
The Commercial Lighting Market has seen significant developments in recent months, particularly with the growing emphasis on energy-efficient solutions and smart lighting technologies. Companies like Signify and Osram have made strides in integrating IoT capabilities into their product offerings, enhancing the functionality and flexibility of commercial lighting systems. Additionally, the rise of sustainability initiatives has driven companies such as Cree and Acuity Brands to launch innovative LED solutions aimed at reducing energy consumption. In terms of mergers and acquisitions, in October 2023, Hubbell Lighting completed its acquisition of a prominent firm to expand its product portfolio and deepen its market penetration.Â
FurthermoreGE Current has reported substantial growth in its valuation, attributing this success to increased demand for smart and outdoor lighting solutions. The global transition towards digitalization in lighting is reshaping the commercial sector, compelling major players like Schneider Electric and Eaton to focus on Research and Development for advanced lighting control systems. These developments underscore a competitive landscape with an intensified focus on sustainability and technological advancements in the commercial lighting industry, which is projected to continue evolving in the coming years.
Commercial Lighting Market Segmentation Insights
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Commercial Lighting Market Application Outlook
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Indoor Lighting
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Outdoor Lighting
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Accent Lighting
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Emergency Lighting
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Smart Lighting
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Commercial Lighting Market Light Source Outlook
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LED
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Fluorescent
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Incandescent
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Halogen
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HID
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Commercial Lighting Market End Use Outlook
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Retail
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Office
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Hospitality
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Industrial
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Healthcare
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Commercial Lighting Market Installation Type Outlook
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New Installation
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Renovation
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Retrofitting
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Commercial Lighting Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2023
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50.81(USD Billion)
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Market Size 2024
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53.03(USD Billion)
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Market Size 2035
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85.0(USD Billion)
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Compound Annual Growth Rate (CAGR)
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4.38% (2025 - 2035)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2024
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Market Forecast Period
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2025 - 2035
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Historical Data
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2019 - 2024
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Legrand, Cree, Signify, Samsung Electronics, Osram, GE Current, Hubbell Lighting, Acuity Brands, Schneider Electric, Eaton, LG Electronics, Lutron Electronics, Zumtobel Group, Panasonic
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Segments Covered
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Application, Light Source, End Use, Installation Type, Regional
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Key Market Opportunities
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Smart lighting integration, Energy-efficient solutions, Sustainable lighting technologies, IoT-based lighting systems, Retrofits for existing infrastructure
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Key Market Dynamics
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technological advancements, energy efficiency demand, regulatory compliance, rising urbanization, increasing construction activities
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Commercial Lighting Market is expected to be valued at 53.03 USD Billion in 2024.
By 2035, the Commercial Lighting Market is projected to reach a value of 85.0 USD Billion.
The expected compound annual growth rate (CAGR) for the Commercial Lighting Market from 2025 to 2035 is 4.38%.
North America is anticipated to hold the largest market share, valued at 18.0 USD Billion in 2024.
The market size for Indoor Lighting is expected to reach 38.5 USD Billion by 2035.
Key players in the Commercial Lighting Market include Legrand, Cree, Signify, Samsung Electronics, Osram, and GE Current among others.
The projected market size for Outdoor Lighting in 2024 is 12.5 USD Billion.
Smart Lighting is projected to grow to a market size of 7.5 USD Billion by 2035.
The market size for the Middle East and Africa region is forecasted to be 3.03 USD Billion in 2024.
The Accent Lighting segment is expected to have a market size of 7.0 USD Billion in 2024 and is projected to grow significantly by 2035.
