US Decorative Lighting Market Research Report: By Distribution Channel (Offline, Online) and By Product (Ceiling, Wall mounted, Others) - Forecast to 2035

US Decorative Lighting Market Overview

US Decorative Lighting Market Size was estimated at 6.75 (USD Billion) in 2023. The US Decorative Lighting Market Industry is expected to grow from 7(USD Billion) in 2024 to 10.2 (USD Billion) by 2035. The US Decorative Lighting Market CAGR (growth rate) is expected to be around 3.482% during the forecast period (2025 - 2035).

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Key US Decorative Lighting Market Trends Highlighted

The US Decorative Lighting Market is experiencing several key trends driven by changing consumer preferences and technological advancements. One major driver is the growing demand for energy-efficient lighting solutions, especially with the increased focus on sustainability and reducing energy consumption. The US government has been actively promoting energy conservation through various initiatives, which has led to a rise in the adoption of LED lighting. These products not only consume less energy but also have a longer lifespan, making them an attractive option for consumers. Moreover, there is a notable trend towards personalization in home decor, with consumers seeking decorative lighting solutions that reflect their individual styles and preferences.The rise of online retail has made it easier for consumers to access a wide variety of lighting options, fueling the trend of customized lighting solutions. This shift in consumer behavior presents opportunities for manufacturers and retailers to innovate and differentiate their products, catering to the unique tastes of their customers. Recent trends also indicate a growing interest in smart lighting solutions that offer enhanced functionality, such as dimming, color control, and remote operation through mobile applications. This trend is driven by the increasing integration of smart home systems, where decorative lighting becomes an integral part of home automation.As more households embrace smart technologies, there is considerable room for growth in this segment of the market. Additionally, the aesthetics of lighting fixtures are evolving, with a focus on artistic designs and versatility in both residential and commercial spaces. This shift underscores the importance of decorative aspects in lighting, moving beyond mere functionality to enhance overall ambiance. With the ongoing transformation within the US Decorative Lighting Market, businesses have numerous opportunities to capitalize on these trends and drive customer engagement through innovative design and technology.

US Decorative Lighting Market Drivers

Rising Demand for Energy-Efficient Lighting Solutions

The US Decorative Lighting Market Industry is experiencing a significant push towards energy-efficient lighting solutions due to increasing awareness of environmental issues and rising energy costs. According to the U.S. Department of Energy, the adoption of LED technology has improved by approximately 40% over the past five years, with more than 50% of the lighting market expected to be LED by 2025. This shift not only leads to reduced energy consumption but also ensures value for consumers in terms of cost savings on electricity bills.Organizations such as the ENERGY STAR program have actively promoted energy-efficient products, facilitating consumer investment into decorative lighting that meets sustainability standards. As more consumers prioritize eco-friendly options, the demand for decorative lighting solutions that exhibit both energy efficiency and aesthetic appeal will continue to rise.

Growth in Home Renovation and Interior Design

The recent trend in home renovation, propelled by the greater emphasis on personalizing living spaces, has significantly impacted the US Decorative Lighting Market Industry. An estimated 57% of Americans have undertaken home improvement projects in the past year, according to a survey by the Joint Center for Housing Studies at Harvard University. This burgeoning trend, fueled by remote working allowing for renovations, increases the demand for stylish and functional decorative lighting as homeowners seek to enhance their interiors.Companies engaged in furniture and home decor, such as Home Depot and Lowe's, have reported increased sales in decorative lighting products as part of broader renovation projects, substantiating the positive correlation between home improvement activities and decorative lighting sales.

Technological Advancements and Smart Lighting Solutions

Technological innovation is driving growth in the US Decorative Lighting Market Industry, particularly through the rise of smart lighting solutions. The integration of smart technology with decorative lighting offers features such as wireless control, automation, and energy monitoring, attracting a tech-savvy consumer base. A report from the Consumer Technology Association highlights that smart lighting sales are projected to grow significantly, reaching nearly $4 billion by 2025.Major companies in the sector, such as Philips Lighting and GE Lighting, are investing heavily in Research and Development to enhance their smart lighting offerings. The growing interest in smart homes directly correlates with the increasing expenditure on decorative lighting that incorporates advanced technology, leading to expansive market opportunities.

Government Initiatives Supporting Energy Efficiency

Government policies play a crucial role in shaping the US Decorative Lighting Market Industry by endorsing energy efficiency and sustainability. Programs initiated by the federal and state governments, such as the Energy Policy Act and various state-level rebates for energy-efficient lighting, have incentivized consumers to upgrade to modern decorative lighting solutions. In 2020, it was reported that these government initiatives helped reduce energy consumption by a staggering 15% in various sectors, illustrating their impact on consumer behavior.This shift not only positively affects consumer spending in decorative lighting but also enforces a broader shift towards sustainable practices in the marketplace, leading to long-term growth within the industry. Organizations actively participating in these initiatives include the U.S. Environmental Protection Agency and relevant state authorities.

US Decorative Lighting Market Segment Insights

Decorative Lighting Market Distribution Channel Insights

The Distribution Channel segment of the US Decorative Lighting Market plays a crucial role in determining how decorative lighting products reach consumers. This segment is primarily divided into Offline and Online channels, each with unique characteristics and importance. Offline channels, including brick-and-mortar retail stores, have traditionally been a significant avenue for consumers to purchase decorative lighting products due to the ability to physically see and experience the items before buying. In the United States, local home improvement stores, specialty lighting shops, and furniture outlets are some of the key players where consumers often seek guidance from sales personnel. The tactile experience and immediate availability allow customers to make well-informed decisions, which can be a definitive factor in the selection process of decorative lighting.On the other hand, Online channels are rapidly gaining ground, driven by the increasing penetration of the internet and consumer preference for the convenience of shopping from home. E-commerce platforms and branded websites offer a vast array of decorative lighting options that are often not available in physical stores. Furthermore, online shopping accommodates a global consumer base, allowing for greater market reach and diversification of products. Seasonal sales, targeted digital marketing, and customer reviews significantly influence purchasing decisions in this online landscape. As competition intensifies, the ability of online retailers to provide seamless shopping experiences, quick delivery options, and easy return policies becomes paramount, propelling the growth of this distribution avenue.In terms of market growth drivers, the rising trend of home improvement and interior decoration in the US significantly favors both offline and online channels as consumers increasingly invest in aesthetics and functionality. Moreover, the growing emphasis on energy-efficient lighting solutions enhances the market potential as consumers opt for LED and smart lighting products that align with sustainability goals. However, the distribution channels also face challenges such as supply chain disruptions and stiff competition between the two segments. Understanding the dynamics of Offline versus Online distribution channels helps stakeholders tailor their strategies effectively, ensuring they meet the evolving preferences and shopping behaviors of consumers in the US Decorative Lighting Market. With the right approach, both channels can coexist and thrive, contributing to the overall market's incremental growth and diversification of offerings.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Decorative Lighting Market Product Insights

The US Decorative Lighting Market has shown significant growth, with a steady increase in consumer demand for aesthetically pleasing and functional lighting solutions. Among the key products in this market, ceiling lights have emerged as critical components due to their versatility and ability to enhance a room's ambiance. They often serve as focal points in homes and businesses, making them a popular choice for various applications. Wall-mounted lighting options are also prevalent, offering practical lighting solutions while contributing to the overall decor.Their space-saving nature and ability to highlight artwork or architectural features further elevate their appeal. Additionally, other product categories are expanding, capturing consumer interest with innovative designs and smart lighting technology. The increasing trend of energy-efficient lighting solutions and smart home integration presents opportunities for growth within the US Decorative Lighting Market. As consumers prioritize sustainability and technological advancements, the market trends suggest a shift towards products that combine efficiency with style, driving market dynamics in the coming years.Overall, the segmentation within the Decorative Lighting Market plays a crucial role in meeting diverse consumer preferences and enhancing interior spaces across the United States.

US Decorative Lighting Market Key Players and Competitive Insights

The US Decorative Lighting Market is characterized by intense competition, driven by innovation, evolving consumer preferences, and a commitment to sustainability. This market caters to residential, commercial, and institutional segments, culminating in a diverse array of lighting solutions, including chandeliers, wall sconces, pendant lights, and outdoor fixtures. Key market players are continually investing in advanced technologies such as smart lighting solutions, energy-efficient designs, and visually appealing aesthetics to capture consumer attention. Rising trends toward home automation and smart home systems further complicate the competitive landscape, as companies strive to provide comprehensive solutions that meet modern consumer demands while also addressing concerns related to energy consumption and environmental impact.Signify holds a significant position in the US Decorative Lighting Market, owing to its renowned portfolio and commitment to advancing sustainable lighting technology. As a frontrunner in the industry, Signify has established a strong presence through its innovative product offerings that cater to both residential and commercial users. The company's strengths lie in its extensive research and development initiatives, which allow it to introduce cutting-edge products that integrate seamlessly with smart home ecosystems. Signify's focus on energy-efficient lighting solutions resonates well with environmentally conscious consumers, affording it a competitive edge in the market. Additionally, the company has cultivated strategic partnerships that enhance its distribution channels and market reach, thus enabling it to maintain robust sales in the US landscape.Lutron Electronics has carved a niche in the US Decorative Lighting Market by specializing in sophisticated lighting control systems and high-end decorative fixtures. The company is recognized for its innovative product lineup, which includes dimmers, automated shades, and smart lighting controls that provide unparalleled convenience and customization for users. Lutron’s strengths include its commitment to quality, customer support, and extensive market presence through collaborations with architects and designers. The company has engaged in strategic mergers and acquisitions that bolster its product offerings, enhancing its competitiveness in the smart lighting arena. By consistently pushing the envelope on integrated design and functionality, Lutron Electronics has solidified its reputation as a leader in the US market, attracting a loyal customer base that seeks not only aesthetics but also advanced technology in their lighting solutions.

Key Companies in the US Decorative Lighting Market Include

• Signify


• Lutron Electronics


• Westinghouse


• OSRAM


• Eaton


• Havells


• Acuity Brands


• Savant


• Feit Electric


• Hubbell Lighting


• Cree


• Philips


• Lithonia Lighting


• General Electric


• Kingsun

US Decorative Lighting Market Industry Developments

The US Decorative Lighting Market has seen several significant developments recently. In October 2023, Signify announced its acquisition of a regional competitor, enhancing its portfolio of smart lighting solutions and expanding distribution channels. Lutron Electronics has been actively pushing innovations in wireless lighting control, which they showcased at a recent industry trade show, highlighting the growing trend toward smart home integration. Furthermore, Acuity Brands has expanded its product line with new energy-efficient LED solutions that comply with the latest sustainability regulations, catering to a shift towards eco-friendly designs. The market valuation for companies like Havells and OSRAM has increased due to heightened consumer demand for stylish yet functional lighting options. Over the past couple of years, the market has experienced growth, driven by trends in home renovation and increased focus on smart technology; notable events include Eaton's partnership with tech firms for advanced lighting automation in March 2022. As decorative lighting continues to evolve with modern aesthetics and technological advancements, the competitive landscape remains dynamic, with companies adapting swiftly to meet consumer preferences and regulatory changes.

US Decorative Lighting Market Segmentation Insights

Decorative Lighting Market Distribution Channel Outlook

• Offline


• Online

Decorative Lighting Market Product Outlook

• Ceiling


• Wall mounted


• Others

Report Scope

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	6.75(USD Billion)
MARKET SIZE 2024	7.0(USD Billion)
MARKET SIZE 2035	10.2(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	3.482% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Signify, Lutron Electronics, Westinghouse, OSRAM, Eaton, Havells, Acuity Brands, Savant, Feit Electric, Hubbell Lighting, Cree, Philips, Lithonia Lighting, General Electric, Kingsun
SEGMENTS COVERED	Distribution Channel, Product
KEY MARKET OPPORTUNITIES	Smart lighting integration, Sustainable and energy-efficient options, Increased demand for residential renovations, E-commerce growth in decorative lighting, Customizable lighting design solutions
KEY MARKET DYNAMICS	sustainability trends, smart lighting adoption, energy efficiency regulations, consumer aesthetic preferences, e-commerce growth
COUNTRIES COVERED	US