High-end Lighting Market Assessment, By Technology Type [Light-emitting Diodes, Compact Fluorescent Lamps, High-intensity Discharge, Others], By Connectivity [Wired, Wireless], By Application [Residential, Commercial, Industrial, Medical, Others], By Regi

High-end Lighting Market Assessment, By Technology Type [Light-emitting Diodes, Compact Fluorescent Lamps, High-intensity Discharge, Others], By Connectivity [Wired, Wireless], By Application [Residential, Commercial, Industrial, Medical, Others], By Region, Opportunities and Forecast, 2017-2031F

Global high-end lighting market size was valued at USD 20.41 billion in 2023, expected to reach USD 33.78 billion in 2031, with a CAGR of 6.5% for the forecast period between 2024 and 2031. A growing need for opulent and aesthetically appealing lighting solutions in luxury homes and businesses drives the high-end lighting market's notable expansion. The need to design distinctive, customized spaces that improve the general ambiance and atmosphere fuels this demand. Furthermore, as lighting technology has progressed, creative and energy-efficient lighting systems have been created, making them highly desirable to consumers who care about the environment. The growing high-end lighting business is also driven by affluent people's increased ability to invest in high-quality lighting fixtures and installations due to their increased disposable income.

The growing acceptance of cutting-edge and contemporary lighting solutions drives substantial growth in the high-end lighting market. Modern lighting designs are becoming progressively more popular among designers and homeowners as technology develops because they are aesthetically pleasing and functional. The lighting business has transformed due to the combination of LED technology, energy-efficient lighting solutions, and smart home automation. With the help of these developments, homeowners may now have more control over their lighting systems, customizing them to fit various moods and situations. The high-end lighting market has expanded due to the growing disposable income of people and their increasing need for opulent and aesthetically attractive lighting solutions.

For instance, in September 2023, A-Light unveiled the Lino luminaire, an IP66-rated, simple linear fixture. It is appropriate for outdoor applications where there is more extreme weather, including rain, snow, sand, or a lot of dirt or dust, the Lino luminaires are especially well-suited.

Booming Commercial and Hospitality Sector Promoting the Market’s Growth

The thriving commercial and hospitality industries drive significant growth in the high-end lighting market. These sectors have realized how crucial it is to design aesthetically pleasing and welcoming environments to draw clients and improve the entire experience. Consequently, there's been an increase in demand for lavish lighting fixtures at high-end hotels, eateries, shops, and offices. Innovative designs and cutting-edge lighting technology have become popular as a result of the focus on creating distinctive settings. The goal of this trend is to create an immersive and exceptional mood that enhances the overall ambiance of the area and is consistent with the brand image.

For instance, in October 2023, Lutron Electronics unveiled the Lutron hospitality solution, which includes the upgraded guestroom system myRoom XC. Through a single dashboard, the cloud-connected hospitality solution enables integrated management of every part of the property, including the guest rooms, public areas, event spaces, and private residences.

Aesthetic Design Preferences Fueling the Growth of High-end Lighting Market

Aesthetic design preferences, especially in the residential segment, drive the high-end lighting market. Rapid urbanization and rising disposable incomes drive demand for new residences with interior designs. Exquisite lighting is used to draw attention to areas, establish zones, and change a space's overall interior design. Furthermore, the demand for superior, aesthetically pleasing lighting products in the residential, commercial, and industrial sectors has increased due to rising consumer disposable income and a growing preference for sophisticated, design-centric interior and exterior illumination. LED lighting also helps premium brands achieve their environmental and aesthetic objectives.

For example, in August 2023, the new line of Trac-Master Narrow Profile LED Wall Wash Track Fixtures was unveiled by Juno. The fixtures are a great option anywhere a broad, uniform beam pattern is needed to accentuate an accent wall, signage, product display, or any other focal point on the room perimeter because they offer full-wall coverage and intense, evenly dispersed light.

Energy Efficiency Drives the High-end Lighting Market

The high-end lighting market is fueled by energy efficiency since it provides financial savings, environmental advantages, and technological breakthroughs. Energy-efficient lighting, such as LED and smart lighting options, improves the ambiance and longevity of the light while consuming less energy and saving operational costs. The widespread use of energy-efficient lighting is anticipated to be fueled by a growing need for energy performance ratings and the growing appeal of smart lights. The long-term advantages of energy efficiency, such as lower energy requirements and more affordable light sources, outweigh the initial higher cost and support the expansion of the high-end lighting market.

For instance, in April 2023, the world leader in lighting, Signify, unveiled the new Philips Ultra Efficient LED bulbs, which can produce light for up to 50,000 hours—more than three times as long as a regular bulb. A 40% energy savings is made possible by the sophisticated LED design and optics technology, with an estimated yearly energy cost of USD 0.55 to USD 1.03.

North America Dominates High-end Lighting Market

North America prevails in the high-end lighting market owing to the presence of prominent manufacturers, rigid energy efficiency laws, and high-power utilization in the industrial and residential sectors. The region is the most attractive market for environmentally friendly lighting owing to the increased production of energy-efficient lights. Furthermore, the need for high-quality, appealing lighting solutions across residential, commercial, and industrial sectors has increased due to the growing demand for modern residences with interior designs brought on by fast urbanization and rising disposable incomes. Key trends propelling the expansion of the smart home market include rising voice assistant acceptance, rising IoT and AI technology, and growing consumer adoption. These developments are anticipated to support the expansion of the high-end lighting market in North America.

For instance, in October 2022, as the lighting market shifts from fluorescent to LED technology, Lutron Electronics announced the new Lutron ballast retrofit kit by C-Flex, providing a quick, easy, off-the-shelf solution for LED upgrades. The retrofit kits ensure the LED lighting can be installed seamlessly with the current lights and controls.

Government Initiatives is Fostering Revenue Growth for the High-end Lighting Market

Government programs that support energy efficiency and sustainability through various methods encourage revenue growth for the high-end lighting market. These programs include the promotion of smart lighting technology as well as the establishment of energy performance standards, rebates, and subsidies for energy-efficient lighting products. The use of luxury lighting solutions is also influenced by laws and policies designed to lower carbon emissions and encourage energy efficiency. Governments stimulate investment in high-end lighting products by offering financial incentives and fostering a favorable regulatory environment. This leads to the high-end lighting market expansion and facilitates the shift towards environmentally friendly lighting practices.

For instance, in December 2022, India's Energy Conservation (Amendment) Act, came into effect on January 1, 2023, allowing for a carbon credit trading system and a mandatory energy conservation code for large commercial buildings. The act aims to promote sustainability and reduce reliance on fossil fuels.

Impact of COVID-19

The high-end lighting market has been significantly impacted by the COVID-19 pandemic, both before and after its emergence. Before the pandemic, the industry was expanding steadily due to things like rising demand for luxury lighting options and improvements in lighting technology. The market encountered several difficulties after the pandemic began. Production slowdowns, supply chain interruptions, and limitations on building and remodeling projects negatively impacted the market. The pandemic's economic uncertainty also resulted in a drop in consumer spending, which had an additional effect on the market. However, as circumstances get better and economies grow again, the market is experiencing a surge due to the growing emphasis on designing visually beautiful and welcoming places and the rising desire for luxurious lighting solutions that integrate cutting-edge technologies.

Impact of Russia-Ukraine War

The Russia and Ukraine war has indirectly affected the high-end lighting market. For example, the war's effects on the economy have disrupted supply chains, which has affected the availability of lighting components and products. This has caused production and delivery delays, which have affected the market's capacity to satisfy customer demand. Second, since individuals prioritize necessities over luxuries like fancy lighting, the war has resulted in a decrease in consumer expenditure. As a result, businesses in the high-end lighting market have seen a decline in sales and profits. Furthermore, the war has brought attention to the necessity of energy security and diversification, spurring a move in both residential and commercial areas toward energy-efficient lighting solutions and renewable energy sources.

Key Players Landscape and Outlook

The high-end lighting market is extremely competitive, with a few major companies dominating. Lutron Electronics Co., Inc., LG Corporation, Legrand Group, Hubbell Incorporated, and General Electric Company are among the dominating players in the market. These companies provide a variety of high-end lighting items, such as fluorescent lights, LED bulbs, and HID lamps. The high-end lighting market has a promising future ahead of it, with substantial growth anticipated in the upcoming years. The main factors propelling this rise are the growing need for energy-efficient lighting solutions, the acceptance of smart lighting technology, and government programs that support sustainability and energy efficiency. The market is anticipated to expand due to shifting customer preferences, technology improvements, and increased demand for energy-efficient lighting options.

In June 2023, Specialty Lighting and Legrand's lighting control brand Vantage expanded their partnership on lighting fixtures. Through this strategic alliance, Vantage's lighting controls can be customized, and Specialty Lighting offers high-end architectural lighting solutions, such as picture lighting, accent lighting, linear lighting, and standard and custom downlights.

In December 2022, Legrand took over Encelium, a manufacturer of advanced commercial lighting controls, to solidify its position in the commercial lighting control sector. Encelium's proficiency in energy efficiency and lighting with a focus on people will augment Legrand's Building Control Systems branch, enabling the group of companies to create a wider array of solutions to satisfy the market's constantly shifting needs.