Residential Lighting Fixtures Market Size, Share, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Residential Lighting Fixtures Market


The global residential lighting fixtures market size was valued at USD 14.92 billion in 2018. Increasing demand for energy-efficient products is anticipated to boost the market growth over the forecast period. Energy-efficient and economical lighting fixtures are increasingly replacing traditional lighting devices. Furthermore, introduction of Internet of Things (IoT) has increased the product visibility among millennial consumers.

Lighting fixture is an important element in terms of home decoration, which is gaining popularity among smart homes. Consumers have been increasingly investing in home decor due to the rising purchasing power. Over the past few years, the demand for dimmable or brightness controllable lights has witnessed significant rise, among the consumers as they can create desired atmosphere using the lights.

Rapid urbanization in emerging economies, including China, India, and Brazil, is expected to drive the growth of the residential lighting fixtures market in the upcoming years owing to the increased income level and the changing lifestyle of consumers. In addition, availability of cost-effective and attractive lights is projected to further fuel the product demand.

Increased adoption of LED lights to replace the traditional incandescent lights has widened the opportunity for the manufacturers. Over the past few years, the manufacturers have been expanding their LED product portfolio by innovating new fixtures and by acquiring existing companies to cater to the growing demand.

Product Insights of Residential Lighting Fixtures Market

In 2018, the ceiling and wall mounted segment accounted for more than 60% of the total market share in terms of revenue. These products are the most common solutions for overall room lighting among households. Wall-mounted fixtures balance the brightness of the entire room by bouncing off the light on ceilings and walls. They make a room feel larger and brighter while creating an attractive atmosphere. Furthermore, the availability of a wide variety of styles of ceiling and wall mounted lights suitable for every kind of homes and decorating scheme has fueled the sales of these products in residential sector.

Pendant and chandeliers segment is expected to witness the fastest CAGR of 6.6% from 2019 to 2025. Rising spending on home decor supported by the increasing purchasing power of consumers is a key growth driver. Chandelier lights have been gaining significant popularity for the decoration of living rooms as they provide attractive and elegant look to the place. Similarly, rising preference for pendant lights to enhance the look and brightness of the kitchen and dining rooms is expected to further fuel the segment growth.

Distribution Channel Insights

Offline channel held the largest market share of more than 80% in 2018. Provision of detail instructions about installation by the product specialists is the major factor driving the adoption of these distribution channels. Furthermore, the availability of the compatible lighting fixture accessories has been appealing consumers to purchase from the offline distribution channel.

Online segment is projected to expand at a fastest CAGR of more than 8% from 2019 to 2025. Rapid growth of e-commerce in home appliance industry has been boosting the online product sales. U.S. has the highest penetration of e-commerce. However, e-commerce in the lighting fixtures is growing rapidly in the countries from Asia Pacific such as India and China. In July 2017, Amazon, the e-commerce giant, acquired Souq, a Middle Eastern online retailer.

Source Insights

In 2018, the Light-emitting Diodes and Organic Light-emitting Diode (LED & OLED) segment held the largest market share, accounting for more than 50% of the total revenue. LED and OLED bulbs are highly energy-efficient and durable. These products consume up to 90% less power than incandescent lights. As a result, consumers have been increasingly replacing incandescent lights with LED lights. In several countries, the governments have implemented regulations on discontinuation and consumption of production of incandescent bulbs. As a result, the incandescent segment is expected to phase out in the upcoming years.

Since October 2012, China has banned sales and import of certain incandescent bulbs to promote the alternative power-saving lighting sources, such as LED. Similarly, various countries, including U.S., Russia, Norway, U.K., UAE, South Korea, Malaysia, Japan, South Africa, Brazil, and Egypt, have banned these bulbs completely or partially in the last few years. In addition, the faster price reduction of LED lights has been propelling the penetration of these products among the household.

Regional Insights of Residential Lighting Fixtures Market

In 2018, Asia Pacific led the market, contributed to more than 45% of the global revenue. High population density in key markets including China and India is expected to remain a crucial factor for the regional growth. Furthermore, increasing spending on electrification and urbanization by the regional governments is expected to promote the utility of residential lighting fixtures.

Middle East and Africa is expected to expand fastest growth CAGR of over 8% from 2019 to 2025. South Africa, UAE, Saudi Arabia, and Egypt are the key markets in terms of both production and consumption of lighting products. Around 64% of the rural population of South Africa has access to electricity. This reflects a huge opportunity for growth in these untapped markets over the next few years.

Market Share Insights of Residential Lighting Fixtures Market

Key manufacturers include Koninklijke Philips N.V.; Cree Inc.; General Electric; Hubbell Lighting, Inc.; Acuity Brands, Inc.; Eaton Corporation; Panasonic Corporation; OSRAM Licht AG; Nichia Corporation; and Everlight Electronics Co., Ltd. Major companies have been acquiring existing LED businesses to cater to the rising demand. For instance, Acuity Brands, Inc. acquired two LED business, namely, eldoLED and Distech Controls, in 2013 and 2015 respectively.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Residential Lighting Fixtures Market Research Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global residential lighting fixtures market report based on source, product, distribution channel, and region:

Source Outlook (Revenue, USD Million, 2019 - 2030)

  
Incandescent
  
Fluorescent
  
LED & OLED

Product Outlook (Revenue, USD Million, 2019 - 2030)

  
Ceiling
  
Pendant & Chandeliers
  
Wall Mounted
  
Portable
  
Others

Distribution Channel Outlook (Revenue, USD Million, 2019 - 2030)

  
Offline
  
Online