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The ambient lighting market size is forecast to increase by USD 25.90 billion, at a CAGR of 8.51% between 2023 and 2028. Rapid urbanization and digitization are driving the demand for aesthetically appealing products that blend seamlessly with modern lifestyles. As cities expand and technology evolves, consumers are increasingly seeking energy-efficient illuminating solutions that not only enhance the visual appeal of their spaces but also contribute to sustainability. The focus on energy-efficient lighting reflects a growing preference for solutions that reduce energy consumption while maintaining style and functionality. This trend is fueled by both environmental concerns and a desire for innovative design in urban settings. As a result, the market is seeing a surge in products that combine elegance with efficiency, catering to the needs of a tech-savvy and eco-conscious population.
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The market has seen significant shifts due to disruptions in supply chain affecting various hardware component. Recessed lights, incandescent lamps, and Light Emitting Diode (LED) are popular choices, each offering distinct advantages. While incandescent lamps provide a warm glow, LEDs are known for their energy efficiency and long lifespan. In addition to these, decorative options such as chandelier, ceiling-mounted fixture, wall-mounted fixture, and hanging fixture enhance both style and functionality. Track light and spotlight are favored for targeted illumination, while post lantern and wall-mounted fixtures offer both aesthetic appeal and practicality. Wall lighting continues to evolve, blending with various design preferences and ensuring that the market adapts to changing consumer needs. As the industry navigates these supply chain challenges, innovation and versatility remain at the forefront of ambient lighting solutions.
Rapid urbanization and digitization is notably driving market growth. The global lighting market is experiencing a surge in demand due to population growth and urbanization, with an anticipated 70% of the world's population residing in cities by 2050, according to the United Nations (UN). This increasing urban population necessitates advanced lighting solutions to meet the demands of both public and private sectors. As the industry becomes more competitive, innovative lighting concepts such as Flexvision display and digitally connected systems like the Azurian are gaining popularity.
Further, energy efficiency is also a significant consideration, with ceiling-mounted fixtures like chandeliers, ceiling-mounted fixtures, track lights, spotlights, and hanging fixtures, as well as wall-mounted fixtures and post lanterns, increasingly being designed with energy-saving technologies. The integration of digital capabilities in lighting systems, such as dimming and color temperature control, is also driving demand. Overall, the lighting market is evolving to meet the needs of a more digitally connected and energy-conscious world. Thus, such factors are driving the growth of the market during the forecast period.
Government initiatives for energy savings is the key trend in the market. The ambient lighting market is witnessing significant growth due to the increasing awareness and implementation of energy-efficient lighting solutions. Traditional lighting systems, such as chandeliers, ceiling-mounted fixtures, wall-mounted fixtures, track lights, spotlights, hanging fixtures, and post lanterns, are being replaced with advanced technologies like Flexvision display and Azurion system. These technologies offer energy savings and reduced carbon emissions, making them a preferred choice for both residential and commercial applications.
Moreover, governments worldwide are enforcing regulations to minimize carbon footprint, and the integration of renewable energy sources into smart grids is projected to reduce greenhouse gas emissions by millions of metric tons per year. The transition from conventional utility systems to smart grids is a crucial step towards sustainable energy use and a greener future. Thus, such trends will shape the growth of the market during the forecast period.
Lack of common standards is the major challenge that affects the growth of the market. The ambient lighting market faces a challenge due to the absence of uniform standards for various light sources, including LED. This issue results in a diverse range of lighting products catering to different locations and regulatory requirements. To address this inefficiency, lighting system manufacturers are focusing on the development of open protocol devices. Compliance with international industry standards is now essential for lighting product manufacturers to expand their global reach.
However, the Zhaga Consortium, based in the US, is a pioneer in LED lighting standardization, aiming to streamline the industry and ensure interoperability among various lighting products. This standardization will lead to more harmonious and efficient ambient lighting solutions, encompassing Flexvision displays, Azurion systems, chandeliers, ceiling-mounted fixtures, wall-mounted fixtures, track lights, spotlights, hanging fixtures, and post lanterns. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The lamps and luminaries segment is estimated to witness significant growth during the forecast period. The global ambient lighting market witnessed significant growth in 2023, with the lamps and luminaries segment holding the largest market share. This segment encompasses various types of lamps, including incandescent, halogen, and fluorescent lamps, as well as light-emitting diodes (LEDs). New-generation lamps and luminaires, which offer enhanced performance, higher accuracy, and seamless integration with existing lighting systems, are propelling the market forward. However, the trend towards energy conservation and the emergence of a connected society necessitate the innovation of energy-efficient LED lighting and the development of smart lighting systems. LED lighting systems consume up to 50% less energy than compact fluorescent lamps (CFLs) and cold-cathode fluorescent lamps (CCFLs) to produce the same level of illumination.
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The lamps and luminaries segment accounted for USD 23.46 billion in 2018. The Department of Energy and the Lighting Controls Association have been instrumental in promoting energy savings and the adoption of energy-efficient lighting solutions. LED A-type lamps, LED drivers, and localization of components are some of the hardware components that contribute to the growth of the LED lighting market. Moreover, the automotive lighting systems industry is also adopting LED technology due to its energy efficiency and ability to emit less carbon dioxide emissions and UV radiation. Consumer preferences for interior designing and aesthetics, as well as the growing demand for energy-efficient lighting in various sectors such as residential, hospitality, retail, commercial, and healthcare, are further driving the market. Companies like Acuity Brands, Hubbell Lighting, Cooper Lighting, and TactoTek's IMSE technology are pioneering advancements in LED lighting and smart lighting systems to enhance the ambient experience.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Ambient Lighting Market encompasses various energy-efficient lighting solutions, including LED A-type lamps, LED drivers, and compact fluorescent lamps, replacing traditional options such as Incandescent and Halogen lamps. The Department of Energy encourages energy savings through the adoption of energy-efficient lighting, leading to reduced Carbon dioxide emissions and UV radiation. Smart lighting systems, enabled by LED technology, are gaining popularity due to their ability to provide customized lighting experiences and energy savings. Major players in the market include Acuity Brands, Hubbell Lighting, Cooper Lighting, and others.
Further, energy-efficient lighting solutions are increasingly being adopted in residential, hospitality, retail, commercial, and healthcare sectors. Automotive lighting systems also contribute significantly to the market growth. TactoTek's IMSE technology is revolutionizing ambient experience by integrating lighting functions into hardware components. The market is witnessing significant growth in various geographies due to increasing awareness and regulations promoting energy-efficient lighting. LED lamps are expected to dominate the market due to their long lifespan, energy efficiency, and minimal Glare. Electric Power Companies and the Lighting Controls Association are also playing a crucial role in promoting energy-efficient lighting solutions. The market is projected to experience substantial growth due to the ongoing shift towards energy-efficient and sustainable lighting solutions.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is witnessing significant growth due to the increasing energy consciousness and consumer preferences for energy-efficient lighting solutions. Traditional lighting technologies like Incandescent, Halogen, and Compact Fluorescent Lamps (CFLs) are being gradually replaced by Energy-efficient lighting, especially LED A-type lamps. The Department of Energy has set regulations to phase out the production and sale of inefficient bulbs, further boosting the market. Smart lighting systems, including LED drivers and Light-emitting diodes (LEDs), are gaining popularity due to their energy savings and ability to create an ambient experience. The Automotive lighting systems industry is also adopting LED technology for improved energy efficiency and reduced GHG emissions. The Lighting Controls Association plays a crucial role in promoting energy savings and reducing UV radiation and glare.
Further, the market is localizing components, with companies like Acuity Brands, Hubbell Lighting, and Cooper Lighting focusing on manufacturing hardware components in-house. Geographies like Europe and North America are leading the market due to stringent energy regulations and consumer awareness. The Residential segment, Hospitality, Retail, Commercial, and Healthcare sectors are major consumers of ambient lighting. TactoTek's IMSE technology is revolutionizing the market by integrating LEDs into 3D-molded structures, offering design flexibility and reducing the need for separate components. The future of ambient lighting lies in creating immersive, harmonious experiences for various applications.
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Market Scope |
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Report Coverage |
Details |
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Page number |
138 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.51% |
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Market growth 2024-2028 |
USD 25.90 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.67 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, UK, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Acuity Brands Inc., ams OSRAM AG, Bridgelux Inc., Corsair Gaming Inc., General Electric Co., IDEAL INDUSTRIES Inc., Nirvana Light, NZXT Inc., SCHOTT AG, SEAT SA, Sigma International Inc., Signify NV, Stanley Electric Co. Ltd., Technical Consumer Products Inc., Toyoda Gosei Co. Ltd., VAIS Technology, VIBIA LIGHTING Ltd., and Zumtobel Group AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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