Commercial Lighting Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 19.26 Billion |
| Market Size (2030) | USD 49.82 Billion |
| Growth Rate (2025 - 2030) | 20.93% CAGR |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Commercial Lighting Market Analysis by Mordor Intelligence
The commercial lighting market size is estimated at USD 19.26 billion in 2025 and is projected to reach USD 49.82 billion by 2030, reflecting a robust 20.93% CAGR during the forecast period. This expansion is driven by the rapid phase-out of fluorescent and HID technologies, stringent energy efficiency mandates, and the growing shift toward smart, sensor-rich LED luminaires. Escalating demand for human-centric lighting in healthcare and offices, along with price declines averaging 15% for LED components in 2024, and the emergence of Li-Fi-enabled fixtures that double as high-speed data nodes, further strengthen momentum. Retrofit programs dominate activity as building owners pursue ESG targets and seek operational savings of 50-70% versus legacy systems. Meanwhile, interoperability gaps, semiconductor shortages, and extended producer responsibility (EPR) costs temper near-term growth.
Key Report Takeaways
- By type, luminaires led with 65.9% of the commercial lighting market share in 2024; lamps trailed but remain relevant in cost-sensitive retrofits.
- By lighting source, LEDs accounted for 85.3% of the commercial lighting market size in 2024; conventional technologies are receding at a double-digit rate.
- By end-user, commercial offices retained a 37.2% share of the commercial lighting market size in 2024; healthcare recorded the fastest growth rate of 23.76% through 2030.
- By 2024, installation and retrofit projects captured 55.7% of the commercial lighting market share, while new construction grew at a slower pace.
- By connectivity, non-connected systems still form 69.1% of the installed base, yet smart platforms are expanding at a 22.96% CAGR.
- By geography, the Asia-Pacific region led with a 40.8% revenue share in 2024; the Middle East & Africa region is forecasted to grow at a 24.15% CAGR to 2030.
Global Commercial Lighting Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Energy-efficiency regulations and LED adoption | +6.20% | Global, with strongest impact in EU and North America | Long term (≥ 4 years) |
| Declining LED prices and efficacy improvements | +4.80% | Global, particularly beneficial for APAC and MEA markets | Medium term (2-4 years) |
| Smart building and IoT integration demand | +3.90% | North America and EU leading, APAC following | Medium term (2-4 years) |
| Human-centric lighting for occupant wellness | +2.70% | North America and EU core, expanding to APAC | Long term (≥ 4 years) |
| Li-Fi-enabled luminaires for data connectivity | +1.80% | EU and North America early adoption, global expansion | Long term (≥ 4 years) |
| ESG-linked financing accelerating retrofits | +1.40% | EU and North America primarily, emerging in APAC | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Energy-efficiency regulations and LED adoption
Tightened building-performance codes in the European Union and the United States compel owners to replace outdated fixtures or face financial penalties. Commercial installations reached 85.3% LED penetration in 2024, supported by utility rebates and tax incentives that reduce payback periods to under three years.[1]European Commission, "Energy Performance of Buildings Directive," ec.europa.eu As carbon-pricing frameworks mature, non-LED systems become economically untenable, reinforcing continuous demand growth.
Declining LED prices and efficacy improvements
Component costs fell 15% in 2024 despite supply shocks, while efficacy surpassed 200 lumens per watt, enabling slimmer form factors and lower labor costs.[2]Semiconductor Industry Association, "Global Semiconductor Market Data," semiconductors.org These gains broaden the addressable market, making premium features such as tunable white and integrated sensors standard even for small-scale retrofits.
Smart building and IoT integration demand
Facility managers now view lighting grids as data networks for occupancy, air quality, and energy analytics. Integrating lighting controls with building-management systems yields 20-30% operational savings versus reactive maintenance.[3]Building Owners and Managers Association, "Operational Cost Benchmarks," boma.org Complexity around cybersecurity and multi-protocol support favors suppliers with full-stack software capabilities.
Human-centric lighting for occupant wellness
Evidence from hospitals and offices shows circadian-aligned illumination shortening patient stays by 15% and boosting employee alertness.[4]Cleveland Clinic, "Circadian Lighting Implementation Results," my.clevelandclinic.org Healthcare displays the fastest adoption pace, but corporate offices are rapidly following to enhance talent retention and hybrid-work productivity.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Component supply-chain volatility | -2.80% | Global, with acute impact in APAC manufacturing hubs | Short term (≤ 2 years) |
| Construction-cycle dependency | -2.10% | North America and EU primarily, cyclical impact | Medium term (2-4 years) |
| Interoperability gaps in connected systems | -1.60% | Global, particularly affecting smart lighting adoption | Medium term (2-4 years) |
| EPR and recycling-compliance cost burden | -1.30% | EU primarily, expanding to other regions | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Component supply-chain volatility
Lead times for LED drivers extended to 26 weeks in 2024, adding 8-12% to bill-of-materials cost and favoring vertically integrated vendors with secured chip allocations.[5]Semiconductor Industry Association, "Supply Chain Resilience Report," semiconductors.org
Construction-cycle dependency
Lighting demand tracks new-build and renovation cycles, exposing vendors to interest-rate swings and permitting delays; 25% of retrofit opportunities were postponed in 2024 as developers deferred capex.[6]Commercial Real Estate Finance Council, "Market Analysis and Trends," crefc.org
Segment Analysis
By Type: Integrated Luminaire Dominance
Luminaires represented 65.9% of the commercial lighting market share in 2024, expanding at a 22.16% CAGR as fixtures evolve into sensor-rich data nodes. Smart luminaire deployments at Microsoft’s headquarters cut energy use by 70% and lifted employee satisfaction. Lamps, still 34.1% of demand, decline as fixture-level upgrades yield superior payback. The luminaire wave is bolstered by architectural trends toward minimalist housings that hide advanced optics and wireless radios, transforming commodities into high-value smart infrastructure.
Replacing fluorescent lamps with connected luminaires drives deeper energy savings and predictive maintenance capabilities, raising building asset value. Vendors now bundle lighting controls, environmental sensors, and Li-Fi transceivers, creating multi-functional ceiling grids that simplify facility-wide IoT deployments. As ecosystems mature, software-defined lighting unlocks subscription revenue streams for analytics and remote monitoring.
By Lighting Source: LED Supremacy
LED products held 85.3% of the commercial lighting market size in 2024, rising at a 22.36% CAGR. Rapid utility rebates and regulatory bans on mercury-based lamps accelerate the remaining transition. Fluorescent and HID replacements persist only in niche color-critical tasks or where recent investments delay fixture changeouts.
Advances in phosphor chemistry enhance color rendering, enabling LEDs to match or exceed halogen quality while consuming a fraction of energy. Dimmability and instant-on capability also ease integration with daylight harvesting schemes that add a further 10-15% energy cut.
By End-User: Healthcare Surge
Commercial offices generated 37.2% of 2024 revenue owing to vast installed bases and wellness-driven upgrades. Yet healthcare facilities are poised for the fastest 23.76% CAGR through 2030 as evidence mounts linking circadian lighting to shorter hospital stays. Retail and hospitality exploit tunable LEDs to shape shopper mood and guest experience, while schools adopt flicker-free fixtures to boost student performance.
Hospitals increasingly require luminaires that integrate infection-control features such as UV-C disinfection and sealed housings. Funding incentives tied to patient-outcome metrics make lighting retrofits a priority capital item. Vendor differentiation now hinges on validated clinical research and compliance with medical standards.
Note: Segment shares of all individual segments available upon report purchase
By Installation: Retrofit Momentum
Retrofits accounted for 55.7% commercial lighting market share in 2024 and are advancing at 23.37% CAGR, underpinned by vast fluorescent inventories nearing end-of-life. ESG-linked loans and green bonds drive owners to accelerate replacement cycles ahead of regulatory deadlines. New-build demand remains steady but vulnerable to construction-labor shortages.
Retrofit contractors favor wireless-mesh controls to avoid rewiring costs, cutting installation time by up to 40%. Energy-service companies bundle performance guarantees, easing capital hurdles for smaller building owners. As sensor costs fall, even basic LED upgrades increasingly include occupancy and daylight sensors as standard.
By Connectivity: Smart Platforms Ascending
Although non-connected LEDs still make up 69.1% of fixtures, connected lighting is scaling at 22.96% CAGR. Deployments pair Zigbee, Bluetooth Mesh, or proprietary RF to cloud dashboards that visualize space utilization and automate demand-response programs. Pay-per-use models lower upfront costs for smart systems, expanding adoption in price-sensitive segments.
Interoperability challenges between lighting and HVAC protocols hinder full building integration, but open standards like Matter are gaining traction. Connected lighting delivers 20-30% energy savings beyond LED technology alone through granular control and occupancy insights.
Geography Analysis
The Asia-Pacific region dominates the commercial lighting market with a 40.8% share in 2024, leveraging its large-scale manufacturing and rapid urbanization. China's vertically integrated supply chain enables cost leadership, while India's smart-city initiatives drive massive public-sector adoption. Southeast Asian nations benefit from declining LED costs that accelerate payback periods to under 24 months. The region's manufacturing dominance in semiconductor components creates resilience against supply disruptions, with Taiwan and South Korea specializing in high-performance driver ICs.
The Middle East and Africa region is expected to display the fastest growth trajectory, with a 24.15% CAGR through 2030. Saudi Vision 2030 mandates the adoption of LED technology in all new commercial buildings, while the UAE's green certification programs incentivize the use of smart lighting controls. African markets benefit from leapfrog effects, bypassing fluorescent technology entirely as LED costs reach parity. Major infrastructure investments in Qatar, Egypt, and Nigeria create substantial greenfield opportunities for connected lighting systems that integrate with building management platforms.
Europe maintains steady growth driven by the Energy Performance of Buildings Directive, which requires existing structures to meet specific efficiency targets by 2030. The region leads in circular-economy initiatives, with extended producer responsibility regulations reshaping product design toward modularity and repairability. North America focuses on human-centric applications and Li-Fi data transmission capabilities, with corporate campuses serving as innovation showcases. Latin America shows uneven adoption patterns, with Brazil and Mexico leading while smaller economies face capital constraints.
Competitive Landscape
The commercial lighting market exhibits moderate fragmentation, with established players leveraging vertical integration while newer entrants focus on software platforms. Market leaders Signify and Acuity Brands maintain their advantages through comprehensive portfolios that span basic lamps to advanced IoT systems. Signify's WiZ Connected platform and Acuity's nLight AIR exemplify the shift toward wireless controls that simplify retrofits while generating recurring software revenue. Regional specialists, such as Fagerhult in Europe and Wipro Lighting in India, defend their market share through localized distribution networks and regulatory expertise.
Competition increasingly centers on software capabilities rather than hardware differentiation, as lighting evolves from commodity fixtures to intelligent infrastructure. Patent filings for predictive maintenance algorithms and occupancy analytics signal the industry's digital transformation. Smaller technology companies find opportunities in specialized niches, such as Li-Fi-enabled luminaires and human-centric systems, before larger incumbents develop competing offerings. Strategic acquisitions are accelerating as traditional manufacturers seek software competencies and IoT platforms to maintain their relevance.
Supply chain integration provides competitive advantages during component shortages, with vertically integrated manufacturers securing preferential access to semiconductors and rare-earth materials. Companies with strong ESG credentials gain preference in public-sector tenders and corporate procurement programs that prioritize sustainability metrics. The competitive landscape reflects lighting's evolution from simple illumination to networked intelligence, favoring vendors with robust software development capabilities and comprehensive system integration expertise.
Commercial Lighting Industry Leaders
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ABB Ltd
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Honeywell LED Lighting
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Wipro Lighting Limited
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Signify NV (Philips Lighting)
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WAC Lighting
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- October 2025: Signify N.V. invested USD 150 million in Li-Fi technology development, establishing a dedicated research facility in Eindhoven focused on integrating high-speed data transmission capabilities into commercial luminaires. This strategic move positions the company to capture emerging demand for dual-purpose lighting infrastructure that addresses both illumination and connectivity requirements in smart buildings.
- September 2025: Acuity Brands completed the acquisition of Distech Controls for USD 830 million, expanding its building automation portfolio and strengthening integration capabilities between lighting systems and comprehensive facility management platforms. The acquisition enhances Acuity's ability to offer complete IoT solutions for commercial buildings.
- August 2025: Hubbell Incorporated launched its new Atrius IoT platform, featuring advanced occupancy analytics and predictive maintenance capabilities that leverage machine learning algorithms to optimize lighting performance and reduce operational costs. The platform represents a significant advancement in software-defined lighting management.
- July 2025: Zumtobel Group AG established a strategic partnership with Microsoft Azure to develop cloud-based lighting management solutions that integrate with existing building management systems. The collaboration aims to simplify smart lighting deployment and enhance data analytics capabilities for commercial building operators.
Global Commercial Lighting Market Report Scope
Commercial lighting is utilized in places not residential, industrial, or manufacturing-related, such as offices, shops, institutions, hospitals, and government buildings. Commercial lighting often has a more significant initial cost, a longer lifespan, better durability, higher maintenance and repair expenses, and better energy-saving choices than other forms of lighting. The most crucial purpose in business buildings is often finishing a task or activity. To guarantee that employees working in the area are comfortable and that the lux level requirements and energy efficiency standards are appropriate, a lighting design business should produce designs representing the sort of activity conducted in the facility.
The Commercial Lighting Market is segmented by Type (Lamps, Luminaries), Lighting Type (LED-based lighting, Traditional), End-user (Commercial Offices, Retail, Hospitality, and Leisure (Restaurants and Sporting facilities), Healthcare), and Geography (North America, United States, Canada, Europe (United Kingdom, Germany, France, Rest of Europe), Asia-Pacific (China, Japan, India and Rest of Asia-Pacific), Latin America, Middle East and Africa). The report offers the market size in value terms in USD for all the above-mentioned segments.
| Lamps |
| Luminaires |
| LED |
| Conventional (Fluorescent, HID, Others) |
| Commercial Offices |
| Retail |
| Hospitality and Leisure |
| Healthcare |
| Other End-users |
| New Construction |
| Retrofit / Renovation |
| Connected / Smart Lighting |
| Non-connected Lighting |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| South-East Asia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Type | Lamps | ||
| Luminaires | |||
| By Lighting Source | LED | ||
| Conventional (Fluorescent, HID, Others) | |||
| By End-user | Commercial Offices | ||
| Retail | |||
| Hospitality and Leisure | |||
| Healthcare | |||
| Other End-users | |||
| By Installation Type | New Construction | ||
| Retrofit / Renovation | |||
| By Connectivity | Connected / Smart Lighting | ||
| Non-connected Lighting | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| South-East Asia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is driving the rapid growth in commercial lighting?
The 20.93% CAGR is primarily driven by energy efficiency regulations, declining LED costs (15% drop in 2024), smart building integration, and human-centric lighting benefits. Healthcare applications show the strongest growth at 23.76% CAGR through 2030.
How are smart lighting systems changing commercial buildings?
Smart lighting transforms fixtures into data collection points for occupancy, air quality, and space utilization. These systems deliver 20-30% additional energy savings beyond basic LEDs through granular controls, while generating actionable insights for facility management.
Which regions lead the commercial lighting market?
Asia-Pacific dominates with 40.8% market share due to manufacturing advantages and rapid urbanization. However, the Middle East and Africa region shows the fastest growth at 24.15% CAGR through 2030, driven by major infrastructure investments and energy initiatives.
What is Li-Fi technology and why is it important?
Li-Fi uses LED light waves for high-speed data transmission, transforming luminaires into wireless access points. This dual-purpose infrastructure addresses both lighting and connectivity needs in commercial buildings, with companies like Signify investing USD 150 million in its development.
How does human-centric lighting benefit commercial spaces?
Human-centric lighting systems adjust color temperature and intensity to support natural circadian rhythms, improving occupant wellness. In healthcare settings, these systems have reduced patient stays by 15% and improved staff alertness during night shifts.
What challenges affect commercial lighting adoption?
Key challenges include semiconductor supply chain volatility (26-week lead times in 2024), construction market dependency, interoperability issues between different smart systems, and compliance costs with extended producer responsibility regulations.
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