Lighting Market: Impacts of Urbanization and Smart Cities

The global lighting market size was estimated at USD 151.7 billion in 2024 and is projected to reach USD 223.3 billion by 2030, growing at a CAGR of 7.2% from 2025 to 2030. Steady growth in the lighting market is fueled by the increasing demand for energy-efficient solutions, urbanization, and advancements in smart lighting technologies.

Traditional lighting solutions, such as incandescent and halogen bulbs, are being gradually replaced by LED lighting, which currently dominates the market due to its superior energy efficiency, longer lifespan, and cost-effectiveness. Government regulations promoting energy conservation and sustainability are further accelerating the adoption of LEDs and smart lighting systems across residential, commercial, and industrial sectors. The emergence of smart cities, ongoing infrastructure development, and the integration of Internet of Things (IoT)-enabled lighting solutions are defining the industry's future.

Smart lighting systems, enhanced by IoT, artificial intelligence (AI), and automation, are transforming the lighting industry. These systems allow for remote control, adaptive lighting, and energy optimization. Users can adjust brightness, color temperature, and schedules through mobile apps or voice assistants, which contributes to improved convenience and efficiency. AI-driven automation optimizes energy usage by adjusting lighting based on factors like occupancy and daylight availability. Furthermore, the rapid growth of commercial and residential construction projects, especially in urban areas, is driving demand for modern lighting solutions. Smart lighting is becoming a vital feature in smart homes, offices, and cities, enhancing energy savings, security, and user experience while supporting global sustainability initiatives.

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Key Market Trends & Insights

• North America: The lighting industry accounted for over 21% of the market revenue in 2024.
• S. Growth: The U.S. lighting market is expected to grow significantly from 2025 to 2030.
• LED Dominance: The LED lighting segment represented over 58% of the revenue share in 2024, driven by the increasing adoption of smart homes, smart offices, and smart cities.
• Residential Demand: The residential segment held the largest revenue share of over 42% in 2024, with a rapidly growing demand for smart lighting systems that provide remote control, automation, and energy optimization.
• Distribution Channels: The offline segment accounted for over 65% of the revenue share in 2024, as leading lighting brands enhance their presence in retail outlets and specialty stores, making products more accessible.

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Market Size & Forecast

• 2024 Market Size: USD 151.7 Billion
• 2030 Projected Market Size: USD 223.3 Billion
• CAGR (2025-2030): 7.2%
• Asia Pacific: Largest market in 2024

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Key Companies & Market Share Insights

The key players in the global lighting industry include Acuity Brands, Inc., Signify Holding, OSRAM GmbH, Eaton Corporation, Cree Lighting, Nichia Corporation, GE Lighting, Seoul Semiconductor Co., Ltd., Everlight Electronics Co., Ltd., Hubbell Incorporated, Zumtobel Group, Siteco GmbH, Panasonic Holdings Corporation, Havells India Ltd, and Toshiba Lighting. These companies are focusing on various strategic initiatives, including new product development and partnerships, to gain a competitive advantage.

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Key Players

• Acuity Brands, Inc.
• Signify Holding
• OSRAM GmbH
• Eaton Corporation
• Cree Lighting
• Nichia Corporation
• GE Lighting
• Seoul Semiconductor Co., Ltd.
• Everlight Electronics Co., Ltd.
• Hubbell Incorporated
• Zumtobel Group
• Siteco GmbH
• Panasonic Holdings Corporation
• Havells India Ltd
• Toshiba Lighting.

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Conclusion

The global lighting market is poised for significant growth, driven by the transition to energy-efficient solutions, the rise of smart technologies, and increasing urbanization. As demand for innovative and eco-friendly lighting solutions continues to grow, companies in this sector are likely to invest in advancements that enhance functionality and sustainability, ultimately reshaping the lighting landscape in the years to come.