Home luminaires market to hit $40 billion by 2026
The demand for residential lighting fixtures was on target to reach a global valuation of US$29.7 billion by the end of 2019 and is expected to show a compound annual growth rate (CAGR) of 4.5 percent through 2026 to US$40 billion, according to Persistence Market Research (PMR).
The growth is fueled, the study found, by consumer demands for 1) smart home-lighting solutions that are compatible with the growing number of smart, premium homes; 2) the growing demand for more energy-efficient lighting products like LED lighting; and 3) for high-end residential luminaires.
In addition, the study says, governments’ smart-cities initiatives – plus crackdowns, worldwide, on inefficient lighting sources, particularly in Latin America – will contribute to the increased demand for new and replacement lighting fixtures, PMR reported.
Currently, for example, there exists a trend for replacement of older metal-halide outdoor fixtures to LED lighting fixtures as awareness for the benefits of LED lighting grows and as manufacturers step up production of the newer indoor and outdoor lighting technologies. Also, in California, which banned incandescent light bulbs beginning in 2018, consumers are expected to save about US$ 1 billion annually in energy bills, the analysis states.
Regionally, growth in the residential lighting-fixtures market is considered the fastest in North America, Latin America, Southeast Asia and other APAC countries, and Japan; growth is at a medium pace in Europe and China; and growth is deemed slow in the Middle East and Africa.
By lighting source, incandescent is an obvious slow-moving category when compared to fluorescent and LED. In a perhaps surprise finding, organic light-emitting diode, or OLED, lighting ranked in the high-growth category, thanks to its energy-efficient attributes. According to the report, government regulations, combined with the benefits of LED and OLED lighting, will result in these lighting types holding some 54 percent of the total market share (followed by fluorescent at 39 percent market share).
By luminaire (fixture) types, the high-growth category encompassed flush-mounts – which are expected to reach a market of US$9.4 billion by 2026 – as well as recessed, under-cabinet, vanity and outdoor fixtures.
Finally, by pricing, the high-growth category encompassed premium residential fixtures over more moderately priced luminaires.
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