Residential Lighting Fixtures Market Analysis Report By Source, By Product, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global residential lighting fixtures market size was accounted for USD 14.92 billion in 2018. The rising popularity of appliances that save energy or use optimum level of energy is expected to accelerate the growth of the market during the forecast period, 2019-25. Lighting fixtures that help in saving energy and are comparatively cheaper than the traditional ones are expected to gain high popularity over the coming years. Moreover, thousands of consumers have greater access to such products because of improved visibility due to the introduction of the Internet of Things.    

Nowadays, the concept of a smart home is gaining high popularity and lighting fixtures form a vital part of home decor. Moreover, the spending power of consumers is rapidly increasing with time. This factor is anticipated to boost the product demand over the forecast period. Furthermore, there has been a high demand for dim lights or brightness controllable lights. These lighting fixtures help in creating a pleasing atmosphere by setting a desired level of brightness. This has contributed to the growth of this market over the forecast period.

The lifestyle of consumers in developing countries such as India, Brazil, and China is changing at a robust pace. Moreover, increasing disposable income of consumers and rapid urbanization are the factors contributing to the growth of the market over the forecast period. Furthermore, increasing demand for energy-efficient and attractive lighting fixtures is expected to propel market growth.

Nowadays, people are replacing their traditional incandescent lighting fixtures with LED lights as they are more energy-efficient. This factor is expected to create potential opportunities for the manufacturers. They are taking strategic initiatives such as product innovations and M&A to enhance their product portfolio and gain a competitive advantage over other competitors in the residential lighting fixtures market.    

Product Insights

In terms of revenue, the segment of ceiling and wall mounted lighting fixtures held the largest market share of more than 60%, in 2018. These products are the most commonly preferred products for room lighting. They create a pleasing atmosphere by balancing the brightness of the room and make it appear bigger and brighter. Moreover, different kinds of wall and ceiling-mounted lighting fixtures are available that are suitable for every type of house and attract a large number of consumers. This is expected to boost the sales of wall and ceiling mounted lighting fixtures over the forecast period.

The segment of pendant and chandeliers lighting fixtures is projected to grow at the fastest CAGR of about 6.6% during the forecast period. Nowadays, people tend to spend more on home decoration owing to the increasing disposable income and buying power of consumers. Chandelier lights are fancy and are used to enhance the appearance of living room as they provide a graceful look to the space. Furthermore, pendant lights are suitable for kitchens and dining space as they augment the brightness of the room. These properties are expected to propel the residential lighting fixture market growth over the forecast period.

Distribution Channel Insights

In 2018, the offline distribution channel segment accounted for the largest market share of over 80%. Varieties of compatible lighting fixtures are widely available which influence the consumers to purchase the products through offline channels. Moreover, the product specialists help in providing accurate instructions for installing the product. This is expected to boost the popularity of offline channels over the forecast period.

The online distribution channel segment is anticipated to grow at a CAGR of over 8% during the forecast period. The increasing popularity of e-commerce platforms for purchasing home appliances has boosted the segment's growth. E-commerce is deeply penetrated in the U.S. but it is growing at a robust pace in Asian countries such as China and India. For example, Amazon went into acquisition with a Middle Eastern online retailer called as Souq, in July 2017.

Source Insights

The LED & OLED segment accounted for the largest revenue share of more than 50%, in 2018. These lights use optimum energy which is 90% less than the energy used by traditional incandescent lights. This helps in saving the wastage of energy. Moreover, they are highly durable. Therefore, it is expected that the incandescent lighting fixtures will be extinct during the forecast period.

Countries such as China, U.S., Norway, UAE, Russia, U.K., Japan, South Korea, South Africa, Egypt, Malaysia, and Brazil have boycotted the sales and imports of incandescent lights partially or completely to promote the use of energy-efficient lighting fixtures such as LED bulbs. Furthermore, LED bulbs are inexpensive which is expected to boost the sales of this product from the residential sector.

Regional Insights

The Asia Pacific held the largest revenue share of more than 45% in 2018 owing to the presence of a large consumer base in countries such as India and China. Moreover, rapid urbanization and increasing disposable income of consumers in this region are some of the factors anticipated to drive the residential lighting fixtures market.

The Middle East & Africa is projected to grow at the fastest CAGR of more than 8% over the forecast period. Countries like UAE, Egypt, Saudi Arabia, and South Africa are expected to be the potential markets for consumption as well as production of lighting fixtures. Out of the total rural population in South Africa, 64% of the people use electricity. This indicates that there are potential growth opportunities in these neglected markets from 2019 to 2025

Residential Lighting Fixtures Market Share Insights

Some of the leading players in this industry include Cree Inc.; Koninklijke Philips N.V.; General Electric; Acuity Brands, Inc.; Hubbell Lighting, Inc.; Eaton Corporation; OSRAM Licht AG; Panasonic Corporation; Everlight Electronics Co., Ltd., and Nichia Corporation. Key players are taking initiatives such as M&A to acquire small LED businesses to cope up with the increasing demand for LED bulbs. For example, in 2013, Acuity Brands, Inc. acquired eldoLED. In 2015 it acquired Distech Controls. Both these companies were in the LED business.  

Report Scope

Segments Covered in the 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, Million Insights has segmented the global residential lighting fixtures market report based on source, product, distribution channel, and region:

• Source Outlook (Revenue, USD Million, 2015 - 2025)
    • Incandescent
    • Fluorescent
    • LED & OLED

• Product Outlook (Revenue, USD Million, 2015 - 2025)
    • Ceiling
    • Pendant & Chandeliers
    • Wall Mounted
    • Portable
    • Others

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
    • Offline
    • Online

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • Japan
    • Central & South America
        • Brazil
    • Middle East & Africa
        • South Africa