Global capitalization of the lighting market
The lighting industry has evolved dramatically over the past two decades, transforming from basic utility fixtures into a sophisticated and diversified global market. Recent data places the total size of the global lighting market at approximately US$139.5 billion in 2025. Projections suggest this figure could rise to around US$189.9 billion by 2030, reflecting a compound annual growth rate of roughly 6.4 percent. This capitalization reflects not only the scale of demand but also the shifting value chains, technology adoption and regional dynamics at play.
A key driver of growth has been the rapid adoption of LED light technology. LEDs now account for the majority of lighting revenue with one report citing about 69.4 percent of the global market share in 2024 for LED light sources. The transition away from incandescent and fluorescent lamps has been driven by energy efficiency mandates, longer lifespans of LED products and declining component costs. At the same time, the rise of smart lighting systems including IoT integration, sensors and connected fixtures has added value beyond simple illumination. Integration of smart lighting with wider building systems represents a significant growth vector.
Regionally, Asia Pacific leads the global market in both adoption and growth. Reports show that the Asia Pacific region held around 46.9 percent share of the global lighting market in 2024. Urbanization, infrastructure investment and public policy initiatives in China, India and Southeast Asia have all contributed to this dominance. Europe holds about a quarter of the global market while North America accounts for roughly one fifth. The Middle East and Africa region shows strong growth potential though from a smaller base.
Beyond technology and geography, the lighting market is shaped by several structural trends. One major influence is retrofitting, as many buildings constructed in earlier decades require updated lighting systems to meet modern energy and sustainability standards. The replacement market for lighting fixtures and lamps has therefore become a pillar of demand. For example, one forecast notes retrofit installations held about 64.7 percent of market volume in 2024. Meanwhile, new construction continues to push demand for smart integrated lighting solutions in commercial, residential and infrastructure settings.
Investment and capitalization within the industry reflect this complexity. Lighting product manufacturers, component suppliers and services firms are each part of the ecosystem. Leading players such as Signify, OSRAM and Acuity Brands compete, innovate and control meaningful market share even though the industry remains quite fragmented with the top three players often holding only around ten percent combined share in some segments. Acquisitions, vertical integration and global supply chain strategies have become important as firms seek to capture more value from raw materials through to smart lighting systems and services.
Future opportunities in the lighting market include continued growth in smart lighting systems, human centric lighting, integration with building management platforms and sustainability driven solutions. One report puts the global lighting market size at US$141.5 billion in 2024 with a projection to US$219.7 billion by 2033 representing a CAGR of about five percent from 2025 to 2033. Meanwhile, for the industrial and commercial LED lighting segment alone, values suggest growth from around US$54.3 billion in 2024 to US$138.7 billion by 2033 with a higher CAGR of around 10.4 percent.
Overall, the global lighting market is not only large but multifaceted. Its capitalization reflects more than units sold, it reflects technology transitions, value capture across the chain, regional diversification and shifting consumer and business behavior. For investors and industry participants, understanding where value is created, be it in components, intelligent systems or services, will determine who wins in the coming decade.
