Decorative lighting is made out of fluorescent, incandescent, and LED, which emits bright or faded lights of different colors. The product gives a genuine and natural brilliant appearance. The lights can come in different shapes and sizes and be customized accordingly. In households, businesses and other venues, decorative lights are utilized as decorations. The rising demand for decorative lighting in the residential and commercial sectors is fueling the growth of the decorative lighting market. Manufacturing companies are coming into partnership with e-commerce giants to affiliate their sales. The advent of the pandemic marginally reduces demand and sales due to constraints on operations in the business sector. The increasing population of the consumers, the increase in high disposable revenue, the changing consumer preferences and their shifting tastes and lifestyles are crucial drivers of growth in the decorative lighting market.
COVID-19 Impact Analysis
- There was a negative effect on the decorative lighting market due to the COVID-19 pandemic. The demand for decorative lighting decreased as consumers have shifted their interest toward essential products.
- As the COVID-19 pandemic has forced countries to enforce lockdown, the supply and distribution chain had disrupted. The shifting activities in operations and vendor operations impacted the production. Hypermarkets/supermarkets and convenience stores were closed, creating a gap in demand and supply.
- The production process for decorative lighting has become a challenge for companies due to the limited availability of labor, disrupted raw material supply, and logistic issue.
Top Impacting Factors
- The demand for decorative lighting has risen with the advance of technology and creative goods. Increased disposable income, rapid urbanization, trends and fashion changes, the home decorating lighting system and appealing light designs, the product's safety and the convenience of use lead to the expansion of the decorative lighting market. However, the extensive usage, the lack of sensitivity among rural people, the significant risk of damage, and the use of traditional oil lamps or candles, hinders market expansion.
- Social media influencers and other home design web series on consumers are increasingly boosting the need for different types of decoration lighting devices. Consumers are attracted to these LED lights as they are a perfect alternative for traditional oil lamps. Festivals and other occasions help to boost the sales of decorative light as they are best for decoration. With the rise in demand for decorative lighting, the manufacturing companies have to increase their production to meet the demand of the market.
Market Trends
Introduction of new products with an enhanced feature
The manufacturing companies have to invest in R&D to innovate a new product that will retain the existing customer. A new lighting technology or a change of pattern in the flickering light feature is expected to impress the consumers. Different companies are offering the same products due to the intense competition in the decorative light market. The introduction of new color combinations or dual lighting output will cause an impact on the consumer mind.
Poor quality is hindering the growth of the market
The companies are supplying inferior quality products to the consumers due to intense competition. To keep up with the competitors, the companies are using defective raw materials for processing the final products to low the market price. The low-quality dissuades users from buying decorative lights and moving on to conventional lamps or candles.
High price decorative lights are a restraint to the growth of the decorative lighting market
Some of the manufacturing companies are offering high priced decorative lighting as they are targeting high-class consumers for a business. The lower or middle-class consumers do not have an option to purchase the product due to the high price of the product. The inability of the companies to provide a mid-range product is creating a gap in demand and supply. The companies have to look for an alternative for the consumers who are unable to pay a high amount.
Key Benefits of the Report
- This study presents the analytical depiction of the decorative lighting industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the decorative lighting market share.
- The current market is quantitatively analyzed to highlight the decorative lighting market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed decorative lighting market analysis on the basis of competitive intensity and how the competition will take shape in coming years
Questions Answered in the Report
- Who are the leading market players active in the decorative lighting market?
- What current trends will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the market?
- What future projections would help in taking further strategic steps?
Key Market Segments
- By Product
- Ceiling
- Wall Mounted
- Others
- By Lighting Technology
- LED
- Fluorescent
- Incandescent
- Others
- By Industry Vertical
- Residential
- Commercial
- Industrial
- Others
- By Region
- North America
- UNITED STATES
- CANADA
- MEXICO
- Europe
- UK
- GERMANY
- FRANCE
- ITALY
- Rest of Europe
- Asia-Pacific
- CHINA
- JAPAN
- INDIA
- SOUTH KOREA
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- General Electric Co
- OSRAM GmbH
- IDEAL INDUSTRIES INC
- Signify NV
- Honeywell International Inc
- Bridgelux Inc
- AB Fagerhult
- Generation Lighting
- Maxim Lighting International
- Acuity Brands Inc