Architectural Lighting Market Innovates with Tunable White and RGB Technologies

The global architectural lighting market was valued at USD 10.20 billion in 2024 and is projected to expand at a CAGR of 7.7% from 2025 to 2030. This market represents a dynamic and swiftly evolving sector, focused on improving the functionality, aesthetics, and sustainability of lighting across a wide range of architectural applications. Key growth drivers include rapid urbanization and expanding infrastructure development, particularly within emerging economies.

Component Insights

In 2024, the ballasts segment led the market, contributing over 18.0% of total revenue. The increasing adoption of LED lighting has fueled the demand for LED-compatible ballasts, which are essential for enhancing system performance, reliability, and energy efficiency. These ballasts play a pivotal role in optimizing LED operation, ensuring consistent and efficient performance across diverse applications. Additionally, the growing retrofit market continues to drive growth in this segment.

Source Insights

The light-emitting diode (LED) segment secured the largest share of revenue in 2024. LEDs are widely favored in architectural lighting due to their superior energy efficiency and cost-effectiveness compared to traditional incandescent and fluorescent lighting. Their ability to significantly reduce electricity usage makes them an ideal choice for residential and commercial settings. Furthermore, LEDs are central to the emergence of smart lighting systems, which offer advanced features such as IoT compatibility, remote control, and automation. These smart features support enhanced energy management, customization, and integration into smart buildings and cities, making LED-based solutions increasingly vital amid growing urbanization and sustainability demands.

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Application Insights

The indoor application segment dominated the market in 2024, accounting for over 76% of total revenue. Rising awareness of how lighting influences mood, productivity, and overall well-being has driven demand for human-centric lighting. These systems replicate natural daylight by adjusting color temperature and brightness to align with circadian rhythms, benefiting environments like offices and healthcare facilities. Additionally, indoor lighting significantly contributes to both aesthetics and functionality. As interior design evolves, there is growing interest in decorative, customizable lighting solutions that align with contemporary architectural styles—particularly in residential, commercial, and hospitality sectors.

End Use Insights

In 2024, the commercial segment held the largest market share, with over 51% of revenue. The need for energy-efficient lighting is a major growth factor, especially as commercial buildings—such as offices, retail outlets, and hotels—prioritize sustainability. The widespread adoption of LED technology has helped reduce operational costs and supports environmental goals by minimizing energy consumption. In pursuit of green building certifications like LEED, businesses are increasingly incorporating eco-friendly lighting into their designs. This shift is redefining the commercial lighting landscape, with efficiency and environmental performance becoming core design criteria.

Regional Insights

North America accounted for over 19% of global market revenue in 2024. Growth in the region is largely driven by significant advancements in LED technology, leading to improvements in efficiency, longevity, and cost-effectiveness. Consequently, LED lighting is now widely adopted in both new construction and retrofit projects. Additionally, strict energy efficiency regulations in North America have accelerated the implementation of advanced lighting systems across architectural applications.