LED light decorations are making their way into homes and public areas like restaurants, hotels, shops, malls, spas and even washrooms. From glimmering fairy lights to eye-catching LED neon signs to multifunction night lamps, these devices are grabbing consumers’ interest.
Technavio expects the decorative lighting market to grow by US$6.29 billion from 2019 to 2024 with a 4 percent CAGR. The demand can be attributed to the availability of smart lighting solutions and consumers seeking lighting products that not only beautify an area but also utilize less energy and last longer.
The use of decorative lighting helps set the mood and ambiance of any room, hence the growing popularity of various lighting fixtures. They add dynamic flair and visual appeal, which help show the personality of the homeowner or the desired style in a public space. Social media and web series that feature home decor trends also play a role in influencing consumers to purchase decorative lights. Plus, suppliers in this market are constantly innovating in terms of design and functionality, further boosting demand growth.
LED sourced decorative lights are highly reliable, exceptionally energy-efficient and last longer, about 50,000 hours or more, compared to their incandescent, CFL and halogen counterparts. Users are able to save on electricity and operational costs. According to Grandview Research, the global LED lighting market size was valued at US$ 50.91 billion in 2020 and is expected to witness a CAGR of 12.5 percent from 2021 to 2028. With the global lifestyle shift on sustainability, LED lights are considered environmentally friendly because they do not contain mercury.
Aside from decorations, LED neon lights double as effective marketing tools for businesses. LED neon flux products are exceptionally bright and colorful and can be seen in full daylight. These energy-efficient LED lights generate very little heat and use 75 percent less energy compared to traditional lighting as noted by GLLS. They are typically lightweight, enabling entrepreneurs to hang these devices anywhere they please. Business owners also need customization according to their preference – these LEDs offer versatility with their available animation, color, moving messages and flashing lights options, to name a few.
China has been the largest product exporter and manufacturer in this market. However, supply has been interrupted due to the COVID-19 pandemic. But with the vaccines rolling out this 2021, business operations are expected to resume.
In terms of market share, North America leads with a 35 percent share in the global market revenue. Modern Intelligence credits this United States’ and Canada’s immediate access to electricity as a driving factor. Asia-Pacific is another promising region buyers can target. The population growth and tourism of developing countries like China, Maldives and India push the demand further, especially in hotels and restaurants.