Business of ambience: Lighting emerging as growth driver in home décor sector

What was once just a functional necessity is now a powerful design tool – one that creates the right vibe, evokes emotion, and reflects personality

For decades, home décor conversations revolved around furniture, perfect wall colours, and statement rugs. But in recent years, lighting has quietly risen from playing the supporting role and taken the center stage.

Today’s consumers aren’t just buying lamps to see – they’re buying lamps to create a style statement and create the right ambience. A pendant over the dining table, a warm floor lamp in a reading nook, a colour-changing smart luminaire in the bedroom – these aren’t just sources of light, they’re tools for creating mood and defining space while also highlighting a design language. As homes increasingly serve as offices, studios, and sanctuaries, lighting has evolved into a tool for crafting experiences. This emotional connection is fuelling demand – consumers want spaces that feel cozy, energizing, calming, or dramatic – and lighting delivers these transformations instantly and affordably.

The tech factor: Smarter, cooler, and better

The global lamps and lighting market is expected to generate $86.62 billion in revenue in 2025, with a projected annual growth rate (CAGR) of 3.67% from 2025 to 2029, as per Statista.

This rising demand is not just about aesthetics. It is being powered by rapid technological innovation. Smart lighting systems, app-controlled bulbs, and customisable settings mean homeowners can tweak their environment to match their mood or schedule. All that is just a finger tap away. Want warm, soft lighting in the evening and crisp, bright tones for your morning workout? One soft tap and it’s done!

Technology is also fuelling creativity. With features like colour tuning and dimming, dynamic scenes, and voice control, lighting is no longer just functional – it’s interactive. And that interactivity is making lighting a lot more fun, a lot more personal, and a lot more essential. For instance, it is time to forget the “one-size-fits-all” tube light. People want lighting that fits their unique style. From vintage-inspired Edison bulbs to sleek, futuristic panels, lighting design has exploded into countless aesthetics. Customisable fixtures and modular systems let consumers curate their lighting look to match their personality and lifestyle.

This surge in personalisation mirrors a broader consumer trend viz. the desire for spaces that feel authentically “theirs.” For lighting brands, this is a major opportunity. It’s not just about selling a product anymore – it’s about selling a vibe, a feeling, an identity.

Cultural shifts

Recent global shifts have redefined what home means. As people are looking to spending quality time indoors, comfort and mental well-being have become top priorities – and lighting plays an intrinsic role here.

Warm tones foster relaxation. Balanced lighting supports mental health, mood, and focus.2 Even trends like “hygge” and “biophilic design” heavily emphasise natural, cozy lighting. As people invest more in their living environments, they are investing in lighting that enhances their emotional well-being.

From an economic perspective, lighting hits a sweet spot. While a full-scale renovation may be out of reach for many, switching out a few fixtures or installing smart bulbs offers an instant upgrade at a much lower cost.

Retailers have taken note and today all major retail chains, online platforms, and boutique brands alike are expanding their lighting collections, recognising lighting as a high-impact, low-commitment way for consumers to refresh their abodes.

As the boundaries between living, working, and relaxing blur, lighting is becoming a lifestyle essential. Expect continued innovation such as circadian rhythm-responsive lighting and deeper integration with smart home ecosystems. Lighting has officially moved from background utility to emotional centrepiece. It’s no longer just about what you see – it’s about how it makes you feel.

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