MARKET INTELLIGENCE

The lighting fixtures market in Europe reached a value of about EUR 20 billion in 2024, with slight growth compared to the previous year and settling at a value that is over EUR 900 million higher than in 2019. In terms of segments, residential (indoor) lighting is the largest one and showed a feeble growth in 2024, like Professional (indoor) lighting, while outdoor lighting overperformed the average with annual growth of +1.4% since 2019.

Europe stands out as one of the most advanced lighting markets globally. The European lighting industry is experiencing a profound transformation, driven by sustainability goals, technological innovation, and evolving user needs. In line with its target of climate neutrality by 2050, lighting solutions, particularly LED technology and smart systems, are reshaping energy efficiency across residential and professional sectors.

However, while the transition to LED in the market offering is almost complete, the same cannot be said for the installed stock in Europe. According to CSIL, the average stock of installed LED luminaires in Europe exceeded half of the total in 2024 and progressively expanded over the years. The percentage was around 3% in 2010. The large share of conventional lighting fixtures still present in the installed stock shows the vast market potential in the sector.The advent of connected lighting, on the other hand, continues to attract the attention of observers. The potential for the reduction of energy consumption is huge when the luminaires are networked into a smart system with the use of sensors and dimming profiles. The lighting is only activated when it is really needed.

Currently, connected lighting accounts for 20% of the LED lighting market in Europe, double the share in 2019. At the same time, more and more luminaires are being designed as “future-ready,” meaning they come with built-in connectivity, even if they’re not yet part of a smart system.

Outdoor lighting is the segment with the highest penetration of connected lighting solutions, followed by professional indoor lighting (commercial and industrial sectors). Urban areas are increasingly adopting smart lighting systems for streetlights and public infrastructure, while offices and schools are transitioning to solutions that support both efficiency and well-being. The incidence is much lower in residential indoor lighting and lamps. However, as innovation advances and the industry offers more user-friendly solutions, connected lighting is expected to become increasingly widespread in the consumer segment as well.

The growing adoption of home automation systems across Europe is also expected to have a strong positive impact on the expansion of the smart lighting market.

A notable trend is the increasing popularity of human-centric lighting (HCL), which emphasises lighting solutions that promote well-being, enhance productivity, and align with human circadian rhythms, particularly in office, healthcare, and educational premises. There is a growing understanding of the profound impact of lighting on human health and performance, leading to a greater demand for HCL solutions.

The industry is witnessing increasing vertical integration, with major lighting manufacturers acquiring connectivity and technology companies to develop more comprehensive and integrated smart lighting products and solutions. This strategic move allows these companies to strengthen their position in the rapidly expanding smart lighting market by incorporating expertise in connectivity directly into their offerings.

RELEVANT M&A OPERATIONS

The consolidation process among the various players in the sector continues unabated, with M&A transactions aimed at expanding and strengthening the product offering as well as reaching new geographical markets. The expansion of connected and smart lighting is redefining the industry’s competitive landscape. The sector is experiencing a vertical integration process with large lighting groups acquiring connectivity companies to develop integrated products and dispose of ready-made systems instead of developing them internally (which implies higher costs and time).

Among the most recent mergers, we can mention: Gewiss acquiring Performance in Lighting (2022), Thorpe-Electrozemper (2023), Nemo-Reggiani (2023), Ragni-Hess (2024), Eglo-Keria (2024). This trend is set to continue in the future, given that other mergers have already taken place in the first half of 2025: LEDVANCE acquired Loblicht and Gewiss acquired Beghelli.

Today, the top 20 players represent an estimated market share of around 50% of the total European production, and this share has increased significantly compared to 2019.

MARKET OUTLOOK

According to CSIL, the outlook for the European lighting fixtures market appears solid and dynamic. The growing demand for efficient lighting solutions, driven by greater focus on energy savings and increasingly stringent environmental regulations, presents promising growth opportunities.
This has driven LED products to account for nearly 90% of total lighting fixture consumption in Europe in 2024 and is driving the expansion of connected and smart lighting, one of the key emerging sector trends, which is progressively reshaping the competitive landscape.

The share of LED is forecasted by CSIL to grow to over 90% in the coming years. In the medium term, the priority investments for lighting companies are lighting systems that allow scheduling, monitoring, and optimising light settings, as well as occupancy sensors.

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Want to know more?

The CSIL Report ‘The European market for lighting fixtures’ provides a detailed analysis of the lighting fixtures industry for 30 countries. Sector figures are given for the last six years, and market forecasts up to 2027. The international trade, the product segments, and the distribution channels are also part of the study. Competitive system analysis is offered by product category and by country

BRAND NEW in the Lighting Industry Reports series: ‘The Lighting Fixtures Market in Asia and the Pacific’ with an enhanced geographical coverage comprising Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan-China, Thailand, and Vietnam: basic data, market forecasts, market structure, focusing on residential, professional and outdoor applications, smart lighting and connected technologies, competitive landscape and distribution.

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Source: CSIL World Furniture Magazine #07, September 2025

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