A number of factors such as the booming demand for energy-efficient lighting solutions, toughening energy efficiency regulatory policies, and rising emphasis on smart lighting are expected to propel the ambient lighting market at a CAGR of 9.2% during the forecast period (2020–2030). According to P&S Intelligence, the market revenue is projected to grow from $60.8 billion in 2019 to $156.5 billion by 2030.

In recent years, the burgeoning demand for light-emitting diode (LED) lighting solutions has become a prominent trend in the market. The rising stringency of energy efficiency laws is expected to boost the ambient lighting market growth in the coming years. The growing awareness regarding environmental degradation has led to the implementation of stringent regulations related energy efficiency of lights, which are resulting in energy and cost savings in several end-use sectors.

For instance, the U.S. Energy Standard for Buildings is a national model code for commercial buildings and an important parameter for drafting designs and related systems. In recent years, players operating in the ambient lighting market have introduced several new products to gain a competitive edge. For instance, in September 2019, Signify N.V. introduced the Philips Hue Filament collection of warm white lights, which is a combination of modern technology and vintage design.

This amalgamation of contemporary and antique helps to control and personalize the lighting through a smartphone or a voice command. These lights can be used with or without a lampshade. Globally, Asia-Pacific (APAC) led the ambient lighting market in 2019 and it is expected to retain its position in the forecast years as well. This is ascribed to the expanding automobile industry in India, China, Japan, and South Korea, and the rising construction of residential units in India and China.

Moreover, the escalating disposable income, growing population, and flourishing information and technology (IT) sector, primarily in India and the Association of South East Asian Nations (ASEAN) countries, will also drive the demand for ambient lighting solutions in the region. Thus, the increasing focus of governments on energy-efficient lighting systems and the burgeoning demand for smart lighting solutions will supplement the demand for ambient lighting solutions in the foreseeable future.