Under Cabinet Lighting Market, Share, Growth & Industry Analysis, By Type (Incandescent, Fluorescent, LED), By Application (Household, Commercial), and Regional Forecast to 2033

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UNDER CABINET LIGHTING MARKET OVERVIEW

The global Under Cabinet Lighting Market is anticipated to witness consistent growth, starting at USD 0.91 billion in 2024, reaching USD 0.99 billion in 2025, and climbing to USD 1.87 billion by 2033, with a steady CAGR of 8.3% from 2025 to 2033.

Under-cabinet lighting is simply lighting fixtures that are mounted below cabinets, typically in kitchen cabinetry, cabinetry, work areas, or display areas of merchandise in retail spaces, that will serve the dual purpose of increasing focused light and aesthetics. These sources of light are becoming increasingly popular in modern interior design because they provide both task lighting and decorative lighting. The under-cabinet lighting market includes many light sources such as incandescent, fluorescent, and light-emitting diode (LED), but a large portion of the market is using LEDs as their primary light source, given the cost-effectiveness, longevity, and minimal heat output from LEDs. With increasing consumer interest in smart-home products and energy-efficient home options, more homes and commercial spaces will inevitably take advantage of under-cabinet lighting options. Commercially, under-cabinet lighting is frequently used in retail stores, hotels, and other hospitality areas, offices, and to display products, to improve the ambiance, and to highlight focal points. Technological advancements in lighting, such as the availability of dimmable lighting, the use of motion sensors, wireless control systems, and other advances, continue to make the fixture options advanced, intuitive, and adaptive. Similarly, the increasing demand for modern home aesthetics flows from the higher interest in redoing kitchens while driving development for the under-cabinet light market. The under-cabinet market improves the aesthetics of any room, but it does come with challenges related to high prices of many premium products and the use of only a few types of products in certain underdeveloped countries and regions where the end user population may not be aware that these products exist. However, as consumers are willing to emphasize form and function, the under-cabinet light market will continue to appreciate year after year, alongside innovations in lighting advances.

UNDER CABINET LIGHTING MARKET KEY FINDINGS

• Market Size and Growth: The Under Cabinet Lighting Industry, which amounted to USD 0.91 billion in 2024, is predicted to grow steadily and eventually reach USD 1.87 billion by 2033 at a steady CAGR of 8.3% for the year 2024-2033.
• Key Market Driver: Growing demand for energy-efficient lamps, wherein LED technology has 80% of sales of under-cabinet lighting in 2024.
• Major Market Restraint: High initial installation prices discourage uptake in tight-budget projects, whose price is 15-20% depending on lighting.
• Emerging Trends: Smart light integration grew by 35% in 2024 as customers increasingly opted for app-controlled and voice-controlled systems.
• Regional Leadership: Asia-Pacific is dominating the market with a 38% share due to increased urbanization and increasing construction activity.
• Competitive Landscape: Market leader brands such as Philips, Osram, and GE Lighting together account for over 50% market share.
• Market Segmentation: LED under cabinet lighting is market leading at nearly 75%, followed by halogen and fluorescent.
• Recent development: Philips launched an advanced new smart dimmable under-cabinet lighting system in 2024 that is compatible with leading home automation systems, enhancing user convenience.

COVID-19 IMPACT

COVID-19 Disrupting the Under-Cabinet Lighting Market

The COVID-19 pandemic affected the Under Cabinet Lighting market in plenty of ways. In addition to disrupting demand, key regions had supply chains disrupted from international shipping and factories closing due to labour shortages, along with indirectly affecting the market by shuttering residential renovations and commercial construction via lockdowns. These workers taking to the sidelines had an impact on the immediate demand drop, with consumers experiencing uncertainty of their economic future had dramatically down-prioritized non-essential needs for their home, such as adding or enhancing lighting. With consumers spending more time in their homes, the interest in home improvement gradually increased, which offset some of the immediate losses suffered, but the industry felt the brunt of rising production prices, project timelines that dramatically increased, along with longer-term changes in consumer purchasing behaviour as COVID-19 shifted the focus from residential renovation and construction to spending more focus on e-commerce and promoting only energy efficient LED solutions that are easy to install as DIY. In summary, though the Under Cabinet Lighting market has somewhat recovered from COVID-19, it illustrates the global effects it could have over the domestic Under Cabinet Lighting market and the contingency planning that now must involve more resilient supply chains and flexible distribution channels.

LATEST TREND

Smart and Energy-Efficient Solutions Fuelling Growth in the Under-Cabinet Lighting Market

The primary factor fostering growth in the Under-cabinet lighting sector is the growing proliferation of smart technology and energy-saving options, in particular LED systems. As sensors are becoming more sophisticated, dimmable, and controllable via wireless systems app or voice assistant, under-cabinet lighting is becoming more user-friendly, customizable, and appealing for today's homes and businesses. Apart from improving visibility, consumers are increasingly choosing lighting that enhances interior style, energy efficiency, and sustainability. As more and more consumers were inspired to rethink their properties around superior living and smart homes, manufacturers have started developing plug-and-play systems to address homeowner market drivers. Smart technologies are made easy and are also less costly, with the ability of homeowners and businesses to self-install their lighting with little to no professional help. Undoubtedly, over the past decade, along with these advances, breakthroughs with LED lighting technology are increasingly the preferred lighting technology with longer components and ten times less power, future-friendly colour spectrums. These upgrades are favoured by residential users and businesses interested in brightening their workspace lighting while reducing their energy burden. The continued adoption of and dependence on smart, sustainable lighting will ultimately create standard space for under-cabinet lighting in any new home build or remodel.

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UNDER CABINET LIGHTING MARKET SEGMENTATION

BASED ON TYPES

• Incandescent: This type of light fixture is the traditional under-cabinet lighting alternative. Incandescent light sources involve warm colour temperatures, are low in purchase price, and usually have the lowest operating cost of energy. Compared to other forms of light sources, incandescent lights have the shortest life span and a high energy draw, making the use of incandescent lights less applicable historically.
• Fluorescent: Fluorescent lights provide a comparatively more energy-efficient operating light source than incandescent lights. Fluorescent lights produce bright, cool light and can be used in kitchens and work areas. Fluorescent lights commonly contain mercury within the tube, and can be dimmed, but have limited dimming capabilities.
• LED: LED is by far the largest category of acceptable under-cabinet light fixtures, while being the least energy consuming, having the longest life, having the least size of fixture design, and smart dysconnectivity. In addition, LED fixtures can be available in all colour temperatures and designs, making this light source option most applicable to both functional and decorative aesthetics under cabinet application.

BASED ON APPLICATIONS

• Residential Project: Under-cabinet lighting is a very popular accessory in residential applications. People add under-cabinet lights to kitchens, dens, and study spaces mainly to provide better visibility, safety, and ambiance. Customers also want low-energy options and installations that are flexible and easy to do themselves, such as LED strip/ LED tape lights or puck lights, and low-voltage control immediately.
• Commercial Project: Under-cabinet lighting is also becoming more heavily used in commercial projects like retail stores, hotels, restaurants, and office space. Retail stores may use under-cabinet lighting for task lighting, to create accent light, or for display purposes. The purpose of use may vary, but the user merits remain the same, such as enhancing professional aesthetic appeal, defining the working space, improving the lighting aesthetics, meeting lighting standards, and being energy efficient.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities, and challenges, stating the market conditions.

DRIVING FACTORS

Smarter and More Efficient Lighting Solutions Drives Growth

As LED technology has evolved, along with smart lighting, there will always be evolving and innovative ways for consumers to take advantage of under-cabinet lighting opportunities.  A range of options exist, such as energy-efficient LED products, products where the output level can be adjusted, and possibilities that can be app, voice command, or remotely controlled.  Today's lighting solutions are functional and convenient. The modern lighting solutions provide energy savings and sustainable options, that have an audience that embraces technology, that hold themselves to a better purpose and accountability, that can be replicated.  We have seen a significant ongoing trend line of increased use of upgraded, smarter lighting systems, no matter the applications, in both residential and commercial spaces.

Growing Interest in Home Upgrades and Visual Appeal Fuels Demand

Consumers continue to expand the bar on what they consider to be an improvement in aesthetics, and ultimately what the interior looks and feels like - Kitchens, Workspaces, Display areas, etc. The convenience of the Under Cabinet Lighting choice shines brighter as we are experiencing this. The under-cabinet lighting choice has a clear trend line as it is a hint of understated elegance, while at the same time providing just the right amount of light in the optimum places. The influencers leading this charge are evident on social media, and increasing renovations are naming it. These factors are driving the Under Cabinet Lighting Market growth.

RESTRAINING FACTOR

High Installation Costs and Compatibility Challenges Hinders Growth

Perhaps the biggest problem in the Under Cabinet Lighting industry is established by the comparative upfront expense of buying and installing high-quality lighting systems, particularly clever or tailored LED installations. Although LEDs save energy and cost less over the long term, upfront investment in fixtures, wiring, controllers, and commercial installation may deter frugal owners and small businesses. In homes already built, further alterations could be necessary in order to integrate lighting retrofitting, incurring additional expense. Integration with pre-installed home automation systems or limited access in some cabinet areas can also be challenging. Such barriers can moderate adoption, especially in emerging markets or among low renovation spending customers, and thus hold back overall market growth momentum.

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UNDER CABINET LIGHTING MARKET REGIONAL INSIGHTS

• NORTH AMERICA

North America holds a large share of the Under Cabinet Lighting Market in the world, and growth is fuelled by increasing adoption of smart home appliances, increased focus on interior design, and increased spending on renovation. The regional consumers, i.e., the U.S. and Canada, continuously spend on energy-efficient lighting products that not only bring additional functionality but also add value to the aesthetics. The United States Under Cabinet Lighting Market is the market leader in the nation, driven by a robust base of leading manufacturers, extensive awareness of the benefits of LED, and energy-conserving, encouraging government policies. In residential as well as commercial environments, there is increased demand for smart light systems with the option of automation. Furthermore, do-it-yourself home renovation trends and social media culture are fuelling the use of under-cabinet lighting in kitchens, offices, and home entertainment rooms, thus rendering North America a leading market continuously.

• EUROPE

Europe is a mature and consistently expanding market for under-cabinet lighting, fuelled by rigorous demand as a result of energy efficiency regulations, increased building codes, and a highly developed home improvement culture. Steady adoption exists in Germany, France, the U.K., Italy, and Russia, especially in homeowners' renovation projects and new kitchen installations. Germany is at the forefront with green lighting solutions, supported by demanding efficiency standards and consumer education. Design and aesthetics dominate French and Italian buying trends, but increasing use of smart under-cabinet lighting as part of home automation systems is the U.K. scenario. Russia, though, is boosting its residential and commercial building, uncovering new prospects for the use of lighting. As environmental sustainability becomes more noticeable, with increasingly fashionable, energy-efficient areas demanding attention, Europe remains a main driver of the under-cabinet lighting Market.

• ASIA

Asia-Pacific is emerging as one of the fastest-growing markets for Under Cabinet Lighting, led by aggressive urbanization, rising disposable incomes, and enhanced smart home adoption. China is leading the country with its mass-scale production, low prices, and rising demand for residential and commercial energy-efficient lighting. Japan and South Korea are leaning towards minimal, advanced lighting solutions with the integration of smart home solutions. In Taiwan, China, the market is driven by a robust supply chain of electronic parts as well as escalating consumer demand for interior design. Southeast Asia, too, is catching up as construction activity gathers momentum, infrastructure is upgraded, and the real estate industry rides a boom. India is otherwise demonstrating huge potential as consumer consciousness increases and city homes look for fashionable but economical lighting. The intersection of affordability, innovation, and growing consumer aspirations across the region makes Asia-Pacific a key growth driver of the future for the Under Cabinet Lighting Market.

KEY INDUSTRY PLAYERS
 

Strong Strategies Boost Survival and Growth Amid Fierce Competition Among Key Competitors Globally

The Under Cabinet Lighting market is powered by a balanced competition of international lighting companies and technology-based electronics firms. The industry players are now aiming to be energy efficient, have smart lighting integration, and design flexibility to address evolving customer needs in homes as well as commercial settings. The players, such as Philips Lighting, Osram, and GE Lighting, are leading with advanced LED solutions, emphasizing sustainability and human-centric design. Cree, LEOTEK, and Excellence Optoelectronics are still leaders when it comes to LED chip and mini-lighting module technology for newer space eras. Eaton Cooper, Hubbell, and Acuity Brands specialize in well-balanced lighting solutions with an embrace of safety, longevity, and smart control, particularly for mass-volume commercial or industrial use. Specialty products and low-cost solutions from local companies are also helping out in their way. As the need for intelligent and energy-efficient under-cabinet lighting increases, R&D investments are made, distribution channels are expanded, and strategic partnerships are employed to expand global reach and Under Cabinet Lighting Market Share.

LIST OF TOP UNDER CABINET LIGHTING COMPANIES

• Cree (U.S.)
• LEOTEK (Taiwan)
• GE Lighting (U.S.)
• Hubbell (U.S.)
• Philips Lighting (Netherlands)
• Osram (Germany)
• Excellence Optoelectronics (Taiwan)
• Eaton Cooper (Ireland)
• Acuity Brands (U.S.)
• Kingsun (China)

KEY INDUSTRY DEVELOPMENTS

April 2025 - Philips Lighting releases Smart Under Cabinet Series with Matter support. Philips Lighting unveiled a new series of smart under-cabinet lights for its Hue brand, which is now supported by the Matter protocol. With tunable white and colour ambiance options, voice command support, and energy-efficient LEDs, the lights are engineered for effortless integration across any smart home platform such as Apple HomeKit, Google Home, and Amazon Alexa. The launch aims to highlight increasing opportunities in connected and multifunctional lighting for modern kitchens and offices.

REPORT COVERAGE

With advancements in lighting technology, changing consumer behaviour, and rising investment in home renovation, the Under Cabinet Lighting Market is slowly evolving. With energy efficiency, appearance, and smart connectivity becoming the focal points in homes as well as businesses, under-cabinet lighting is evolving as a central aspect of interior design in the present day. Major players like Philips Lighting, Osram, and GE Lighting are targeting LED technology, small fixture size, and smart home platform compatibility to capitalize on increasing demand. Though the United States Under Cabinet Lighting Market is dominated by earlier adoption and extensive retail network coverage, markets such as the Asia-Pacific are growing rapidly with increasing urbanization, higher disposable income, and heightened awareness of energy-efficient lighting systems. Europe, on the other hand, integrates energy-efficient policies into its modern architectural designs to enable market growth. The market, nevertheless, continues to be confronted with some challenges such as high initial prices for high-quality products, incompatibility with established infrastructure, and low awareness in new markets. Ongoing challenges notwithstanding, opportunities continue to grow, particularly through the convergence of IoT, AI-enabled light automation, and individualized ambience control. As demand for functional, space-efficient lighting that is also aesthetically pleasing continues to grow, the under-cabinet lighting industry is on course to achieve strong long-term growth. This research points to how international trends in consumer behaviour, technology adoption, and energy policy are redefining the paradigm, placing the Under Cabinet Lighting Market at the forefront of the smart lighting and home improvement landscape. Battling on the background of advancements in lighting technology, changing consumer sentiments, and more spending on home improvement, the Under Cabinet Lighting Market is further transforming. As increasingly more homes and companies emphasize energy efficiency, style, and intelligence integration, under-cabinet lighting is in the spotlight in contemporary interior design. Market leaders Philips Lighting, Osram, and GE Lighting are putting their energies into LED technology, thinner fixture design, and integration with smart home platforms to respond to increased demand. Though the United States Under Cabinet Lighting Market leads the way with earlier adoption and extensive retail coverage, economies such as the Asia-Pacific are quick to close the gap through increasing urbanization, increasing disposable income, and growing concern for effective light solutions. Europe, with accompanying energy-friendly legislation and dominant architectural styles, spurs market growth instead. But the market is still beset by the high upfront cost of good quality products, incompatibility with installed infrastructure, and low developing economies. In spite of all these woes, opportunities still grow—namely through IoT connectivity, AI-based lighting control, and tailored atmosphere control. With growing interest in utilitarian, space-saving lighting that also beautifies, the under-cabinet lighting market is ready for firm, long-term growth. This report specifically addresses the way in which global consumer consumption patterns, technology integration, and energy policy are redefining the landscape, situating the Under Cabinet Lighting Market as a primary area of focus within the overall smart lighting and home improvement market.