LED gets luxe: How a utility-based product is becoming a style statement

Consumers now prefer lighting to be an aspect of the aesthetic, and not simply an installation for the sake of utility. With this shift also comes a change in the kinds of lights being preferred, given that there is a large array of varieties available as well

India's Lighting Market Moves from Utility to Aesthetic Design and Smart Tech
India's Lighting Market Moves from Utility to Aesthetic Design and Smart Tech

A simple tubelight or bulb no longer makes the cut for the Indian consumer— they need the lighting to elevate the decor and aesthetic of the room, and complement the walls, flooring and furniture as well. From a utility-based product, lighting is now becoming a style statement, a mood creator, and an essential part of a home’s identity. 

Consumers now prefer lighting to be an aspect of the aesthetic, and not simply an installation for the sake of utility. With this shift also comes a change in the kinds of lights being preferred, given that there is a large array of varieties available as well. 
“Lighting has become a central element in interior design, not just a functional add-on,” says Raja Mukherjee, senior vice president and business unit head (lighting), Panasonic Electric Works India (PEWIN), Panasonic Life Solutions India.

Customers now allocate 10-15% of their interior budget to lighting, compared to 3-5% a decade ago. “It’s seen as a mood-setter and a style statement, especially in living and entertainment areas.”

A shift in taste

Designer light studios share that this ‘upgrade’ in lighting preferences is widespread and comes as a pleasant surprise from the Indian customer base given that such decor items were largely preferred from global brands, rather than from Indian companies.

Oorjaa, a Bengaluru-based lighting studio, recently launched a joint collection with Godrej Labs called Nexus, which features sustainably designed and handmade lights. “We’ve seen a huge rise in clients who are moving away from mass-produced products. They are actively seeking pieces with a story, which is precisely what we offer with our materials like banana fibre, faux concrete, lantana, and upcycled cork,” says Jenny Pinto, founder of Oorjaa.

Having started the studio in 1998, Pinto has been privy to this shift in taste among the customers. “When we started, lighting was largely seen as a functional necessity and most decorative lighting options either came from China or Europe,” she recalls. “Now, it’s a statement, a mood creator, and an essential part of a home’s identity.”

Taking their innovation in design further, Oorja also recently introduced two new lighting collections named ‘Gulmohar’ and ‘Erythra’, with themes inspired from nature and flora. The lighting designs at Oorja are inspired by everything from agricultural waste and quarry dust to invasive plants like water hyacinth.

Innovative Design Studios (IDS), the lighting studio of Innovative Designs Group, echoes the same experience with the customer base. “The shift toward decorative and design-centric lighting is undeniable,” says Aryaman Jain, CEO of IDS. “This change reflects the evolving mindset of Indian homeowners, architects, and developers.”

“This shift can be seen in how lighting is now discussed at the start of a project rather than as an afterthought,” says Aashi Gupta, CEO and founder of Aashi Gupta Designs, an architecture and interior design firm. “We have observed that in nearly 70% of our projects, clients actively request statement lighting, whether it is a Parisian inspired crystal pendant or a sculptural lamp that feels more like art. It is not just about seeing clearly anymore, it is about feeling deeply,” she adds.

New kid on the block

Jain expounds on this phenomenon, speaking with regard to demands seen at IDS: “LED is now the gold standard in the luxury and premium segment, accounting for all new installations. Compared to halogen or CFL systems, LEDs deliver higher energy efficiency, longevity, and superior control over colour rendering and tunable temperatures which are all elements crucial for mood-driven design.” 

Smart lighting systems with Bluetooth mesh, DALI (Digital Addressable Lighting Interface), or app-based controls are seeing a 20-25% year-on-year adoption rate, he adds.

LED lighting is here to stay, agrees Pinto. “It is not a fleeting trend,” she says, rather a permanent change in consumer preferences due to a number of key factors. LED lights are more energy efficient and last much longer and are preferred by customers as they make for better quality and lower electricity bills. “They can be integrated into beautiful, artistic designs that were impossible with older, heat-producing bulbs,” she adds.

“LEDs and smart systems allow us to weave fluidity into design. In our practice, we use them not just as sources of light but as brushstrokes of ambience layered within the classical forms we design,” says Gupta of Aashi Gupta Designs. She explains that any chandelier or lamp is no longer chosen as an isolated object, but as a part of a larger designscape that echoes a certain artistic vision. 

Panasonic has recently introduced aesthetic-forward ranges that blend form and function, which have seen a 20-25% increase in demand for such products in metro cities. The growth trends mapped by Panasonic display similar cues, showing that LED lighting has seen a massive growth since 2020. “The transition to LED and smart lighting has accelerated, driven by energy efficiency, longer lifespan, and smart home integration,” says Mukherjee, adding: “Compared to halogen or tube lights, LED adoption has grown by over 60% in the past 5 years, with smart lighting gaining traction among tech-savvy and premium consumers.” 

Premium consumers prefer the quality and additional features of smart decorative lighting to the cheaper ones that meet basic utility. “While basic utility lighting like LED bulbs and tubelights ranges from Rs 100-Rs 500, decorative and smart lighting can cost you anywhere from Rs 1,500 to Rs 15,000 or more, depending on design and technology,” says Mukherjee, adding, “Over the years, prices have become more competitive due to scale and innovation, making premium lighting more accessible.”

Sales trends

During festive seasons, especially around Diwali, Panasonic sees a 40-50% surge in sales of decorative lighting. “Consumers invest in upgrading their homes, and lighting plays a central role in creating festive ambience. We align our marketing and retail strategies to meet this seasonal surge,” says Mukherjee. 

Jain of IDS observes a similar trend. “The festive quarter, particularly from September to November, consistently drives a spike in decorative lighting sales. In recent years, there has been a notable trend shift—clients increasingly look to refresh their spaces by adding lifestyle pieces, such as statement lamps, chandeliers, or accent lighting, during festive renovations.” 
This shift is reflective of a growing appreciation for how curated lighting can instantly elevate the ambience of a home or project, a mindset that was far less common in previous years, he adds.

According to Gupta, it is the young home owners who are bold with their decor choices. “Lighting has gone from being the last layer to being the spine of design. Once consuming barely 3 to 5% of budgets, today it can command up to 15%, sometimes even more in luxury projects,” she adds. 

Panasonic’s Mukherjee adds that elevated lighting preferences are more prominent among urban millennials, Gen Z homeowners, and premium segment buyers. However, he says, “Tier 2 and Tier 3 cities are also catching up, especially with increased exposure to design trends via social media and e-commerce platforms.”

Mukherjee further shares that while online sales are certainly increasing for standard LED lights, in-store consultations are still the go-to for decorative and premium lighting. “Customers prefer to see the product in person, understand its finish, and visualise it in their space,” he explains. As for IDS, nearly 75% of the sales are finalised through in-store consultations or on-site walkthroughs. At Oorja too, while the online space is a great tool for initial discovery, “when it comes to decorative and bespoke pieces, the in-store experience is invaluable,” as per Pinto.

Speaking of his observation of the customer pool, Pinto says, “Our primary customer is the design-conscious urban consumer. This demographic is well-travelled, educated, and values quality, sustainability and craftsmanship. They are less concerned with labels, price and more focused on the unique story and quality of the product,” she adds.

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This article was first uploaded on November twenty-two, twenty twenty-five, at thirty-five minutes past eight in the night.
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