Outdoor Lantern in India Trends and Forecast
The future of the outdoor lantern market in India looks promising, with opportunities in the outdoor specialty store, supermarket, and online channel markets. The global outdoor lantern market is expected to grow with a CAGR of 6.5% from 2025 to 2031. The outdoor lantern market in India is also forecasted to witness strong growth over the forecast period. The major drivers for this market are increasing demand for energy-efficient lighting solutions, government efforts encouraging the adoption of sustainable practices, and rising demand for aesthetic and functional outdoor lighting.
• Lucintel forecasts that, within the type category, LED lantern is expected to witness the highest growth over the forecast period due to its energy efficiency and cost-effectiveness.
• Within the application category, online channel segment is expected to witness the highest growth due to increasingly inclination towards online retailers for their outdoor lantern purchases.
Emerging Trends in the Outdoor Lantern Market in India
Indian outdoor lantern market is undergoing significant transformation, influenced by technological advancements, sustainability initiatives, and evolving consumer preferences. The integration of smart technologies, emphasis on energy efficiency, and demand for aesthetically pleasing designs are reshaping the landscape. Government initiatives promoting eco-friendly solutions and smart city developments further accelerate this evolution. As a result, manufacturers and suppliers are innovating to meet these new requirements, offering products that align with environmental standards and modern design trends. This dynamic environment presents opportunities for growth and challenges that necessitate adaptation and forward-thinking strategies.
• Rise of Solar-Powered Lanterns: Solar-powered outdoor lanterns are gaining popularity in India due to their energy efficiency and sustainability. These lanterns harness solar energy, reducing electricity consumption and providing illumination in areas with limited power supply. Government initiatives like the Atal Jyoti Yojana (AJAY) and the Smart Cities Mission have been instrumental in promoting solar street lighting across urban and rural areas. For instance, approximately 2.72 lakh solar street lights were installed under the AJAY scheme, enhancing lighting infrastructure in various regions. This trend aligns with Indian renewable energy goals and addresses energy access challenges.
• Integration of Smart Lighting Solutions: The adoption of smart lighting systems is transforming outdoor lighting in India. These systems offer features such as remote control, motion sensing, and adaptive brightness, enhancing convenience and energy efficiency. Cities are increasingly implementing smart lighting to improve urban infrastructure and public safety. For example, the integration of LED lighting with Internet of Things (IoT) technologies allows for real-time monitoring and management, optimizing energy use and reducing maintenance costs. This shift towards smart lighting reflects a broader trend of digitalization in urban planning and development.
• Focus on Aesthetic and Functional Designs: Outdoor lanterns in India are evolving to combine aesthetic appeal with functionality. Consumers are seeking lighting solutions that not only illuminate spaces but also enhance the visual appeal of their surroundings. This trend is evident in the growing demand for decorative lanterns made from materials like bamboo, rattan, and recycled glass. These designs cater to the desire for personalized outdoor spaces and align with sustainability trends. Manufacturers are responding by offering a variety of styles that blend traditional craftsmanship with modern aesthetics, appealing to a diverse consumer base.
• Expansion of E-Commerce and Retail Channels: The growth of e-commerce platforms is significantly impacting the outdoor lantern market in India. Online marketplaces provide consumers with access to a wide range of products, including solar-powered and smart lanterns, at competitive prices. The convenience of online shopping, coupled with features like virtual showrooms and augmented reality tools, enhances the purchasing experience. Additionally, organized retail chains are expanding their presence, offering exclusive product lines and in-store customization options. This dual-channel approach is broadening market reach and catering to the diverse preferences of Indian consumers.
• Government Support and Policy Initiatives: Government policies and initiatives play a crucial role in shaping the outdoor lantern market in India. Programs like the UJALA and Street Lighting National Program (SLNP) have led to the installation of millions of LED bulbs and streetlights, resulting in substantial energy savings. These initiatives not only promote energy efficiency but also contribute to the development of smart cities. The governments focus on sustainable infrastructure and renewable energy sources is driving the demand for eco-friendly lighting solutions, encouraging manufacturers to innovate and align their products with national development goals.
The outdoor lantern market in India is being reshaped by a convergence of technological innovation, sustainability initiatives, and evolving consumer preferences. The rise of solar-powered and smart lighting solutions, coupled with a focus on aesthetic designs, is transforming outdoor spaces across the country. Government support and the expansion of e-commerce and retail channels further accelerate this transformation. Manufacturers that embrace these trends and align their offerings with consumer expectations and regulatory standards are well-positioned to thrive in this dynamic market. As India continues to prioritize sustainable development and smart infrastructure, the outdoor lantern market is poised for sustained growth and innovation.
Recent Developments in the Outdoor Lantern Market in India
Indian outdoor lantern market is experiencing significant growth, driven by technological advancements, sustainability initiatives, and evolving consumer preferences. The integration of smart technologies, emphasis on energy efficiency, and demand for aesthetically pleasing designs are reshaping the landscape. Government initiatives promoting eco-friendly solutions and smart city developments further accelerate this evolution. As a result, manufacturers and suppliers are innovating to meet these new requirements, offering products that align with environmental standards and modern design trends. This dynamic environment presents opportunities for growth and challenges that necessitate adaptation and forward-thinking strategies.
• Expansion of Smart Lighting Systems: The integration of LED lighting with IoT has led to the emergence of smart lighting systems. These systems allow for energy optimization, remote monitoring, and adaptive lighting solutions based on real-time data. Cities across India are increasingly adopting such technologies to enhance urban infrastructure.
• Government Initiatives and Sustainable Lighting: Government policies in India guide the modern development of the lighting industry toward energy-efficient and environmentally safe lighting solutions. The Bureau of Energy Efficiency (BEE) has established rigid energy performance standards, and programs like the Unnat Jyoti by Affordable LEDs for All (UJALA) have distributed millions of LED bulbs nationwide, promoting sustainable lighting solutions.
• Focus on Aesthetic and Functional Designs: Outdoor lanterns in India are evolving to combine aesthetic appeal with functionality. Consumers are seeking lighting solutions that not only illuminate spaces but also enhance the visual appeal of their surroundings. This trend is evident in the growing demand for decorative lanterns made from materials like bamboo, rattan, and recycled glass.
• Expansion of E-Commerce and Retail Channels: The growth of e-commerce platforms is significantly impacting the outdoor lantern market in India. Online marketplaces provide consumers with access to a wide range of products, including solar-powered and smart lanterns, at competitive prices. The convenience of online shopping, coupled with features like virtual showrooms and augmented reality tools, enhances the purchasing experience.
• Public-Private Partnerships (PPPs): Collaborative efforts between public and private entities are accelerating the deployment of LED lighting in public spaces, highways, and sports arenas. These partnerships are ensuring the rapid rollout of large-scale projects with shared investment and expertise.
The outdoor lantern market in India is being reshaped by a convergence of technological innovation, sustainability initiatives, and evolving consumer preferences. The rise of solar-powered and smart lighting solutions, coupled with a focus on aesthetic designs, is transforming outdoor spaces across the country. Government support and the expansion of e-commerce and retail channels further accelerate this transformation. Manufacturers that embrace these trends and align their offerings with consumer expectations and regulatory standards are well-positioned to thrive in this dynamic market. As India continues to prioritize sustainable development and smart infrastructure, the outdoor lantern market is poised for sustained growth and innovation.
Strategic Growth Opportunities for Outdoor Lantern Market in India
Indian outdoor lantern market is witnessing significant growth, driven by rapid urbanization, infrastructure development, and a strong emphasis on energy efficiency. Government initiatives promoting sustainable lighting solutions, coupled with technological advancements, are reshaping the landscape. The integration of smart technologies and the expansion of public infrastructure projects are creating new avenues for market expansion. As the country continues to prioritize sustainable development and smart city initiatives, the outdoor lantern market is poised for substantial growth, offering numerous opportunities across various applications.
• Smart Street Lighting in Urban Infrastructure: The integration of smart technologies in street lighting systems is revolutionizing urban infrastructure in India. Smart streetlights equipped with sensors and IoT capabilities enable real-time monitoring, adaptive lighting, and energy optimization. Cities are adopting these systems to enhance public safety, reduce energy consumption, and lower maintenance costs. For instance, the Chandigarh Municipal Corporation achieved a 53.76% reduction in electricity load by replacing traditional streetlights with energy-efficient LED alternatives. This shift towards intelligent lighting solutions aligns with Indian smart city initiatives, promoting sustainable urban development and offering significant growth potential for the outdoor lantern market.
• Expansion in Public Spaces and Commercial Areas: The rapid development of public spaces and commercial areas is driving the demand for outdoor lanterns in India. Shopping malls, airports, parks, and recreational facilities are increasingly incorporating decorative and functional lighting solutions to enhance aesthetics and improve visitor experience. The Airports Authority of Indian initiative to upgrade the perimeter lighting system at Chennai Airport with LED lights exemplifies this trend. Additionally, the growth of organized retail and the hospitality sector further contribute to the rising demand for outdoor lighting solutions, presenting lucrative opportunities for manufacturers and suppliers in the market.
• Architectural and Heritage Site Illumination: Illuminating architectural landmarks and heritage sites is gaining prominence in India, blending cultural preservation with modern lighting technologies. Advanced LED solutions are being deployed to enhance the visual appeal of monuments while ensuring energy efficiency and minimal light pollution. These installations incorporate sophisticated control systems, allowing dynamic lighting scenarios and scheduled operation patterns. The focus on sustainable lighting solutions for heritage sites not only preserves cultural identity but also attracts tourism, thereby creating a niche market segment with substantial growth prospects for outdoor lantern manufacturers.
• Rural Electrification and Off-Grid Lighting Solutions: Rural electrification initiatives are opening new avenues for the outdoor lantern market in India. Government programs aimed at providing reliable and sustainable lighting solutions in rural areas are driving the adoption of solar-powered lanterns and LED lighting systems. These off-grid solutions address the challenges of electricity access in remote regions, improving the quality of life and promoting economic development. The decreasing costs of LED components and the long lifespan of these lighting solutions make them a cost-effective choice for rural applications, presenting significant growth opportunities for market players.
• Event and Decorative Lighting for Cultural Celebrations: Indian rich cultural heritage and numerous festivals create a vibrant market for decorative and event lighting. The demand for aesthetically pleasing and energy-efficient lighting solutions during festivals, weddings, and public celebrations is on the rise. Manufacturers are introducing innovative products, such as theme-based and customizable lighting options, to cater to diverse consumer preferences. The growing influence of social media and event planners further catalyzes the demand for unique lighting designs, including projection mapping and interactive lighting elements. This segment offers substantial growth potential for outdoor lantern manufacturers focusing on decorative and event lighting solutions.
The outdoor lantern market in India is experiencing dynamic growth, propelled by advancements in smart technologies, government-led infrastructure projects, and evolving consumer preferences. Opportunities span across urban smart lighting, public and commercial spaces, heritage site illumination, rural electrification, and decorative event lighting. Manufacturers and suppliers that align their offerings with these emerging applications are well-positioned to capitalize on the expanding market. As India continues to prioritize sustainable development and smart city initiatives, the outdoor lantern market is set to play a pivotal role in shaping the countries illuminated landscape.
Outdoor Lantern Market in India Driver and Challenges
The outdoor lantern market in India is being shaped by a combination of technological, economic, and regulatory factors. Growing demand for energy efficiency, government-led rural electrification programs, and smart city developments are accelerating the adoption of modern lighting solutions. At the same time, the market faces several challenges, including inconsistent infrastructure, price sensitivity, and regulatory hurdles. Understanding the key drivers and challenges helps stakeholders adapt their strategies to changing market conditions and customer needs. This analysis explores five major drivers and three significant challenges influencing the future trajectory of India’s outdoor lantern market.
The factors responsible for driving the outdoor lantern market in India include:
• Government Initiatives for Energy Efficiency: Government initiatives such as the Unnat Jyoti by Affordable LEDs for All (UJALA) scheme and Smart Cities Mission are major drivers of the outdoor lantern market. These programs encourage the replacement of conventional lighting with energy-efficient alternatives such as LED and solar-powered lanterns. By promoting affordable and accessible lighting, these efforts reduce electricity consumption and carbon emissions. Such policies enhance market penetration, especially in semi-urban and rural areas, and create large-scale opportunities for manufacturers and suppliers committed to sustainable development and smart infrastructure goals.
• Rural Electrification Programs: The Indian government has made significant progress in rural electrification through schemes like Deen Dayal Upadhyaya Gram Jyoti Yojana. However, many remote areas still lack consistent power access, which creates demand for off-grid lighting solutions such as solar lanterns. These products offer reliability, low maintenance, and long battery life, making them ideal for rural consumers. With declining costs of LED components and growing awareness of clean energy solutions, manufacturers are increasingly investing in this high-potential segment, which is critical for expanding the market footprint in underserved regions.
• Rapid Urbanization and Infrastructure Development: Indian rapid urbanization is increasing demand for modern outdoor lighting systems across roads, parks, and public facilities. Urban planners and municipalities are incorporating smart lighting solutions to improve energy use, safety, and visibility. These lighting systems include features such as motion sensors, remote control, and adaptive brightness. As cities expand, the need for reliable and aesthetically pleasing lighting continues to rise. This trend creates strong opportunities for manufacturers that offer innovative products suited for modern infrastructure development in metro and tier-two cities.
• Growth in the Hospitality and Tourism Sector: The hospitality and tourism industry in India is investing heavily in outdoor lighting to enhance ambiance, guest experience, and branding. Hotels, resorts, and heritage sites require lanterns that are not only functional but also aesthetically aligned with their design themes. With India promoting tourism through initiatives like Dekho Apna Desh, demand for designer, energy-efficient, and weather-resistant lighting is growing. Suppliers catering to this demand with customizable and decorative lanterns stand to gain a competitive edge in this lucrative and image-conscious market segment.
• Rising Environmental Awareness among Consumers: Indian consumers are becoming more environmentally conscious, leading to higher demand for green lighting products. Solar-powered and LED lanterns offer energy savings, reduced emissions, and minimal maintenance. The adoption of such products aligns with the global push towards sustainability and meets the expectations of increasingly eco-conscious buyers. Manufacturers who integrate recyclable materials, efficient technology, and smart features into their products are well-positioned to benefit from this growing awareness and shift in consumer preference towards responsible consumption.
Challenges in the outdoor lantern market in India are:
• High Initial Cost of Smart and Solar Lanterns: Despite long-term savings, the upfront cost of smart and solar-powered lanterns remains a barrier for many price-sensitive Indian consumers. This issue is particularly pronounced in rural and low-income markets, where purchasing decisions are based on immediate affordability. Without financial incentives or subsidies, the adoption of advanced lighting technologies may remain slow. To overcome this challenge, manufacturers must innovate to reduce costs and collaborate with government agencies to promote financing options or subsidy models.
• Lack of Standardization and Quality Control: The Indian outdoor lantern market is highly fragmented, with numerous small and medium enterprises offering products of varying quality. This lack of standardization leads to consumer distrust and poor user experiences. Inconsistent product performance and the absence of quality certification hinder large-scale adoption. Establishing industry-wide quality benchmarks, enforcing compliance, and conducting public awareness campaigns can help address this challenge and elevate consumer confidence in outdoor lighting solutions.
• Inadequate After-Sales Support and Maintenance Infrastructure: Many consumers, especially in remote areas, face difficulties in accessing reliable after-sales service and maintenance for outdoor lighting products. Without proper support infrastructure, technical issues such as battery failure, connectivity problems, or component breakdowns can lead to dissatisfaction and early product replacement. This undermines brand trust and slows market penetration. Manufacturers and distributors need to invest in local service centers, training programs, and customer support networks to overcome this logistical challenge.
Indian outdoor lantern market is being driven by government-led energy initiatives, rural electrification, urban growth, tourism development, and environmental consciousness. At the same time, the sector faces hurdles such as high costs, inconsistent product quality, and limited support infrastructure. The interplay of these drivers and challenges defines the market dynamics. Companies that can align with policy directions, deliver cost-effective solutions, and ensure quality and service will be best positioned to grow in this evolving and competitive market landscape.
List of Outdoor Lantern Market in India Companies
Companies in the market compete based on the product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, outdoor lantern companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the outdoor lantern companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
Outdoor Lantern Market in India by Segment
The study includes a forecast for the outdoor lantern market in India by type and application.
Outdoor Lantern Market in India by Type [Analysis by Value from 2019 to 2031]:
• LED Lanterns
• Battery-Powered Lanterns
• Solar Lanterns
• Others
Outdoor Lantern Market in India by Application [Analysis by Value from 2019 to 2031]:
• Outdoor Specialty Store
• Supermarket
• Online Channels
Features of the Outdoor Lantern Market in India
Market Size Estimates: Outdoor lantern in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Outdoor lantern in India market size by type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different types and applications for the outdoor lantern in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the outdoor lantern in India.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the outdoor lantern market in India?
Answer: The major drivers for this market are increasing demand for energy-efficient lighting solutions, government efforts encouraging the adoption of sustainable practices and rising demand for aesthetic and functional outdoor lighting.
Q2. What are the major segments for outdoor lantern market in India?
Answer: The future of the outdoor lantern market in India looks promising, with opportunities in the outdoor specialty store, supermarket, and online channel markets.
Q3. Which outdoor lantern market segment in India will be the largest in future?
Answer: Lucintel forecasts that LED lantern is expected to witness the highest growth over the forecast period due to its energy efficiency and cost-effectiveness.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the outdoor lantern market in India by type (led lanterns, battery-powered lanterns, solar lanterns, and others) and application (outdoor specialty store, supermarket, and online channels)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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