Copyright © 2022 StrategyHelix Inc. All Rights Reserved.
Global Skylight Market - Outlook and Forecast 2023-2028
The global skylight market reached a valuation of USD 3.08 billion in 2022 and is projected to reach USD 4.44 billion by 2028, registering a compound annual growth rate (CAGR) of 6.30%. This growth can be attributed to the increasing demand for daylighting solutions, the growing emphasis on environmental sustainability, and the need to reduce energy consumption in both residential and commercial buildings. Skylight installations in new constructions and the renovation and replacement of existing structures are the primary drivers of this market. Skylights are utilized in various residential and commercial facilities such as retail stores, hospitality establishments, hospitals, educational institutions, government buildings, warehouses, and industrial facilities.
The commercial sector witnessed significant growth in 2022, with APAC countries playing a substantial role in new commercial construction projects. For example, sizable investments were made in the Seomyeon office building development in South Korea, totaling approximately USD 715 million. Similarly, around USD 608 million were invested in the 360 Queen Street Office Tower project, which began in Q2 2022 and is expected to be completed in Q4 2025. These upcoming commercial building projects contribute to the growth of the skylight market during the forecast period.
|No. of Pages||
USD 3.1 billion in 2021
Equipment Type, Operation, Material, Installation, End-User, and Geography
|No. of Companies Mentioned||
Buildings currently account for up to 24% of greenhouse gas emissions and over 40% of the world’s primary electricity consumption. These figures continue to rise due to population growth and improved living standards. The global landscape industry is likely to face an energy shortage in the future, compounded by adverse climate changes. It is evident that the current energy generation system is unsustainable, necessitating a shift towards renewable sources such as solar energy for clean and sustainable power. Well-designed skylights have the potential to significantly reduce energy consumption in commercial and residential buildings, enhance occupant performance, and provide rejuvenating spaces. The efficient use of skylights, along with photo controls and electric lighting, can help reduce energy usage and peak loads in buildings situated across various climates. Additionally, renovations, infrastructure development, and remodeling of existing commercial and residential buildings will further support the growth of the skylight market.
As the global trend increasingly focuses on sustainability, governments worldwide are implementing regulations to promote energy efficiency and reduce consumption throughout the entire energy chain, encompassing generation, transmission, distribution, and end-use. These policies are encouraging consumers to transition to renewable energy sources and reduce electricity consumption. Lighting accounts for a significant portion of electricity usage in both residential and commercial buildings. However, the integration of skylights and other daylighting solutions can substantially decrease the need for artificial lighting during daylight hours, resulting in more efficient energy utilization across all sectors.
In the United States, the National Action Plan for Energy Efficiency has been implemented as a public-private initiative to foster a sustainable and aggressive national commitment to energy efficiency. This initiative involves collaboration among gas and electric utilities, utility regulators, and other partner organizations. Such efforts create opportunities to reduce energy consumption in US homes, buildings, and schools, resulting in billions of dollars in utility bill savings and a reduced demand for additional power supply. Consequently, energy efficiency regulations are expected to bolster the growth of the skylight market in the coming years.
Skylights are considered an effective means for buildings to meet sustainability standards as they provide ample natural light and reduce or eliminate the need for electric lighting during daylight hours. Over 64 billion square feet of lit floor space is found in commercial buildings in the US, with the majority employing fluorescent lighting systems. Approximately 30% to 50% of these spaces have access to daylight through windows or skylights. Numerous institutions, commercial buildings, and residential units have implemented daylighting strategies using skylights, roof windows, and other means, leading to significant reductions in energy consumption. These factors contribute to the growth of the skylight market.
The market is segmented based on various factors, including equipment type, operation, material, installation, end-user, and geography.
Segmentation by Equipment Type
Segmentation by Operation
Segmentation by Material
Segmentation by Installation
Segmentation by End-User
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Russia
APAC – China, Japan, India, Australia
Latin America – Brazil, Mexico, Argentina
Middle East & Africa – South Africa, Saudi Arabia, UAE
Skylights are available in a variety of shapes and designs, including tubular, pyramid, dome, barrel vault, and custom designs. The global tubular skylight market was valued at USD 1.01 billion in 2022 and accounted for 33% of the market share. Although tubular skylights may appear similar, there are technical differences. Consumers now prefer products that provide the full spectrum of light with a spectral reflectance of 99.7%. Leak prevention and built-in tubular skylights are also gaining popularity. Additionally, consumers consider the adaptability of tubing configuration and look for the Energy Star label, which guarantees thermal performance and efficiency.
Custom skylights hold the second-largest share in the global skylight market. They are commonly used in commercial buildings to create visually appealing environments. However, custom skylights are generally found in luxury or high-end residential buildings. The cost of custom skylights is typically higher than other types, depending on factors such as size, shape, material, structure, and opening. On average, custom skylights are 25% more expensive than traditional skylights.
The fixed operation segment dominates the global skylight market, accounting for a 45.55% share in 2022. Fixed, manual, and electric are the key operation types in the global skylight market. Fixed skylights, which are the most popular type worldwide, do not provide air ventilation and are primarily used for lighting in attics and stairwells. About 90% of fixed skylights are made of glass, while the frames can be steel, aluminum, or timber. Fixed skylights have widespread usage in both residential and commercial buildings.
Manual skylights accounted for a 32.50% market share in 2022 and are projected to grow at a CAGR of 6.32% during the forecast period. Manual skylights are ideal for kitchens or bathrooms as they help remove excess moisture and maintain airflow. However, due to their higher price, they are less commonly used in residential buildings and are more popular in institutional buildings like hospitals and schools.
Glass is the dominant material type in the global skylight market, accounting for approximately 45.10% of the market share in 2022. Consumers prefer glass skylights because they are durable, resistant to discoloration, and visually appealing.
The global skylight replacement demand market was valued at USD 2.23 billion in 2022. One of the primary reasons for replacing or repairing skylights is leakage, which can cause water damage to the building interior. Other demands for replacement include expanding the size of the skylight, discoloration, and cracks. The growing demand for smart and electric skylights also drives the replacement market, particularly for photovoltaic skylights. Replacement demand comes from all sectors, including commercial, industrial, and residential.
The commercial sector accounted for the largest market share of approximately 78.61% in 2022. Major commercial property construction markets include the US, Canada, China, Brazil, Germany, the UK, Australia, Hong Kong, Japan, and Singapore. With the expansion of commercial properties and a focus on energy conservation, the demand for skylights is expected to continue growing. The global commercial real estate market experienced significant growth in 2022, supported by increasing global investments. Commercial real estate comprises retail stores, shopping malls, corporate offices, hotels, restaurants, business parks, and other commercial properties.
Europe is projected to become the largest skylight market by 2027. This growth is driven by new building installations and increased demand for renovations and retrofits. Retrofit and renovation projects account for the majority of the market demand in Europe. Factors such as rising construction spending, retail building projects, government spending on sustainable development, industrial growth, urbanization, changing climate conditions, and increased disposable income contribute to the increased sales of skylights across European countries.
Post-2021, there will be a significant acceleration in infrastructure construction. These projects in Europe are estimated to require a total investment of about USD 14.8 trillion and be completed by 2040, creating a massive demand for skylights. In addition, the German federal government has invested over USD 324 billion in public infrastructure to improve roads, railways, and waterways over the next 10 to 15 years. The French government plans to spend around USD 85 billion to expand transport infrastructure by 2037, focusing on the USD 33.75 billion Grand Paris Express Metro Rail project. These initiatives are expected to drive the growth of the skylight market.
The global skylight market is characterized by intense competition, with numerous public and private companies vying for market share. These vendors compete based on critical factors such as product design, quality, reliability, support services, and pricing. The market is significantly impacted by rapid technological advancements, which create pressure on vendors to continuously innovate and upgrade their products. Key players dominating the global skylight market include Velux, Fakro, and Kingspan Light + Air. These brands offer a diverse range of products and have a strong presence in the global market. To maintain their competitive position, major vendors are embracing innovative technologies.
The market is also characterized by the presence of a wide range of global and regional vendors. For instance, the prominent global vendor, Velux, has introduced cutting-edge smart skylight technology. These skylights boast features such as air quality, humidity, and temperature monitoring, along with Netatmo intelligence technology. They offer plug and play smart home solutions that enable remote sensor-based operation. Moreover, these skylights automatically detect sunlight levels, humidity, temperature, and carbon dioxide levels to adjust valve openings and motorized shades.
Key companies profiled in this report include VKR Group, Fakro, Kingspan Light + Air, Roto, Lonsdale Metal Co, Sun-Tek Skylights, Roofglaze, Onyx Solar Group LLC., SKYVIEW SKYLIGHT INC., Sunoptics, Duplus Architectural Systems, Skydome, LAMILUX Heinrich Strunz Holding GmbH & Co. KG, Columbia Manufacturing Co. Ltd., CrystaLite, Inc.
Key Questions Answered
What is the size of the skylight market?
The global skylight market exceeded USD 3.08 billion in 2022 and is projected to reach USD 4.44 billion by 2028.
What is the growth rate of the global skylight market?
The global skylight market is expected to grow at a Compound Annual Growth Rate (CAGR) of 6.30% from 2022 to 2028.
Which region has the largest share of the global skylight market?
Europe holds the largest share of the global skylight market, accounting for 41.24% and valued at USD 1.27 billion in 2022.
What are the significant trends influencing the skylight market?
Some significant trends impacting the skylight market include the increasing demand for skylights driven by energy efficiency regulations, advancements in skylight technology for smart homes, and the modernization of airports.
Who are the key players in the global skylight market?
The key players in the global skylight market are VKR Group, Fakro, and Kingspan Light + Air.