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Australian 
UK 2026 Illuminated Business Signage Spending Forecast
Summary
Businesses are planning to spend approximately:
- Signage Lighting (LED components for illumination): ~$32-33 billion globally in 2026
- LED Signs (traditional illuminated): ~$10.5 billion by 2026
- Outdoor LED Signage: ~$7.8 billion in 2026
- LED Neon Lights: ~$2.04 billion in 2026
Key Business Trends:
- Businesses are rapidly transitioning from traditional neon and fluorescent to LED-based illuminated signage for energy efficiency.
- Commercial applications (retail, hospitality, transportation) are the primary drivers.
- Custom and personalized illuminated signage is growing, particularly LED neon for branding.
1. Signage Lighting Market (Most Relevant)
The signage lighting market is poised for significant expansion, with projections estimating growth from USD 30,125 million in 2024 to USD 55,553 million by 2032. This indicates a robust compound annual growth rate (CAGR) of 7.95% over the forecast period. The signage lighting market is on track for considerable growth, with forecasts predicting an increase from USD 30,125 million in 2024 to USD 55,553 million by 2032. This growth represents a strong compound annual growth rate (CAGR) of 7.95% throughout the forecast period, as reported by Credence Research. This market includes a diverse array of lighting components used in illuminated signage, which is essential across industries such as retail, hospitality, and transportation.
For 2026 specifically: Based on the 7.95% CAGR, the market would be approximately USD 32.6-33 billion in 2026.
The implementation of LED technology is transforming the commercial signage industry in impactful ways. LEDs are known for their superior brightness, lower energy consumption, and longer lifespan compared to traditional neon and fluorescent lighting options. This makes them a highly attractive choice for businesses. In terms of market distribution, North America holds the largest share at 32%, followed closely by the Asia Pacific region at 29%, and Europe at 27%.
2. LED Digital Signage Market (Illuminated Digital)
The outdoor LED signage market is experiencing robust growth, with forecasts suggesting a compound annual growth rate (CAGR) ranging from approximately 8.4% to 10.6% over the upcoming years. This segment is anticipated to grow significantly, expanding from an estimated USD 7.8 billion in 2026 to more than USD 45 billion by 2033.
By the year 2026, it is expected that the LED digital signage market in North America will generate around USD 9.87 billion in revenue. This significant growth is anticipated to persist, with projections indicating that the market could expand further to approximately USD 15.23 billion by 2033.
3. LED Signs Market (Traditional Illuminated Signs)
The global market for LED signs was valued at approximately USD 4.5 billion in 2020. Forecasts indicate robust growth, with expectations for the market to increase to around USD 10.5 billion by 2026. This anticipated growth reflects a compound annual growth rate (CAGR) of 14.5%, underscoring rising demand and the growing importance of LED signage across multiple industries.
According to Forrester Research within the LED Lighting market, Display and Signage is the fastest growing segment by application and is expected to record the highest CAGR.
4. LED Neon Lights Market (Custom Illuminated)
In 2026, the LED neon lights industry is projected to reach a substantial market size of USD 2.04 billion. This represents a notable increase from USD 1.91 billion in 2025, highlighting a continuous upward trend in demand. The growth can be attributed to various factors, including the rising popularity of energy-efficient lighting options, the expanding applications of LED neon lights in both commercial sectors, and the increasing emphasis on innovative and aesthetically pleasing design elements in modern architecture and advertising. As consumers and businesses alike seek sustainable, visually appealing illumination solutions, the LED neon lighting market is poised for further expansion in the years ahead. This specifically covers LED neon signs used for business signage, advertising, and branding.
5. Light Box Signage Materials
The global market for acrylic sheets utilized in lighting and signage applications was valued at approximately 2.5 billion USD in 2024. Projections indicate that this market will expand significantly, reaching around 4.1 billion USD by 2033, which corresponds to a compound annual growth rate (CAGR) of 6.5%. This market encompasses materials specifically designed for use in backlit signs and light boxes.
Projections suggest the global LED market will approach around $75 billion by 2026, propelled by a wide range of technological advances, national and local government incentives, cost savings compared to other lighting options, and the vast range of applications. The projected growth includes LED signage, as businesses increasingly acknowledge the long-term cost savings and environmental advantages linked to LED technology.
To find out more about our research or request an interview:
Get in touch with our Media & Outreach team now by contacting
Clare Jones
Global Outreach Manager
Email: clare@customneon.com
LinkedIn: Clare Jones
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