New market data shows illuminated signage investment surging in lockstep with consumer foot traffic recovery, and the three regions leading the charge may surprise you.
Brick-and-mortar retailers are spending billions on physical store improvements. A surprising trend has emerged: orders for commercial neon signage are growing faster than they have in over a decade. This surge reflects rising business confidence, which is changing the retail sector as 2026 begins.
The global neon signs market reached USD 2.53 billion in 2025. Projections show it will hit USD 3.63 billion by 2032, with a compound annual growth rate of 5.3%. The numbers matter, but the story behind them matters more. Where and why businesses spend reveals their thinking. When a retailer buys a glowing storefront sign, they’re betting customers will walk through the door.
Doug Stephens is a retail futurist and founder of Retail Prophet. He believes physical stores are entering a new phase. “Stores have to become places that move beyond the mere distribution of products and become enchanted spaces that distribute remarkable experiences,” Stephens explained.
Business owners now translate that vision into signage budgets, trying to create storefronts people can’t ignore.
The Confidence Connection
The connection between signage spending and business confidence goes beyond stories. The MetLife and U.S. Chamber of Commerce Small Business Index reached a record high of 72.0 in Q3 2025. Among small businesses, 58% said investing in marketing, sales, and in-person customer experience is “very important.” This puts storefront improvements, including business neon signs, at the top of spending priorities.
Tom Sullivan is Vice President of Small Business Policy at the U.S. Chamber of Commerce. “This quarter’s Index reflects a resilient small business community that’s cautiously optimistic about the economy,” Sullivan said. “But high costs are still holding many back from expanding and investing.” For businesses that do invest, visual retail upgrades like illuminated signage deliver some of the best returns available.
When a retailer invests in neon signs for businesses, they’re betting customers will walk through the door. The data support this. CBRE’s 2025 U.S. Retail Market Outlook shows retail foot traffic fully recovered to pre-pandemic levels by Q3 2024. Projections indicate it will exceed 2019 volumes through 2025, with apparel store visits up 6.7% year over year.
Three Regions, Three Stories
This trend becomes more interesting when you look at how it differs across the world’s three biggest signage markets. Each region shows a unique combination of confidence, culture, and business strategy.
North America leads with 35.3% market share. The region benefits from established signage manufacturers and a cultural history of neon-lit commercial streets. Companies like Signify and LSI Industries are developing smart, IoT-connected LED neon systems.
The bigger factor is the return to physical retail. Online shopping has stayed around 28% of total retail sales since mid-2021. Retailers are now moving budgets back to storefronts, and neon signage is receiving a significant share of that money.
Asia Pacific holds 28.7% of the market and is the fastest-growing region. China, India, and Japan have become major manufacturing centers, but demand is equally strong.
In the LED neon lights category, Asia Pacific controls 53.2% of the market. Rapid urbanization, a growing tourism sector, and increasing demand for energy-efficient lighting drive this growth. Any neon sign company planning expansion must consider this corridor.
Europe shows the most striking changes. UK retail property delivered a 9.6% total return in 2025, beating industrial and office sectors. Rental growth reached its highest point since 2006.
Knight Frank’s data indicates national vacancy rates should return to pre-COVID levels by the end of 2026.
Retailers are clearly reinvesting in physical locations. High street shops led rental growth at 6.9%, and shopping centre rents increased 10% over 2025. Strong confidence from both landlords and retailers translates directly into signage orders.
Why Neon Sign Works: The Data Behind the Glow
The business argument for illuminated signage has gotten stronger. The FedEx Office “What’s Your Sign?” survey found that 76% of American consumers entered a store they’d never visited before because of its signage. Another 68% purchased after signage caught their attention.
More than two-thirds of consumers think a store’s signage indicates product and service quality.
Ron Lutz is EVP and CCO at Miller Zell. He stated clearly: “Lighting should be a top priority in store design to enhance the retail environment and highlight products. Because lighting can single-handedly influence the mood of the shopping environment, retailers must understand how they can use lighting to shape their customer experience.”
Recent retail results support this. A Retail Lighting Association survey found that 80% of stores using custom neon signage reported increases of 15–40% in foot traffic and sales. Shoppers viewed neon-lit stores as 42% more “Instagrammable,” and warm lighting extended average dwell time by 30%. Research confirms that each 1% increase in dwell time produces an average 1.3% increase in spending.
What Smart Retailers Are Doing Now
For businesses ready to act on this data, the approach is becoming clearer:
- Audit your storefront visibility after dark. Nearly 60% of consumers won’t enter a store without signage. Illuminated options keep you visible in the evening.
- Choose LED neon over traditional glass. LED neon flex now represents 43.2% of the global market. It uses up to 80% less power than traditional tubes and lasts an average of 50,000 t0 100,000 hours.
- Design for social sharing. Neon attracts photographers. Businesses report up to 53% more social media tags after installing standout neon pieces, which creates free organic reach.
- Match signage to brand identity, not trends. Paul Nulty is a lighting designer and the founder of Nulty. He advised: “Retail lighting is all about the psychology and sociology of lighting design, and if it’s done well, a retailer will be able to see this in their bottom line.”
- Treat signage as data, not just decoration. IoT-enabled neon displays can now adjust brightness, color, and messaging based on time of day, foot traffic, or weather. A static sign becomes a responsive marketing tool.
The Bigger Picture
This story goes beyond glowing storefront tubes. It’s about what those tubes mean. When businesses invest in street-facing presentation, they’re betting on returning foot traffic, consumer spending, and neighbourhood growth.
Moody’s Ratings projects real consumer spending growth will settle around 1.5% this year, with value-focused behaviour dominating. Every visual touchpoint carries more weight than before.
Liz Everett Krisberg heads the Bank of America Institute. She captured the broader mood: “The word of the year, and what sets us up for 2026, should be ‘resilient,’ because that’s how the consumer has performed.”
For retailers and business owners watching market signals, an investment in illuminated signage is more than a budget line. It’s a leading indicator. And right now, that indicator glows brighter than it has in years.