Establishing a competitiveness evaluation index system of lighting industry, quantitative evaluation of sustainable development performances of the industry, and scientific recognition of shortages against the industrial development have important strategic significance to guide local governments to adjust the industrial development strategies and realize the multi-dimensional goals of sound and sustainable development. In view of connotations of competitiveness of light and engineering industry, a competitiveness evaluation index system of this type industry is established in this study based on the overall goal of the new high-quality development layout. The dimensions of this system cover industrial input capacity, industrial output capacity, industrial technological innovation capability, and policy environmental capacity. Based on data in 2022, the provincial competitiveness level of light and engineering industry in China was evaluated by TOPSIS method and entropy method. Regional heterogeneity, constraints, and spatial characteristics of competitiveness of lighting industry in China were disclosed. Results demonstrate that: – Generally speaking, the sustainable development level of lighting industry in China is increasing gradually; there are relatively high competitiveness level of lighting industry in Guangdong, Zhejiang, and Jiangxi; – The industrial input capacities and the industrial output capacities have significant contributions to competitiveness of lighting industry in China, while industrial technological innovation capability and policy environmental capacity have less contributions; – Competitiveness levels of lighting industry are different in different provinces, showing a pattern of high level in Southeast China and low level in Northwest China, besides constraints against competitiveness of lighting industry also vary significantly among provinces, especially in improving output efficiency; – The competitiveness of lighting industry is weak in key development field, restricted development field, potential growth field and appropriate development field. Thus, improving product quality and safety level, promoting resource saving and strengthening production control ability are common directions for provinces to improve competitiveness of lighting industry. Therefore, this study believes that competitiveness level of lighting industry in China under the new high-quality development layout is required to combine with shortages of regional development, focus on establishment of the lighting industrial system, and solve problems like technological innovation and backward production facilities firstly. Moreover, improving product quality and optimizing resource utilization are breakthroughs to realize sustainable development of the national light and engineering industry.