U.S. Lighting Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Lighting Market Trends & Drivers

Smart and Connected Lighting Is Key Trend

• Smart, connecting lighting is trending as it offers users complete control through mobile apps, voice assistants, and automated scheduling.
• The built-in adaptive systems help decrease power usage via motion and automated daylight detection.
• Commercial, industrial, and public institutions are adopting these technologies to enhance energy efficiency.
• Connected streetlights can improve traffic management, safety, and urban development initiatives.
• The U.S. Department of Energy requires the replacement of incandescent and halogen bulbs with LEDs and establishes new energy performance thresholds.
• The updated regulations are aimed at reducing annual energy costs by USD 1.6 billion and emissions by 70 million metric tons of COâ‚‚ in thirty years.
• Energy Star certification and DLC qualification by federal buildings has resulted in a 27% decrease in federal energy intensity since 2003.
• Through the Investing in America agenda, the Biden Administration provides tax credits and rebates for LED and smart lighting.
• The new energy-related building standards establish minimum requirements for interior illumination for homes and business premises, thus increasing the demand for energy-efficient lights.

Expansion of Smart Cities and Infrastructure Development Drive Market

• Under its Smart Lighting Program, Chicago modernized 270,000 streetlights in 2023 to boost security and diminish energy usage by 30%.
• By 2023, Washington D.C. had replaced half of its 75,000 streetlights with smart, energy-efficient variants under a USD 309-million initiative.
• First installed in 2013, the Bay Lights on San Francisco Bay Bridge were made a permanent installation in 2016 and are now undergoing a major overhaul for advanced features and higher energy efficiency.
• Organizations and public facilities are now integrating AI-powered motion sensors to create energy-saving management systems.
• Solar-powered LED streetlights are becoming increasingly common in cities as they support sustainability and decrease carbon emissions.
• Moreover, bridges and tunnels are being integrated with lights that work with motion and presence sensors; the more the traffic, the brighter the light.
• By integrating public lighting systems with daylight detection mechanisms, the lighting intensity can be regulated to offer more energy and cost savings.
• As the construction of residences, hospitals, shopping malls, metro stations, airports, railway and logistics terminals, and public infrastructure picks up, the demand for smart, connected lighting will continue to increase in the country.

U.S. Lighting Market Segmentation and Category Analysis

Insights by Product Type

Lamps & bulbs dominate the market with 60% share as most existing luminaires support LED bulbs. Hence, the majority of the LED bulbs bought so far have been for retrofitting into the existing fixtures. Additionally, the LEDs initially available were not smart variants; hence, they were just bought to replace the conventional incandescent and CFL lamps.

The product types covered in this report are:

• Lamps & Bulbs (Larger Category)
• Luminaires (Fixtures) (Fastest-Growing Category)
  • Ceiling- & wall-mounted
  • Pendant & chandeliers
  • Track lighting
  • Outdoor lighting
  • Smart & connected luminaires (Fastest-Growing Category)

Insights by Light Source

LED is the largest category because of the government requirements for energy savings and the price drops. They are quickly replacing incandescent, halogen, and fluorescent lights since the former provide an extended product life, reduced power consumption, and great illumination. They use up to 75% less power and last 25 times longer than incandescent bulbs. The ongoing advancements for more-efficient and less-expensive LED technology enable its dominance.

Major light sources covered in this report are

• Incandescent
• Halogen
• Fluorescent
• LED (Largest and Fastest-Growing Category)
• HID

Insights by Application

General lighting is the largest category with 65% share because it serves residential properties, commercial buildings, and industrial facilities. The extensive need for ambient and task illumination throughout homes and offices, retail stores, and public infrastructure drives the market. People are shifting toward LED and smart lighting technologies because they offer energy savings and durability.

Major applications covered in this report are:

• General Lighting (Largest Category)
• Automotive Lighting
• Backlighting
• Emergency & Exit Lighting
• Horticultural Lighting (Fastest-Growing Category)

Insights by End User

Commercial is the largest category with 40% share because offices, retail stores, hotels, hospitals, and educational facilities consume massive amounts of electricity and generate significant emissions. As per the EPA, when considering indirect emissions from electricity use, residential and commercial buildings in the country account for 31%, the most among all sectors. The commercial sector has greatly adopted LED and smart lighting technologies to achieve financial savings and regulatory compliance. The implementation of motion sensors, daylight control, and IoT-based lighting systems helps businesses cut their operational expenses. Commercial businesses are seeking LEED certifications for their green buildings, which drives the adoption of sustainable lights.

The end users covered in this report are:

• Residential
• Commercial (Largest Category)
• Industrial
• Outdoor & Public Infrastructure (Fastest-Growing Category)
• Automotive & Transportation

Insights by Distribution Channel

Offline is the larger category with 70% share because lighting products are predominantly sold through specialty lighting stores; retali chains, such as Home Depot and Lowe’s; electrical wholesalers, and B2B mode. Customers and companies prefer personally testing the products and getting expert guidance. Large commercial and industrial projects use bulk purchase orders and specialized vendors to obtain custom solutions, installation help, and post-purchase assistance.

The distribution channels covered in this report are:

• Offline (Largest Category)
• Online (Fastest-Growing Category)

U.S. Lighting Market Regional Growth Dynamics

The South region is the largest category with 35% share because of the quick urbanization, growing population, and large-scale construction of commercial and residential properties. The cities of Houston, Dallas, Atlanta, and Miami are experiencing a rising demand for LED and smart lighting due to the expanding infrastructure construction initiatives. The market is also driven in the region by the growth in industrial space and adoption of energy-efficient lights by businesses and public agencies.

The regions analyzed covered in this report are:

• Northeast
• Midwest
• West (Fastest-Growing Region)
• South (Largest Region)

U.S. Lighting Market Share Analysis

The market is severely fragmented due to the presence of global industry leaders, local producers, and specialized entities. Numerous smaller businesses and startups supplement major brands, including Signify, GE Lighting, Acuity Brands, and Cree Lighting, fueling innovation in smart lighting technologies and IoT-based solutions. Manufacturers provide a diverse range of lighting solutions, which include basic products, horticultural lighting solutions, and automotive applications.

U.S. Lighting Market News & Updates

• In September 2024, Kingswood Capital Management LP acquired Kichler Lighting LLC to grow in the residential and commercial lighting markets.
• In May 2024, Havells India Limited announced that its subsidiary Havells International Inc. has formed a joint venture with KRUT LED LLC to enter the U.S. lighting market.