US LED Lighting Market Size was estimated at 17.18 (USD Billion) in 2023. The US LED Lighting Market Industry is expected to grow from 19.11 (USD Billion) in 2024 to 61.42 (USD Billion) by 2035. The US LED Lighting Market CAGR (growth rate) is expected to be around 11.2% during the forecast period (2025 - 2035).
The US LED market is moving towards taking the environment and energy use sustainability more seriously. To reduce energy consumption in businesses and homes, the US Department of Energy has promoted the use of LEDs, aligning it with the goals of the country. This is setting the bar for planning further marketing strategies because the U.S. is already using LEDs, which is a step in the right direction due to their lower power consumption and longer lifespan compared to traditional lighting. At the same time, the public’s demand for energy-efficient and automated lighting is increasing. These solutions feature the ability to control lighting through smart home systems and further promote lower consumption.
The emergence of opportunities lies in the government's initiatives to upgrade street and road lighting. These projects are being funded by local governments who are willing to replace the antiquated lighting systems with LEDs because it results in lower operational costs, contributes to better safety due to increased public illumination, and enhances the quality of service being provided. This is an opportunity for suppliers and manufacturers to target cities and municipalities with tailored programs for their projects. Recently, it has become apparent that there is greater use of technology integration. There has been growing adoption of remotely managed IoT-enabled LED lighting systems, which, in turn, leads to significant energy savings.
In addition, the implementation of connected solutions for citywide smart services joins lights with other city services, which helps achieve smart city objectives. The further development of lighting controls like dimming and color switching is making LEDs more appealing to a range of sectors, including retail, hospitality, and healthcare, industries that previously adopted the use of lighting. These changes reflect the changes that the US market of LED lighting is undergoing because of new technological advancements and environmentally friendly practices.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The US LED Lighting Market Industry is experiencing significant growth driven by the increasing adoption of energy-efficient lighting solutions. According to the U.S. Department of Energy, LEDs use at least 75% less energy and last 25 times longer than incandescent lighting. This energy efficiency is attracting consumers and businesses alike, leading to a shift towards LED technology, which is encouraged by various federal energy-saving initiatives.
For instance, the Energy Policy Act of 2005 aimed to promote energy savings in residential and commercial settings, fostering widespread adoption of energy-efficient lighting. Additionally, major organizations like the American Council for an Energy-Efficient Economy are actively promoting the transition to LED lighting across the country, suggesting that a significant percentage of Americans have switched to LED lighting due to its cost-saving potential.
As awareness of energy conservation grows, it is estimated that by 2025, the energy-efficient lighting market in the US could result in potential savings of approximately $30 billion annually, emphasizing the robust market driver of energy-efficient solutions in the US LED Lighting Market Industry.
Government incentives and rebates significantly drive the growth of the US LED Lighting Market Industry. Federal and state-level programs, such as the ENERGY STAR program, not only promote energy-efficient products but also provide financial incentives for the adoption of LED lighting. The Department of Energy's Better Buildings initiative helps organizations upgrade their lighting systems, contributing to better energy performance and sustainability goals.
In a recent report, it was noted that states offering rebate programs have seen LED sales rise by over 20% year-on-year. This trend indicates that financial incentives are compelling consumers and businesses to transition from traditional lighting to LED technology, further propelling the market growth.
Rapid technological advancements are a key driver in the US LED Lighting Market Industry. Innovations in LED technology, such as smart lighting systems and connected lighting solutions, have expanded the applications of LED lighting beyond traditional uses. For example, the integration of IoT technology in lighting solutions allows for more control and energy savings through smart home systems. According to the International Energy Agency, the smart lighting market is expected to witness a growth rate of approximately 26% annually in the coming years.
Major tech companies are investing heavily in developing advanced LED lighting technologies, which not only improve efficiency but also enhance user experience, thus driving consumer demand and market growth in the US.
Growing environmental concerns are influencing the US LED Lighting Market Industry positively. Increasing awareness of climate change and sustainability has led consumers and businesses to seek eco-friendly lighting options. In response, the US government has set ambitious goals to reduce greenhouse gas emissions, with a focus on increasing the use of energy-efficient lighting. The Environmental Protection Agency has reported that transitioning to LED lighting could reduce electricity consumption by about 43% by 2030.
This significant potential for reducing carbon footprints is pushing more stakeholders toward the LED market, with many corporations committing to sustainability initiatives, further stimulating market demand.
The Installation Type segment of the US LED Lighting Market presents a compelling landscape, characterized by its division into New Installation and Retrofit. The US has shown a significant shift towards energy-efficient lighting solutions, aligning with national goals of reducing energy consumption and enhancing sustainability. As urbanization increases, new construction projects are incorporating LED lighting as the standard due to its longevity and lower operational costs. Meanwhile, the Retrofit angle remains critical as existing facilities seek to upgrade their lighting systems without the need for complete overhauls.
This not only conserves resources but also maximizes the utility of current infrastructures. Retrofits have gained traction, particularly in commercial buildings where operational efficiency and energy savings are paramount considerations. The importance of these segments is reflected in federal policies promoting energy-efficient solutions, which further stimulate market growth. Technological advancements, such as smart lighting systems that integrate with Internet of Things (IoT) applications, are seeing heightened adoption in both segments. The growth of drivers includes governmental incentives and rising awareness of environmental concerns among consumers and businesses alike.
Challenges, such as the initial investment cost and the availability of skilled labor for installation, have been identified, yet overcoming these barriers presents a multitude of opportunities. As stakeholders in the US LED Lighting Market to examine installation options, both New Installations and Retrofitting are positioned to play significant roles in the overall market dynamics, underscoring trends toward sustainability, cost savings, and compliance with emerging regulations. This segmentation provides crucial insights into consumer preferences and adoption rates, thereby driving the future trajectory of the market.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The US LED Lighting Market has seen a notable surge in demand, particularly within the Product Type segmentation, which includes Lamps and Luminaries. Lamps, a critical component of the LED sector, are pivotal in enhancing energy efficiency and providing versatile lighting solutions for both residential and commercial environments. As energy regulations in the US become more stringent, the importance of innovative and energy-saving lamps continues to grow. On the other hand, Luminaries play a significant role as well, facilitating advanced lighting systems that integrate smart technologies for improved performance and user experience.
With architectural and interior design trends shifting towards minimalism and sustainability, Luminaries have become essential in creating aesthetically pleasing as well as functional spaces. The ongoing transition from traditional to LED technology in these categories has opened new avenues for market players, fostering growth as they adapt to evolving consumer preferences for energy-efficient and long-lasting lighting solutions. The overall trend towards sustainability and the integration of smart systems reflects a transformative phase in the US LED Lighting Market, informing product development and industry innovation.
The Distribution Channel segment of the US LED Lighting Market plays a pivotal role in determining how products reach consumers and businesses. The market has been experiencing significant growth due to the increasing demand for energy-efficient lighting solutions and the shift towards sustainable practices. Store Based channels, including home improvement stores and specialized lighting retailers, dominate the landscape, allowing customers to physically assess products and receive expert advice, which enhances the purchasing experience. On the other hand, Non-Store Based channels, such as e-commerce platforms, are on the rise, providing convenience and a broad selection of options, appealing particularly to tech-savvy consumers and businesses looking for quick access to lighting solutions.
This dual approach facilitates a well-rounded market reach, catering to varying consumer preferences. With continuous advancements in technology and the growing popularity of smart lighting, both distribution channels are likely to capitalize on new opportunities, driving further market growth in the coming years. As the US government incentivizes energy-efficient solutions, the alignment of distribution strategies with these trends is crucial for maintaining competitiveness in the industry.
The End-Use Application segment of the US LED Lighting Market plays a crucial role in driving market growth, with a significant emphasis on both Indoor and Outdoor Lighting applications. Indoor Lighting is pivotal, particularly in commercial spaces such as offices, retail establishments, and educational institutions, where energy efficiency and enhanced lighting quality directly influence productivity and consumer behavior. The shift towards smart and connected lighting solutions further strengthens this segment as automation and individual control become prevalent trends.
On the other hand, Outdoor Lighting encompasses streetlights, park illumination, and security lighting, playing a vital role in urban planning and safety enhancement. The increasing focus on sustainability and reducing carbon footprints fuels the demand for LED technologies in outdoor settings. Government regulations aimed at improving energy efficiency and promoting green building practices also drive growth in both applications. Overall, the US LED Lighting Market segmentation indicates a robust future, supported by technological advancements and a societal shift towards better energy usage, making both indoor and outdoor lighting indispensable for modern infrastructure.
The US LED Lighting Market is characterized by rapid innovation, increasing participation from a variety of companies, and a transition toward energy-efficient solutions. The market is spurred by rising awareness regarding environmental sustainability, government initiatives supporting energy-efficient technologies, and advancements in LED technology that provide superior performances and versatility. As a result, a range of companies, from large industrial players to niche startups, is fostering competition within the sector, each attempting to carve out distinct market segments with unique selling propositions. Increased focus on smart lighting solutions and integration with IoT technologies further enhances competitive dynamics as companies vie to meet evolving consumer needs and regulatory standards for energy consumption.
Zumtobel Group stands out in the US LED Lighting Market with its well-established presence and commitment to high-quality, innovative lighting solutions that cater to a variety of sectors, including commercial, residential, and architectural applications. The company’s strong emphasis on design and functionality allows it to deliver products that are both aesthetically pleasing and energy-efficient, ensuring compliance with stringent energy regulations in the US. Known for its robust research and development capabilities, Zumtobel Group continues to advance its technology and product line, ensuring its offerings are adaptable to market changes and consumer preferences. With strategic partnerships and collaborations, Zumtobel Group has effectively enhanced its market positioning, enabling it to leverage synergies and expand its reach within the competitive landscape of LED lighting.
General Electric, a historically significant player in the US LED Lighting Market, has developed a diverse portfolio of products that span a wide array of applications. The company focuses on providing high-performance LED lighting solutions that cater to both industrial and commercial segments, including smart lighting systems and integrated controls designed to optimize energy use. General Electric's strengths lie in its extensive brand recognition, vast distribution network, and ongoing investments in innovation, which enhances its ability to meet the evolving needs of customers. The company has actively pursued mergers and acquisitions to bolster its capabilities in lighting technology and expand its product offerings, thereby enhancing its competitive edge. General Electric's commitment to sustainability aligns with market trends favoring energy-efficient solutions, ensuring its continued relevance and growth in the US LED lighting landscape.
Zumtobel Group
General Electric
Samsung Electronics
LG Electronics
Acuity Brands
Eaton
Amerlux
Hubbell Lighting
Cree
Osram
Lutron Electronics
Signify
Legrand
Philips
Recent developments in the US LED lighting market indicate significant growth and innovation. Companies like Acuity Brands and Signify are actively introducing advanced LED solutions tailored to energy efficiency and smart home integration, reflecting a trend toward sustainable lighting. In terms of mergers and acquisitions, Eaton announced its acquisition of a leading smart lighting solutions provider in September 2023, enhancing its position in the evolving market landscape. LG Electronics and Samsung Electronics continue to expand their market share through strategic partnerships and innovative product launches, particularly in smart energy-efficient lighting systems, meeting the growing demands of environmental regulations.
The US market valuation for LED lighting is projected to reach $29 billion by 2026, highlighting a robust annual growth rate. In April 2022, Philips made headlines by launching a new series of tunable white LED products aimed at improving user experience in commercial settings. The emphasis on technological advancements, sustainability, and competitive mergers among major players like General Electric, Cree, and Hubbell Lighting has contributed to the dynamic shift in the US LED lighting landscape, fostering both economic growth and enhanced product offerings.
New Installation
Retrofit
Lamps
Luminaries
Store Based
Non-Store Based
Indoor Lighting
Outdoor Lighting
| Report Attribute/Metric | Details |
| Market Size 2018 | 17.18 (USD Billion) |
| Market Size 2024 | 19.11 (USD Billion) |
| Market Size 2035 | 61.42 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 11.2% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Zumtobel Group, General Electric, Samsung Electronics, LG Electronics, Acuity Brands, Eaton, Amerlux, Hubbell Lighting, Cree, Osram, Lutron Electronics, Signify, Legrand, Philips |
| Segments Covered | Installation Type, Product Type, Distribution Channel, End-Use Application |
| Key Market Opportunities | Smart lighting integration, Renewable energy initiatives, Energy efficiency regulations, Residential retrofitting projects, Commercial lighting innovations |
| Key Market Dynamics | Government regulations promoting energy efficiency, Growing consumer demand for sustainability, Advancements in LED technology, Decreasing production costs, Rising commercial application usage |
| Countries Covered | US |
Frequently Asked Questions (FAQ) :
The US LED Lighting Market is expected to be valued at approximately 19.11 billion USD in 2024.
By 2035, the US LED Lighting Market is projected to reach around 61.42 billion USD.
The anticipated compound annual growth rate for the US LED Lighting Market from 2025 to 2035 is 11.2%.
Major players in the US LED Lighting Market include General Electric, Samsung Electronics, LG Electronics, and Philips, among others.
In 2024, the market is divided into new installations valued at 9.53 billion USD and retrofit valued at 9.58 billion USD.
The new installation segment of the US LED Lighting Market is expected to be valued at approximately 30.82 billion USD by 2035.
The retrofit segment is projected to reach around 30.6 billion USD by 2035.
Key growth drivers for the US LED Lighting Market include increasing energy efficiency and the demand for sustainable lighting solutions.
Emerging trends in the US LED Lighting Market include smart lighting technologies and enhancements in LED capabilities.
The US LED Lighting Market faces challenges such as the cost of technology and competition from traditional lighting solutions.
By 2035, the US LED Lighting Market is anticipated to reach a valuation of 65.5 billion USD.
The US LED Lighting Market is divided into two main sub-segments: New Installation and Retrofit.
The New Installation segment is valued at 8.5 billion USD in 2024.
The Retrofit segment is projected to be valued at 36.5 billion USD in 2035.
Major players in the US LED Lighting Market include Signify, LEDvance, Lutron Electronics, and Eaton.
As of 2024, the Retrofit installation type dominates the US LED Lighting Market with a value of 11.0 billion USD.
Emerging trends such as energy efficiency and sustainability present significant growth opportunities in the market.
Current technological advancements are driving innovation and enhancing the performance of LED lighting solutions, positively impacting market growth.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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