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US LED Lighting Market

ID: MRFR/SEM/42359-HCR
200 Pages
Aarti Dhapte
October 2025

US LED Lighting Market Research Report By Installation Type (New Installation, Retrofit), By Product Type (Lamps, Luminaries), By Distribution Channel (Store Based, Non-Store Based) and By End-Use Application (Indoor Lighting, Outdoor Lighting) - Industry Forecast to 2035

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US LED Lighting Market Infographic
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US LED Lighting Market Summary

As per MRFR analysis, the US led lighting market size was estimated at 19.11 USD Billion in 2024. The US led lighting market is projected to grow from 21.25 USD Billion in 2025 to 61.44 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 11.2% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US LED lighting market is experiencing robust growth driven by technological advancements and a shift towards sustainability.

  • The largest segment in the US LED lighting market is the commercial sector, while the residential sector is the fastest-growing segment.
  • There is a notable increase in the adoption of smart lighting solutions, enhancing user control and energy management.
  • Innovations in design and aesthetics are becoming increasingly important, catering to consumer preferences for stylish lighting options.
  • Government incentives for energy efficiency and rising demand for sustainable solutions are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 19.11 (USD Billion)
2035 Market Size 61.44 (USD Billion)
CAGR (2025 - 2035) 11.2%

Major Players

Signify (NL), Osram (DE), Cree (US), GE Lighting (US), Acuity Brands (US), Philips Lighting (NL), Samsung Electronics (KR), Eaton (US), LG Electronics (KR)

US LED Lighting Market Trends

The LED lighting market is experiencing a transformative phase characterized by rapid technological advancements. and increasing consumer awareness regarding energy efficiency. As environmental concerns gain prominence, the demand for sustainable lighting solutions has surged. This shift is evident in the growing adoption of led technology across various sectors, including residential, commercial, and industrial applications. The transition from traditional lighting to led systems not only enhances energy savings but also contributes to reduced carbon footprints. Furthermore, government initiatives promoting energy-efficient practices are likely to bolster market growth, as incentives and rebates encourage consumers to make the switch to led lighting. In addition to energy efficiency, the The LED lighting market is witnessing innovations in design and functionality.. Smart lighting solutions, which integrate with home automation systems, are becoming increasingly popular. These products offer enhanced control and customization, appealing to tech-savvy consumers. Moreover, advancements in manufacturing processes are leading to improved product quality and longevity, further driving consumer confidence. As the market evolves, it appears poised for sustained growth, with a focus on sustainability and technological integration shaping its future.

Increased Adoption of Smart Lighting Solutions

The trend towards smart lighting solutions is gaining momentum, as consumers seek enhanced control and energy efficiency. These systems often integrate with home automation technologies, allowing users to manage lighting remotely and customize settings according to their preferences. This shift not only improves convenience but also contributes to energy savings, aligning with broader sustainability goals.

Focus on Energy Efficiency and Sustainability

There is a growing emphasis on energy efficiency within the led lighting market, driven by both consumer demand and regulatory frameworks. As awareness of environmental issues rises, more individuals and businesses are opting for led solutions that reduce energy consumption and lower utility costs. This trend is likely to be reinforced by government incentives promoting energy-efficient technologies.

Innovations in Design and Aesthetics

The The LED lighting market is witnessing a surge in innovative designs. that cater to diverse consumer preferences. Manufacturers are increasingly focusing on aesthetics, creating products that not only provide functional lighting but also enhance interior spaces. This trend reflects a broader shift towards integrating lighting solutions into overall design concepts, appealing to consumers who value both form and function.

US LED Lighting Market Drivers

Growing Demand for Sustainable Solutions

The increasing consumer awareness regarding sustainability is a key driver for the led lighting market. As individuals and organizations seek to reduce their carbon footprint, the demand for eco-friendly lighting solutions has surged. LEDs are recognized for their lower energy consumption and longer lifespan compared to traditional lighting options. Market data indicates that the shift towards sustainable practices has led to a projected growth rate of approximately 15% annually in the led lighting market. This trend is likely to continue as more consumers prioritize environmentally responsible products, thereby reinforcing the market's expansion.

Government Incentives for Energy Efficiency

The led lighting market benefits from various government incentives aimed at promoting energy efficiency. Federal and state programs often provide rebates and tax credits for businesses and homeowners who switch to energy-efficient lighting solutions. For instance, the Energy Star program encourages the adoption of LED technology by offering financial incentives. This has led to a notable increase in the market, with estimates suggesting that the adoption of LED lighting can reduce energy consumption by up to 75%. Such initiatives not only stimulate demand but also align with broader environmental goals, thereby enhancing the growth trajectory of the led lighting market.

Urbanization and Infrastructure Development

Urbanization and infrastructure development are significant factors influencing the led lighting market. As cities expand and new infrastructure projects emerge, the need for efficient and effective lighting solutions becomes paramount. Urban areas are increasingly adopting LED technology for street lighting, public spaces, and commercial buildings due to its energy-saving capabilities and reduced maintenance costs. Reports suggest that municipalities can save up to 50% on energy costs by transitioning to LED street lighting. This trend not only enhances public safety but also contributes to the overall growth of the led lighting market as urban planners prioritize modern lighting solutions.

Technological Advancements in LED Technology

Technological advancements play a crucial role in the evolution of the led lighting market. Innovations such as improved semiconductor materials and enhanced manufacturing processes have led to the development of more efficient and longer-lasting LED products. The introduction of smart LED systems, which can be controlled remotely and integrated with home automation, has further expanded market opportunities. According to recent data, the efficiency of LED lights has improved significantly, with some products achieving luminous efficacy levels exceeding 200 lumens per watt. This continuous improvement in technology not only attracts consumers but also drives competition within the led lighting market.

Rising Consumer Preference for Aesthetic Lighting

Consumer preferences are shifting towards aesthetically pleasing lighting solutions, which is driving the led lighting market. The versatility of LED technology allows for a wide range of designs and applications, from decorative fixtures to functional lighting. As interior design trends evolve, consumers are increasingly seeking lighting that complements their living spaces while providing energy efficiency. Market analysis indicates that the decorative LED segment is experiencing rapid growth, with a projected increase of 20% in the next few years. This shift towards aesthetic considerations in lighting choices is likely to further propel the led lighting market.

Market Segment Insights

By Installation Type: New Installation (Largest) vs. Retrofit (Fastest-Growing)

In the US led lighting market, the market share distribution reveals that new installations hold a significant portion of the overall demand, driven by ongoing construction projects and the push for energy-efficient solutions. This segment captures attention due to its ability to integrate advanced technologies effortlessly during the building process, making it a preferred choice for new infrastructures. On the other hand, the retrofit segment is rapidly gaining traction, primarily attributed to the increasing need for upgrading existing lighting systems to more efficient led options. This trend is propelled by sustainability initiatives and the cost-saving benefits offered by retrofitting, allowing businesses and homeowners to enhance their energy efficiency without the need for complete overhauls of their lighting systems.

Installation Type: New Installation (Dominant) vs. Retrofit (Emerging)

The new installation segment is characterized by its focus on integrating cutting-edge lighting technologies into newly constructed facilities, significantly enhancing the overall design and energy efficiency of the structures. This dominance is primarily observed in commercial and residential sectors, where there is a surge in demand for sustainable construction practices. Meanwhile, the retrofit segment thrives on the growing awareness of energy conservation and cost-effectiveness. It appeals to clients seeking to improve existing setups without incurring the expense of new installations. Retrofits are seen as an essential solution for older buildings aiming to meet modern energy standards, making this segment increasingly relevant in the current market landscape.

By Product Type: Lamps (Largest) vs. Luminaries (Fastest-Growing)

In the US led lighting market, the product type segment has shown a notable distribution with lamps holding a significant share that continues to dominate consumer preferences. Luminaries, although currently smaller in share compared to lamps, are witnessing an elevated interest due to their advanced functionalities and aesthetic appeal. The growing emphasis on energy-efficient solutions further categorizes lamps as a foundational product in the market while luminaries reflect innovation trends driving future growth. The growth trends in this segment are strongly influenced by increasing sustainability awareness and regulatory support for energy-efficient solutions. The adoption of smart lighting technologies and environmentally friendly materials in luminaries is propelling this segment to become the fastest-growing. As consumers look for customizable lighting solutions that offer both functionality and efficiency, luminaries are emerging as a popular choice among residential and commercial projects.

Lamps (Dominant) vs. Luminaries (Emerging)

Lamps remain the dominant product type in the US led lighting market due to their broad applicability and established manufacturing processes, ensuring availability and variety. They cater to various needs ranging from residential to commercial applications, making them a staple lighting solution. In contrast, luminaries are emerging as innovative lighting fixtures featuring modern designs and smart technology integration. With their ability to enhance aesthetics and efficiency, luminaries are appealing to consumers seeking more than mere functionality. This growing trend towards personalized and adaptable lighting solutions positions luminaries as key players poised for significant market share growth in the coming years.

By Distribution Channel: Store Based (Largest) vs. Non-Store Based (Fastest-Growing)

In the US led lighting market, the distribution channel segment is predominantly led by store-based channels, which account for a significant share. Physical retail outlets, including home improvement stores and specialized lighting retailers, provide customers with a tactile experience to evaluate products before purchase. This preference for physical shopping contributes to the sustained strength of store-based channels, making them the largest segment within distribution channels. Conversely, non-store-based channels are emerging rapidly, driven by the growth of e-commerce and online retailing. The convenience of purchasing led lighting products from online platforms has attracted a growing base of consumers who value the ease of home delivery and the ability to compare various products and prices. This trend indicates that non-store-based channels are well-positioned to capture an increasing market share as consumer behavior continues to evolve towards digital platforms.

Store Based (Dominant) vs. Non-Store Based (Emerging)

Store-based channels dominate the distribution of led lighting products due to their established presence and customer familiarity. Consumers often prefer visiting physical stores to experience the products firsthand, which is crucial for making informed purchasing decisions in lighting. These channels also benefit from trained staff who can provide assistance and recommendations. On the other hand, non-store-based channels represent an emerging segment, gaining traction through the rise of e-commerce. These platforms appeal to tech-savvy consumers who prioritize convenience and often seek a wider range of options online. As the shopping landscape shifts, both segments will continue to play pivotal roles in the overall distribution of led lighting products.

By End-Use Application: Indoor Lighting (Largest) vs. Outdoor Lighting (Fastest-Growing)

The US The LED lighting market showcases a competitive landscape. in its end-use application segment, where indoor lighting holds the largest market share. This segment benefits from widespread adoption in residential, commercial, and industrial settings, driven by the growing emphasis on energy efficiency and sustainability. Meanwhile, outdoor lighting is also gaining traction, characterized by enhanced urban infrastructure development, which is shifting focus towards smart and efficient street lighting systems. Growth trends indicate that outdoor lighting is the fastest-growing segment, spurred by increasing investments in smart city projects and public safety initiatives. Additionally, the transition to LED technology in outdoor applications is further fueled by government mandates and incentives promoting energy-efficient solutions. As cities endeavor to optimize energy consumption and reduce carbon footprints, outdoor lighting systems are expected to evolve rapidly, integrating advanced smart technologies that meet these goals.

Indoor Lighting: Dominant vs. Outdoor Lighting: Emerging

Indoor lighting emerges as the dominant segment in the US led lighting market, primarily serving residential spaces, offices, and commercial establishments. It emphasizes energy efficiency, aesthetic appeal, and versatility, making it a preferred choice among consumers. The advent of technologies such as smart lighting, which allows users to control their environment through mobile applications, is significantly amplifying the appeal of indoor solutions. Conversely, outdoor lighting is rapidly emerging, particularly in urban areas where safety and energy savings are critical. With increasing adoption of smart lighting solutions for street and area lighting, outdoor applications are witnessing innovative designs and capabilities that enhance public safety and reduce energy costs, marking a significant shift in lighting strategies.

Get more detailed insights about US LED Lighting Market

Key Players and Competitive Insights

The US led lighting market exhibits a dynamic competitive landscape characterized by rapid technological advancements and a growing emphasis on sustainability. Key players such as Signify (NL), Cree (US), and GE Lighting (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Signify (NL) focuses on innovation through smart lighting solutions, while Cree (US) emphasizes energy-efficient products. GE Lighting (US) leverages its extensive distribution network to penetrate various segments, including residential and commercial applications. Collectively, these strategies foster a competitive environment that prioritizes technological innovation and sustainability, driving growth in the sector.

In terms of business tactics, companies are increasingly localizing manufacturing to mitigate supply chain disruptions and enhance responsiveness to market demands. The market structure appears moderately fragmented, with several players vying for market share. However, the influence of major companies like Signify (NL) and GE Lighting (US) is substantial, as they set industry standards and drive competitive dynamics through their extensive product portfolios and innovative approaches.

In October 2025, Signify (NL) announced a strategic partnership with a leading tech firm to develop advanced smart lighting systems that integrate seamlessly with IoT devices. This collaboration is poised to enhance Signify's product offerings, positioning the company as a leader in the smart lighting segment. The strategic importance of this partnership lies in its potential to capture a growing consumer base that increasingly values connectivity and automation in lighting solutions.

In September 2025, Cree (US) unveiled a new line of energy-efficient LED fixtures designed for commercial use, which are expected to reduce energy consumption by up to 30%. This launch not only reinforces Cree's commitment to sustainability but also addresses the rising demand for energy-efficient solutions in the commercial sector. The introduction of these fixtures is likely to strengthen Cree's competitive edge by appealing to environmentally conscious consumers and businesses.

In August 2025, GE Lighting (US) expanded its product range by introducing a series of smart bulbs that can be controlled via a mobile app. This move aligns with the growing trend of digitalization in the lighting market, catering to consumers' desire for convenience and control. The strategic significance of this expansion is evident in GE's ability to tap into the smart home market, which is projected to grow substantially in the coming years.

As of November 2025, current competitive trends in the led lighting market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, enabling companies to pool resources and expertise to innovate more effectively. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This shift underscores the importance of adaptability and forward-thinking strategies in maintaining a competitive edge in the ever-evolving market.

Key Companies in the US LED Lighting Market market include

Industry Developments

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.

Future Outlook

US LED Lighting Market Future Outlook

The LED lighting market is projected to grow at 11.2% CAGR from 2024 to 2035, driven by energy efficiency, technological advancements, and increasing demand for smart lighting solutions.

New opportunities lie in:

  • Development of smart lighting systems for urban infrastructure
  • Expansion into agricultural lighting solutions for enhanced crop yield
  • Integration of IoT technology for energy management in commercial buildings

By 2035, the LED lighting market is expected to achieve substantial growth and innovation.

Market Segmentation

US LED Lighting Market Product Type Outlook

  • Lamps
  • Luminaries

US LED Lighting Market Installation Type Outlook

  • New Installation
  • Retrofit

US LED Lighting Market End-Use Application Outlook

  • Indoor Lighting
  • Outdoor Lighting

US LED Lighting Market Distribution Channel Outlook

  • Store Based
  • Non-Store Based

Report Scope

MARKET SIZE 2024 19.11(USD Billion)
MARKET SIZE 2025 21.25(USD Billion)
MARKET SIZE 2035 61.44(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 11.2% (2024 - 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 Signify (NL), Osram (DE), Cree (US), GE Lighting (US), Acuity Brands (US), Philips Lighting (NL), Samsung Electronics (KR), Eaton (US), LG Electronics (KR)
Segments Covered Installation Type, Product Type, Distribution Channel, End-Use Application
Key Market Opportunities Integration of smart technology in the led lighting market enhances energy efficiency and consumer engagement.
Key Market Dynamics Technological advancements drive efficiency improvements and consumer adoption in the evolving led lighting market.
Countries Covered US

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FAQs

What is the expected market size of the US LED Lighting Market in 2024?

The US LED Lighting Market is expected to be valued at approximately 19.11 billion USD in 2024.

What will the market size of the US LED Lighting Market be by 2035?

By 2035, the US LED Lighting Market is projected to reach around 61.42 billion USD.

What is the expected CAGR for the US LED Lighting Market from 2025 to 2035?

The anticipated compound annual growth rate for the US LED Lighting Market from 2025 to 2035 is 11.2%.

What are the key players in the US LED Lighting Market?

Major players in the US LED Lighting Market include General Electric, Samsung Electronics, LG Electronics, and Philips, among others.

How is the market segmented by installation type in 2024?

In 2024, the market is divided into new installations valued at 9.53 billion USD and retrofit valued at 9.58 billion USD.

What will be the value of the new installation segment by 2035?

The new installation segment of the US LED Lighting Market is expected to be valued at approximately 30.82 billion USD by 2035.

What will be the value of the retrofit segment by 2035?

The retrofit segment is projected to reach around 30.6 billion USD by 2035.

What are the growth drivers for the US LED Lighting Market?

Key growth drivers for the US LED Lighting Market include increasing energy efficiency and the demand for sustainable lighting solutions.

What trends are currently shaping the US LED Lighting Market?

Emerging trends in the US LED Lighting Market include smart lighting technologies and enhancements in LED capabilities.

What challenges does the US LED Lighting Market face?

The US LED Lighting Market faces challenges such as the cost of technology and competition from traditional lighting solutions.

What is the projected market size by 2035 for the US LED Lighting Market?

By 2035, the US LED Lighting Market is anticipated to reach a valuation of 65.5 billion USD.

What are the significant sub-segments in the US LED Lighting Market by installation type?

The US LED Lighting Market is divided into two main sub-segments: New Installation and Retrofit.

What is the market size for New Installation in the US LED Lighting Market in 2024?

The New Installation segment is valued at 8.5 billion USD in 2024.

What is the expected market size for Retrofit in 2035 within the US LED Lighting Market?

The Retrofit segment is projected to be valued at 36.5 billion USD in 2035.

Who are the key players in the US LED Lighting Market?

Major players in the US LED Lighting Market include Signify, LEDvance, Lutron Electronics, and Eaton.

Which installation type is dominating the US LED Lighting Market?

As of 2024, the Retrofit installation type dominates the US LED Lighting Market with a value of 11.0 billion USD.

What growth opportunities exist in the US LED Lighting Market?

Emerging trends such as energy efficiency and sustainability present significant growth opportunities in the market.

What is the impact of current technological advancements on the US LED Lighting Market?

Current technological advancements are driving innovation and enhancing the performance of LED lighting solutions, positively impacting market growth.

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