U.S. Lighting Market Size, Share and Trends Analysis Report – Industry Overview and Forecast to 2032

U.S. Lighting Market Size

• The U.S. lighting market size was valued at USD 2.71 billion in 2024 and is expected to reach USD 3.63 billion by 2032, at a CAGR of 3.70% during the forecast period
• The market growth is largely fuelled by the increasing adoption of energy-efficient lighting solutions, driven by strict government regulations and rising consumer awareness regarding sustainability
• The rapid shift toward LED technology, smart lighting systems, and connected home solutions is further accelerating market demand across residential, commercial, and industrial sectors

U.S. Lighting Market Analysis

• The U.S. lighting market is undergoing a significant transformation, with LEDs emerging as the dominant technology due to their cost-effectiveness, durability, and reduced energy consumption. This shift is further supported by government incentives and corporate sustainability initiatives aimed at lowering carbon footprints
• The growing demand for smart lighting integrated with voice control, sensors, and automation is driving innovation and competition among market players. Moreover, the increasing emphasis on eco-friendly solutions and circular economy practices is expected to enhance market expansion in the coming years
• The light bulbs segment held the largest market revenue share in 2024, driven by the widespread use of LED bulbs as an energy-efficient replacement for incandescent and fluorescent bulbs. Their affordability, long lifespan, and alignment with energy-saving initiatives make them the most widely adopted lighting option across the country

Report Scope and U.S. Lighting Market Segmentation 

U.S. Lighting Market Trends

Adoption Of Smart And Connected Lighting Systems

•  The growing integration of smart and connected lighting solutions is transforming the U.S. lighting market by enabling automation, remote control, and energy management. These systems provide enhanced user convenience and cost savings, particularly in residential and commercial settings where energy efficiency is a top priority
•  The rising demand for IoT-enabled lighting and voice-controlled devices is accelerating adoption across households and enterprises. Smart lighting integrated with platforms such as Google Assistant, Alexa, and Apple HomeKit is reshaping consumer preferences toward connected ecosystems
•  The affordability and accessibility of LED-based smart bulbs and fixtures are driving mass adoption, making them an attractive choice for consumers seeking sustainable and cost-effective lighting solutions. The trend also aligns with nationwide energy-saving initiatives and green building standards
•  For instance, in 2023, several U.S. commercial office complexes implemented automated lighting systems with occupancy sensors and daylight harvesting, reducing energy costs and improving workplace efficiency. This integration also supported corporate sustainability targets
•  While smart and connected lighting solutions are gaining traction, their success depends on continued innovation, cybersecurity measures, and user-friendly platforms. Manufacturers must focus on interoperability and affordable pricing to maximize long-term adoption

U.S. Lighting Market Dynamics

Driver

Shift Toward Energy-Efficient LED And Sustainable Lighting Solutions

incandescent and fluorescent lamps with LED lighting. LEDs offer longer lifespans, lower energy consumption, and reduced maintenance, making them the preferred option across residential, commercial, and industrial applications

•  Consumers and businesses are increasingly aware of the financial benefits of LEDs, including reduced utility bills and compliance with state-level energy efficiency mandates. This awareness has accelerated nationwide adoption and encouraged investments in advanced lighting systems
•  Federal and state government initiatives, rebates, and building codes are further promoting the transition to energy-efficient lighting. Programs supporting smart city development and green construction are creating strong market opportunities
•  For instance, in 2022, several U.S. municipalities upgraded streetlights to smart LED systems, improving energy efficiency while enabling remote monitoring and adaptive brightness controls. This initiative helped reduce costs and enhance urban safety
•  While demand and institutional support are strong, further advancements in human-centric lighting, wireless control systems, and eco-friendly materials are necessary to unlock the full potential of sustainable lighting solutions

Restraint/Challenge

High Initial Cost Of Smart Lighting And Integration Complexities

•  The relatively high upfront cost of advanced smart lighting systems, including sensors, controllers, and connectivity modules, remains a barrier for widespread adoption, particularly among small businesses and budget-conscious households. Return on investment is often realized only in the long term
•  Technical complexities in integrating smart lighting with existing infrastructure and other smart devices create challenges for both consumers and enterprises. Compatibility issues and cybersecurity concerns further slow down adoption in certain segments
•  Market penetration is also restricted by the need for skilled professionals capable of installing and maintaining advanced systems. Limited awareness in rural and underserved regions adds to the adoption gap, particularly outside metropolitan areas
•  For instance, in 2023, multiple small businesses in rural U.S. regions delayed smart lighting upgrades due to high equipment costs and integration difficulties, relying instead on traditional lighting systems. This slowed market expansion in those areas
•  While smart lighting technologies continue to evolve, solving cost and integration challenges through affordable product lines, standardized platforms, and user training will be essential to drive broader adoption across the U.S. market

U.S. Lighting Market Scope

The market is segmented on the basis of lighting type, location, connectivity, installation type, distribution channel, and end-user.

• By Lighting Type

On the basis of lighting type, the U.S. lighting market is segmented into light bulbs, ceiling light, lamps, and fixtures. The light bulbs segment held the largest market revenue share in 2024, driven by the widespread use of LED bulbs as an energy-efficient replacement for incandescent and fluorescent bulbs. Their affordability, long lifespan, and alignment with energy-saving initiatives make them the most widely adopted lighting option across the country.

The ceiling light segment is expected to witness the fastest growth rate from 2025 to 2032, driven by the growing demand in both residential and commercial spaces for modern, aesthetic, and energy-efficient ceiling solutions. These lights are increasingly integrated with smart controls and dimming features, enhancing convenience and overall energy management.

• By Location

On the basis of location, the U.S. lighting market is segmented into indoor and outdoor. The indoor segment accounted for the largest market revenue share in 2024, supported by widespread installation in households, offices, and commercial complexes. Indoor lighting demand is further enhanced by energy efficiency regulations and consumer preference for modern, smart-enabled solutions.

The outdoor segment is expected to witness the fastest growth rate from 2025 to 2032, driven by increased adoption of LED streetlights, smart city projects, and security-focused outdoor lighting. Governments and municipalities are increasingly replacing conventional streetlights with connected outdoor systems for cost savings and enhanced public safety.

• By Connectivity

On the basis of connectivity, the U.S. lighting market is segmented into wired and wireless. The wired segment dominated the market in 2024, largely due to its reliability, durability, and suitability for large-scale installations in commercial and industrial environments. Wired systems remain the preferred choice for projects requiring stable and uninterrupted lighting performance.

The wireless segment is expected to witness the fastest growth rate from 2025 to 2032, fuelled by the rising popularity of smart lighting systems integrated with IoT, Wi-Fi, and Bluetooth. Wireless lighting offers flexible installation, ease of control via mobile apps or voice assistants, and is increasingly favored in modern residential and retrofit projects.

• By Installation Type

On the basis of installation type, the U.S. lighting market is segmented into new installation and retrofit. The new installation segment held the largest share in 2024, supported by rising demand from new residential constructions, commercial buildings, and infrastructure projects. Energy-efficient lighting has become a standard in new developments due to regulatory mandates and consumer preference.

The retrofit segment is expected to witness the fastest growth rate from 2025 to 2032, driven by the growing replacement of outdated lighting systems with LED and smart lighting solutions. Retrofit projects offer significant cost savings, lower energy consumption, and are being supported by government rebate programs and sustainability initiatives.

• By Distribution Channel

On the basis of distribution channel, the U.S. lighting market is segmented into offline and online. The offline segment held the largest market revenue share in 2024, as consumers continue to prefer retail stores, wholesalers, and specialty outlets for direct product inspection and immediate purchase. Offline channels are particularly dominant in bulk and project-based purchases.

The online segment is expected to witness the fastest growth rate from 2025 to 2032, driven by the rapid expansion of e-commerce platforms and consumer preference for convenience, wider product choices, and competitive pricing. Online sales are also boosted by the growing trend of DIY installations and the availability of smart lighting through digital marketplaces.

• By End-User

On the basis of end-user, the U.S. lighting market is segmented into commercial and residential. The commercial segment dominated the market in 2024, supported by large-scale adoption in offices, retail stores, hotels, and industrial facilities. The demand for energy-efficient and smart lighting solutions is rising as businesses seek cost reductions and sustainability compliance.

The residential segment is expected to witness the fastest growth rate from 2025 to 2032, driven by increasing adoption of smart home solutions, LED retrofitting, and consumer awareness of long-term energy and cost savings. Smart bulbs, wireless lamps, and app-controlled fixtures are becoming popular among homeowners seeking modern, connected living spaces.

U.S. Lighting Market Share

The U.S. lighting industry is primarily led by well-established companies, including:

• Lutron Electronics Co., Inc. (U.S.)
• Koncept Inc. (U.S.)
• Ottlite (U.S.)
• Herman Miller, Inc. (U.S.)
• Acuity Brands, Inc. (U.S.)
• Cree Lighting (U.S.)
• Hubbell Incorporated (U.S.)
• Eaton Corporation (U.S.)
• GE Lighting, a Savant Company (U.S.)
• Cooper Lighting Solutions (U.S.)
• Kichler Lighting LLC (U.S.)
• Leviton Manufacturing Co., Inc. (U.S.)
• Progress Lighting (U.S.)
• RAB Lighting Inc. (U.S.)

Latest Developments in U.S. Lighting Market

• In May 2024, Lutron Electronics Co., Inc. expanded its product portfolio with the launch of luxury downlighting solutions, the Ketra D2 and Rania D2 architectural downlights. This development strengthens the company’s position in premium lighting by offering advanced, design-focused products that cater to the growing demand for high-end residential and commercial lighting. The introduction is expected to enhance market competitiveness and attract customers seeking innovative lighting solutions
• In August 2023, Lutron Electronics Co., Inc. introduced the Luxury Experience App, an iPad-based digital platform designed to transform user interaction with its product portfolio. The app provides a premium, immersive experience of luxury residential solutions, making product visualization and selection more engaging for customers. This innovation improves customer engagement, enhances brand value, and boosts adoption of Lutron’s advanced lighting systems
• In September 2023, Lutron Electronics Co., Inc. launched its new hospitality solution featuring the advanced myRoom XC guestroom system. This cloud-connected platform allows centralized control of guestrooms, event spaces, public areas, and private residences through a single dashboard. The solution benefits hospitality operators by improving energy efficiency, guest comfort, and operational management, thereby expanding Lutron’s footprint in the commercial and hospitality lighting market
• In November 2022, Wipro Lighting partnered with Aura Air to deliver integrated solutions that combine lighting systems with advanced indoor air purification technology. The collaboration focuses on enhancing workplace environments by improving both illumination and air quality. This initiative positions Wipro as a key player in holistic workplace solutions, driving demand in enterprise sectors prioritizing employee well-being and sustainability
• In April 2023, Pablo Designs’ T.O Pendant was shortlisted for “Lighting of the Year,” showcasing its innovative design with a 360-degree rotatable wand suspended by woven nylon belts. Its versatile functionality allows seamless transition from task lighting to ambient illumination across multiple configurations. This recognition not only highlights Pablo Designs’ creative leadership but also boosts the company’s market visibility, appealing to modern consumers and workplaces seeking aesthetic yet functional lighting solutions

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