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LED Lighting Market Analysis North America - Size and Forecast 2024-2028

LED Lighting Market Analysis North America - Size and Forecast 2024-2028

Published: Oct 2024 154 Pages SKU: IRTNTR74004

Market Overview at a Glance

$7.81 B
Market Opportunity
11.6%
CAGR
10.1
YoY growth 2023-2024(%)

North America LED Lighting Market Size 2024-2028 

The north america led lighting market size is forecast to increase by USD 7.81 billion at a CAGR of 11.6% between 2023 and 2028.

  • The market is experiencing significant growth, driven by several key factors. One major trend is the declining manufacturing costs of LED lighting, making it increasingly cost-competitive with traditional lighting solutions. Another factor fueling market growth is the growing traction for intelligent lighting systems, which offer energy savings, improved performance, and enhanced functionality. However, the high average cost per LED fixture remains a challenge for some market participants. Despite this, the benefits of LED lighting, such as longer lifespan, energy efficiency, and design flexibility, continue to attract customers In the North American market. As a result, the market is expected to witness robust growth In the coming years.

    • What will be the size of the North America LED Lighting Market during the forecast period?

    LED Lighting Market in North America Size

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  • The market is experiencing significant growth due to the increasing adoption of energy-efficient lighting solutions over traditional incandescent and fluorescent lights. LEDs, as semiconductor devices that emit light through the electrification of phosphors, offer several advantages over their predecessors, including energy efficiency, mercury-free composition, and longer lifespan. Smart lighting systems, enabled by the Internet of Things (IoT) and AI in lighting, are gaining traction in various sectors. These systems offer functional benefits, such as lighting control and energy conservation, as well as enhanced features like color consistency and heat management. The horticulture sector, including controlled environment agriculture, is a growing market for LED lighting, as it offers optimal light spectrum and intensity for plant growth.
  • Building automation systems and smart home integration further expand the application areas of LED lighting. LED lighting offers ambient illumination for general illumination purposes, with fixtures and bulbs available in various shapes and sizes to cater to diverse functional needs. The market dynamics are influenced by factors like technological advancements, cost competitiveness, and regulatory requirements. Functional problems, such as color consistency and heat management, are being addressed through innovative solutions like Lightgpm technology, smart sensors, and LED track lights. Overall, the market is poised for continued growth, driven by the need for energy-efficient, versatile, and intelligent lighting solutions.

    • How is this market segmented and which is the largest segment?

    The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

    • Application
      • Residential
      • Commercial
      • Industrial
      • Outdoor
      • Others
    • Product
      • LED lamps
      • LED luminaires
    • Geography
      • North America
        • Canada
        • Mexico
        • US

    By Application Insights

    • The residential segment is estimated to witness significant growth during the forecast period.

    The market is experiencing significant growth due to the increasing urban population and consumer preference for energy-efficient and personalized lighting solutions. Government initiatives, such as subsidies on LED lighting, further promote their adoption. LED lights offer benefits including color tuning, brightness tuning, and a longer lifespan compared to traditional lighting solutions like Incandescent and Fluorescent lights. Smart lighting systems, incorporating Internet of Things (IoT) technology, enable advanced functionalities like lighting control systems, energy conservation, and CO2 emissions reduction. LEDs, semiconductor devices that emit light through electric current, are used in various applications, including indoor and outdoor, e-commerce, and retrofit installations.

    Companies like Signify Holding, Acuity Brands, Cree Lighting, LG Electronics, Dialight, and others offer a range of LED luminaires, lamps, and fixtures for different sectors, including horticulture, building automation systems, and smart home integration. Technologies like AI in lighting, smart sensors, and LightGPM further enhance the functionality of LED lighting.

    LED Lighting Market in North America Size

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    The Residential segment was valued at  USD 3590.30 million in 2018 and showed a gradual increase during the forecast period.

    Market Dynamics

    Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

    What are the key market drivers leading to the rise in adoption of North America LED Lighting Market?

    Declining manufacturing cost of LED is the key driver of the market.

  • The market is experiencing significant growth due to the declining manufacturing cost of LEDs and the increasing adoption of energy-efficient, smart lighting systems. Traditional lighting solutions, such as Incandescent and Fluorescent lights, are being replaced by LED lighting in various indoor and outdoor applications, including commercial, residential, industrial, and horticulture sectors. Smart lighting systems, integrated with Internet of Things (IoT) technology, are gaining popularity for their energy conservation and lighting control capabilities. Functional problems, such as heat management and color consistency, are being addressed through advancements in LED technology, including SMD LEDs and AI in lighting with smart sensors.
  • The horticulture sector, including Controlled Environment Agriculture, is utilizing LED lighting for growth enhancement and energy savings. Building automation systems and smart home integration are also driving the demand for LED lighting In the construction industry. LED lighting is being used in various applications, such as ambient illumination, signage, spotlights, and backlighting, in industries like consumer electronics, automotive, urban areas, and illumination applications. OLED technology is also gaining traction in specific applications, such as automotive lighting and backlighting. E-commerce and retrofit installations are contributing to the growth of the LED lighting market, as LEDs offer energy efficiency and long-life span compared to traditional lighting solutions.
  • The decline In the manufacturing cost of LEDs is also reducing the initial installation cost, making LEDs a cost-effective solution for new installations and retrofits. Government subsidies for the purchase of semiconductor equipment, such as metal-organic chemical vapor deposition (MOCVD), are contributing to the decline In the manufacturing cost of LEDs. The market is expected to continue growing due to the increasing demand for energy-efficient, smart lighting systems and the ongoing decline in manufacturing costs.

    • What are the market trends shaping the North America LED Lighting Market?

    Growing traction for intelligent lighting systems is the upcoming trend In the market.

  • The market is experiencing significant growth due to the adoption of smart lighting systems and the Internet of Things (IoT). Traditional lighting solutions, such as Incandescent and Fluorescent lights, are being replaced with energy-efficient LED lighting. LED lighting offers various advantages, including energy conservation, functional problems resolution, heat management, color consistency, and long life. In the horticulture sector, LED lighting is being used in Controlled Environment Agriculture for plant growth. Building automation systems and smart home integration are also driving the demand for LED lighting in indoor applications. LED lighting is used in various sectors, including commercial, residential, industrial, and outdoor applications.
  • LED lighting is integrated with AI in lighting, smart sensors, and LightGPM technology to optimize energy usage and reduce CO2 emissions. SMD LEDs are used in various applications, including urban areas, illumination applications, consumer electronics, automotive lighting, and OLED technology for backlighting. E-commerce platforms and retrofit installations are making LED lighting easily accessible to consumers. LEDs are made up of semiconductor devices that emit light when an electric current passes through them. The market for LED lighting is expected to grow due to the increasing demand for energy-efficient lighting and the availability of various types of LED luminaires, such as LED track lights, ambient illumination, and directional lighting.
  • LED lighting is used for various applications, including spotlights, construction, and new installations. Energy savings and electricity savings are significant benefits of LED lighting, making it an attractive option for consumers and businesses. The market for LED lighting is expected to continue growing due to its versatility and energy efficiency.

    • What challenges does North America LED Lighting Market face during the growth?

    High average cost per LED fixture is a key challenge affecting the market growth.

  • The market is experiencing significant growth due to the shift towards energy conservation and the integration of smart lighting systems with the Internet of Things (IoT). LED lighting offers numerous advantages over traditional lighting solutions such as Incandescent and Fluorescent lights, including energy efficiency, mercury-free technology, and longer lifespan. However, the high initial cost of LED luminaires and the need for advanced lighting control systems for smart lighting applications can act as barriers to entry. Functional problems like heat management, color consistency, and horticulture sector applications in controlled environment agriculture are driving innovation in LED technology. Building automation systems, smart home integration, and urban illumination applications are also major growth areas.
  • SMD LEDs and OLED technology are gaining popularity in indoor and outdoor applications, including consumer electronics, automotive lighting, and backlighting. The price of LED lighting varies depending on the application, with indoor applications typically costing less than outdoor applications. Retrofit installations and new installations in commercial, residential, and industrial sectors are driving demand for energy-efficient smart lights. The cost of LED luminaires includes the price of semiconductor devices, light emission, and electric current, which can impact the overall cost. Smart sensors and AI in lighting technology are also gaining traction, with companies like Signify Holding, Acuity Brands, Cree Lighting, LG Electronics, Dialight, and others investing in research and development to improve energy savings and reduce CO2 emissions.
  • The future of LED lighting lies in its ability to provide customized lighting solutions for various industries and applications while maintaining color consistency and reducing energy consumption.

    • Exclusive North America LED Lighting Market Customer Landscape

    The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

    LED Lighting Market in North America Share by Geography

     Customer Landscape

    Key Companies & Market Insights

    Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the market.

    The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

    • Acuity Brands Inc.
    • ams OSRAM AG
    • Black Dog Grow Technologies Inc.
    • Bridgelux Inc.
    • Eaton Corp plc
    • EPISTAR Corp
    • General Electric Co.
    • GrowRay Lighting Technologies
    • Kessil
    • Koninklijke Philips N.V.
    • LITE ON Technology Corp.
    • LumiGrow Inc
    • Lumileds Holding BV
    • Sharp Corp.
    • Signify NV
    • SMART Global Holdings Inc.
    • Toyoda Gosei Co. Ltd.
    • Violet Gro Inc

    Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

    Research Analyst Overview

    The market is experiencing significant growth due to the increasing adoption of energy-efficient solutions and the integration of smart technologies. Traditional lighting solutions, such as incandescent and fluorescent lights, are being replaced by LEDs in both indoor and outdoor applications. LED lighting offers several advantages over traditional lighting. First and foremost, it is energy-efficient, consuming up to 80% less electricity than incandescent lights and up to 50% less than fluorescent lights. Moreover, LEDs have a longer lifespan, reducing the frequency of replacements and maintenance costs. Smart lighting systems, which integrate LEDs with IoT technologies, are gaining popularity in various sectors.

    In the building automation systems market, LED lighting is being used to optimize energy usage and improve occupant comfort. In the horticulture sector, LEDs are being used for controlled environment agriculture to enhance plant growth and reduce water usage. Functional problems, such as heat management and color consistency, are being addressed through advancements in LED technology. SMD LEDs, for instance, emit light more efficiently and uniformly than traditional LEDs, while also generating less heat. The market is also being driven by the growing demand for energy conservation and CO2 emissions reduction. In urban areas, LED lighting is being used for illumination applications in consumer electronics, automotive lighting, OLED technology, backlighting, and highway and roads.

    LED lighting is also being integrated into building automation systems for smart home integration and residential and commercial construction. Retrofit installations are a significant market for LEDs, as they offer electricity savings and reduce the need for new installations. The LED market in North America is highly competitive, with several key players offering a range of LED products. These include Signify Holding, Acuity Brands, Cree Lighting, LG Electronics, Dialight, and others. The market is also being driven by advancements in semiconductor devices and light emission technologies, which are leading to the development of new and innovative LED products.

    In conclusion, the market is experiencing robust growth due to the increasing demand for energy-efficient and smart lighting solutions. The market is being driven by various factors, including energy conservation, functional problems, and the integration of IoT technologies. The competition is fierce, with several key players offering a range of LED products, and advancements in semiconductor devices and light emission technologies are leading to new and innovative LED solutions.

    Market Scope

    Report Coverage

    Details

    Page number

    154

    Base year

    2023

    Historic period

    		 2018-2022

    Forecast period

    2024-2028

    Growth momentum & CAGR

    Accelerate at a CAGR of 11.6%

    Market growth 2024-2028

    USD 7809.6 million

    Market structure

    Fragmented

    YoY growth 2023-2024(%)

    10.1

    Competitive landscape

    Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

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    What are the Key Data Covered in this Market Research Report?

    • CAGR of the market during the forecast period
    • Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
    • Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
    • Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
    • Growth of the market across North America
    • Thorough analysis of the market’s competitive landscape and detailed information about companies
    • Comprehensive analysis of factors that will challenge the growth of market companies

    We can help! Our analysts can customize this market research report to meet your requirements Get in touch

     

    Table of Contents not available.

    Research Methodology

    Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

    INFORMATION SOURCES

    Primary sources

    • Manufacturers and suppliers
    • Channel partners
    • Industry experts
    • Strategic decision makers

    Secondary sources

    • Industry journals and periodicals
    • Government data
    • Financial reports of key industry players
    • Historical data
    • Press releases

    DATA ANALYSIS

    Data Synthesis

    • Collation of data
    • Estimation of key figures
    • Analysis of derived insights

    Data Validation

    • Triangulation with data models
    • Reference against proprietary databases
    • Corroboration with industry experts

    REPORT WRITING

    Qualitative

    • Market drivers
    • Market challenges
    • Market trends
    • Five forces analysis

    Quantitative

    • Market size and forecast
    • Market segmentation
    • Geographical insights
    • Competitive landscape

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    Frequently Asked Questions

    LED Lightingin North America market growth will increase by $ 7809.6 mn during 2024-2028.

    The LED Lightingin North America market is expected to grow at a CAGR of 11.6% during 2024-2028.

    LED Lightingin North America market is segmented by Application( Residential, Commercial, Industrial, Outdoor, Others) Product( LED lamps, LED luminaires)

    Acuity Brands Inc., ams OSRAM AG, Black Dog Grow Technologies Inc., Bridgelux Inc., Eaton Corp plc, EPISTAR Corp, General Electric Co., GrowRay Lighting Technologies, Kessil, Koninklijke Philips N.V., LITE ON Technology Corp., LumiGrow Inc, Lumileds Holding BV, Sharp Corp., Signify NV, SMART Global Holdings Inc., Toyoda Gosei Co. Ltd., Violet Gro Inc are a few of the key vendors in the LED Lightingin North America market.

    North America will register the highest growth rate of 100% among the other regions. Therefore, the LED Lightingin North America market in North America is expected to garner significant business opportunities for the vendors during the forecast period.

    US, Canada, Mexico

    • Declining manufacturing cost of LEDThe manufacturing cost of LEDs has declined steadily since 2012 and will continue to decline during the forecast period. This decline can be mainly attributed to the decreasing average selling price (ASP) of chips and components used in the manufacturing process of LED devices.The decline in the manufacturing cost of LEDs is also reducing the initial installation cost of LED lamps and fixtures is the driving factor this market.
    • which will accelerate the installation of new LED lamps and fixtures across all application segments.The decline in the manufacturing cost of LEDs is because of government subsidies for the purchase of semiconductor equipment is the driving factor this market.
    • such as metal-organic chemical vapor deposition (MOCVD) is the driving factor this market.
    • which is used for manufacturing LEDs. This has encouraged LED manufacturers to ramp up their LED production capacities. In addition is the driving factor this market.
    • government support has helped vendors reduce the variable cost associated with manufacturing by operating their manufacturing facilities at full capacity.Another vital factor is the shift toward larger diameter sapphire substrates is the driving factor this market.
    • which are used to produce LED chips. Earlier is the driving factor this market.
    • 2-4-inch wafers were used in the production of LED chips. However is the driving factor this market.
    • the recent transition to 6-8-inch wafers has allowed manufacturers to produce more LED chips per wafer is the driving factor this market.
    • thus reducing manufacturing costs. As the price wars in the LED lights market intensify is the driving factor this market.
    • manufacturers will focus on cutting costs and moving toward the use of large-diameter sapphire wafers for LED light production is the driving factor this market.
    • leading to a further decline in the installation cost of LED lights. Thus is the driving factor this market.
    • such factors will drive the growth of the LED lighting market in North America during the forecast period. is the driving factor this market.

    The LED Lightingin North America market vendors should focus on grabbing business opportunities from the Residential segment as it accounted for the largest market share in the base year.