U.S. Lighting Market 2025-2033

Overview
The U.S. Lighting Market is undergoing steady modernization as energy-efficiency mandates, retrofit activity, and the proliferation of connected lighting systems converge with evolving commercial and residential building codes. LED adoption, smart lighting controls, and integration with building management and IoT platforms are shifting the market from a product-centric to a solution-centric orientation. Sustainability targets, utility incentive programs, and increasing demand for human-centric lighting (HCL) and daylighting solutions are further accelerating replacement cycles and new-build specification activity.
According to Phoenix’s Demand Forecast Engine, the U.S. lighting market is projected to grow from USD 28.4 billion in 2025 to approximately USD 41.9 billion by 2033, exhibiting a CAGR of 4.7%. In 2024, commercial lighting (including retrofits and controls) represented the largest share (~45.6%), while residential smart lighting and connected retrofit solutions are forecast to be the fastest-growing segment with an estimated CAGR of 6.2% through 2033.

Key Drivers of Market Growth

1. LED Penetration and Replacement Retrofit Wave
   The ongoing shift from legacy HID and fluorescent systems to LED fixtures and lamps is the primary volume driver. Utility rebate programs and stricter energy codes (adopted at state and municipal levels) continue to incentivize large-scale retrofits of commercial, industrial, and outdoor lighting. Phoenix’s Demand Forecast Engine shows strong retrofit pipelines in office, retail, and municipal street-lighting programs.
2. Controls, Connectivity & Building Integration
   Rapid adoption of networked lighting controls (NLC), PoE lighting, and wireless protocols (Zigbee, Bluetooth Mesh) is turning lighting into a platform for IoT services—energy optimization, space utilisation analytics, and occupant experience enhancements. Phoenix’s Sentiment Analyzer Tool indicates accelerating procurement preference for integrated lighting + controls solutions rather than point-product purchases.
3. Sustainability, Codes & Utility Incentives
   State-level energy codes, aggressive decarbonization targets, and continued utility incentive schemes support economics for LED + control upgrades. Demand for low-life-cycle-cost solutions—including circular-economy offerings (repairable fixtures, take-back programs)—is rising among large procurement organisations and public agencies.
4. Human-Centric & Wellness Lighting Trends
   Growing interest in circadian-friendly lighting in workplaces, healthcare, and education is increasing demand for tunable-white, high-fidelity spectrum, and luminaires with integrated sensors for adaptive lighting. Evidence linking lighting to wellbeing is influencing specification in new commercial builds and healthcare settings.
5. Outdoor & Infrastructure Modernization
   Municipal modernization of street lighting to LED and smart-city projects (adaptive street lighting, connected pole infrastructure) remains a significant investment area, driven by operational savings and smart-city service consolidation.

Market Segmentation

By Product

• LED Lamps & Fixtures
• Traditional Lamps (HID/Fluorescent) — declining share
• Controls & Sensors (NLC, DALI, PoE, Wireless Mesh)
• Lighting Management Software & Analytics
• Outdoor & Street Lighting Systems

By End-User / Application

• Commercial (Offices, Retail, Hospitality)
• Residential (New Build & Retrofit)
• Industrial & Warehousing
• Outdoor & Municipal (Street, Sports, Parking)
• Healthcare & Education
• Architectural & Specialty Lighting

By Distribution Channel

• Electrical Distributors & Wholesalers
• OEM Direct Sales / Spec Channels
• E-commerce & Retail (residential-focused)
• Energy Service Companies (ESCOs) & Lighting-as-a-Service (LaaS) providers
• Contractors & Integrators

By Technology

• Standard LED (Fixed White)
• Tunable White / HCL Solutions
• PoE Lighting Systems
• Smart / Connected Lighting Platforms
• UV-C / Disinfection Lighting (niche applications)

Region-Level Insights (Within the U.S.)

Northeast & Mid-Atlantic (High Regulation) – CAGR (2025–2033): 4.9% (Large Share)

• States with aggressive energy codes (e.g., NY, MA, NJ) show strong retrofit and new-build LED specification activity. Utility incentive programs and municipal smart-lighting pilots are concentrated here.

West Coast (California + Pacific) – CAGR (2025–2033): 5.1% (Fastest Adopters of HCL & Controls)

• California’s Title 24 updates and local decarbonization mandates drive early adoption of controls, daylighting, and high-performance fixtures. Tech-enabled building projects and smart-city programs in major metros boost demand for integrated solutions.

South & Sunbelt (Texas, Florida, Southeast) – CAGR (2025–2033): 4.6%

• Rapid commercial and industrial construction growth supports volume demand for efficient lighting. Municipal street-lighting upgrades and retrofit programs in fast-growing metro areas provide long-term pipelines.

Midwest & Central Regions

• Industrial and warehousing investments support high-bay LED adoption; municipal budgets and utility programs influence pace of outdoor lighting modernization.

Leading Companies in the U.S. Market
Based on Phoenix’s Event Detection Engine and industry mapping, key players include:

• Signify (Philips Lighting)
• Acuity Brands, Inc.
• Hubbell Incorporated
• Eaton (Cooper Lighting Solutions)
• Cree / Cree Lighting (Wolfspeed portfolio influence)
• Legrand (Pass & Seymour, Interlogix channels)
• OSRAM (LEDVANCE portfolio)
• GE Current / Current Lighting Solutions (if applicable by corporate structure)
• Zumtobel Group (architectural & premium segments)
• Lutron Electronics (controls & integration)

These companies are expanding software-enabled offerings, channel partnerships with integrators, and LaaS pilots to capture long-term service revenues and higher gross margins.

Strategic Intelligence and AI-Backed Insights

• Phoenix Demand Forecast Enginemodeled U.S. lighting growth using building stock retrofit cycles, state energy code adoption timelines, utility rebate flows, and construction activity indices.
• Construction Activity Mapping Systemidentified >3,400 commercial, municipal, and residential projects with specified lighting upgrades or new lighting scopes through 2027–2028.
• Sentiment Analyzer Toolshows procurement preference shifting toward lifecycle-cost evaluation, embedded sensors, and interoperability with BMS platforms.
• Automated Porter’s Five Forces analysisindicates moderate supplier concentration for high-performance LED modules and controls ecosystems, with rising buyer sophistication and increasing threat from vertically integrated IoT entrants and cloud-platform providers.

Forecast Snapshot: 2025–2033

Why the U.S. Lighting Market Remains Critical

• Lighting is a high-impact energy-efficiency lever with rapid payback when combined with controls and incentives—making it a top target for sustainability programs.
• The transition to connected lighting platforms creates recurring software and analytics revenue opportunities beyond hardware sales.
• Municipal and commercial retrofit pipelines provide predictable medium-term demand for fixtures, controls, and managed services.
• Human-centric lighting and wellbeing-driven specifications are creating new premium product opportunities in healthcare, education, and corporate office segments.
• The market is a strategic entry point for broader smart-building and IoT monetization by incumbent electrical manufacturers and new software-first entrants.

Final Takeaway
The U.S. Lighting Market is transitioning from commodity-driven fixtures to integrated, software-enabled ecosystems where energy savings, occupant wellness, and data services converge. Vendors and service providers that combine best-in-class LED performance with validated controls, interoperability, and as-a-service business models will capture the most value as procurement shifts toward lifecycle outcomes rather than one-time equipment purchases.
At Phoenix Research, our demand forecasting, project-pipeline mapping, and sentiment analytics help manufacturers, distributors, ESCOs, and city planners prioritise investments, design retrofit pipelines, and evaluate platform partnerships to lead in the rapidly modernizing U.S. lighting landscape.