North America LED Lighting Market Size, Share, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: North America LED Lighting Market


The North America LED lighting market size was valued at USD 7.3 billion in 2018 and is expected to register a CAGR of 9.6% from 2019 to 2025. Technological advancements and rising concerns over environmental protection have increased the need for energy-efficient lighting products among industrial, commercial, and residential applications across North America. Rising trend of connected lighting controls for indoor and outdoor applications is further expected to contribute to the development of the market. Encouraging initiatives and rebate programs by government agencies have attributed to market growth.

Regional proliferation in energy consumption was mainly observed owing to the usage of conventional sources of lighting. As per officials at the U.S. Department of Energy, lighting applications accounted for approximately 5.7% of the total energy consumed and more than 15% of the total electricity consumed in 2016. An official report states that the adoption of conventional lighting in 2016 accounted for more than 73.0% of the total lighting among residential, commercial, and industrial spaces. As a result, need for reduced energy consumption and energy-efficient light sources emerged in the region.

The adoption of LED lightings in North America has grown significantly over the years. The growth is primarily attributed owing to high energy-saving potential offered by LED lightings as compared to conventional lights. For instance, the U.S. Department of Energy officials reported growth in energy savings of 468 trillion Btu in 2016 among LED lighting users, rising from 143 trillion Btu in 2014. The rise in adoption of LED lightings will not only translate to energy savings but reduce replacement and maintenance costs.

Growing popularity of intelligent and connected lighting systems also encourages the development of the market. Connected lighting systems are majorly used in the commercial sector, where low bay/high bay fixtures, linear fixtures, downlighting, and decorative lighting is required. The light sources used in connected lighting systems result in consumption of high energy owing to a larger floor area. The addition of LED sources in smart and connected systems has resulted in a steep reduction of energy consumption, thus augmenting market growth.
Advancement in LED technology and continued innovation are contributing to the increase in LED lighting sales in North America. The application of LED technology in horticulture has reduced energy wastage as it regulates a different spectrum of light according to the various stages of plant growth. Furthermore, the emergence of smart light filling technology is anticipated to present potential opportunities in the market. For instance, Signify Holding introduced the GreenPower LED Interlighting Gen 3 technology for efficient development in crops. Such developments are expected to pave the way for new growth opportunities in the region.
Product


Type Insights of North America LED Lighting Market

Based on product type, the North America market is segregated into lamps and luminaires. The luminaires segment registered a share of more than 65.0% in 2018. The adoption of luminaires is primarily attributed to increase in demand for downlights and troffers for indoor applications. Moreover, consistent development of new products catering to demand for a comfortable experience has amplified demand. For instance, Signify Holding offers Luminous flux LED luminaires, which provide visual comfort in terms of natural light for indoor applications in hospitals, retail, hotels, and offices.

The increasing adoption of advanced A-lamps and T-lamps among residential, and commercial space is driving the LED lamp type segment in the region. The legislative efforts towards sustainable use of LED lights and substantial decrease in LED lamps has led to a widespread adoption. For instance, the new federal light bulb regulations to be enforced from January 2020, will prohibit the sale of non-complying light bulbs included in the line of A-lamps, T-lamps, and other lamps. Moreover, continual efforts raised by the Canadian government to improve import and export certification process and to ensure product quality is also enabling the development of the market.

Application Insights of North America LED Lighting Market

On the basis of application, the North America LED lighting market has been mainly segmented into indoor and outdoor applications. The indoor application segment dominated the market in 2018, which can be attributed primarily to growing use of LED light products in household lighting. Decrease in price, customer-centric product designs, and availability of a variety of options have encouraged users to opt for LED light products for indoor applications. Furthermore, visually comforting and soothing experience through LED lighting within commercial office spaces has broadened the use of indoor LED applications.

The outdoor application segment is expected to register the highest CAGR of 11.3% over the forecast period. Encouraging government policies for adopting energy-efficient lighting products has led to surging adoption for streetlight applications. Street, roadway, and walkway lightings are an integral part of cities and act as one of the highest energy consumption points. Traditionally, these applications were dominated by HID light sources owing to high lumens output and hence could be mounted at distances. However, this can be compensated by LED lighting products, particularly for outdoor applications, as they exhibit features such as high durability, excellent directional light sources, and greater efficiency.

End-use Insights

Based on end use, the market has been segmented into commercial, residential, industrial, and others. The demand for LED lightings is highest among commercial spaces, with a market share of over 50.0% in 2018. Increased use of energy-efficient lighting in retail outlets, offices, educational premises, and health centers across Canada and U.S. is enabling market growth. Furthermore, several incentives and rebates schemes are provided for commercial users to offset their additional costs on the installation of LED lights. This also contributes to the rise in adoption of LED lights among commercial end users.

Households across North America have keenly adopted LED lighting solutions primarily owing to decrease in pricing. Development of smart homes has compelled manufacturers to launch intelligent lighting systems equipped with Zigbee and Bluetooth connectivity. For instance, in 2019, Signify Holding expanded its smart home lighting offerings with a range of Wi-Fi LED products ranging from USD 9.97 to USD 19.97. The product is now catered by Home Depot stores across U.S. Furthermore, advancements in lighting technology and government-approved ENERGY STAR label bulbs are contributing to the sales of LED lights in the region.

Regional Insights of North America LED Lighting Market

The U.S. market held the dominant share in 2018 and is expected to continue its lead over the forecast period. Presence of prominent market leaders such as Cree, Inc.; Acuity Brands; and GE Lighting has contributed to widespread product adoption. The lighting industry is fairly dependent on the growth of the construction sector. Rising number of new construction projects have led to implementation of cost-saving lighting systems. According to the Associated General Contractors (AGC) of America, Inc., spending on public construction (street and highway construction and education structures) witnessed a substantial rise in 2019, thus, providing an opportunity for LED manufacturers to flourish in the U.S.

Canada is anticipated to grow at a faster pace over the forecast period. The growth in the region can be attributed to rise in real estate infrastructure development and investments across Vancouver and Toronto. Furthermore, the Canadian government has implemented a legislation that mandates the registration of products with energy labelling. Moreover, the government has paved way for ENERGY STAR certified lighting, which has contributed to reducing lighting energy consumption. For instance, in 2016, according to the government of Canada, the residential lighting accounted for only 4.0% of energy used in an average Canadian home.

Market Share Insights of North America LED Lighting Market

The North America market is characterized by the presence of both public and private players. Prominent players include General Electric; Signify Holding; Cree, Inc.; LSI Industries Inc.; Vishay Intertechnology, Inc.; Acuity Brands Lighting, Inc.; and OSRAM GmbH. Leading players are engaged in strategic acquisitions to enhance their market dominance.

For instance,in April 2019, Signify Holding acquired WiZ Connected Lighting Co., Ltd., a developer of Wi-Fi-based lighting software solutions. The company aims to extend its business offering in the field of smart lighting. Similarly, WESCO International, Inc. acquired OSRAMs Sylvania Inc.'s lighting solutions business in January 2019. Furthermore, new product development has been a key strategy adopted to move ahead in the evolving market. For instance, in May 2019, Digital Lumens, Inc. introduced the RLE intelligent LED fixture enabled with Bluetooth technology in its intelligent LED fixtures product portfolio.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of North America LED Lighting Market Research Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the North America LED lighting market report on the basis of product, application type, end use, and country:

Product Outlook (Revenue, USD Billion, 2019 - 2030)

  
Lamps
  
A-Lamps
  
T-Lamps
  
Others
  
Luminaires
  
Streetlights
  
Downlights
  
Others

Application Type Outlook (Revenue, USD Billion, 2019 - 2030)

  
Indoor
  
Outdoor

End-use Outlook (Revenue, USD Billion, 2019 - 2030)

  
Commercial
  
Residential
  
Industrial
  
Others