Market Overview
The U.S. LED lighting market was valued at USD 9.3 Billion in 2025 and is expected to reach USD 12.7 Billion by 2034. The market is projected to grow at a CAGR of 3.49% during the forecast period 2026-2034. Growth is driven by energy efficiency, government incentives, technological advancements, declining LED prices, and increasing adoption across residential, commercial, and industrial sectors. Environmental awareness and the shift toward sustainable lighting solutions further support market expansion.
Study Assumption Years
- Base Year: 2025
- Historical Year/Period: 2020-2025
- Forecast Year/Period: 2026-2034
U.S. LED Lighting Market Key Takeaways
- Current Market Size: USD 9.3 Billion (2025)
- CAGR: 3.49%
- Forecast Period: 2026-2034
- The market growth is primarily driven by the significant energy efficiency LEDs offer compared to traditional lighting, enabling businesses and homeowners to reduce energy consumption and utility bills.
- Government incentives and rebates have accelerated adoption across residential, commercial, and industrial sectors.
- Technological advancements have led to better brightness, color quality, and versatility in LEDs, spurring market expansion.
- Rising environmental awareness and the push for sustainable solutions are key contributors to the market growth.
- The increasing adoption of smart lighting systems integrating IoT devices enhances control and automation, boosting market demand.
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Market Growth Factors
The exceptional energy efficiency of LEDs continues to propel U.S. LED lighting market share, as consumers and businesses increasingly adopt these cost-effective, long-lasting lighting solutions. According to the United States Department of Energy, energy efficiency programs in the United States expect to cut total U.S. household electricity consumption at 15%, translating into an average annual savings of $225. LEDs consume up to 90% less power in contrast and last 25 times longer than incandescent light bulbs. Consumers and businesses are drawn to them for energy cost reduction and environmental impact reduction. The dropping price and longer life time for LEDs has made many applications more economical.
Policies and incentives can ease the uptake of LEDs, and new energy efficiency standards finalized in April 2024 (which are set to go into effect in July 2028) are expected to save American homes an estimated $1.6 billion each year, along with increasing LED uptake and reducing greenhouse gas emissions. Programs at the state level, like rebates, grants and tax exemptions that aim for energy efficiency projects, can aid in overcoming the barriers and are often in alignment with energy goals of the nation.
There is also some further progress in technology. In November 2024, Lightpanel claimed to have developed a high efficiency LED strip for light guide panels that emits 215 lumens per watt, or 30% above the industry average. Apart from energy efficiency and reduction in operating costs, other factors fostering the growth of the connected lighting market include the increasing preference for environment-friendly lighting, growing demand for smart lighting solutions that are integrated with the Internet of Things (IoT) and advancements in lighting technologies.
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Market Segmentation
The U.S. LED lighting market segmentation by application includes:
- Retrofit: Upgrading existing lighting systems to LED technology, offering significant energy savings and improved performance. Adoption is driven by reduced consumption, maintenance costs, and government incentives.
- Retail and Hospitality: LEDs enhance customer experience through vibrant, customizable lighting. Used in stores, hotels, restaurants, and resorts, LEDs improve aesthetics while lowering operational costs and enabling dynamic lighting control.
- Outdoor: Includes street lighting, signage, landscape, and sports facilities. LEDs provide superior brightness, energy efficiency, longevity, durability, weather resistance, and smart adaptive lighting control, promoting safety and urban modernization.
- Offices: LEDs provide optimal illumination for productivity and comfort, reducing eye strain and operational costs with features like dimming, color temperature control, and smart systems enabling personalized settings.
- Architectural: LEDs highlight architectural features, enhance aesthetics, and improve energy efficiency in interior and exterior applications. Flexible in color and intensity, they support innovative designs with low maintenance.
- Homes: Energy-efficient, versatile, and cost-effective for general and accent lighting and smart home integration. Offer personalized lighting and remote control, reducing replacement and electricity costs.
- Industrial: Used in warehouses, manufacturing, and distribution centers for high efficiency and durability. Provide superior illumination, energy savings, and robustness against harsh environments with advanced controls optimizing usage.
Regional Insights
The Northeast region, including New York, Massachusetts, and Pennsylvania, is the dominant market for LED lighting adoption in the U.S. Driven by stringent energy regulations, progressive sustainability initiatives, high urbanization, and significant commercial and industrial activity, this region also benefits from government incentives and rebates. Advanced infrastructure and smart city projects in Boston and New York foster smart LED technology integration, fueling market growth.
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Recent Developments News
In May 2024, Lumileds announced the sale of its Lamps and Accessories business to First Brands Group for $238 million, focusing on LED and MicroLED innovations. The same month, CLEANLIFE® acquired ATX LED Consultants, specializing in low voltage lighting solutions, aiming to innovate energy-efficient and eco-friendly lighting in the residential market, aligning with CLEANLIFE®'s mission of "Finding a Better Way®." In September 2024, ORACLE Lighting acquired Trigger Control System to enhance its LED automotive solutions portfolio, accelerating growth and diversifying offerings.
Key Players
- Ligman Lighting USA
- Lumileds
- First Brands Group
- CLEANLIFE 4
- ATX LED Consultants
- ORACLE Lighting
- Trigger Control System
Competitive Landscape
The market research report covers a comprehensive competitive landscape analysis including market structure, key player positioning, winning strategies, competitive dashboards, and company evaluation quadrants. Detailed profiles of all major companies have been provided.
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