PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803267
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803267
The U.S. lighting market reached USD 26.5 billion in 2024 and is projected to grow to USD 42.4 billion by 2032, reflecting a CAGR of 6.2% between 2025 and 2032. This robust growth is driven by expanding construction across residential, commercial, industrial, and infrastructure sectors, alongside rising adoption of smart, energy-efficient lighting solutions such as LEDs. Government regulations promoting sustainability and carbon footprint reduction are accelerating this transition, supported by declining LED prices and enhanced infrastructural investment.
Smart connected lighting-powered by IoT, AI, and cloud platforms-is gaining traction in both commercial and residential markets, offering features like automated daylight regulation and voice control. Horticultural lighting and advanced automotive illumination technologies further diversify growth opportunities.
Key Insights
The South U.S. accounted for the largest market share in 2024 due to rapid urbanization and large-scale infrastructure development, while the West region is expected to grow fastest over the forecast period.
The market structure remains fragmented, with global leaders, regional manufacturers, and digital innovators competing across segments.
LED lighting is firmly dominant-offering energy efficiency, longevity, and declining upfront costs-fuelling adoption across all major applications.
Smart lighting systems are riding strong demand waves: occupancy sensors, adaptive control, and integrated management are being adopted widely in new and retrofit projects.
Demand for horticultural lighting is rising sharply, especially for indoor agriculture and controlled-environment farming.
In the automotive sector, advanced lighting technologies (including adaptive headlights and laser-based systems) are boosting innovation-led demand.
Growing interest in Lighting-as-a-Service (LaaS) models reflects preference for subscription-based lighting installations bundled with maintenance and performance management.
Integration of lighting systems into smart buildings, analytics platforms, and urban infrastructure planning is redefining functionality and ROI.
Market opportunities lie in enterprise-grade installations, smart city lighting, commercial retrofits, and wellness-centered "human-centric lighting" designs.
Future innovations-including voice-enabled lighting, solar-powered luminaires, and sustainable material designs-are poised to shape consumer preference and strategic investment.