Market Overview

The U.S. LED lighting market size 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 U.S. LED lighting market is largely propelled by enhanced energy efficiency and associated cost savings. LEDs consume up to 90% less energy and last 25 times longer than incandescent bulbs, making them highly attractive. According to the United States Department of Energy, switching to energy-efficient LED lighting can reduce electricity use in homes by 15%, saving the average household about $225 annually. Additionally, a study by the University of Michigan revealed that switching from fluorescent lamps to LED lighting can improve energy efficiency by 18%-44%. These energy savings translate into reduced electricity bills and operational costs over time, making LEDs a favored choice among commercial, industrial, and residential sectors.

Government regulations and incentives are pivotal growth drivers in the market. Federal initiatives mandate the phase-out of less efficient lighting, encouraging adoption of LEDs. For instance, new energy efficiency standards for general service lamps finalized in April 2024 by the U.S. Department of Energy will take effect in July 2028, aiming to save American households $1.6 billion annually and substantially reduce greenhouse gas emissions. Alongside federal tax credits and rebates, state-level grants, rebates, and property tax exemptions also facilitate LED adoption by offsetting upfront costs and supporting national sustainability goals.

Technological advancements further accelerate market expansion. Innovations like Lightpanel's LED strip launched in November 2024, delivering 215 lumens per watt (30% above industry standard), enhance brightness and energy efficiency. Smart LED systems that integrate with IoT devices enable adaptive and connected lighting solutions, improving control and automation. This supports infrastructure modernization and urban development. The rise of automotive and outdoor LED lighting, with acquisitions such as ORACLE Lighting's acquisition of Trigger Control System in September 2024, exemplifies market diversification and innovation, boosting demand across various applications.

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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