United States Lighting Market Report 2025: Trends, Brands & Products
Executive Summary
The United States lighting market is experiencing transformative growth in 2025, driven by the rapid adoption of LED technology, smart lighting systems, and a heightened focus on human well-being. The market generated
$26.1 billion in revenue in 2024 and is projected to reach
$36.4 billion by 2030, growing at a CAGR of
6.2%Grand View Research (grandviewresearch.com).
Three major forces are reshaping the industry: the dominance of energy-efficient LED technology, the integration of IoT and AI-driven smart controls, and the emergence of human-centric lighting that supports circadian rhythms and occupant wellness. This report examines the market landscape, key trends, leading manufacturers, and product opportunities defining the US lighting industry in 2025.
Market Overview: Size, Growth & Key Segments
Overall Market Performance
The US lighting market demonstrates robust health across multiple segments, though individual subsectors show varying growth trajectories:
| Market Segment | 2024 Valuation | 2025-2030 CAGR | 2030 Projection | Key Drivers |
|---|
| Overall Lighting Market | $26.1B | 6.2% | $36.4B | LED adoption, smart tech, efficiency |
| LED Lighting | $11.77B | 5.3-10.7% | $19.73-57B | Energy costs, sustainability mandates |
| Commercial Lighting | $17.07B | ~8% | $27.38B | IoT integration, smart buildings |
| Automotive Lighting | $10.41B | 5.76% | $17.24B | EV growth, adaptive lighting tech |
| Lighting Fixtures Mfg. | $15.2B | Modest | $20B+ | Import competition, innovation |
Sources: Grand View Research, Globe Newswire, Yahoo Finance, IBISWorld, Alcon Lighting
Geographic Leaders
California, New York, and Ohio lead in automotive lighting development, while the
West Coast, particularly California, dominates lighting fixture manufacturing due to strong construction activity and proximity to Mexico
IBISWorld (ibisworld.com).
Key Market Trends Shaping 2025
1. LED Technology Dominance
- Energy savings of 60%+ compared to traditional lighting
- Lifespan 25-50x longer than incandescent bulbs
- Declining costs making LED competitive across all price points
- Government incentives and rebates accelerating adoption
2. Smart Lighting & IoT Integration
The smart lighting revolution is accelerating beyond early adopter phase into mainstream deployment. The North American smart lighting market reached
$3.2 billion in 2024, with projections showing continued double-digit growth
GM Insights (gminsights.com).
Key innovations driving adoption:
- AI and Machine Learning: Predictive algorithms learn user habits and automatically adjust lighting for maximum efficiency, potentially reducing energy costs by 60%
- IoT-Enabled Control: Real-time monitoring and adjustment based on occupancy, time of day, and ambient conditions
- Multi-Protocol Connectivity: Integration of Wi-Fi 6, Bluetooth, Zigbee, and emerging standards like Matter for seamless interoperability
- Voice and App Control: Integration with Alexa, Google Assistant, and dedicated mobile apps for personalized control
Market drivers:
- Rising consumer demand for convenience and personalization
- Corporate focus on energy efficiency and ESG goals
- Smart city initiatives upgrading public lighting infrastructure
- Integration with broader smart building ecosystems
3. Human-Centric & Circadian Lighting
A paradigm shift is underway as lighting evolves from purely functional to health-supportive. The global human-centric lighting market was valued at
$3.45 billion in 2023 and is expected to grow at a CAGR of
29.4%, reaching
$19.83 billion by 2030UPRtek (uprtek.com).
North America is leading this adoption with a projected CAGR of 29.2%.
Core principles:
- Morning: Higher intensity with cooler tones (5000-6500K) to boost alertness and productivity
- Midday: Balanced neutral white mimicking natural daylight
- Evening: Warmer tones (2700-3000K) to support melatonin release and sleep preparation
Proven benefits:
- 15% improvement in focus and 20% reduction in errors in office environments
- 12% productivity increase with circadian-based lighting
- Enhanced patient recovery in healthcare settings
- Improved learning outcomes in educational facilities
This trend is becoming a "well-being standard" rather than a luxury, particularly in commercial offices, healthcare, and educational institutions pursuing LEED, WELL, and BREEAM certifications.
4. Sustainability & Energy Efficiency
Sustainability has evolved from a marketing advantage to a market requirement. Strong government policies and programs like Smart Street Lighting NY are accelerating the shift to energy-efficient alternatives
Globe Newswire (globenewswire.com).
Key developments:
- Integration with daylight harvesting systems to optimize natural light usage
- HCL systems becoming core components of green building certifications
- Corporate ESG commitments driving upgrades in commercial facilities
- Consumer awareness of energy costs spurring residential adoption
5. Automotive Lighting Innovation
The automotive sector is rapidly transitioning from halogen to advanced LED and adaptive lighting systems, driven by:
- Growth of electric and autonomous vehicles requiring sophisticated lighting
- Enhanced safety through improved visibility and communication
- Longer lifespan and energy efficiency critical for EV range
- Style differentiation as a competitive advantage
6. Smart Cities & Public Infrastructure
Municipal governments are investing heavily in connected streetlights and public lighting systems that serve dual purposes:
- Energy reduction and cost savings for taxpayers
- Enhanced public safety through improved illumination and integrated sensors
- Data collection for traffic, weather, and air quality monitoring
- Foundation for broader smart city initiatives
Connected streetlights are evolving into
distributed IoT nodes using LoRaWAN, NB-IoT, and Private 5G networks
Leaditop (leaditop.com).
Leading Brands & Manufacturers
The US lighting market features a mix of domestic innovators and subsidiaries of global leaders, with significant consolidation occurring as companies pursue scale and software capabilities.
Top 10 US Lighting Manufacturers for 2025
| Rank | Company | Headquarters | Market Position | Key Strengths |
|---|
| 1 | Acuity Brands | Atlanta, GA | North American leader (4.5% market share) | Commercial/industrial solutions, advanced controls, smart building integration |
| 2 | Current Lighting Solutions | Greenville, SC | Major C&I player | GE + Hubbell portfolio, comprehensive C&I offerings, strong controls |
| 3 | Cooper Lighting (Signify) | Peachtree City, GA | Global leader's US arm | Broad brand portfolio (Halo, Metalux, Corelite), IoT-enabled solutions |
| 4 | Leviton Lighting | Melville, NY | Controls + fixtures leader | Integrated controls/sensors, retail/hospitality focus |
| 5 | Lutron | Coopersburg, PA | Premium segment leader | Ketra tunable spectrum, Ivalo architectural, luxury residential |
| 6 | Visual Comfort & Co. | Houston, TX | Decorative lighting leader | Designer collaborations, broad portfolio, design-focused projects |
| 7 | RAB Lighting | Northvale, NJ | Outdoor specialist | Rugged, affordable outdoor products, value engineering, US manufacturing |
| 8 | Cree Lighting (ADLT/CLNA) | Racine, WI | LED technology pioneer | Retail/petroleum focus, canopy/area/indoor solutions |
| 9 | Focal Point | Chicago, IL | Architectural specialist | Spec-grade architectural, acoustic luminaires, high CRI |
| 10 | Lightolier Lighting | Affiliated with Signify | Architectural heritage | Track lighting pioneer, classic designs |
Source: XH Lux, Mordor Intelligence, Star LED Profile
Additional Notable Players
- Signify North America (parent of Cooper, Philips Lighting)
- LEDVANCE LLC
- Dialight PLC (US operations)
- MaxLite (ENERGY STAR Partner of the Year - 5x winner)
- GE Lighting (now a Savant company)
- Hubbell Incorporated
- Eaton Corporation
- WAC Lighting
Market Dynamics & Consolidation
The industry continues experiencing strategic consolidation:
- Acuity Brands acquired QSC to expand smart-building ecosystem capabilities
- Kuzco Lighting made acquisitions to diversify offerings
- Fusion Optix acquired three LED brands to strengthen market position
This consolidation reflects the industry's shift toward integrated hardware-software solutions and the capital requirements for IoT and AI development.
Product Segments & Opportunities
Commercial & Architectural Lighting
With the commercial lighting market reaching $27.38 billion by 2030, this segment offers substantial opportunities for businesses and specifiers. Acuity Brands' Lithonia line exemplifies the professional-grade solutions dominating this space.
Key applications:
- Office buildings pursuing WELL certification
- Educational institutions prioritizing learning outcomes
- Healthcare facilities focusing on patient recovery
- Retail environments requiring flexible, attractive lighting
Smart Home Lighting Ecosystems
Consumer demand for connected home solutions is driving rapid growth in smart residential lighting. The market increasingly values interoperability and ease of integration with existing smart home platforms.
Growth drivers:
- Declining prices making smart lighting accessible to mainstream consumers
- Improved user interfaces and setup processes
- Integration with voice assistants becoming standard expectation
- Energy savings providing clear ROI for homeowners
Outdoor & Security Lighting
The connected outdoor lighting segment benefits from both residential and municipal demand. RAB Lighting's rugged, value-engineered outdoor solutions represent the balance of durability and affordability driving adoption.
Market opportunities:
- Smart city infrastructure upgrades
- Residential security and convenience
- Commercial parking and site lighting
- Integration with security camera systems
Specialized Applications
Horticultural Lighting:
The rise of high-tech plant factories and indoor farming creates demand for specialized LED grow lights enabling year-round crop cycles and improved plant quality.
Automotive Aftermarket:
As consumers upgrade older vehicles, LED headlight conversion kits represent a growing aftermarket opportunity, offering improved safety and energy efficiency.
Premium & Wellness-Focused Solutions
The upper end of the market is defined by sophisticated solutions addressing personalization and wellness. Lutron's Ketra brand exemplifies the premium segment where tunable spectrum technology meets luxury design.
Market Challenges & Considerations
Supply Chain & Manufacturing
The US lighting market faces ongoing challenges:
- Import Dependency: The ~$20 billion lighting fixtures market relies heavily on imports, particularly from China and Mexico, though Vietnam and Cambodia are gaining groundResearch and Markets (researchandmarkets.com)
- Tariff Pressures: Rising tariffs and supply chain uncertainties are prompting some manufacturers to increase domestic capacity and dual-source components
- Price Competition: Intense international competition puts pressure on domestic producers
- OEM/ODM Model: Many US brands handle design and engineering domestically while manufacturing overseas to balance quality, innovation, cost, and lead times
Economic Headwinds
The lighting fixtures manufacturing sector faces:
- Volatile macroeconomic conditions affecting construction activity
- Persistent inflation and rising interest rates impacting demand
- Shifting construction activity creating regional variations
- A projected 0.6% revenue decline in 2025 before resuming growthIBISWorld (ibisworld.com)
2025 Outlook & Strategic Recommendations
For Manufacturers & Distributors
Prioritize smart technology integration: The market is decisively moving toward connected, intelligent lighting. Companies without IoT and controls capabilities risk marginalization.
Invest in human-centric capabilities: With 29%+ annual growth, HCL represents the fastest-growing premium segment. Early movers can establish leadership positions.
Develop interoperability strategies: As standards like Matter gain traction, ensuring compatibility across ecosystems becomes essential for market access.
Balance domestic and overseas manufacturing: Dual-sourcing strategies mitigate tariff and supply chain risks while maintaining cost competitiveness.
For Specifiers & Building Owners
Consider total cost of ownership: While LED and smart lighting systems may have higher upfront costs, energy savings of 60%+ and improved occupant productivity provide compelling ROI.
Pursue green certifications: LEED, WELL, and BREEAM certifications increasingly require or reward advanced lighting solutions, with HCL becoming a standard expectation.
Plan for flexibility: Modular, wireless systems support evolving workplace strategies and hot-desking trends in hybrid work environments.
Evaluate wellness impact: The proven benefits of circadian lighting on productivity, health, and satisfaction justify investment in quality human-centric systems.
For Consumers
Start with smart bulbs: Retrofit solutions like smart LED bulbs offer an accessible entry point to connected lighting without requiring new fixtures.
Consider ecosystem compatibility: Choose products compatible with existing smart home platforms (Alexa, Google Home, Apple HomeKit) to ensure seamless integration.
Look for utility rebates: Many utilities offer rebates and incentives for LED and smart lighting upgrades, improving ROI.
Prioritize quality in wellness applications: For bedrooms and home offices where circadian support matters most, invest in quality tunable white solutions rather than basic smart bulbs.
Conclusion
The United States lighting market in 2025 stands at an inflection point where technology, wellness, and sustainability converge. The $26+ billion market is not simply growing—it's transforming. LED technology has moved from innovation to standard, smart lighting is transitioning from luxury to expectation, and human-centric design is emerging as the next competitive frontier.
Three clear trajectories define the market's future:
-
Intelligence becomes ubiquitous: AI-driven, IoT-enabled lighting systems will become the norm rather than the exception, driven by energy costs, user expectations, and smart building requirements.
-
Wellness moves to the center: Human-centric lighting's 29%+ annual growth reflects a fundamental shift in how we understand lighting's role—not just illuminating spaces but supporting human health and performance.
-
Sustainability drives decisions: With strong government support, corporate ESG commitments, and consumer awareness, energy efficiency and environmental impact are no longer optional considerations but central purchase criteria.
For businesses across the lighting value chain, the imperative is clear: innovate toward intelligent, human-centered, sustainable solutions or risk obsolescence. For building owners and consumers, the opportunity is equally compelling: upgraded lighting systems offer measurable returns in energy savings, productivity gains, and quality of life improvements.
The US lighting market's $36.4 billion future by 2030 will belong to those who recognize that lighting has evolved far beyond illumination—it's now a critical technology for human well-being, environmental sustainability, and intelligent building operation.