North America Outdoor Lighting Market Size (2024 - 2029)

North America Outdoor Lighting Market Analysis

The North America Outdoor Lighting Market was valued at USD 4.1 billion in 2022 and is expected to register a CAGR of 6.3% during the forecast period. Consumer preferences for more expensive, luxuriant goods have changed due to regional consumer attitudes toward convenience, appearance, entertainment, technology, and government initiatives for energy-efficient products.

• Outdoor lighting enhances the natural beauty and energy of homes and other structures. It draws attention to charming features, illuminates pathways, and creates an enticing ambiance. The market in the region is extremely dominated due to increasing infrastructure activities in the United States, Canada, and others, as well as government growing energy efficiency initiatives.
• The growing trend of sporting events, family gatherings, and dinners in outdoor spaces at home is expected to drive up demand for outdoor lighting in North America. This trend is bolstered further by the growing interest in designing and maintaining front and backyard gardens. Such factors, as well as the demand for energy-efficient lighting, are expected to propel the market.
• The United States is expected to hold a significant share of the market. LED lighting is preferred over traditional lighting in the United States because it offers product longevity, reduced maintenance, and minimal light pollution, all driving LED adoption in the country. According to the Department of Energy, demand for LED lights in the United States is expected to rise between 2020 and 2035, particularly for outdoor applications. LED lighting will be used in 93% of outdoor lighting installations by 2025, making it the most widely used type across all industries.
• Moreover, as energy consumption has increased, the Canadian region has seen increased demand for energy-efficient, sustainable products. Canadian industry associations say L.E.D.s are used in more than 70% of new greenhouses. The Ontario Ministry of Energy announced that up to USD 136 million was to be committed in October 2022 to help southwest Ontario greenhouse operators improve their energy efficiency by making changes such as switching to L.E.D. lighting.
• Governments throughout the region are encouraging the use of energy-efficient lighting, which is expected to boost the growth of the outdoor lighting market. For example, the U.S. federal government unveiled the Climate Smart Building Initiative in August 2022, strengthening the government's collaboration with the private sector to modernize federal buildings. This initiative includes improving on-site renewable energy generation and planning for energy-efficient lighting solutions.
• Furthermore, the increasing use of solar energy as a renewable energy source for lighting across nations will likely promote the growth of the outdoor lighting market. According to the E.I.A., the electric power sector was to account for approximately 59% of total renewable energy consumption in the United States in 2021. The country's future goal of increasing renewable energy capacity is expected to drive the adoption rate of energy-efficient lighting solutions.
• LED lighting has numerous advantages over traditional technologies like incandescent and fluorescent lighting. One of the significant disadvantages of LED lights is the high initial investment required for their production. LED light manufacturing involves several stages, including wafer growth, chip fabrication, packaging, and testing. These factors add up to the high capital investments end users require compared to other fixtures.
• The spread of the COVID-19 epidemic resulted in the temporary closure of stadiums, parks, and travel restrictions, lowering the adoption of outdoor lighting. Furthermore, the pandemic raised awareness of the importance of good lighting in creating healthy and safe indoor environments.

North America Outdoor Lighting Industry Segmentation

• Outdoor lighting is defined as fixed artificial lighting used to illuminate areas without roofs, i.e., outdoor areas. The goal of outdoor lighting is to maintain or improve the visual performance of people performing human activities by illuminating the area. The goal of outdoor lighting is to improve the efficiency of human activities in a variety of industries.
• The North America Outdoor Lighting Market is segmented by Type of Application (Residential Outdoor, Architectural, Sports Arenas/Large Areas/Campus, Street lighting/Roadway lighting), Distribution Channel (Direct Sales, Wholesale/Retail), Type of Lighting ( Traditional, LED), and Country (United States, Canada). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.