US Indoor LED Lighting Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

US Indoor LED Lighting Market Analysis

The US Indoor LED Lighting Market size is estimated at 5.48 billion USD in 2025, and is expected to reach 6.49 billion USD by 2030, growing at a CAGR of 3.44% during the forecast period (2025-2030).

The US indoor LED lighting industry is experiencing significant transformation driven by broader economic and business trends. The robust small business ecosystem, with 33.2 million small businesses operating in 2022 and over 65% reporting profits, has created sustained demand for commercial LED lighting solutions. This entrepreneurial landscape is becoming increasingly diverse, with 40% of US startups having at least one woman in a leadership position. The growing number of businesses, particularly in technology and service sectors, has led to evolving requirements for energy-efficient lighting solutions that can accommodate modern workplace designs and sustainability goals.

The commercial real estate sector is undergoing substantial changes that directly impact lighting requirements and implementations. Despite metro areas experiencing elevated vacancy rates of 18.7% in 2022, there is significant activity in property improvements and renovations to attract tenants. Property owners are increasingly focusing on upgrading lighting systems as part of broader building modernization efforts to improve energy efficiency and create more attractive workspaces. These improvements are particularly focused on smart indoor lighting solutions that can integrate with building management systems and provide data-driven insights.

The industrial and warehousing sector continues to drive substantial demand for LED lighting solutions. The US industrial market recorded its second-highest total net absorption of 477.3 million square feet in 2022, reflecting the robust expansion in manufacturing and logistics facilities. The first five months of 2023 saw the addition of 109.6 million square meters of new industrial space, with Phoenix and the Dallas-Fort Worth metroplex emerging as major hubs, accounting for nearly a quarter of the total industrial space utilized in 2022. This expansion has created significant opportunities for advanced LED lighting systems designed for industrial applications.

The market is witnessing a notable shift toward smart and connected lighting solutions that offer enhanced control and energy management capabilities. Building owners and facility managers are increasingly adopting IoT-enabled lighting systems that can integrate with other building systems to optimize energy usage and improve operational efficiency. These advanced systems are being deployed across various applications, from retail environments to industrial facilities, enabling features such as occupancy sensing, daylight harvesting, and predictive maintenance. The integration of indoor lighting control with building automation systems is becoming standard practice in new construction and major renovation projects.

US Indoor LED Lighting Market Trends

Increase in the number of private-owned dwellings and government regulations to drive the market for LEDs

• As of 2021, there were around 124 million households in the United States. Person per household between 2017 and 2021 was 2.6 persons, and the total housing units registered were 143.7 million by 2022. Furthermore, the population in 2020 was 331.4 million, which increased to 333.2 million by 2022, representing 0.6% growth. The owner-occupied housing unit rate was 64.6%, which is higher. Considering the above instances, it suggested that the household size is smaller and requires new housing units, and the population is growing, which also represents the same. Such instances are expected to create more LED penetration for the need for illumination in the country. In the United States, disposable income is growing, resulting in the rising spending power of individuals who can spend more on new residential spaces. The United States per Capita income reached USD 36,430 in December 2021, compared with USD 33,740.8 in December 2020. Compared to other developing nations, the US is getting more. For instance, Mexico had a per capita income of USD 2,639.7 as of 2020, and Canada had USD 29,330, which is lower.
• The number of privately owned home starts in May was 1,631,000 on an annual basis. This is 5.7% above the May 2022 rate of 1,543,000 and is 21.7% higher than the revised April 2023 estimate of 1,340,000. As per the Energy Policy Act (EPAct) section 179D, the maximum tax deduction jumped to USD 5 per sq. ft. of upgraded space in 2023 under the new regulations. Which had USD 1.88 per sq. ft. deductions in 2022 (but is set to rise to USD 2.00 per sq. ft.). Eligible projects include those related to interior lighting, HVAC, and building envelopes. Such instances are further expected to surge the demand for LED lighting in the country.

Increase in LED installation by 72% in commercial buildings, 56% in residential houses, and 83% in industries by 2025 to drive the growth of the LED market

• The combined consumption of residential and commercial lighting in the United States was roughly 213 billion kWh. From roughly 1.4 billion units installed in 2017 to over 7.9 billion units in 2035, the number of LED light installations in the US is rising. By 2025, 72% of commercial, 56% of residential, and 83% of industrial structures are expected to have LED lighting installed. There were 142 million housing units in the US in 2021, an increase of 200,000 from the previous year. In comparison to 2020, when the entire housing stock stood at 140.8 million units, there represented an increase of nearly one million. The growth of LED will be influenced by the rise in housing stock.
• Electricity demand in the commercial sector tends to be highest during operating business hours. Usually, in a day, it is around 8-10 hours. Electricity use in the industrial sector tends not to fluctuate through the day or year. Electricity demand in the residential sector varies for about 7 to 9 hours. In addition, the City of Chicago completed the Chicago Smart Lighting Programme in February 2022, which replaced more than 280,000 outdated streetlights with high-efficiency LED lights to improve visibility at night and save Chicago taxpayers an estimated USD 100 million in electricity costs over the next ten years.
• The Michigan Department of Transportation and Motorway Lighting Partner LLC entered a 15-year deal to jointly fund, construct, and design upgrades to existing tunnel lighting systems and motorways for the maintenance of the existing and improved lighting systems. LEDs can help with energy efficiency and conservation, which helps the nation's citizens save money on electricity use.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

• Increase in the number of households to drive the growth of the LED market
• About 75% of the population is expected to own a car, and the shifting trend toward larger vehicles to drive the growth of LED lighting
• Reduction in imports from China to lead the growth of the LED lighting market in the country
• LED penetration is driven by LED certification for commercial spaces, which increased by 30% in 2022
• The LED market is driven by indoor farming and government incentives for the development of horticulture industry in the region

Segment Analysis: Indoor Lighting

Commercial Segment in US Indoor LED Lighting Market

The commercial LED lighting segment dominates the US indoor LED lighting market, accounting for approximately 65% market share in 2024. This significant market position is driven by extensive adoption across office LED lighting, retail LED lighting spaces, educational institutions, healthcare LED lighting facilities, and other commercial establishments. The segment's growth is supported by increasing commercial construction activities, renovation of existing buildings, and stringent energy efficiency regulations. The penetration of LEED certificates in the office LED lighting building market has already reached over 30%, driving the adoption of energy-efficient LED lighting solutions. Additionally, the retail sector's continued expansion, with approximately 6.4 billion square feet of retail space in general retail buildings, further strengthens the commercial LED lighting segment's market leadership. The segment is also benefiting from technological advancements in smart lighting systems and an increasing focus on occupant comfort and productivity in commercial spaces.

Industrial and Warehouse Segment in US Indoor LED Lighting Market

The industrial and warehouse segment is emerging as the fastest-growing segment in the US indoor LED lighting market, with a projected growth rate of approximately 7% during 2024-2029. This robust growth is primarily driven by the rapid expansion of e-commerce facilities and logistics centers across the country. The US industrial market has demonstrated strong performance, with significant absorption rates and consistent demand for warehouse space. The emergence of smart warehouses and the integration of advanced lighting control systems are further accelerating segment growth. The trend toward energy-efficient operations in industrial facilities, coupled with the need for high-quality lighting in manufacturing and storage areas, is driving the adoption of LED lighting solutions. Additionally, government initiatives promoting energy-efficient industrial infrastructure and the increasing focus on workplace safety are contributing to the segment's rapid expansion.

Remaining Segments in Indoor Lighting

The residential and agricultural lighting segments complete the US indoor LED lighting market landscape, each serving distinct market needs. The residential segment maintains a significant presence, driven by increasing home renovation activities and growing awareness of energy-efficient lighting solutions among homeowners. The segment benefits from the expanding housing market and the rising trend of smart home integration. Meanwhile, the agricultural lighting segment, though smaller in market share, plays a crucial role in indoor farming applications, vertical farming facilities, and greenhouse operations. This segment is witnessing increased adoption due to the growing focus on controlled environment agriculture and the expansion of indoor farming operations across the country. Both segments are influenced by technological advancements in LED lighting and an increasing emphasis on sustainability.