North America LED Lighting Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

North America LED Lighting Market Trends

Government initiatives to expand EV industry will boost the LED market

• North America's birth rate in 2023 is 11.821 births per 1,000 people, a 0.07% increase from 2022. In 2018, there were 156.15 million homes in North America, which is set to reach 255.79 million by 2023. The population of the United States has grown from a record more than 500 million people in 2023. In 2022, more new housing started in the South of the United States than in every other region combined. The West was the second region with the highest number of housings starts, which amounted to roughly 400,800 units in 2021. Northeast was the only region in the US that experienced increased housing starts in 2022.
• Further, the United States had 131.2 million households in 2022. There are now more households in the United States than there were in 2020 (128.45 million). In 2022, there were 3.13 people in the typical American family. The proportion of owner-occupied households in 2022 was 65.9%. In 2020, six or more rooms were present in 19.3% of all occupied dwelling units. The expansion of LEDs will be fueled by an increase in families and the need to accommodate this increase in the typical number of rooms.
• The number of automobiles produced in North America in 2022 was 14.54 million; in 2023, that number is predicted to rise to 15.06 million. The automotive industry is one of the largest manufacturing sectors in North America. Government efforts are significantly raising the market for EVs throughout North America. After the Inflation Reduction Act was enacted in August 2022, major EV and battery manufacturers announced expenditures in North American EV supply chains totaling at least USD 52 billion between that time and March 2023. Such measures that benefit consumers and manufacturers will increase the demand for LED lighting in the area.

Increase in private-owned dwellings and government policy to drive the LED market

• In North America, the US and Canada are the main cities in terms of revenue and population. The current population of Northern America is 375.5 million as of June 2023. The United States occupies a major share of the people in this region, accounting for 331 million, followed by Canada at 37.7 million by 2020. 82.6 % of the population lives in urban areas (304.7 million people in 2019). The population in this region is growing with a 0.6% change. Thus, the increase in population is expected to create more LED penetration and increase the need for illumination in the country.
• In Canada and the US, disposable income is high, resulting in rising spending power of individuals and affording more money on new residential spaces. Canada's monthly earnings stood at USD 3,464 in Mar 2023, reduced from USD 3,500 in February 2023. Even though it is showing a slight decline in average monthly earnings, it has a high purchasing value compared to other nations, as it is a developed country in North America.
• The number of privately owned dwelling units authorized by building permits in May 2023 was 1,491,000. This is 5.2% more than the April 2023 rate, which was increased from 1,417,000. The number of privately owned homes started in May was 1,631,000. This is 5.7% above the May 2022 rate of 1,543,000 and is 21.7% higher than the revised April 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 has USD 1.88 per sq. ft. deductions in 2022 (but is set to rise to USD 2.00 per sq. ft.). Eligible projects include interior lighting, HVAC, and building envelopes. Such instances are expected to surge the demand for LED lighting in the region.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Indoor Lighting

Commercial Segment in North American LED Indoor Lighting Market

The commercial segment dominates the North American LED lighting indoor lighting market, commanding approximately 65% of the market share in 2024. This substantial market position is driven by robust growth in office spaces, retail establishments, and other commercial facilities across the region. The United States contributes significantly with over 9.1 billion square feet of office inventory space, while Canada's growth is particularly notable in the Class A office market. The segment's strength is further reinforced by the retail sector's continued recovery, with investment volumes reaching significant levels and new construction projects being initiated across various commercial applications, including shopping centers, hospitals, and educational institutions.

Industrial and Warehouse Segment in North American LED Indoor Lighting Market

The industrial and warehouse segment is experiencing remarkable growth, projected to expand at around 5% CAGR from 2024 to 2029. This growth is primarily driven by the increasing demand for automotive manufacturing plants, warehouses, and local sourcing of components across North America. The segment is witnessing substantial investments in new manufacturing facilities, particularly in the electric vehicle sector. Major automotive manufacturers are expanding their production capabilities, with companies like Ford investing billions in manufacturing hubs across the region. The surge in industrial development is complemented by the growing number of distribution centers and warehouses, particularly driven by the e-commerce boom and the need for local inventory storage solutions.

Remaining Segments in Indoor Lighting

The residential and agricultural LED lighting market segments complete the indoor LED lighting market landscape in North America. The residential segment continues to be influenced by new housing construction activities and renovation projects across the United States and Canada. The agricultural lighting segment, while smaller in market share, is gaining importance with the rising adoption of vertical farming systems and indoor agriculture facilities. This segment is particularly driven by the increasing focus on food security and sustainable farming practices, with several indoor farming startups receiving significant investments for expansion. Both segments are experiencing technological advancements in LED solutions, with a growing emphasis on energy efficiency and smart lighting capabilities.

Segment Analysis: Outdoor Lighting

Public Places Segment in North American Outdoor LED Lighting Market

The public places segment dominates the North American outdoor LED lighting market, commanding approximately 79% market share in 2024, while also maintaining the highest growth trajectory in the segment. This substantial market position is primarily driven by the increasing emphasis on smart cities and the growing need for energy-efficient lighting solutions across public spaces. The segment's growth is further supported by significant government investments in infrastructure development, particularly in modernizing public facilities. For instance, in November 2022, the Canadian government invested USD 4.2 million in joint funding for infrastructure projects in Kensington, including LED lighting installations and parking lot renovations. Additionally, the Lighting Research Center (LRC) at Rensselaer Polytechnic Institute received USD 1.125 million to improve energy-efficient LED lighting for navigation at airports and airfields, demonstrating the continued focus on enhancing public lighting infrastructure.

Streets and Roadways Segment in North American Outdoor LED Lighting Market

The streets and roadways segment represents a crucial component of the outdoor LED lighting market, driven by extensive infrastructure development initiatives across North America. The Mexican government's ambitious plans to construct 10 highways in 2023 with a total investment of USD 3 billion, improving 429 kilometers and benefiting 47 million people, exemplifies the segment's growth potential. Furthermore, the Federal Road Construction Improvement Program's 51 projects, with a total investment of USD 3.88 billion for 2023, covering 1,138 km, indicates strong market expansion opportunities. In the United States, the government's announcement of more than USD 1.2 billion allocation to the Appalachian Development Highway System (ADHS) for completing designated corridors in 11 Appalachian states demonstrates the continued investment in road infrastructure, directly impacting the demand for outdoor LED lighting solutions.

Remaining Segments in Outdoor LED Lighting Market

The other segments in the outdoor LED lighting market, including castles, forts, and stadiums, play a specialized role in the market landscape. These segments are particularly influenced by the strong sports culture in North America and the growing tourism sector. The continuous renovation and modernization of stadiums, coupled with the increasing demand for artistic lighting in historical monuments and tourist attractions, drive the adoption of LED lighting solutions in these specialized applications. The focus on enhancing visitor experiences and improving energy efficiency in these venues continues to create opportunities for innovative LED lighting solutions, particularly in architectural and decorative lighting applications.

Segment Analysis: Automotive Utility Lighting

Headlights Segment in Automotive Utility Lighting Market

Headlights represent the dominant segment in the North American automotive utility lighting market, accounting for approximately 30% of the total market value in 2024. The segment's leadership position is driven by the increasing adoption of advanced LED lighting headlight technologies across passenger vehicles and commercial vehicles. The National Highway Traffic Safety Administration (NHTSA) regulations requiring adequate road illumination while preventing glare for oncoming vehicles have pushed manufacturers to innovate with LED headlight solutions. Key developments include Nichia Corporation and Infineon Technologies AG's joint development of high-definition light engines with more than 16,000 micro-LEDs for headlight applications announced in 2023. The segment is also benefiting from the rapid growth in electric vehicle production, exemplified by Ford Motor Company's USD 1.3 billion investment in its Oakville Assembly Complex to transform it into a high-volume EV manufacturing hub in Canada, with production expected to begin in 2025. The headlights segment demonstrates strong growth potential with consistent year-over-year increases, supported by technological advancements and increasing vehicle production across North America.

Remaining Segments in Automotive Utility Lighting

The automotive utility lighting market encompasses several other crucial segments, including daytime running lights (DRL), directional lighting market signal lights, reverse lights, stop lights, tail lights, and other auxiliary lighting solutions. Daytime running lights have gained significant traction due to their proven impact on reducing daytime collisions and improving vehicle visibility. Directional signal lights and stop lights continue to be essential safety components, with manufacturers focusing on enhanced visibility and durability. Reverse lights and tail lights segments are experiencing innovation through the integration of smart lighting technologies and advanced LED solutions. The overall market is being shaped by stringent safety regulations, increasing demand for energy-efficient lighting solutions, and the growing trend toward vehicle customization. These segments are also benefiting from the broader automotive industry's shift toward electric vehicles and advanced driver assistance systems, which often require sophisticated lighting solutions.

Segment Analysis: Automotive Vehicle Lighting

Passenger Cars Segment in Automotive Vehicle Lighting Market

Passenger cars dominate the North American automotive vehicle lighting market, commanding approximately 89% market share in 2024. This significant market position is driven by the increasing adoption of solid state lighting technologies across various car models and the growing emphasis on energy-efficient lighting solutions. The United States contributes substantially to this segment's growth, with major automotive manufacturers incorporating advanced LED lighting systems in their vehicle designs. The segment's robust performance is further supported by the rising demand for electric vehicles, with EV sales showing remarkable growth in recent years. The implementation of stringent safety regulations and the increasing consumer preference for vehicles with advanced lighting features have also contributed to the segment's dominance. Additionally, the growing focus on premium and luxury vehicles, which typically feature sophisticated LED lighting systems, has helped maintain the segment's strong market position.

Two Wheelers Segment in Automotive Vehicle Lighting Market

The two-wheeler segment is emerging as the fastest-growing category in the North American automotive vehicle lighting market between 2024 and 2029. This growth is primarily driven by the increasing adoption of electric motorcycles and scooters across major markets. The segment is witnessing significant technological advancements in LED lighting systems, particularly in areas such as adaptive headlights and smart signaling systems. Manufacturers are increasingly focusing on developing innovative lighting solutions specifically designed for two-wheelers, enhancing both safety and aesthetic appeal. The expansion of electric two-wheeler manufacturing facilities in Mexico and the United States is creating new opportunities for LED lighting suppliers. The segment is also benefiting from the growing popularity of premium motorcycles, which typically feature advanced LED lighting systems. Furthermore, the increasing emphasis on rider safety and visibility has led to the development of more sophisticated lighting solutions for two-wheelers, contributing to the segment's rapid growth.

Remaining Segments in Automotive Vehicle Lighting

The commercial vehicles segment represents a significant portion of the automotive vehicle lighting market in North America. This segment encompasses a wide range of vehicles, including trucks, buses, and other commercial transportation vehicles. The segment's growth is closely tied to the expansion of e-commerce and logistics sectors, which has increased the demand for commercial vehicles equipped with advanced lighting systems. Commercial vehicle manufacturers are increasingly focusing on incorporating energy-efficient intelligent lighting solutions to improve vehicle safety and reduce operational costs. The segment also benefits from the ongoing transition to electric commercial vehicles, which typically feature more sophisticated lighting systems. Additionally, the growing emphasis on fleet modernization and the implementation of stringent safety regulations have led to increased adoption of advanced lighting technologies in commercial vehicles.

North America LED Lighting Market Geography Segment Analysis

LED Lighting Market in the United States

The United States dominates the North America LED lighting market, commanding approximately 79% of the total market value in 2024. The country's leadership position is reinforced by its robust infrastructure development and progressive energy efficiency regulations. The Department of Energy's stringent guidelines, particularly Federal Motor Vehicle Safety Standard No. 108 for the automotive LED lighting market, have played a crucial role in shaping market dynamics. The commercial sector has been particularly dynamic, with over 33.2 million small businesses driving demand for LED lighting solutions. The nation's commitment to sustainable building practices, exemplified by the Leadership in Energy and Environmental Design (LEED) rating system, continues to boost LED lighting adoption across commercial spaces. The market is further stimulated by significant investments in smart city initiatives, sports facility upgrades, and extensive road infrastructure projects, with public highway and street construction averaging nearly USD 100 billion monthly.

LED Lighting Market in Canada

Canada's LED lighting market demonstrates remarkable momentum, driven by progressive environmental policies and infrastructure development initiatives. The country's aggressive approach to energy efficiency is exemplified by its mandatory target for zero-emission light-duty vehicles by 2035. In the commercial real estate sector, investment remains robust, totaling USD 58.5 billion in 2022, creating substantial opportunities for LED lighting implementations. The nation's commitment to sustainable infrastructure is evident in various municipal initiatives, such as the Climate Change Action Centre's support for energy-efficient lighting upgrades in public facilities. Canadian cities are actively investing in smart lighting systems, with many municipalities undertaking comprehensive street lighting modernization projects. The market is further strengthened by the government's substantial investments in school construction, healthcare facilities, and public infrastructure projects, including significant funding for Trans-Canada Highway improvements.

LED Lighting Market in Mexico

Mexico's LED lighting market is experiencing significant transformation, driven by rapid industrialization and automotive sector growth. The country's position as the eighth-largest automotive producer globally has created substantial demand for automotive LED lighting solutions. The market is benefiting from major investments in manufacturing facilities, with several global automotive manufacturers establishing or expanding their presence in the country. Mexico's strategic advantage in the North American supply chain has attracted significant foreign direct investment, particularly in industrial and warehouse facilities. The government's commitment to infrastructure development is evident in its extensive highway construction program, with plans for multiple new highways benefiting millions of people. The commercial sector's growth, particularly in retail and industrial spaces, coupled with increasing awareness of energy efficiency benefits, is driving LED lighting adoption across various applications.

LED Lighting Market in Other Countries

The remaining North American territories, including various Caribbean nations associated with the United States, France, and the Netherlands, represent a small but growing market for light-emitting diode lighting solutions. These regions are gradually adopting LED lighting technology, primarily driven by tourism infrastructure development and energy efficiency initiatives. The market in these territories is characterized by unique requirements shaped by tropical climate conditions and specific architectural needs. While the market share remains relatively small compared to the major North American countries, these regions show potential for growth, particularly in outdoor and hospitality lighting applications. The adoption of LED lighting technology in these territories is primarily influenced by government initiatives, tourism infrastructure development, and the need for energy-efficient lighting solutions in remote locations.

Free With This Report

We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 40+ free charts, the sections cover difficult to find data on various countries on Automotive Production, Lighting Electricity Consumption, Road Network, Number of Stadiums, Number of Charging Stations among others.