The United States and Canada residential lighting fixture business reached a valuation of USD 123.2 billion in 2023. Demand for residential lighting fixtures recorded a y-o-y growth of 7.5% in 2023. Sales are expected to reach USD 132.5 billion in 2024. By 2034, the United States and Canada residential lighting fixture business is projected to exhibit a 7.6% CAGR and a total size of USD 275.6 billion.
The residential lighting fixture business is anticipated to be driven by several important factors, including the growing demand for ornamental lighting fixtures in the residential sector and the adoption of energy-efficient products such as LEDs and OLEDs. The idea of a smart home is becoming more popular, and lighting fixtures play a big role in interior design.
Manufacturers and brand owners are putting forward claims related to the product’s efficiency and effectiveness in a bid to convert the product’s USP into a larger share and to establish a strong presence in the business. The light fixture business has seen a lot of claims made by manufacturers in order to promote their brands. Consumer purchase patterns are significantly influenced by company claims.
The lighting industry is growing due to technology improvements, such as the incorporation of IoT capabilities and smart lighting systems. The increasing significance attributed to interior design and aesthetics in residential spaces is driving the need for creative and fashionable lighting solutions.
Task lighting for home workstations has become more significant as the idea of home offices has gained traction. Furthermore, there is a growing need for fixtures that promote health and well-being, similar to those that enable circadian lighting to replicate the cycles of natural light.
| Attributes | Key Insights |
|---|---|
| United States and Canada Residential Lighting Fixture Size (2023) | USD 123.2 billion |
| United States and Canada Residential Lighting Fixture Business Estimated Size (2024) | USD 132.5 billion |
| United States and Canada Residential Lighting Fixture Business Projected Size (2034) | USD 275.6 billion |
| Value-based CAGR (2024 to 2034) | 7.6% |
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The demand for lighting fixtures in the United States and Canada is anticipated to gain from the growing uptake of connected home lighting systems and the switch to LED lighting. Conventional and LED consumer luminaires will continue to be the dominant segments in the consumer sector, with residential systems projected to increase at a robust rate.
In tandem with the rising penetration of smart home applications among households, the home systems business is expanding quickly. North America is regarded as a key global business for home systems. Hence, it is anticipated that the size of the residential lighting fixture business in the United States and Canada will increase at a decent pace during the projected period, at a 7.6% CAGR.
In residential settings, there has been a notable transition toward LED lighting technology by 2034. LEDs are long-lasting, energy-efficient, and provide a wide range of color and design options.
The business has been impacted by strict energy efficiency laws, such as the Energy Independence and Security Act (EISA) in the United States. Energy-efficient lighting technology, such as LED and compact fluorescent bulb (CFL) fixtures, is encouraged by these laws.
An increasingly popular trend in the business is the use of smart lighting systems. The growing trend of smart homes and home automation has raised the demand for remotely controlled lighting fixtures, frequently via voice-activated systems or smartphone apps.
Environmental factors and sustainability in house designs are becoming more popular. The need for environmentally friendly lighting fixtures and designs that put an emphasis on energy efficiency and the use of recyclable materials has risen as a result.
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In the table below of the growth potential of residential lighting fixtures in the United States and Canada, CAGRs of leading countries are provided. The United States will likely lead the field of residential lighting fixtures by exhibiting a CAGR of 6.8% from 2024 to 2034. The country is set to be followed by Canada, with a decent CAGR of 10.7% through 2034.
| Countries | CAGR |
|---|---|
| United States | 6.8% |
| Canada | 10.7% |
The working population's migration to tier-I cities due to increased employment opportunities is predicted to support the global urbanization trend. Notably, a stronger rate of urbanization growth is anticipated in Canada. The Canada residential lighting fixture business is estimated to rise at a CAGR of 10.7% during the forecast years.
Interest in lighting fixtures such as chandeliers with a variety of styles and functions has increased as a result of growing urbanization and business evolution. The need for lighting fixtures has also been spurred by advancements in the automation sector, which offer diversified and yet simplified user interaction. Opportunities for the lighting fixture sector are also created by consumers' shifting preferences and the companies' expanding product offers.
The United States-based corporations are creating wireless lighting fixtures because of their several benefits, which include long lifespans, energy savings, remote control compatibility, and programming capabilities. Hence, it is anticipated that the country's residential lighting fixture business will be driven by the need for wireless lighting fixtures.
In the United States, consumer lives are evolving quickly. During the anticipated period, rising urbanization and disposable income are the two elements anticipated to propel expansion.
Sales of lighting fixtures online are probably going to be driven by the availability of a wide selection of products and the growing adoption of smart lighting. As a result, the United States residential lighting fixture business is anticipated to rise at a CAGR of 6.8% during the projection period.
The table below highlights the demand for residential lighting fixtures in the United States and Canada by technology, sales channel, and product type. Under product type, the pendant segment will likely remain dominant in the assessment period with a CAGR of 10.6% by 2034.
Based on the technology, the LED segment is set to showcase a significant CAGR of 8.1% through 2034 in the field of residential lighting fixtures in the United States and Canada.
| Segment | Value CAGR |
|---|---|
| LED (Technology) | 8.1% |
| Online Retailers (Sales Channel) | 10.9% |
| Pendants (Product Type) | 10.6% |
The pendant segment is predicted to expand at a CAGR of 10.6% over the course of the forecast period. Creating items with novel, creative designs and aesthetics is the most prevalent trend in the business landscape. Companies are spending more on product development in order to obtain a competitive edge over their rivals.
Due to expanding disposable income, people are spending more money on home décor these days. Generally regarded as elegant, pendant lights are utilized to improve the living room's appearance and give it a more refined, royal image.
The business is developing due to the production of pendants with exquisite materials and a rich, attractive appearance. It is also expanding due to the growing trend of matching these chandeliers and pendants to certain rooms, such as study rooms, dining rooms, and living rooms. The demand for pendant light fixtures is growing as a result of the creation of stylish designs at reasonable costs.
In terms of sales channels, the online retailer segment is projected to expand at a CAGR of 10.9% during the forecast period. This is due to the availability of several offers on products and growing e-commerce businesses in the United States and Canada. In addition, the availability of a wide range of products and the increasing penetration of smart lighting are likely to drive sales of lighting fixtures online in the assessment period.
Unlike marketplaces for typical electronics products, the general lighting fixture business is still regionally fragmented. This is mainly attributed to regional product specifications and how crucial it is to have access to local decision-makers, such as electrical installers, architects, and lighting designers. Nevertheless, each region has a different degree of fragmentation.
Since LED lighting fixtures are more long-lasting and energy-efficient than conventional incandescent and fluorescent lighting fixtures, it is anticipated that demand for these will increase in the forecast years. As LED is a novel technology, it comes with unique features and demands for product development. Hence, small-scale traditional fixture manufacturers can find it difficult to introduce LED lighting fixtures.
Prominent LED fixture manufacturers will get a chance to briefly expand their share. However, LED technology is expected to rise with a CAGR of 8.1% during the projection period.
LED lighting is now extensively used in both commercial and residential settings. It can be found in a variety of home and industrial products. The quick development of LED technology results in more creative items and more efficient manufacturing, which drives down costs.
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The United States and Canada residential lighting fixture business has a fragmented competitive landscape, with several players competing on the basis of product quality, effectiveness, brand reputation, and price. Companies are investing in research and development activities to create new and innovative products.
They are also focusing on expanding their distribution channels. In addition to the ecosystem's key manufacturers, there are also smaller firms selling residential lighting fixtures at more affordable costs.
For instance,
| Attribute | Details |
|---|---|
| United States and Canada Residential Lighting Fixture Business Size (2024) | USD 132.5 billion |
| United States and Canada Residential Lighting Fixture Projected Size (2034) | USD 275.6 billion |
| Value-based CAGR (2024 to 2034) | 7.6% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Analysis | USD million for Value |
| Key Countries Covered | United States, Canada |
| Key Segments Covered | Product Type, Power Source, Technology, Usage, Sales Channel |
| Key Companies Profiled | Philips; Acuity Brands Lighting, Inc.; Eaton Corporation; Leviton Manufacturing Co., Inc.; Legrand; Ideal Industries, Inc.; Lutron Electronics Co., Inc.; RAB Lighting; Osram Licht AG; Cree, Inc.; Eaton Corporation; Osram Sylvania; Hubbell Lighting; Cooper Lighting; Zumtobel Group; Eaton Corporation; Panasonic; Osram; Acuity Brands; GE Lighting; Leviton Manufacturing Co., Inc.; Legrand; Ideal Industries, Inc.; Osram Licht AG; Cree, Inc. |
| Report Coverage | Business Forecast, Competition Intelligence, Business Dynamics and Challenges, Strategic Growth Initiatives |
It is expected to reach a valuation of USD 132.5 billion in 2024.
The pendants category is anticipated to rise at the dominant CAGR of 10.6%.
Philips, Acuity Brands Lighting, Inc., Eaton Corporation, and Cree, Inc.
The business rose at a 6.5% CAGR from 2019 to 2023.
In 2034, the business is set to reach USD 275.6 billion.
| Estimated Market Size (2024E) | USD 89,913.3 million |
|---|---|
| Projected Market Value (2034F) | USD 412,912.7 million |
| Value-based CAGR (2024 to 2034) | 16.5% |
| Market Size (2024) | USD 20.10 billion |
|---|---|
| Market Forecasted Size (2034) | USD 41.50 billion |
| Projected Value CAGR (2024 to 2034) | 7.5% |
| Market Value for 2023 | USD 34,516.70 million |
|---|---|
| Market Value for 2033 | USD 1,11,289.4 million |
| Market CAGR from 2023 to 2033 | 12.4% |
| Market Size (2023) | USD 12.57 billion |
|---|---|
| Market Size (2033) | USD 25.67 billion |
| Market CAGR (2023 to 2033) | 7.4% |
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Residential Lighting Fixture Industry Analysis in United States and Canada
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