Report Overview
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This study analyzes US markets for general purpose lighting fixtures. Products can be discussed as nonportable and portable, as well as indoor and outdoor. Also included are parts and accessories
Specific products include:
outdoor lighting fixtures
area lighting (e.g., site, large area, building-mounted)
flood and security lighting
outdoor PAR lampholders
roadway lighting
spotlighting
other outdoor lighting (e.g., non-roadway high-mast lighting, bollard and post-top lighting, fountain and swimming pool underwater lighting)
indoor lighting fixtures
table, floor, and desk lamps
emergency and exit lighting
ceiling- and wall-mounted lighting fixtures
specialty lighting fixture
industrial-grade and hazardous
flashlight
parts and accessories
roadway poles and other outdoor poles and accessories
aftermarket lamp ballasts
other parts and accessories (e.g., reflectors, lenses, globes, shades, covers, fittings, switches, incandescent mantles)
Demand for smart lighting fixtures is also broken out in a separate chapter.
Demand is also segmented by light source:
light emitting diodes (LEDs), including LED lamps and LED-integrated fixtures
fluorescent
HID
Incandescent, halogen, and other lighting
Finally, demand is discussed in terms of market:
residential buildings – new and improvement and repair (single-family, multifamily, and manufactured homes)
commercial buildings – new and improvement and repair (institutional, industrial, retail and lodging, office, and other commercial buildings)
consumer and professional
roadways, bridges, and utilities
Historical data for 2009, 2014, and 2019 and forecasts for 2024 and 2029 are provided for lighting fixture demand at the manufacturer’s level in current dollars (which are not adjusted to account for inflation). Demand is broken out by the above product types, market (construction markets and consumer and commercial markets), and geographical region.
Excluded from the scope of the study are fixtures for indicator/signal lights and other special purpose lighting, as well as replaceable light sources (i.e., light bulbs). Automotive lighting fixtures are also excluded.
Impact of COVID-19 Pandemic
The COVID-19 pandemic impacted most segments of the lighting fixtures industry, though some saw more severe changes than others. Demand for these products is closely tied to trends in construction activity, where effects differed by types of buildings, especially in 2020:
In the larger commercial segment, sharp declines in spending – particularly on retail, lodging, and industrial buildings – led to a drop in commercial lighting fixture demand in 2020. Many companies shifted their employees to working from home, leading to a significant amount of open building space and discouraging new building construction
Demand for lighting fixtures in the residential market grew slightly, as new home construction strongly rebounded in the second half of 2020 and some homeowners engaged in renovation projects as they found themselves spending more and more time at home due to the pandemic.
Products that fared better during the pandemic include:
outdoor lighting for entertaining guests, leisure activities, landscaping, and exterior renovations
lighting for home offices
fixtures installed in home study spaces
Additionally, homeowners were more likely to undertake DIY lighting projects rather than to risk inviting contractors into their homes, which is leading to a switch in the product mix – at least in the short term – toward those fixtures that are easier to install.
Lighting fixture demand for residential buildings is expected to accelerate in 2021 and continue expanding through 2024, as housing shortages and high home prices will lead to a significant increase in single-family home construction, boosting demand for the multitude of lighting fixtures installed at the time these homes are built. Additionally, design trends favoring recessed lighting and other more difficult installations – which are generally outside the scope of DIYers – will likely resume, boosting the value of fixtures installed in renovation projects.
Demand in the commercial building segment is anticipated to rebound in 2021. As the pandemic subsides, commercial building owners will be more willing to invest in lighting fixtures to improve efficiency and install products that are more contactless. An even faster rebound will be restrained by those businesses that scaled back or shut down due to government regulations or decreased revenues, as they will likely still face some uncertainty. This may limit the construction of new commercial buildings and the number of existing businesses that will undertake renovation projects involving lighting fixtures.
Demand by Product (Outdoor, Indoor, Specialty, & Parts)
Lighting fixture demand is expected to increase 3.7% per year to $26.8 billion in 2024. A number of trends will benefit the market, including:
growth in overall construction activity, which often involves the installation of new lighting fixtures
expanding market share for LED fixtures, which are high-value due to integration of the light source and/or added features such as the ability to change brightness, light color, or color temperature
However, fixtures will face competition from LED bulbs designed to retrofit existing fixtures in applications where up-front cost is a deciding factor.
Indoor lighting accounts for the largest share of demand and includes a variety of fixtures that are installed or used in the interior of buildings for general illumination, including overhead lights, and emergency and exit lighting.
Outdoor lighting includes wide variety of fixtures are installed outdoors, including area and floodlighting, roadway lighting, and other types such as spotlighting and non-roadway high-mast lighting.
Portable lighting includes a variety of consumer and professional and products such as flashlights and headlamps as well as floor and table lamps.
Parts and attachments include replacement parts for use with existing lighting as well as various attachments that can be used to upgrade lighting fixtures.
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Demand for general purpose lighting fixtures is forecast to rise 3.7% annually through 2024 to $26.8 billion. Gains will be driven by:
long-term growth in commercial building construction, where lighting fixtures often undergo intensive use, placing strain on fixtures and elevating replacement rates – this also spurs interest in value-added efficiency upgrades, even among commercial users who otherwise might be more cost conscious
rising single-family home construction and improvement and repair activity, with the best opportunities expected for LED fixtures that are both energy efficient and compatible with smart lighting systems as well as for area-specific fixtures such as those for outdoor spaces
rising end user and building owner interest in energy efficiency, which will support the replacement of existing fixtures as well as the installation of value-added products in new applications
Efforts to Control Energy Costs to Support Demand
Home and commercial building owners continue to focus on reducing their utility bills, including through the use of energy-efficient lighting fixtures such as LEDs, which require less wattage than traditional bulbs. LED products are typically initially more expensive than traditional lighting, which boosts demand as home and commercial building owners first specify these products in new buildings or upgrade to these fixtures in existing structures.
Although LEDs are gaining share in many applications, fluorescents and HIDs remain resilient in the applications where they are preferred for their ability to offer specific performance advantages. Bulbs used for these purposes – such as high-impact types – tend to be higher value, specialty products that are resistant to downward pricing pressure.
Smart Lighting to Provide Demand Growth Opportunities
While smart lighting does not account for a major share of fixture demand, it is expected to record strong gains. The rising adoption of smart or smart-capable lighting will be driven by user interest in its technologically advanced capabilities, including:
wireless functions that allow for lighting fixtures to be controlled from any place where the internet can be accessed
voice control features that allow users to verbally adjust such features as brightness and color
These features are both convenient and capable of boosting energy savings, especially in commercial applications.
Interest in Outdoor Living to Boost Gains
Increased homeowner interest in outdoor living, particularly in light of pandemic-related lifestyle changes, will also boost lighting fixture demand growth. In order to create outdoor areas more suitable for cooking and entertaining into dusk and twilight hours, homeowners will install higher-end lighting fixtures. Products that will be specified for these purposes include area lighting and floodlights, many of which are motion-activated or light-activated and can be adjusted remotely.