Outdoor Lighting Fixtures

Report Overview

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This study analyzes US markets for general purpose outdoor lighting fixtures. This includes lighting fixtures installed outside residential buildings, commercial structures, as well as in nonbuilding applications such as roadways and bridges.

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 product:

• area lighting
  • site
  • large area
  • building-mounted
• floodlighting
• outdoor PAR lampholders
• roadway lighting
• other outdoor lighting (e.g., spotlighting, non-roadway high-mast lighting)

In addition, demand is discussed in terms of light source:

• LED (lamps and LED-integrated fixtures
• high-intensity discharge (HID) lighting
• incandescent, halogen, and other lighting

Finally, demand can be segmented by market:

• residential buildings
• commercial buildings
• roadway, bridges, and utilities

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.

Demand by Market

Outdoor lighting fixture demand is forecast to increase 4.7% per year through 2024 to $5.5 billion. Commercial buildings are the leading market for outdoor lighting fixtures, accounting for 53% of the total in 2019. Through 2024, demand for commercial building outdoor lighting fixtures is forecast to grow 3.9% annually to $2.8 billion. Gains will be supported by the rising use of high-end lighting fixtures in commercial buildings to provide cost-efficient security lighting.

The roadway, bridges, and utilities market accounted for 35% of outdoor lighting fixture demand in 2019 and will grow at an above average rate through 2024, as roadway lighting is upgraded to LEDs in order to provide improved brightness and energy efficiency.

The residential market accounted for 12% of outdoor lighting demand in 2019. Through 2024, residential outdoor lighting fixture demand is forecast to grow 5.5% per annum to $685 million. Demand growth will be driven by new home construction and increased homeowner interest in outdoor living, which will support sales of area lighting, floodlighting, and other products.

Demand by Light Source

LED lighting fixtures accounted for 70% of the outdoor fixture market in 2019, a share that is expected to expand to 76% by 2024. In outdoor lighting, the growing dominance of LEDs comes primarily at the expense of HID fixtures, which were previously the type most commonly used in roadway lighting and other outdoor applications. While initially more costly, in many cases LEDs offer superior energy efficiency and service life, and they do not contain mercury, as do nearly all HID lamps.

Pricing Trends

Outdoor lighting fixture prices vary significantly both across the different product and market segments and within a given product type. Differences in technological sophistication impact prices as LEDs and other new technologies are further incorporated into the wide range of fixture types. For instance, LED pricing is dependent on both the quality of the product and the duration of its intended use.

Average pricing for outdoor lighting fixtures is expected to grow 2.1% annually through 2024. Increases will be driven by the rising use of high-end smart fixtures.

Technological advancements supporting greater energy efficiency and smart features will continue to raise average product pricing. However, these attributes are often more critical in light sources and lighting controls than in fixtures, so these features’ impact on fixture pricing will be limited somewhat.

In some cases, LED-integrated fixtures must be low-cost because integration of the light source puts an expiration date on the entire fixture. Even if an LED-integrated fixture’s diodes maintain an acceptable level of brightness for several years, they may need replacement sooner than some users expect since fixtures have traditionally been more or less permanent. Therefore, pricing growth for LED-integrated fixtures may be restrained by consumers’ unwillingness to purchase high-value fixtures expected to expire earlier than traditional fixtures.

Demand by Product

Outdoor lighting fixture demand is expected to grow 4.7% annually to $5.5 billion in 2024:

• Area lighting will account for the largest share of outdoor lighting fixture demand growth, supported by growing consumer interest in outdoor living.
• Roadway lighting demand is expected grow at the fastest pace over this period, spurred by government efforts to reduce energy costs by improving the efficiency of their streetlights.

Sales in value terms will be bolstered by the increased use of high-end LED products, particularly in residential applications. However, the continued reliance on low-cost imports manufactured in countries where wages and production costs are lower than in the US will prevent faster price growth.

Area Lighting

Area lighting, which is fixed and casts light in multiple directions, accounted for the leading share of outdoor fixture demand in 2019. Outdoor area lighting is used in a variety of applications, including:

• general outdoor lighting
• decorative highlighting of landscaping or buildings
• lighting for outdoor sports facilities

Sales of area lighting fixtures are projected to expand 4.6% annually to $2.2 billion in 2024. Gains will be driven primarily by growth in commercial building construction, since the majority of area lighting fixtures are used in commercial applications such as parking lot and security lighting.

In residential applications, area lighting – especially site lighting – will benefit from consumers’ increasing interest in outdoor living. Homeowners are beginning to install more extensive or higher-end lighting in their homes’ outdoor spaces in order to create outdoor rooms suitable for cooking and entertaining. Additionally, more homeowners will use smart outdoor lighting, which can be controlled remotely via app but also can be activated via motion sensor.

Demand for outdoor general purpose lighting fixtures is forecast to rise 4.7% annually through 2024 to $5.5 billion due to:

• the rising use of high-end outdoor fixtures for commercial buildings
• efforts to upgrade existing outdoor fixtures in the nonbuilding market with energy efficient fixtures
• increased interest in outdoor living among homeowners

Despite Near Term Weakness, Commercial Buildings to Market Driver

Over half of outdoor lighting fixtures are installed in commercial buildings, where demand declined slightly in 2020. The COVID-19 pandemic prompted businesses to shift employees to telecommuting and, in some cases, shutter for parts of the year, resulting in unoccupied buildings. While improvement and repair spending and the need for new commercial structures was reduced in the near term, in some cases these changes boosted interest in outdoor lighting among building owners who were concerned about protecting their physical investments and the greater potential for trespassers.

Over the longer term, commercial buildings will resume using more and more efficient lights: 

• Institutional and industrial structures are increasingly installing area lighting fixtures and floodlighting on their properties in outdoor areas such as parking lots to improve security and safety.
• Commercial building owners are increasingly opting for high-end products, including energy-efficient LED products and fixtures that use motion sensor technology, as the long-term cost savings of these products offsets their higher initial costs.

Efforts to Improve Streetlight Efficiency Are Supporting Demand Growth

Roadway lighting is an energy-intensive application – requiring high brightness and operation for many hours each day – which is leading many municipalities and utilities to become more proactive in adopting energy-efficient LED lighting to reduce operating costs. While retrofit LED lamps are available, most adopters install new LED-ready or LED-integrated fixtures in order to optimize their energy savings. For instance, Smart Street lighting NY program is a partnership between the New York Power Authority and Signify to replace over 500,000 streetlights in the state with energy-efficient LED products by 2025.

Though More Niche, Interest in Outdoor Living to Boost Use Residential Market

Increased homeowner interest in outdoor living will also boost outdoor lighting fixture demand growth. In order to create outdoor areas more suitable for cooking and entertaining, homeowners will install more extensive and higher-end lighting fixtures. This trend has been hastened by the COVID-19 pandemic, as many homeowners sought to make their homes a more appealing place, particularly as the closure of restaurants, bars, and more limited options for entertainment outside the home. Products that will be specified for these purposes include area lighting and floodlights, many of which are motion-activated and can be adjusted remotely.