Residential Lighting Fixtures

Report Overview

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This study analyzes US markets for residential general purpose lighting fixtures. Products covered include all lighting fixtures installed on new or existing single-family, multifamily, and manufactured homes.

Specific products include:

• outdoor lighting fixtures
  • area lighting
  • flood and security lighting
  • other outdoor lighting
• indoor lighting fixtures
  • table, floor, and desk lamps
  • emergency and exit lighting
  • ceiling- and wall-mounted fixtures
• parts and accessories (e.g., fittings, shades, lenses)

Demand is also presented by new and improvement and repair applications for the following housing types:

• single-family
• multifamily
• manufactured housing

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).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 Product

Indoor lighting products account for the vast majority of residential lighting fixture demand, totaling 82% in 2019. This is due to the significant amount of indoor lighting fixtures installed both at the time of the home’s construction and often during home renovation projects. Indoor lighting demand is expected to drive residential lighting fixtures demand growth through 2024 due to rising interior renovation spending and growing consumer preferences for high-end lighting products in their homes.

The remaining interior lighting demand is made up of outdoor lighting products and various lighting fixture parts and accessories, which are also expected to record healthy demand gains through 2024.

Pricing Trends

Residential lighting fixture prices vary significantly both across the different product segments. Some of this variation is due to the decorative properties of many lighting fixtures, which add to their market value. Differences in technological sophistication also 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 lighting fixtures is expected to increase through 2024. 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.

As LEDs have penetrated the residential market, they have often taken the form of retrofit bulbs or tubes designed to work with existing fixtures either as they are or with minimal adjustment. Since LED bulbs can be expensive compared to traditional incandescent and fluorescent types, fixture suppliers tend to keep LED-ready fixtures affordable to compensate for this added cost.

Demand by Housing Type

Residential buildings accounted for nearly 25% of construction-related lighting fixture sales in 2019. This segment includes fixtures installed indoors or outdoors in single-family, multifamily, and manufactured housing.

Demand for residential fixtures is forecast to expand 4.3% annually to $6.7 billion in 2024. The majority of demand growth will take place in the single-family sector, where new construction is expected to see gains, whereas a decline in new multifamily home construction will lead to weaker demand gains in that segment.

New vs. Replacement Demand

In 2019, the residential building market for lighting fixtures was divided almost evenly between fixtures used in new construction and those used in I&R activity, with new construction accounting for slightly more than half of demand. Demand associated with new construction will be in line with replacement-related sales through 2024, as both markets will post healthy gains through 2024.

Sales of lighting fixtures installed in new buildings are forecast to climb 4.5% annually through 2024, reflecting growth in single-family home completions (after a drop in 2020 due to the COVID-19 pandemic) and related lighting installations. However, gains will be limited by drop in the multifamily housing completions.

Sales of lighting fixtures used for I&R applications in residential buildings are projected to expand 4.2% per year through 2024.

Demand for residential general purpose lighting fixtures is forecast to rise 4.3% annually through 2024 to $6.7 billion. Gains will be driven by:

• increased interest in home renovation activity as people spend more time at home during the COVID-19 pandemic
• growth in single-family home construction
• rising interest among homeowners in energy efficiency, which will support the replacement of existing fixtures and the installation of high-end products in new applications

Trends Toward More & More Efficient Lights Will Benefit Demand in Single-Family Homes

Single-family housing accounts for the vast majority of residential lighting fixtures demand and will drive gains through 2024:

• Lighting fixture demand will spurred by the increased adoption of LED and smart lighting products by homeowners.
• Changes in interior design trends will support lighting fixture demand, as homeowners will replace lamps and other fixtures with those that correspond with new styles, such as recessed lighting.

Efforts to Control Energy Costs & Increase Convenience to Support LED & Smart Lighting Sales

Homeowners will place increased focus on reducing their utility bills, which can be done through the use of energy efficient lighting fixtures. LED lights require less wattage than traditional bulbs, and therefore use less energy and cost less to light an area. However, LED products are typically initially more expensive than traditional lighting, which will provide a boost to demand as homeowners first specify these products in new buildings or upgrade to these fixtures in existing structures.

While smart lighting does not account for a major share of residential lighting fixtures demand, it is expected to record strong gains through 2024. The rising adoption of smart lighting in homes will be driven by in its technologically advanced capabilities, which both increases the convenience and capabilities of lighting and can further improve energy efficiency:

• Wireless functions that allow for lighting fixtures to be controlled from any place where the internet can be accessed allow homeowners to adjust lighting from anywhere, such as to keep the house appearing occupied while on vacation and to check if lights were switched off while at work.
• Voice control features allow users to adjust such features as light brightness and color without the need for switch or remote.

Interest in Outdoor Living to Boost Gains

Increased homeowner interest in outdoor living will also boost lighting fixture demand growth. In order to create outdoor areas more suitable for cooking and entertaining, especially into the evening and twilight hours, homeowners are installing more extensive and higher-end lighting. Products specified for these purposes include area lighting and floodlights, many of which are motion-activated and can be adjusted remotely.