April 18, 2024
U.S. Lightning Product Market

U.S. Lightning Product Market is Estimated to Witness High Growth Owing to Advancements in Battery Technologies

The U.S. lighting product market comprises various products including LED lights, CFLs, incandescent lamps and others that are used for general, commercial and outdoor lighting purposes. Lighting products provide illumination and visibility in indoor and outdoor applications. LED lights are gaining more preference over traditional lighting sources owing to their energy-efficiency and longer operational life. The growing construction industry and infrastructure development projects in the country are also contributing to the increasing demand for lighting products.

The U.S. lighting product market is estimated to be valued at US$ 294.57 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the U.S. lighting product market are BYD Company Limited, Panasonic Corporation, Contemporary Amperex Technology Co. Limited, Samsung SDI Co. Ltd, TianJin Lishen Battery Joint-Stock CO. LTD, GS Yuasa Corporation, Duracell Inc., Clarios (Formerly Johnson Controls International PLC), VARTA AG, LG Chem Ltd, Tesla Inc. and EnerSys. These players are focusing on developing advanced LED and lithium-ion battery technologies to manufacture more efficient lighting products.

The U.S. Lighting Product Market Size provides numerous growth opportunities owing to the increasing adoption of smart and connected lighting systems across the residential, commercial and industrial sectors. Lighting control platforms and software solutions are being integrated with lighting products to make them IoT enabled.

Technological advancements in LEDs and battery technologies are driving the growth of the U.S. lighting product market. Lighting product manufacturers are developing ultra-efficient LED lamps and fixtures with higher luminous efficacy. Improvements in lithium-ion battery technologies are enabling the production of lighting products with longer run-times and rapid charging capabilities.

Market drivers
The growing construction activities in the U.S. is a key driver for the lighting product market. Rising residential and commercial construction is increasing the demand for various indoor and outdoor lighting solutions. Infrastructural projects related to roads, railways, airports etc. also contribute to the sales of lighting fixtures. Stringent government regulations regarding energy efficiency are further promoting the adoption of LED lighting products to reduce energy consumption.
Current challenges in U.S. Lightning Product Market
The U.S. Lightning Product Market has been facing many challenges in recent times which has restrained its growth. Issues like high costs associated with battery replacement and maintenance are becoming a burden for the consumers. Transportation of these batteries commercially and domestically also poses safety hazards due to the risk of explosion. Strict government regulations around the usage and disposal of such batteries further add to the compliance costs for producers. Technological obsolescence is another challenge as newer battery technologies keep emerging rapidly making existing products outdated within short lifespan cycles.

SWOT Analysis
Strength: High demand for portable power sources and increasing adoption of electric vehicles and smartphones drives volume sales. Energy density and life cycle of lithium batteries is better than alternatives.
Weakness: High dependence on lithium reserves outside U.S. Fluctuating costs of key raw materials. Safety issues during manufacturing and transportation.
Opportunity: Growing investments in research of advanced battery technologies like solid state. Increasing collaborations between automakers and battery producers.
Threats: Trade restrictions and geopolitical risks around sourcing of lithium. Rising competition from Asia Pacific manufacturers. Slow progress in battery recycling infrastructure.

Geographical regions
In terms of value, the U.S. West Coast region consisting of states like California, Oregon and Washington contributes over 35% of the total market led by high EV adoption and presence of electronic device manufacturers. The Northeast region is another major consumer base owing to its large urban centers and consumer electronics usage.

The Southwest region spread across Texas, New Mexico and Arizona is witnessing fastest growth driven by expanding transportation and utility scale energy storage projects. Favorable business climate and proximity to Mexico has attracted battery component suppliers to set up regional hubs catering to both domestic and export demand.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it