Market Trends of US LED Industry
This section covers the major market trends shaping the US LED Market according to our research experts:
Residential Sector to Hold Significant Market Share
- The residential segment occupies a significant market share and is expected to retain its position during the forecast period. LEDs have been witnessing increasing adoption in the residential sector in the United States. Although residential and commercial end users are the primary adopters of the technology, LEDs' high efficiency and directional nature also propel their industrial adoption. LED technology has a vast scope for improvement. Therefore, it attracts many new players to the market studied. Light quality is one of the most significant competitive factors among regional manufacturers, as energy savings are no longer the primary driver for product development.
- Moreover, government regulations are significant factors in shifting the residential consumers' affinity toward more efficient products, such as LED lighting. Despite the increasing market and regulatory uncertainties, residential lighting represents a significant share of ratepayer-funded energy efficiency electricity savings.
- However, most energy efficiency programs have transitioned to promote solid-state LED lamps instead of CFLs. This transition may accelerate further because of the new ENERGY STAR v2.0 lighting specifications that are effectively limited to LED lamps. LEDs gained tremendous momentum and a higher market share, while future CFL production may become increasingly unlikely.
- Incandescent light bulbs have been used traditionally in the United States for household lighting. The basic technology in incandescent bulbs has mostly stayed the same, although they convert less than 10% of their energy input into light. Improving light bulb performance can reduce overall energy usage in the United States, further driving the demand for LED lighting products.
- Further, closet shed lights and other home applications require one or two LED lighting for operation and are often battery-operated. Due to the increasing consumer demand, several market players are offering solutions to capitalize on the opportunity. For instance, the US-based revolution lighting offers ambient luminaires for natural, flat, and ambient lighting needs, ideal for residential settings.
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Outdoor LED to Witness Significant Growth
- Outdoor LED (light emitting diode) lighting in the United States covers major areas like roadway, parking, and exterior building lighting to create a sense of personal security, provide proper illumination for pedestrian and vehicular traffic, and attract attention to businesses and spaces.
- Several government initiatives, product innovations, public-private deals, and improvisations are expected to boost the demand for enhanced street lighting solutions in the United States, thus boosting the market growth. For instance, the Airport Logistics Access Project 70/75, led by the Montgomery County TID (Transportation Improvement District), is considering a roadway project to improve access to the DIA (Dayton International Airport) to address the significant growth in activity in the distribution sector, manufacturing, and the logistics.
- Moreover, the Michigan Department of Transportation (MDT) partnered with Freeway Lighting Partner LLC signing a 15 years contract to finance, build and design the improvements on existing tunnel lighting systems and freeway for maintaining the current and enhanced lighting system for the remaining operating and maintenance period. Freeway Lighting Partner LLC will hand MDOT back the lighting systems near LLC at the end of the contract term.
- Additionally, innovative city projects have gained momentum over the last decade. More municipalities across the country have launched various digital transformation initiatives by the US government to realize the benefits of utilizing innovative technology to manage several assets and resources that ultimately enhance city operations.
