Lighting Up North America: Market Demand & Commercial Trends in 2025

The North American lighting industry is undergoing a dynamic transformation in 2025, fueled by technological innovation, sustainability goals, and shifting consumer preferences. From residential upgrades to expansive commercial installations, lighting is no longer just about illumination—it’s about intelligence, efficiency, and experience.

Market Overview & Demand Drivers

• Market Growth: The North American lighting market is projected to grow by 15% year-over-year in 2025, reaching over USD 29.5 billion in luminaires and fixtures alone.
• LED Dominance: LED lighting continues to dominate, accounting for nearly 60% of market share, thanks to its energy efficiency, longevity, and decreasing costs.
• Smart Lighting Surge: The adoption of smart lighting systems—integrated with IoT and building automation—is accelerating, especially in commercial and industrial sectors.

Commercial Lighting Evolution

• Office & Retail Spaces: Demand for adaptive lighting in commercial offices and retail stores is rising. Businesses are investing in tunable white lighting, occupancy sensors, and daylight harvesting to enhance productivity and reduce energy costs.
• Hospitality & Healthcare: Hotels and hospitals are embracing circadian lighting and personalized controls to improve guest comfort and patient outcomes.
• Outdoor & Public Infrastructure: Municipalities are upgrading streetlights and public spaces with smart LED systems that offer remote monitoring, dimming, and predictive maintenance.

Sustainability & Regulation

• Green Energy Push: Government incentives and carbon reduction mandates are driving the shift toward low-energy lighting solutions. Many new commercial projects now require compliance with LEED or WELL standards.
• Retrofit Boom: Retrofit installations are booming as older buildings replace outdated systems with modern, efficient alternatives. This segment is expected to outpace new installations in growth rate.

Future Outlook

• Wireless Controls: Wireless lighting controls are becoming standard, reducing installation costs and enabling flexible layouts.
• Data-Driven Design: Lighting is increasingly part of data ecosystems, with sensors collecting usage patterns to optimize building performance.
• Customization & Experience: Commercial clients are seeking lighting that enhances brand identity and customer experience—think color-tunable LEDs in retail or immersive lighting in entertainment venues.