Market Trends of us indoor led lighting Industry
Increase in the number of private-owned dwellings and government regulations to drive the market for LEDs
- As of 2021, there were around 124 million households in the United States. Person per household between 2017 and 2021 was 2.6 persons, and the total housing units registered were 143.7 million by 2022. Furthermore, the population in 2020 was 331.4 million, which increased to 333.2 million by 2022, representing 0.6% growth. The owner-occupied housing unit rate was 64.6%, which is higher. Considering the above instances, it suggested that the household size is smaller and requires new housing units, and the population is growing, which also represents the same. Such instances are expected to create more LED penetration for the need for illumination in the country. In the United States, disposable income is growing, resulting in the rising spending power of individuals who can spend more on new residential spaces. The United States per Capita income reached USD 36,430 in December 2021, compared with USD 33,740.8 in December 2020. Compared to other developing nations, the US is getting more. For instance, Mexico had a per capita income of USD 2,639.7 as of 2020, and Canada had USD 29,330, which is lower.
- The number of privately owned home starts in May was 1,631,000 on an annual basis. This is 5.7% above the May 2022 rate of 1,543,000 and is 21.7% higher than the revised April 2023 estimate of 1,340,000. As per the Energy Policy Act (EPAct) section 179D, the maximum tax deduction jumped to USD 5 per sq. ft. of upgraded space in 2023 under the new regulations. Which had USD 1.88 per sq. ft. deductions in 2022 (but is set to rise to USD 2.00 per sq. ft.). Eligible projects include those related to interior lighting, HVAC, and building envelopes. Such instances are further expected to surge the demand for LED lighting in the country.
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Increase in LED installation by 72% in commercial buildings, 56% in residential houses, and 83% in industries by 2025 to drive the growth of the LED market
- The combined consumption of residential and commercial lighting in the United States was roughly 213 billion kWh. From roughly 1.4 billion units installed in 2017 to over 7.9 billion units in 2035, the number of LED light installations in the US is rising. By 2025, 72% of commercial, 56% of residential, and 83% of industrial structures are expected to have LED lighting installed. There were 142 million housing units in the US in 2021, an increase of 200,000 from the previous year. In comparison to 2020, when the entire housing stock stood at 140.8 million units, there represented an increase of nearly one million. The growth of LED will be influenced by the rise in housing stock.
- Electricity demand in the commercial sector tends to be highest during operating business hours. Usually, in a day, it is around 8-10 hours. Electricity use in the industrial sector tends not to fluctuate through the day or year. Electricity demand in the residential sector varies for about 7 to 9 hours. In addition, the City of Chicago completed the Chicago Smart Lighting Programme in February 2022, which replaced more than 280,000 outdated streetlights with high-efficiency LED lights to improve visibility at night and save Chicago taxpayers an estimated USD 100 million in electricity costs over the next ten years.
- The Michigan Department of Transportation and Motorway Lighting Partner LLC entered a 15-year deal to jointly fund, construct, and design upgrades to existing tunnel lighting systems and motorways for the maintenance of the existing and improved lighting systems. LEDs can help with energy efficiency and conservation, which helps the nation's citizens save money on electricity use.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increase in the number of households to drive the growth of the LED market
- Reduction in imports from China to lead the growth of the LED lighting market in the country
- The LED market is driven by indoor farming and government incentives for the development of horticulture industry in the region
- About 75% of the population is expected to own a car, and the shifting trend toward larger vehicles to drive the growth of LED lighting
- LED penetration is driven by LED certification for commercial spaces, which increased by 30% in 2022
