U.S. LIGHTNING PRODUCT MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Drivers

1. Growing adoption in non-residential building construction is expected to drive growth of the U.S. lighting product market

Rising demand for lighting fixtures among building contractors for hotels, offices, and commercial structures are expected to drive the market growth. Non-residential construction accounts for the largest amount of lighting products consumption in the U.S. and is one of the most promising segments for the growth of retail lighting product sales in the U.S. According to the U.S. Census Bureau published a survey named - The Value of Construction Put in Place Survey (VIP) that provides monthly estimates of the total dollar value of construction work done in the U.S., the VIP for non-residential building construction was US$ 430,053 Mn, from US$ 393,934 Mn in 2015. Hence, these factors are expected to drive growth of the U.S. Lighting product market during the forecast period.

2. Increasing demand for LED lighting fixtures is expected to propel the U.S. lighting product market growth over the forecast period

Adoption of LED lighting in the U.S. has increased significantly in the recent past. This is owing to high energy-efficiency and extended life span of LED lighting fixtures. Moreover, LED lightings are brighter and more aesthetic as compared to conventional lighting products. LED lighting can be used in a variety of buildings such as commercial, industrial, and residential. Moreover, they are now being used for streetlights, in order to save costs and energy. Thus, these factors are expected to support the U.S., lighting product market growth over the forecast period.

Market Dynamics- Restraints

1. Significant decline in new residential constructions is expected to hamper the U.S. lighting product market growth over the forecast period

In 2016, new-home (residential) construction in the U.S. unexpectedly declined. According to the U.S. Commerce Department report, housing starts, which is an economic indicator that reflects the number of privately owned new houses, dropped 3.8 % to a 1.1 million annualized rate, from a 1.14 million pace. This slowdown in residential construction is expected to reduce the demand for lighting fixtures and thereby hinder the U.S. lighting product market growth in the near future.

2. High initial cost of LED lighting fixtures is expected to restrain growth of the U.S. lighting product market during the forecast period

Although there is high demand for LED lighting fixtures, the initial cost for installation of these products is significantly higher than conventional lighting products. It is also true that LED lights have an extensive lifespan, small business owners are still unwilling to adopt LED lighting products due to high initial costs. Thus, these factors are expected to hinder the U.S. lighting product market growth over the forecast period.

Market Opportunities

1. Advent of solar-powered lighting product can present major growth opportunities

Introduction solar-powered lighting products have started to gain traction among end users, owing to significant cost-savings. Solar-Powered street lights are being deployed and tested in parts of the U.S. For instance, Las Vegas plans to utilize renewable energy throughout the city by using solar and kinetic powered street lights. Many key players in the market are focused on capitalizing on this opportunity by providing a range of solar-powered decorative lighting products such as lamps and decorative fixtures. Moreover, the U.S Federal government’s continuous efforts to minimize energy consumption is expected to give a boost to solar-powered lighting products in the country.

2. Introduction of smart lighting offer lucrative business opportunities

Smart lighting refers to the technology that includes automated controls and high-efficiency fixtures that make proper adjustments suitable to surrounding conditions such as occupancy or daylight availability. Smart lighting is typically installed to save both energy and costs, thus it has gained significant traction in various industry verticals. Residential as well as commercial building owners are adopting smart lighting, in order to provide better aesthetic view and reduce energy consumption.