Lighting Fixtures Manufacturing in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

Manufacturers have experienced heightened volatility in recent years, largely because of fluctuations impacting construction activity. Although the early stages of the pandemic supported residential construction activity and boosted lighting fixture sales, these trends reversed quickly because of rising inflation, growing consumer uncertainty and increasing interest rates. On the other hand, nonresidential construction activity faced drastic losses at the start of the pandemic, as elevated unemployment, work-from-home trends, social distancing requirements and weakening corporate profit discouraged large commercial construction projects. These trends resulted in revenue dropping at an estimated CAGR of 1.7% to $13.8 billion through 2024, including a lag of 0.4% that year alone.

Trends and Insights

• Manufacturers struggle to compete with imports.
• Low operating costs overseas and a strengthening US dollar have made imported lighting fixtures more affordable domestically, enhancing price-based competition. Demand for residential lighting fixtures benefited from a boom in residential construction.
• However, elevated inflation and interest rate hikes in 2022 caused demand from the residential sector to shrink. Strong construction activity lures manufacturers to the West.
• The region is home to a large portion of the population, resulting in a steady flow of construction projects. Imports pose a significant threat to domestic producers.
• Foreign manufacturers satisfy close to half of domestic demand, mainly because of their lower operating costs and similar product quality.

Industry Overview

Industry revenue has declined at a CAGR of 1.7 % over the past five years, to reach an estimated $13.8bn in 2024.

Trends and Insights

Macroeconomic conditions help determine the health of the sector Changes in macroeconomic trends directly impact downstream demand. Since the start of the pandemic, companies have been negatively impacted by rising unemployment and elevated office vacancy rates.

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

• Interest rates and trade conditions heavily influence demand
• The Federal Reserve has reiterated its intentions to lower inflation and will not lower interest rates until inflationary pressure cools. The Fed will likely maintain interest rates steady until economic conditions stabilize, limiting growth opportunities.