Lighting Fixtures Demand to Exceed $25 Billion in 2016

Demand for lighting fixtures in the US will increase 7.5 percent annually to $25.3 billion in 2016, recovering from the declines of the 2006-2011 period.  An expected rebound in building construction activity and improved outlook for motor vehicle production will be important drivers for the lighting fixture market.  Demand will also benefit from the greater use of lighting fixtures that are specifically designed for energy-efficient light sources such as light emitting diodes (LEDs). These and other trends, including market share and product segmentation, are presented in Lighting Fixtures, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.  

Construction applications account for the majority of lighting fixture demand and through 2016 are expected to post the fastest growth of any major market, rising 8.5 percent annually to $15 billion.  Lighting fixtures are widely used in residential and nonresidential buildings, as well as in nonbuilding settings such as roadways, marinas, docks, and quarries.  The residential market is expected to post the strongest gains in percentage terms, driven by the rebound in housing construction from a low 2011 base. 

The large nonresidential market for lighting fixtures will also experience strong growth through 2016, increasing nearly eight percent per annum.  While not as fast in percentage terms, the large size of the nonresidential market means that this segment will provide the best overall opportunities, with an additional $3.1 billion in demand in 2016, compared to the 2011 market. 

The nonbuilding lighting fixture market is forecast to grow the slowest of the major construction markets, reflecting the segment’s good performance between 2006 and 2011 in comparison to both the residential and nonresidential segments.

The vehicle and machinery market is expected to rise 7.5 percent annually through 2016, supported by a rebound in motor vehicle production and strength in shipments of aerospace and other transportation equipment (e.g., industrial vehicles, trains, and boats). 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.