The industry size of the United States and Canada residential lighting fixture market is projected to be USD 14.7 billion in 2025 and will achieve an 8.1% CAGR between 2025 and 2035. The industry size of these two countries is predicted to reach USD 31.9 billion by 2035.
One of the key drivers for this growth is the increasing uptake of smart lighting systems as part of the overall trend toward interconnected home ecosystems and energy efficiency. In the United States and Canada, increased usage of LED lighting fixtures is transforming homes. They offer greater energy savings and longer life than conventional lighting, so they're gaining popularity for new construction as well as remodels.
Versatility in design, adjustable intensity, and the growing array of styles available from manufacturers, from modern minimalism to historically styled fixtures, also win over homeowners.
Demand is also spurred by government policy in both countries that encourage energy-efficient upgrades. Rebates and incentive programs provided by utilities, as well as new building codes mandating efficiency levels, are fueling greater adoption. Green building certifications such as LEED also continue to encourage the use of efficient lighting products in residential buildings.
Technological integration is a major differentiator in this industry. App-controlled, voice-controlled, and sensor-controlled fixtures are going mainstream for luxury as well as mid-range homes. The trend aligns with increasing consumer demand for convenience, security, and sustainability.
The residential lighting fixture industry in the USA and Canada will continue to expand owing to robust building activity, transformation of urban lifestyle, and significant emphasis on living climate-responsibly. Industry growth will be sustained steadily over the forecast period due to innovation focusing on modularity, energy conservation, and Internet of Things-enabled products.
In the USA and Canadian residential sector, lighting fixtures tailored to smart consumer electronics are in high demand, with homeowners increasingly prioritizing compatibility with digital assistants and wireless control platforms. This segment sees balanced interest in efficiency and visual appeal, especially in metropolitan and suburban housing markets.
Industrial and environmental sectors are expanding due to rising awareness of energy audits and the need for optimized resource use. In these areas, lighting products must meet stringent reliability and performance standards, especially where system monitoring and automation are critical. The demand for regulatory compliance is especially high in Canada, where sustainability regulations are advancing rapidly.
Healthcare-related applications in residential spaces, including antimicrobial lighting and UV-based disinfection systems, have grown in relevance post-pandemic. This industry segment emphasizes performance, safety, and compliance with emerging health standards, particularly in multigenerational and senior living environments gaining popularity in North America.
In the United States and Canada, the residential lighting fixture market faces several notable risks despite its strong growth outlook. One of the primary risks is rising material and transportation costs, which can reduce margins and push retail prices higher. Disruptions in international supply chains also affect the availability of electronic components critical for smart lighting features, which may delay delivery timelines or limit product variety.
Regulatory divergence between USA federal energy mandates and Canadian provincial energy codes can create operational complexity for manufacturers. Compliance costs may increase as firms must navigate differing documentation and certification processes, particularly for LED and IoT-integrated fixtures. Smaller manufacturers could find it difficult to scale while maintaining cross-border compatibility.
Technological obsolescence poses another challenge in this fast-evolving industry. Consumers expect lighting products to integrate seamlessly with the latest smart home platforms, and companies that fail to keep pace risk falling behind. Rapid changes in connectivity standards and cybersecurity expectations demand continual product updates, placing a burden on R&D teams and increasing lifecycle costs
During the period from 2020 to 2024, the United States and Canadian residential lighting fixture market saw a dramatic shift owing to increased home improvement activity and increasing demand for energy-efficient products. Due to extended home stays during and after the pandemic, consumers focused on ambiance lighting and functionality and chose LED-based products and smart lighting systems.
Aesthetic appeal and customization also figured in more, with homeowners preferring fixtures that kept up with shifting interior design fashion. Additionally, a growing sense of environmental responsibility contributed to using energy-efficient lights and fixtures made of recyclable or sustainable resources.
Soon, between 2025 and 2035, the industry will likewise shift with mounting adoption of smart home technologies. Lighting fixtures will increasingly incorporate voice control and IoT-based technologies for residents to have greater control over mood, color temperature, and energy consumption.
Sustainability will continue to be at the core, while innovation takes the shape of low-impact material, extended-life cycle products through modularity, and solar-integrated choices. Personalization will be more sophisticated, with lighting solutions tailored to fit lifestyle and circadian rhythms using data-driven platforms and app-based ecosystems.
Comparative Market Shift Analysis 2020 to 2024 vs. 2025 to 2035
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| Increasing focus on energy-efficient, tastefully consistent illumination | Requirement of intelligent, personal, and wellness-oriented lighting |
| Emergence of LED lighting and early adoption of smart home functions | Full adoption of IoT, voice control, and circadian lighting solutions |
| Integration of recyclable material and energy-efficient innovations | Shift toward solar-powered, modular, and low-impact material innovation |
| Shift toward minimalism and fixture personalization | Personalized, adaptive lighting suited to lifestyle and well-being goals |
| Home improvement trends and lifestyle post-pandemic shifts | Integration of smart homes, green policies, and artificial intelligence-based solutions |
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 6.4% |
| Canada | 5.8% |
The USA industry will grow at 6.4% CAGR over the study period. With high urbanization rates, smart home penetration and sustainability-oriented regulatory policies, the USA residential lighting fixture industry is set to witness strong growth.
Consumers are increasingly shifting towards energy-efficient LED lighting systems that are frequently augmented with smart features. Government incentives to conserve energy have also helped to drive this momentum, specifically in the form of incentives and rebates for upgrading residential lighting systems to environmentally friendly systems.
Surprising leaps in IoT and home automation technologies have also transformed customer expectations, stimulating the integration of lighting with AI-driven systems, voice control, and sensor work. Trends in interior design have also spurred demand for decorative and personalized fixtures.
The USA industry is fueled by a robust domestic manufacturing base and tech-driven retail environment, enabling innovation in aesthetics and energy efficiency. Internet portals have also been instrumental in broadening product availability and price competitiveness.
Further, rising disposable income and demand for home improvement after the pandemic have also stimulated industry activity. The future will also see a surge in wireless, app-based lighting systems and the use of sustainable materials, further cementing the nation's leadership position in the residential lighting fixture industry.
The Canadian industry will be growing at 5.8% CAGR throughout the study. Although proportionally smaller in population size than the USA, Canada's home lighting equipment industry is being propelled by rapid growth because of favorable government policy, increasing environmental awareness and an increasing concern for energy-saving solutions throughout urban and suburban regions.
Much of the demand results from the replacement of traditional lighting systems with smart and LED lighting technologies with longer lifespans and lower ownership costs. The adoption of smart lighting technologies in homes is gaining pace in Canadian cities, driven by advances in wireless infrastructure and rising smartphone penetration.
Canadian residential homes demand for contemporary style and straightforward interior design is also promoting innovation in the styling of fixtures, cleanness, simplicity of lines, sustainability and efficient compactness. In addition, building codes requiring low-energy lighting products have promoted homeowners and developers to use advanced lighting.
Climatic regional conditions, such as severe winters and restricted natural light in parts of the country, are contributing to the demand for efficient and superior residential lighting. The renovation segment is also driving growth, with lighting taking a focal role in home renovation activity. The Canadian industry is set to continue to derive benefits from growing digitalization and environmental performance concerns.
Pendants will retain the highest industry share among domestic lighting fittings in the USA and Canada between 2025 and 2035. Their attraction stems from a combination of decorative purpose and focused illumination, making them perfect for dining rooms, kitchen islands, and entranceways.
As open-plan living gains popularity, pendants create a statement while keeping the space functional. Industry leaders like Signify (Philips), Acuity Brands, and Kichler Lighting are growing their pendant lines with intelligent, dimmable LED products that reflect energy efficiency and style trends. Based on current adoption rates and renovation trends, pendants are expected to capture 33-36% of product-type industry share by 2030. Flush mount ceiling lights account for the second-largest category because they are well-suited for low-ceilinged rooms with minimal space, like bedrooms, hallways, and laundry rooms.
These lights are used extensively in both single-family and multi-unit residences because they are convenient and relatively inexpensive. Manufacturers like Lithonia Lighting, Progress Lighting, and Hampton Bay continue to introduce flush mount models that focus on ease of installation and LED compatibility.
Though design enhancements have enhanced their attractiveness, conservative growth within this segment is linked to affordability and replacement cycles and not to design creativity. Industry share is anticipated to stabilize at 22-24% by 2035 on the back of continuous demand within small residential applications.
Hardwired lighting dominates the residential lighting fixture industry within the USA and Canada, constituting the norm for permanent installations. These products are integrated into the home's electrical infrastructure, providing durability, safety, and compatibility with contemporary lighting control systems.
Widely used in new construction and large-scale remodels, hardwired products are at the core of functional and architectural lighting designs. Major providers like Hubbell Incorporated, Eaton Corporation, and Leviton fuel this segment with smart-ready and energy-efficient solutions.
As a result of their important function in primary lighting throughout the home, hardwired lighting fixtures are expected to hold more than 60% of the power source industry share through 2035, increasing with new home building and smart home take-up.
Battery-powered lighting fixtures have a smaller but expanding share of the residential industry. Their fundamental advantage is flexibility, simplicity of installation, and adaptability to temporary or otherwise hard-to-wire spaces like closets, under-cabinet, or outdoor patios.
They are in demand by renters and shoppers looking for DIY-friendly lighting. Companies like Mr. Beams and Brilliant Evolution are introducing motion-sensing capability and rechargeable options into their product lines. Albeit constituting under 10% of the industry, battery-powered lighting is also set to rise steadily projected CAGR of 8-10% driven by ongoing gains in battery longevity, LED performance, and the need for convenient, portable illumination.
The residential lighting fixture industry in North America is highly competitive among the key players, which are always innovating to satisfy the consumers' qualities of energy efficiency, smart lighting solutions, and aesthetic appeal.
Philips remains the leading industry player on the back of its extensive product portfolio, which consists of LED and smart lighting solutions, and has built strategic partnerships in the smart home space. This has given the company a strong focus on sustainability and cutting carbon emissions, along with providing eco-friendly solutions across home applications.
Acuity Brands Lighting, Inc. holds its strong second position since its coverage is very wide in that extensive range of lighting fixtures and controls for both the residential and commercial sectors. Acuity is also known for its advancements in energy-efficient products as it continues to branch out into smart lighting, thus positioning itself as one of the leaders in innovation for both design and functionality.
Likewise, Eaton Corporation has built itself into one of the most popular companies with its varied portfolio, which includes lighting control systems and energy-efficient solutions. This has put Eaton solidly in front for its foray into the intelligent home and IoT integration sectors.
Other major competitors like Lutron Electronics Co., Inc., Leviton Manufacturing Co., Inc., and Legrand have largely retained their edge in the industry with their high-performance residential lighting solutions and controls. These companies focus more on quality, design, and energy-efficient technologies.
On the other hand, RAB Lighting, Osram Licht AG, and Cree, Inc. are using the advantages created by advancing LED and energy-efficient technologies to generate economically feasible, long-lasting lighting products for residences. These players, however, are seeking diversification by venturing into outdoor and industrial lighting markets.
Market Share Analysis by Company
| Company Name | Market Share (%) |
|---|---|
| Philips | 24-28% |
| Acuity Brands Lighting, Inc. | 18-22% |
| Eaton Corporation | 12-16% |
| Leviton Manufacturing Co., Inc. | 8-12% |
| Legrand | 6-10% |
| Other Players | 18-24% |
| Company Name | Offerings & Activities |
|---|---|
| Philips | Leader in LED and smart lighting solutions; commitment to sustainability. |
| Acuity Brands Lighting, Inc. | Wide range of energy-efficient lighting fixtures and smart controls. |
| Eaton Corporation | Diversified portfolio in lighting control systems and energy-efficient products. |
| Lutron Electronics Co., Inc. | Known for lighting controls and dimming systems, expanding into smart home solutions. |
| Leviton Manufacturing Co., Inc. | Lighting controls, dimmers, and smart lighting solutions. |
Key Company Insights
Philips continues to command a leading industry share of approximately 24-28%, with a strong focus on sustainability and innovation. The company’s wide-ranging portfolio in LED and smart lighting technologies, along with its strategic partnerships in the smart home sector, ensures its leadership in both residential and commercial lighting solutions.
Acuity Brands Lighting, Inc., with an industry share of 18-22%, remains a formidable competitor through its emphasis on energy-efficient products and smart home integration. Acuity continues to innovate in the design and functionality of lighting fixtures, aiming to enhance user experience while delivering energy savings.
Eaton Corporation holds a significant 12-16% share and is focusing on expanding its smart lighting capabilities and IoT-enabled products for residential use. By offering a diverse range of energy-efficient solutions, Eaton has positioned itself as a leader in providing advanced and integrated lighting solutions.
Lutron Electronics Co., Inc., with an 8-12% share, is capitalizing on the growing demand for advanced lighting control systems and smart home solutions. Lutron’s products emphasize quality, reliability, and user-friendly interfaces, keeping the company competitive in the residential market. Leviton Manufacturing Co., Inc. (6-10%) focuses on providing premium lighting controls and dimmers, also expanding its presence in the smart home industry through integrated lighting solutions.
By product type, the industry is segmented into chandeliers, flush mount ceiling lights, pendants, semi-flush mount ceiling lights, and other types.
By power source, the industry is divided by power source into battery-powered, corded-electric, and hardwired.
By technology, the industry is categorized by technology into incandescent, fluorescent, and LED.
By usage, the industry is divided by usage into indoor and outdoor.
By sales channel, the industry is segmented by sales channel into direct sales, modern trade, departmental stores, specialty stores, online retailers (direct to consumer and third-party to consumer), and other sales channels.
By country, the industry is segmented by country, including the United States (with further subdivisions into West Region, South West Region, Mid-West Region, North East Region, and South East Region) and Canada.
The industry is expected to reach USD 14.7 billion in 2025.
The industry is projected to grow to USD 31.9 billion by 2035.
The industry is expected to grow at a CAGR of 6.4% during the forecast period.
Pendants are a key segment within the residential lighting fixture industry.
Key players include Philips, Acuity Brands Lighting, Inc., Eaton Corporation, Lutron Electronics Co., Inc., Leviton Manufacturing Co., Inc., Legrand, Ideal Industries, Inc., RAB Lighting, Osram Licht AG, Cree, Inc., Osram Sylvania, Hubbell Lighting, Cooper Lighting, Zumtobel Group, and Panasonic.
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United States and Canada Residential Lighting Fixture Market
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