Commercial sectors such as retail chains, warehouses, and office buildings are driving the recovery, as companies invest in energy-efficient retrofits and LED replacements. In parallel, consumer adoption of smart lighting systems—particularly voice-activated and app-controlled fixtures—has seen double-digit growth, supported by the continued expansion of home automation platforms like Amazon Alexa, Google Home, and Apple HomeKit.
“The trend is shifting from just energy savings to intelligent integration,” said Laura Jensen, a senior market analyst at NEMA. “From daylight harvesting in office complexes to voice-controlled ambient lighting in homes, the demand is coming from both ends of the market.”
The Inflation Reduction Act’s incentives for energy-efficient building upgrades have also played a crucial role in supporting lighting investments, especially in public infrastructure and multi-family housing projects. Several states, including California and New York, have introduced additional local rebates to encourage LED conversions.
Major manufacturers, including U.S. brands and global players with local operations, are responding with advanced product lines focused on tunable lighting, smart sensors, and wireless control. Distribution channels have also expanded online, with B2B platforms and direct-to-consumer e-commerce seeing higher sales volume.
Analysts expect the momentum to carry into 2026, with the U.S. lighting market projected to grow at an average annual rate of 8–10%, driven by technology integration, regulatory support, and heightened environmental awareness.