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U.S. Demand for Lighting Fixtures to Reach $32.5 Billion in 2018

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U.S. Demand for Lighting Fixtures to Reach $32.5 Billion in 2018

Demand for lighting fixtures in the U.S. is expected to increase 7.7 percent annually to reach $32.5 billion in 2018, according to a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The increase will be fueled by the ongoing recovery in both residential and nonresidential construction activity, as well as by rising personal consumption expenditures as the economy continues to improve following the recession of 2007-2009 and subsequent slow recovery. According to analyst Melissa Pantel-Ku, “Growth will be spurred by increasing interest in higher value, technologically advanced fixtures that are more energy efficient and are optimized for new light source technologies.” Sales of LED lighting fixtures are expected to nearly triple through 2018 to account for more than 50 percent of total fixture sales, well up from 7 percent in 2008.

Construction applications account for the majority of lighting fixture demand and are expected to post the fastest growth among major markets. A variety of non-portable lighting fixtures for indoor and outdoor use are employed in residential and nonresidential buildings, as well as in non-building settings such as roadways, marinas, and parks. Advances will be driven by a recovery in construction spending, with particularly rapid gains in both the residential and non-residential building segments. Retrofitting of fixtures with energy-efficient types optimized for advanced light source technologies will help to drive these gains, since building owners and facility managers are eager to reap the savings on electricity that such fixtures offer.

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