United States Hazardous Location LED Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The United States Hazardous Location LED Lighting Market is expected to register a CAGR of 9.1% over the forecast period (2021 - 2026).

Key Highlights

• The capital investment in retrofitting a hazardous location facility to LED technology can be significant. However, when the change to LED is implemented effectively, it offers a compelling return on investment(ROI) in energy savings, reduced long-term maintenance, and improved facility safety.
• The manufacturing industry accounts for nearly 32% of the energy usage in the United States while representing the most significant energy cost reduction opportunities in the country. Therefore, the LED lighting systems provide a potential chance to cost-effectively eliminate 15% to 32% of the energy usage by 2025.
• The vendors in the region are observed to have increasingly participated in multiple launches to upgrade their existing LED lighting offerings for hazardous locations. For instance, in the recent past, Emerson introduced a solution for the oil and gas industry to illuminate land-based drilling rigs.
• To attract industrial customers, customizing light output by the environment has become a common trend among manufacturers. Hence, tunable LED lighting solutions have been witnessing an improvement in adoption in the past few years. In the market studied, mergers, acquisitions, and collaborations are the prevailing trends adopted among the market players for product innovation and inorganic growth.
• The outbreak of COVID-19 has led to a weakened growth of industrial output and the decline in light-manufacturing production across significant manufacturing hubs, owing to the halting of production and disruption in the supply chain across the country. According to the US Department of Energy’s report published in July 2021, many LED manufacturers cited a decreased demand for lighting products due to the challenges faced after the COVID-19 pandemic.

Key Market Trends

Increasing Demand for Low-Cost, Low-Energy LED Lighting Solutions

• The market studied is driven by many factors, such as improved manufacturing efficiency, lower prices, improved LED efficacy in recent years, and suitable LED lamps and retrofit kits, which can directly replace the existing halogen incandescent and fluorescent lamps.
• LED is a highly energy-efficient technology for lighting. According to the US Department of Energy, residential LEDs in the United States, especially ENERGY STAR-rated products, use at least 75% less energy and have a life span that is 25 times longer than incandescent lighting. Also, LEDs are small and directional, suitable for various uses in residential settings. Owing to these benefits, indoor application and residential uses are the largest revenue-generating segments in the studied market.
• The increasing demand for energy-efficient lighting systems, stringent government regulations, and declining prices of LED products are some of the major factors driving the adoption of LED lighting in the United States. LEDs have been undergoing rapid technological and economic development as a new source of lighting, which has been motivating investment in the sector in the country.
• According to the US Department of Energy, most of the projected energy savings in 2035 may be driven by the increased use of LED lighting in commercial and industrial buildings and outdoor lighting applications - applications characterized by high light output and long operating hours.
• The integration of intelligent features for connected lighting has also been emerging as one of the significant drivers in the market studied, as LED is one of the major components. Government initiatives for smart cities have been majorly contributing to the increasing demand for smart lighting solutions. Connected lighting systems are anticipated to emerge as one of the most critical components of the smart city infrastructure. According to the Consumer Technology Association, smart city spending will reach USD 26 billion by 2020.

Industrial Application is Going to Observe a Significant Growth

• The US industrial sector fosters the growth of the market studied, with increasing investments in industry-grade LED technologies. Within an industrial facility, there are multiple locations where high vibration, chemicals, debris, and potential explosives are present. These factors primarily impact the lifetime and performance of light fixtures installed within these locations.
• For example, operations, such as aggregate processing and storage, can have significant dust accumulation, while other chemical processing operations are highly caustic environments. As lighting technologies are evolving, there have been improvements in a lifetime, energy efficiency, color, and safety. Furthermore, to ensure reliable, safe, and effective performance over the LED luminaire's life, several market players are designing LED light fixtures for specific uses in hazardous and heavy industrial applications.
• ​Industrial-grade LED lighting solutions usually come with high resistance to corrosion, abrasion, and peeling and maintain color stability over time, even in the event of high exposure to sunlight. ​Moreover, many conventional industrial lighting solutions, especially HID systems, are not compatible with advanced sensors and wireless controls. Moreover, long strike-up times often force facilities to leave these lights on for longer periods.​
• Major US lighting companies are primarily engaged in an aggressive expansion of the LED lighting market. They are continuously increasing the penetration rate of LED lighting by launching many new industry-grade products. The application development direction is moving toward smart lighting, light communication, and other emerging fields.
• Furthermore, long-life LEDs and new installation technologies reduce maintenance costs over time and enhance safety by minimizing the need for scaffolding and other apparatus for frequent lamp or ballast changes. The lower maintenance requirement improves safety and lessens accident probability by eliminating the risk of working at heights.

Competitive Landscape

The Hazardous Location LED Lighting market is moderately fragmented. Players tend to invest in innovating their product offerings to cater to the LED Light industry's changing demands. Moreover, players adopt strategic activities like partnerships, mergers, and acquisitions to expand their presence. Some of the recent developments in the market are:

March 2021 - Hubbell Control Solutions has released the NX Distributed IntelligenceTM Lighting Control Panel (NXP2 Series), which centralizes connection points in an enclosure and provides an installer-friendly solution that minimizes time and costs to deploy code-compliant lighting control.

March 2021 - WorkSite Lighting, a provider of explosion-proof lighting and portable power distribution units, has introduced a new 70W LED explosion-proof light for use in hazardous industrial environments. The XP 70W LED light is vibration resistant for extended life in portable applications, comes with a one-year industrial warranty, and is designated for Class I Division I regions with explosion-proof criteria.

July 2021 - Larson Electronics, a Texas-based business with more than 40 years of experience in the industrial lighting and equipment industries, has announced the release of a hazardous site LED pivoting light fixture in Class I, Division 2. This explosion-proof LED light includes a DALI-PWM signal converter as well as dimming controls. This unit features an analog output module that uses Modbus TCP/IP protocol.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support