The U.S. lightning product market comprises batteries and other lightning devices that are used for various applications such as consumer electronics, automotive, industrial and energy storage. The U.S. lightning product market is primarily driven by growing sales of electric vehicles which require high-capacity lithium-ion batteries for powering their motors. Lithium-ion batteries offer benefits such as high energy density, longer life span and lower self-discharging rate compared to lead-acid batteries. Growing awareness regarding environmental pollution caused by gasoline-powered vehicles is further augmenting the demand for EVs which in turn is fueling the sales of lithium-ion batteries in the country.
The U.S. lightning product market is estimated to be valued at US$ 294.57 Bn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the U.S. lightning product market are BYD Company Limited, Panasonic Corporation, Contemporary Amperex Technology Co. Limited, Samsung SDI Co. Ltd, TianJin Lishen Battery Joint-Stock CO. LTD, GS Yuasa Corporation, Duracell Inc., Clarios (Formerly Johnson Controls International PLC), VARTA AG, LG Chem Ltd, Tesla Inc. and EnerSys. BYD Company Limited and Tesla Inc dominate the U.S. EV battery market owing to their high production volumes of EVs.
The U.S Lightning Product Market Size provides numerous opportunities for manufacturers to expand their offerings and gain greater market share. The increasing penetration of EVs warrants sufficient availability of public EV charging infrastructure across the country. This presents an opportunity for players to set up widespread EV charging networks and partner with state governments.
Major players are actively expanding their manufacturing facilities in the U.S. to cater to the rising domestic demand and benefit from trade policies favoring locally produced goods. For instance, in 2021, Contemporary Amperex Technology Co. announced a battery gigafactory in Georgia along with substantial investments in recycling facilities. Several partnerships have also been formed to develop next-gen batteries and charging solutions.
Market drivers:
Rising EV sales: Growing sales of electric vehicles which require high-capacity lithium-ion batteries for powering their motors is a key driver. The U.S aims to have 50% of new car sales as EVs by 2030 which will significantly boost battery demand.
Market restraints:
High costs of batteries: The manufacturing and R&D costs associated with lithium-ion batteries remain high which increases the upfront costs of EVs. Lower battery costs are critical to accelerate EV adoption.
Segment Analysis
The U.S. lighting product market is dominated by the commercial sector sub-segment. This can be attributed to surge in construction of commercial infrastructures such as malls, offices, hospitals etc. as well as retrofitting of existing infrastructure with energy efficient lighting products. Additionally, key government policies supporting adoption of LED lights in commercial establishments have also augmented growth of this sub-segment. The residential sub-segment holds the second position due to rising disposable income and growing consumer preference towards aesthetically appealing and power efficient lighting solutions in homes.
Global Analysis
The South region holds a majority share in the U.S. lighting product market owing to presence of states like Texas, Florida which have witnessed considerable infrastructural growth. States in this region have also enforced green building codes and energy conservation policies favouring replacement of conventional lights with LED counterparts. The West region registers the fastest growth due to high concentration of key players in states such as California. This has made advanced lighting technologies readily available besides efforts taken towards modernization of energy infrastructure in the region.
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