July 13, 2024
U.S. Lightning Product Market

U.S. Lightning Product Market Poised to Grow Substantially due to Rising Adoption of Electric Vehicles

The U.S. lightning product market comprises batteries that power various consumer electronics as well as electric vehicles. Lightning batteries provide reliable and sustainable energy storage solutions for applications ranging from power tools to electric automobiles. Driven by the growing ownership of smartphones, laptops and other portable electronic devices, the demand for high-performance yet affordable lighting batteries has increased tremendously. Furthermore, the rising popularity of electric vehicles (EVs) has boosted the consumption of advanced lithium-ion batteries in the country.

The Global 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: 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.

Key opportunities: The growing demand for batteries from the electric vehicle industry as well as conventional consumer electronics presents lucrative opportunities for lightning product manufacturers to expand their business in the U.S. market. Furthermore, advancements in battery technologies will drive the innovation of high-performance yet affordable lighting solutions.

Technological advancement: The development of solid-state batteries promises to enhance the energy density, lifespan and safety of rechargeable batteries. Several automakers are collaborating with battery tech companies to develop affordable solid-state batteries for electric vehicles. This will further accelerate the adoption of EVs in the country.

Market drivers: Rising disposable incomes have increased consumer spending on electronic devices such as smartphones, laptops, power tools etc., thereby driving the sales of lighting batteries in the U.S. Additionally, supportive government policies and tax incentives are promoting electric vehicle adoption, which is the key factor fueling the demand for advanced lightning products in the automotive industry.

Current challenges in U.S. Lightning Product Market:
The U.S. Lightning Product Market Growth is facing challenges of high raw material prices and supply chain disruptions. There is shortage of key raw materials like lithium, cobalt and nickel used in manufacturing of lighting products which has increased their prices. The supply chain disruptions caused due to pandemic and geopolitical issues have further exacerbated the challenge of high raw material prices. This is negatively impacting the profitability of lighting product manufacturers. Second major challenge is transition towards more energy efficient and eco-friendly lighting solutions. Traditional lighting solutions need to be replaced with LED lights which requires huge capital investments and change in consumption behavior. Third challenge is growing competition from local and Chinese manufacturers providing low cost lighting solutions. This is posing pricing pressure on established brands.

SWOT Analysis

Strength: Established brands and wide distribution network. Innovation in energy efficient lighting solutions like LED and OLED.
Weakness: High dependence on few raw material suppliers makes supply chain vulnerable. High R&D costs for developing new technologies.
Opportunity: Growing demand for smart and connected lighting systems provides new areas of growth. Government initiatives and norms favoring eco-friendly lighting.
Threats: Threat from low cost counterparts.Stringent environment regulations increase compliance costs.

Geographical Regions

In terms of value, the Southern region of United States accounts for over 35% of the total lighting product market share led by states like Texas, Florida and North Carolina. This is due to large residential and commercial construction activities in this region. The Western region is second largest market concentrated in states of California, Washington and Arizona contributing 25% share.

The Northeast region is the fastest growing market for lighting products in United States projected to grow at over 20% CAGR during forecast period. States like New York, Pennsylvania and New Jersey are spearheading this growth driven by increasing urban infrastructure development projects, renovation of old buildings and adoption of smart city initiatives requiring advanced lighting solutions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it