June 18, 2024
U.S. Lightning Product Market

U.S. Lightning Product Market Estimated to Witness High Growth Owing to Increasing Adoption of EVs

The U.S. lightning product market comprises batteries that are widely used as a power source in consumer electronics, electric vehicles, and energy storage applications. Growing popularity of electric vehicles and increasing demand for smart devices have boosted the need for high-performance, long-lasting and efficient lightning products. Lithium-ion batteries are the most commonly used lightning products owing to their properties like high energy density, minimal self-discharge, and longer shelf life. They are lightweight and more compact as compared to lead-acid batteries.

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 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. Some key players are investing heavily in R&D to develop improved battery technologies with higher energy density and longer life. This is expected to offer new growth opportunities.

The growing adoption of electric vehicles across the U.S. is a major opportunity for manufacturers. Government support in the form of subsidies and initiatives to increase EV charging infrastructure will drive the demand for advanced batteries. Several states have announced plans to switch to 100% zero-emission electric buses by 2030, which will significantly boost the market.

The trade war between U.S. and China has disrupted the global supply chain. However, key players are expanding their manufacturing facilities in the U.S. to cater to the rising local demand and reduce dependencies on imports. For instance, Tesla, LG Chem, and SK Innovation are setting up large battery factories. This is expected to leverage the market’s growth prospects.

Market Drivers

The major driver for the growth of U.S. Lightning Product Market Demand is the increasing adoption of electric vehicles. Several automakers like Tesla, GM, and Ford have announced huge investments in the development and production of EVs. Growing environmental concerns and stringent emission norms are compelling consumers to switch from gasoline vehicles to greener electric options. This is positively impacting the demand for advanced batteries with high energy density and performance.

PEST Analysis

Political: The government policies regarding transportation electrification and carbon emissions will impact the growth of the U.S. Lightning Product Market. Subsidies and tax credits for electric vehicles may boost demand.
Economic: As the overall economy grows, consumer spending and purchasing power increase, fueling sales of expensive lightning products. High inflation and rising interest rates could dampen market growth.
Social: Growing environmental awareness and sustainability concerns are encouraging more consumers to choose eco-friendly lightning options over traditional incandescent lights. Younger demographics are especially attuned to green solutions.
Technological: Advancements in battery technologies allow for longer-lasting and more powerful lightning products. Rapid charging capabilities and energy-storage innovations are expanding usage opportunities. Connected home devices and smart lighting systems are also gaining popularity.

The U.S. Lightning Product Market registers highest value sales in California, Texas, and Florida. These states have large populations and a strong presence of major OEMs and auto industry players. The Northeast region from New York to Massachusetts also contributes significantly given high consumer spending power in populated metropolitan areas.

The Mountain region spanning Colorado, Utah, Nevada and Arizona is seeing the fastest market growth. This is due to surging adoption of electric vehicles aligned with state initiatives promoting clean mobility solutions. Additionally, many tech companies have expanded operations into these states, driving demand for residential and commercial lightning needs.

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