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The State Of Commercial Building LED Adoption

Installation of LED light fixtures in new construction and lighting upgrade projects continues to drive global growth in the sector. Numerous factors contribute to this expansion, which is now in its second decade of uninterrupted growth. Some of the primary drivers include 1) local and federal mandates, 2) the ever-growing awareness of the energy-saving and climate benefits of LEDs, 3) advancements in both the quality and flexibility of LED light, 4) network connectivity in with light fixtures, and control devices enabling data collection, and 5) rebates and incentives from energy providers and the government.

According to Grand View Research, North American LED adoption led the global market in 2023. The introduction of intelligent lighting solutions, which enable remote operation, automated processes, and energy usage monitoring via mobile applications or additional connected gadgets, has boosted the growth of the North American LED lighting market.

Despite all this growth, the commercial sector in North America remains a significant opportunity for more conversion to LED lighting and the associated smart technology. Estimates vary, but the consensus is that the adoption of LED lighting in commercial buildings has only recently surpassed the 50% threshold in North America. These estimates anticipate the year 2030 will see this number at 80% or more.

Still have not converted to LED in your commercial facility? What are you waiting for?

The onset of LED lighting as a practical illumination source started around 2012. That original LED technology was a significant leap forward in energy efficiency over incandescent and fluorescent alternatives. LED options were expensive and somewhat one-dimensional at the time. However, investment in the technology has accelerated efficiencies in manufacturing and created a myriad of additional benefits related to the installation of LED fixtures.

The investment required to install LED fixtures has declined significantly, but according to a study by the Design Light Consortium (DLC), integrating new LED lighting with network devices in commercial facilities is how facility owners and managers can realize the highest ROI. According to the DLC study, lighting projects that include smart control devices and networked luminaires can increase energy savings by over 50%. The DLC expects that by 2030, when LED adoption in commercial buildings should exceed 80%, only 14% will be utilizing smart control and network features.

If you are considering an LED lighting installation or upgrade project, talk with the expert team at Energy Planners to explore how network devices can boost your efficiency and energy savings.

Commercial and industrial LED adoption.

The benefits of converting to LED and networked control devices are significant for an organization’s bottom line and the positive environmental impact. Consumers are also rallying around companies that practice sustainability, and employees increasingly prefer to work for companies that recognize the need for sustainable operations.

Below is a list of the many factors driving the adoption of efficient LED and intelligent building technology.


In 2022, the Federal Building Performance Standard was published, and it requires federal buildings to cut energy use emissions in 30 percent of the facilities owned by the Federal government by 2030.

The Environmental Protection Agency instituted legal requirements for a minimum level of energy efficiency for residential and commercial buildings.

State and local energy standards related to lighting and controls are variable and can reviewed here.

Energy savings

According to the General Services Administration, lighting accounts for up to 25% of a building’s electricity consumption. Adopting LED luminaires can reduce electricity consumption by 50% over traditional fluorescent and incandescent lighting systems. Integrating control devices can push this number to 80%


LED lights are more energy efficient than alternatives and draw significantly less power than older fixture technology. This efficiency means that the LED fixture is doing more with less. The energy the LED fixture consumes is 95% converted into light, with only 5% lost to heat. This heat reduction can also reduce the HVAC demand for the building. The efficacy of the LED fixture is also greater than alternatives, meaning fewer fixtures are required to cover the same amount of space. An LED fixture also contains no toxic chemicals – unlike fluorescent tubes, and the lifespan of the LED luminaire is 25 years or longer – reducing the waste generated and the need for maintenance.

Technology advances

Networked lighting systems include sensors, analytics, power-over-ethernet (PoE) installation options, remote control devices, wi-fi access points, building occupancy analysis, and many other options to increase the efficiency of a commercial building. Learn more about the future of smart lighting and buildings.

Building as a grid

Integrating commercial buildings into the electrical grid can transform energy consumption and storage. This model is designed to balance the peaks and valleys of electrical demand in a smooth, reliable, and automated fashion. Learn more about how lighting systems play a role in the electrical grid revolution.

Light quality and health benefits

Commercial lighting applications require illumination designs for occupant productivity and visual comfort. Understanding circadian rhythm and the application of light color allows these designs to improve productivity, health, and even the mood of those in the space. Dim or flickering light and shadows require eyes to work harder to focus on reading and other tasks. This strain may lead to headaches, tiredness, and mental disengagement. Poorly designed or inferior lighting often results in slower reading or reduced concentration.

Rebates and incentives

Local, state, and federal rebates and incentives for energy efficiency improvements are available in every state. Research your opportunities here.


Not sure how to get started? Contact the EPCO team and let their decades of experience design a plan suited to your needs.