The Surprising Truth About the US Christmas Lights Industry

packaged LEDs are getting big

As a holiday tradition, adorning one’s tree (and eventually one’s house) dates back to the early 20th century when Christmas lights came to the fore- having been invented as a safer alternative to candles which when bumped or knocked over, had the unintended effect of turning Christmas trees into blazing demonstrations of how quickly fires could engulf houses. Over the years, Christmas lights moved from our trees to our houses (after all, you are unlikely to see lights from outside very well), which was deemed a reasonable extension of the holiday spirit. When carried out in moderation.

Economics of the Christmas Lights Industry

The Christmas lights industry is, undoubtedly, one of the fastest growing service industries in Canada and the U.S. Commercial business owners as well as residential homeowners spend more than a billion dollars each Christmas season for this service and other related products. They wish to share in the Christmas spirit but do not have the time to hang the lights themselves. This is the opportunity that is seized upon by Christmas Light installers who come in and consequently cash out. 


According to sources, the Christmas Lights Industry has experienced an incredible 1000% increase in growth over the past decade as evidenced by the demand for Christmas light installation which seems to increase every year. For some reason, people want to outdo their neighbors with a brighter and bigger display of lights. 

Another emerging aspect of Xmas lighting is laser based projector lighting which has become a huge industry within the last 3-4 years with projector prices constantly becoming lower.  Consumers have realized the benefits of laser based lighting systems and which have huge advantages of traditional lights.

Running a Christmas light business can earn you enough in 3 months so you can either run another seasonal business during the other 9 months of the year or take the rest of the year off. Generally, installation commences in early November and focuses mainly on commercial properties. This is when business owners typically start to look for leads and begin their installations. The season lasts up to late January by which time you should have taken down all the lights from your clients’ businesses and homes.

led figures for the last 6 months US stats


Christmas lights installation enterprises can make upwards of $1,000 a day, per work crew during the entirety of the season. In fact, well-organized installation crews can rake in more than $2,000 per day, with some installers earning more than $3,000 a day when contracted on larger residential and commercial jobs. Overall, most mid-size Christmas light installation businesses make anywhere between $100,000 and $150,000 each year- in only 3 months. There is definitely a ton of money to be made in this industry as you will be providing an essential service that is highly sought after year after year.

Each year, U.S. consumers spend more than $6 billion on Christmas decorations. That is a lot of icicle lights, inflatable snowmen, and nativity scenes. One of the biggest costs? Well, Christmas lights. Not only does it leave a dent on your wallet to deck the halls, but it also costs more than you may think to keep it so.

The average American family typically spends anywhere between $60 and $350 extra on their electric bill during the holiday season. So, before you start competing with your local mall this Christmas, find out how much all those strands of lights will set you back.