For the past two years, Luxeon LED technology has been used to light the display, but this will be changed to energy-efficient, long-life LEDs by manufacturer Philips Lighting North America.
Ed Crawford, chief executive officer of the firm, commented that it is not just "global icons" such as the Times Square Ball that can benefit from LEDs, but consumers in their own homes too.
He described LEDs as a "rapidly-emerging technology", which has the potential to reduce global consumption of energy.
Mr Crawford added: "We are delighted to be able to use our global expertise to help upgrade the Times Square Ball and showcase an exciting new era in lighting technology to the world."
This week, eTravel Blackboard revealed that the biggest cruise ship in the world - the Oasis of the Seas - uses LED lighting on areas of its balconies.
