Market Trends of south america indoor led lighting Industry
Increasing population and affordable housing plans in the region to drive the growth of the indoor LED lighting market
- In South America, Brazil, Colombia, and Argentina are the main countries in terms of revenue and population. In this region, Brazil occupied a major share of the population, which accounted for 212.5 million, followed by Colombia with 50.8 million in 2020. 85.5 % of the population lives in urban areas. The population in this region is growing at a rate of 0.8% change. Thus, the increase in population is expected to create more LED penetration and increase the need for illumination in the country.
- In Brazil, disposable income is growing, which results in the rising spending power of individuals and affording more money on new residential spaces. Brazil's monthly earnings increased up to USD 4,779.7 in December 2017 from USD 4,272.3 in December 2016. In Argentina, monthly earnings increased to USD 4,354.6 in December 2022 from USD 3,539.2 in December 2021.
- Brazil’s affordable housing program is making a return. Brazil’s president announced plans to restart the nationwide federal housing program for low-income individuals in February 2023. President initially created the program, named “Minha Casa, Minha Vida,” which translates to “My Home, My Life,” in 2009. Sales of homes are increasing, and construction work is picking up. The overall number of residential sales in Sao Paulo increased by 7.9% year-over-year to 50,728 units in the first three quarters of 2022, and the number of launches increased by 4.3% to 51,715 units. The above instance suggests that the rate of house ownership will increase in the coming years because, as stated above, the government offering housing programs, sales of homes, and new constructions of homes are increasing. Such instances are expected to surge the demand for indoor LED lighting in the region.
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The indoor LED lighting market is propelled by increasing partnerships and government initiatives to increase lighting electricity consumption
- Residential consumption accounts for 42% of total energy use in South America. The nation's construction production is anticipated to rise. The largest nation in the area, Brazil, did well in 2021, with levels greater than before the pandemic. Additionally, to develop infrastructure projects in South America, the United States Trade and Development Agency (USTDA) and the CAF-Development Bank of Latin America (CAF) reaffirmed their partnership in July 2022. The region's LED market is expanding as a result of the rise in construction activities.
- Electricity demand in the commercial sector tends to be around 8-10 hours. Electricity use in the industrial sector tends not to fluctuate through the day or year. Electricity demand in the residential sector varies for about 7 to 9 hours. In addition, the streetlight program required structuring up to 15 public-private partnership (public-private partnership (PPP) agreements in two different cycles in 2022. Five municipalities have already entered into PPP concession agreements with private partners in the first phase to enhance service delivery. This will necessitate spending about USD 106 million to replace 389,000 streetlights with LED technology. This will result in better illumination.
- The Ministry of Energy and Mining established an effective Public Lighting program in 2022. With the help of this program, various communities around the nation will switch over to LED street lighting that uses less energy. Initiatives to promote the use of energy-efficient technologies, such as intelligent lighting systems, are included in this plan. These initiatives could lead to the sales of LED lights in the region.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Automobile production to boost the LED lighting market
- Government programs to support the growth of LED lighting in the region
- Government subsidies and agri-food industrial development plans to boost the market’s growth
- An increase in commercial vehicle production and incorporation of charging stations corresponds to the growth of LED lights
- Government initiatives to promote energy-efficient LED lights and ban conventional bulbs in the region driving the market
