The North American Cabinet LED Lighting Industry is Expected to Grow to $3.6 Billion by 2028 – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “North America Cabinet LED Lighting Market Forecast to 2028 – COVID-19 Impact and Global Analysis By Type and Application” report has been added to ResearchAndMarkets.com’s offering.
The North America cabinet LED lighting market size is expected to grow from US$ 1,983.30 million in 2021 to US$ 3,691.22 million by 2028. It is estimated to grow at a CAGR of 9.3% from 2022 to 2028.
Cabinet LED lighting is an energy-efficient technology, and demand for ENERGY STAR-rated products has risen in recent years in the US. Light fixtures must use 1/4th energy of traditional lighting, have lower energy bills and bulb replacements, have a lifetime of at least 10,000 hrs, and have even light distribution; these are factors considered to receive an Energy Star rating. The COVID-19 pandemic slowed down the growth of the construction of houses in North America. However, there will be an increase in the construction of houses in 2022.
For instance, as per the US Census Bureau and the US Department of Housing and Urban development for new residential construction in March 2022, the privately-owned housing units authorized by building perm building permits, housing starts, and housing completions are 1873000, 1793000, and 1303000, respectively. Development in residential sector will positively create more demand for LED lights, and thus in turn impacting the cabinet LED lighting market growth.
As per the Canadian Real Estate Association (CREA), in 2022, the construction of house sales will increase due to the government’s favorable policy for buying homes. For instance, the Canadian government created real estate investment trusts (REITs) which investors widely use because they are easier to liquidate than traditional real estate investments. REITs also allow investors to diversify their holdings. For example, investors can invest US$ 1 in a portfolio of 100 properties instead of investing US$ 100 in a single property. The Canadian government has proposed a budget for 2022-2023 that focuses on achieving a goal of 100,000 net new housing units.
As a result, a new Housing Accelerator Fund has been established. The increasing usage of cabinet LED lighting in growing residential and commercial spaces is one of the prime drivers of cabinet LED lighting market growth. With the rise in urbanization, consumers are more inclined toward adopting energy-efficient products and services. Thus, the uptake of cabinet LED lighting is rising among end users, such as office spaces, hotels, restaurants, public administrative buildings, shopping malls, and recreational facilities to enhance decor and save electricity bills, driving the cabinet LED lighting market.
Over the next five years, the government will invest US$ 4 billion in housing development support, such as an up-front funding or annual per-door incentive or for investments in municipal housing planning and delivery processes, which in turn will accelerate the development of housing in the coming years. Further, Canada Budget 2022 proposes spending US$ 1.5 billion over the next 2 years, beginning in 2022, extending the Rapid Housing Initiative, ensuring that more affordable housing can be built quickly. ~6,000 new affordable housing units are expected to be built with this new funding. Favorable government policies pf North America region is supporting the growth of cabinet LED lighting market.
Further, US $389.39 million (CAD$ 500 million) was relocated from the National Housing Co-Investment Fund on a cash basis to launch a new Co-operative Housing Development Program aimed at expanding co-operative housing in Canada. The Co-operative Housing Federation of Canada and the co-operative housing sector will collaborate on this new program.
The Canada budget 2022 also proposes the additional US$ 1billion in loans reallocated from the Rental Construction Financing Initiative to support coop housing projects. The Canadian financial service provider BMO and the Canadian government have announced that both will invest US$ 9.4 billion (CAD 12 billion) until 2030. Such initiatives will support the affordable housing constructions in Canada, augmenting the cabinet LED lighting market share over the next few years.
- Growing Construction of Residential and Commercial Buildings in North America
- Rising Demand for Interior Designs and Increasing Disposable Income
- Overheating Leads to Reduced Life of Cabinet LED Lighting
- Energy-Consuming Products and Services with Higher Efficiency and Lower Costs
- Rising Penetration of IoT Connected-Cabinet LED Lighting
- Government Stringent Regulations Toward Green Sustainability
- ACUITY BRANDS, INC.
- Kichler Lighting LLC
- Hafele America Co
- GM Lighting
- Savant System Inc
- Black+Decker Inc.
- SGi Lighting Inc.
- RAB Design Lighting
- Phantom Lighting Systems
- WAC Lighting
- Hera Lighting
- JESCO Lighting
- Advanced Lighting Concepts, LLC d.b.a Environmental Lights
- Legrand North America, LLC
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Laura Wood, Senior Press Manager
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