According to a new market study, titled "North America Cabinet LED Lighting Market Forecast to 2028 - COVID-19 Impact and Analysis - by Type (In-Cabinet Lighting and Under-Cabinet Lighting) and Application (Residential, Commercial, Retailer, and Hospitality)," the cabinet LED lighting market in North America is expected to reach 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. The report provides trends prevailing in the market along with drivers and restraints.
The primary factor attributing towards the cabinet LED lighting market growth is increase in residential & commercial infrastructure, better standard of living, and shift into energy-efficient lights. Cabinet LED lighting provides energy efficiency of 80-90% compared to traditional light bulbs, which reduces energy consumption and helps save money by lowering power costs. Cabinet LED lighting is 80% more efficient than fluorescent and incandescent lights, and they are far more environmental-friendly. The initial cost of these lights is slightly higher. However, the energy efficiency and longevity of these lights are significantly better. LEDs provide a significantly faster return on investment due to their longer life and higher light output per kilowatt. Traditional lights and CFLs need to be replaced more frequently than LED lights. Based on above-mentioned parameters, the scope of cabinet LED lights is boosting enormously and henceforth fueling the cabinet LED lighting market. There are several benefits resulting into more adoption of cabinet LED lighting, such as additional savings obtained from lower power costs. Such aspects are contributing towards the adoption of cabinet LED lights, and in turn promoting the cabinet LED lighting market size in North America.
According to the US Department of Energy, from 2020 to 2050, 76% of the US energy will come from fossil fuels, which contradicts the IPCC's carbon reduction goals. Renewable energy consumption is expected to grow at an annual rate of 2.1% on average, compared to a 0.5% growth in total energy consumption. The US government has made an aggressive commitment to energy efficiency could reduce US carbon emissions by 57% (2,500 MMT) by 2050. The US currently accounts for 15% of global energy-related CO2 emissions. Emissions in the US are expected to fall by 0.2% by 2035 compared to current levels. Inclination towards lowering the gas emission is supporting the penetration rate of LED lights, and as a result impacting the growth of cabinet LED lighting market.
The Climate Action Now Act, which the government of the US passed in May 2019, ensures that the US meets its stated goals under the Paris Agreement. Under the agreement, by 2025, the US has to reduce greenhouse gas emissions by 26% to 28%. Renewable energy additions to existing homes are eligible for tax credits of up to 26% of purchase and installation costs until 2023. Canada has made several courageous international and domestic commitments to put the country on the path to transforming its energy system, including a target to reduce greenhouse gas emissions by 40% to 45% by 2030 and achieve net-zero emissions by 2050. With measures taking place to prevent greenhouse gas emissions in Canada, the demand for LED lights is projected to grow. This aspect will create a favorable impact in North America cabinet LED lighting market.
In July 2021, the infrastructure investment plan, in which the Mexican government signed an agreement with private sector representatives to increase investment in infrastructure, energy, and communications projects. The 32 projects announced will cost US$ 12.98 billion (MXN 259 billion), segmented as follows: US$ 7.82 million (MXN 156,000) for communications, US$ 4.91 million (MXN 98,000) for energy, and US$ 0.10 billion (MXN 2 billion) for water and environment. On February 15, 2022, Mexico's National Program for Energy Sustainability 2020-2024 and Nationally Determined Contribution (NDC) to the Paris Agreement Mexico's first NDC includes an unconditional goal of reducing greenhouse gas (GHG) and short-lived climate pollutant (SLCP) emissions by 25% below current levels by 2030. Thus, government initiatives and rising inclination toward energy consumption products and services with higher efficiency and lower costs offer lucrative opportunities for the key players operating the cabinet LED lighting market.
Therefore, aforesaid factors related to lowering greenhouse emission, promoting renewable energy resources are contributing towards the more demand for LED lights globally, and henceforth boosting the scope of cabinet LED lighting market share also.
Hafele America Co., Acuity Brands Lighting LLC, Kichler, WAC Lighting, and SGi Lighting are key players profiled in the research study. These players adopt organic growth strategies, such as product launches and expansions, to sustain their position in the North America cabinet LED lighting market players.
The North America cabinet LED lighting market is analyzed on the basis of type, application, and country. Based on type, the cabinet LED lighting market is bifurcated into in-cabinet lighting and under-cabinet lighting. By application, the cabinet LED lighting market is segmented into residential, commercial, retailer, and hospitality. By region, the cabinet LED lighting market is segmented into the US, Canada, and Mexico.
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