Mexico LED Lighting Market Overview, 2028

The growth of the home construction and remodeling industries, as well as rising disposable income, housing space issues, and rising living standards, are all contributing to the steady growth of the LED lighting industry in Mexico. Growing demand for energy-efficient lighting systems, falling LED product prices, and stringent government regulations are important drivers driving LED lighting adoption in Mexico. LED has been undergoing tremendous technological and economic development in the country as a new source of lighting, stimulating further investment in the sector. Acuity Brands, Inc., Signify Holdings BV, General Electric Company, Dialight PLC, OPPLE Lighting Co. Ltd., and others are among the major firms in Mexico. According to the research report, “Mexico LED lighting Market Overview, 2028” published by Bonafide Research, the market is projected to add USD 1.92 Billion by 2028. LED was formerly restricted to electronics in the country, but with recent improvements, it is now becoming a vital part of lighting systems. For example, in recent years, the country has seen an increase in LED usage in all sectors of home, industrial and commercial uses. The market studied has evolved in recent years due to rapid advancements in semiconductor technology, leading to an increased demand for energy-efficient and sustainable solutions. The National Public Lighting Program aims to reduce energy consumption by replacing traditional lighting with LED. The National Public Lighting Program, with assistance from CONUEE and the Federal Energy Regulatory Commission, provides guidelines on the implementation, verification, and funding of energy-efficient lighting installations. According to the World Bank, as part of the pilot project demonstration for efficient LED lighting, over 2.6 million high-efficiency light bulbs were offered to residential customers at a 60% discount in Guadalajara and Monterrey. LUMIX has exceeded its physical targets and effectively demonstrated the capability of decreasing both greenhouse gas emissions and electricity usage. Nonetheless, global businesses are establishing manufacturing plants in the region due to the availability of low-cost resources and a reviving economy. For example, in June 2019, BMW invested USD 1 billion in facilities in the Mexican state of San Luis Potosi, which would be the company's second in the Americas when manufacturing begins in early 2021. The Mexican government has adopted two minimum efficiency performance standards for LED lights for both general lighting and luminaires designated for roadways and outdoor areas, with at least 450,000 lamps and fixtures deployed per year. According to the World Bank, the population of Mexico is around 130.6 million people, 63.72 million of whom are men and 66.54 million of whom are women. The majority of the population lies between the age group of 15 to 60. 80% of the population is in urban areas and 19 % is in rural areas. Mexico's GDP was 95.01 billion us dollars in 2021 and a per capita income of $ 9926 in the year 2021. Even though LED adoption is low among home end users in Mexico, the government is focused on outdoor lighting to reduce power usage and greenhouse gas emissions. According to an INEGI survey, the average penetration of LED in residential rooms in the country is only 12%. Recently, the government launched a project to replace all of the lamps in Guadalajara, accounting for half of the city's total of 80,000 streetlights spread throughout 200 districts and 100 roadways. The energy savings generated by the initiative are said to be self-sustaining. The scheme is based on a 10-year leasing agreement for MXN 300 million (close to USD 19 million). The city expects to save more than $500,000 each month as a result of this scheme. The Servicio Express Aero Puerto Carret service station on the Monterrey-Laredo Highway required an energy-efficient lighting solution for the parking lot and roof that covered the pumping stations. According to the authorities, replacing the previous 23 inefficient metal halide flood and canopy lights with LED enabled them to save 268,000 kWh and USD 32,160 in energy and maintenance. Mexico has revised standard NOM-031-ENER-2012, which establishes minimum energy efficiency standards and test methodologies for luminaires with LED lighting components intended for use in roadways and public outdoor areas. The new standard (NOM-031-ENER-2019) tightens the current minimum energy efficiency requirements for road lighting luminaires from 70 lumens per watt to 95 or 105 lumens per watt, as well as the current minimum energy efficiency requirements for outdoor public areas from 52 lumens per watt to 75 lumens per watt for wall luminaries and from 70 lumens per watt to 90 lumens per watt for pole tip luminaries. Furthermore, tunnel and overpass luminaires will be required to achieve a minimum energy efficiency criterion of 100 lumens per watt. Covid-19 The spread of COVID-19 contributed to the decline of Mexico's LED lighting market on the back of disturbances in the supply chain and discontinuation of the production. Moreover, consequent disruptions in the operations in the lockdown period in the country dipped the sales revenue for many of the top LED lighting brands in the near term and significantly contribute towards the slow growth of the Mexico LED lighting market in the coming years. Considered in this report • Geography: Mexico • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Mexico LED lighting market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product • Lamps • Luminaries By Lamps type • A-type • T-type • Others (Can LED light bulbs, Flood LED light bulbs, Track LED light bulbs, Tube LED light bulbs, Etc.) By Luminaries • Downlighting • Decorative • Directional • Others By Distribution Channel • Retail/Wholesale • Direct sale • E-commerce By Installation type • New • Retrofit The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the LED lighting industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.