South America LED Lighting Market Outlook, 2028

The growth of the LED lighting market in South America is moderate due to the slower adoption of advanced technology and a lack of skilled labor required for the operation of manufacturing plants of smart lighting equipment. However, the South American LED lighting industry is expanding, which may be attributed to the rising demand for sustainable and energy-efficient lighting and the falling cost of producing LEDs. For instance, Brazil, which once exported LEDs, has now built many manufacturing facilities to hasten the technology's adoption in the business, industrial, and public sectors. Additionally, the Brazilian government passed a law mandating the use of LED lighting products instead of incandescent bulbs for different road and tunnel lighting applications. Macroeconomic factors that affect the market also frequently include strong industrialization, urbanization, and healthy economic growth. Another important factor influencing the market's growth in the region is the rising awareness of the significance of energy efficiency, combined with regional government mandates to set higher standards for energy efficiency and continuous innovations in LED technology by the top manufacturers.

According to the research report, "South America LED Lighting Market Outlook, 2028," published by Bonafide Research, the market is anticipated to add USD 4.53 billion during the forecast period. Growth in urban lighting along with residential, outdoor, and architectural applications in Brazil and Argentina is expected to drive the market. Solid demand from housing and infrastructure developments in Chile, Peru, and Colombia is expected to lead to above-average growth. Further, the market is driven by growing demand for energy-efficient lighting systems coupled with rising installation costs for retrofit systems. Furthermore, as the prices of LED lighting systems fall, demand is expected to rise over the next five years. The glowing LED lights and fixture market in South America can be attributed to the declining manufacturing cost of LEDs and the rise in demand for energy-efficient and sustainable lighting. Brazil is the leading country with the highest demand for LED lighting and fixtures. In Brazil, a "Memorandum of Understanding" was signed to fit energy-saving LEDs instead of street lights, and this program currently involves 40 cities, which would further drive the demand for LED lighting in South America.

For instance, Buenos Aires is the first South American city with 100% LED street lighting. After a replacement process that began in 2013, Buenos Aires became the first metropolis in South America to use LED lights in 100% of the street lighting. 78,000 LED lights were installed in streets, 34,000 in avenues, another 34,000 in pedestrian areas, and 14,000 in green spaces—160,000 LED lights that work correctly. They have a lifespan of more than 100,000 hours. Furthermore, indoor lighting accounts for the largest share of the LED lighting market by application, as people nowadays want their buildings to create an aesthetic ambiance for visitors, which has led to an increase in demand for decorative LED lighting in restaurants, hotels, homes, and offices. South America is expected to grow moderately owing to the slow adoption of technologies in the region. Moreover, there are fewer light manufacturing companies present in South America, which is also affecting the market growth in the region. Top players in the market include Acuity, Blumenau, Celsa, Construlita, Elec, Intral, Inesa Feilo, Kingsun, Ledvance, Lumicenter, Philips, Schreder, Taschibra, Tospo, and Yankon.

Smart lighting is becoming increasingly important in the South American region. Sustainability is both a near-term challenge and the ultimate goal of smart cities, and it can be achieved by reducing a city’s environmental impact, creating conditions for a sustainable economy, and reducing income inequality. Smart lighting projects, such as the one in Sao Paulo, will create smart grids of sensors throughout the city and have a major immediate impact on energy savings. In South America, countries such as Brazil, Argentina, and Colombia are adopting intelligent lighting control systems. Here, the intelligent lighting control system is an automated technology with the ability to manage the lighting quality as per the user’s needs. Hence, the growing adoption of such technology will help improve energy savings across the region. Moreover, these systems are gaining significant traction in homes, offices, vehicles, and public places. Furthermore, government regulations pertaining to energy efficiency are developing. Intelligent lighting systems include distinct sensors, central processing units, and more, improving energy efficiency and performance. This has also attracted several companies to enter the region’s market. Therefore, as stated above, these factors are motivating the growth of the LED lighting control system across South America.

Cities across South America have been deploying smart city technologies to improve service delivery and meet sustainability targets. The city of Rio de Janeiro, for example, has launched the Smart Rio Project, which will include a program to modernize the city’s public lighting system that, upon completion, is expected to improve public safety by reducing driving accidents and street crime. The Rio lighting project will have far-reaching sustainability impacts too by decreasing energy use by up to 60 percent as well as mitigating light pollution and sky glow. It has also delivered strong value for money, as the costs of the project will be covered by the lower operational costs over the lifetime of the operation of the infrastructure and a pre-existing public lighting tax. The cities of Santiago, Chile, and Bogotá, Colombia, meanwhile, have seen significant improvements in air quality and emissions reductions by replacing legacy diesel-fuelled public bus fleets with electric buses. In the same way as the lighting project in Rio, the operational costs of an electric bus fleet can be as much as 70 percent lower than diesel alternatives over the life of the fleet, reducing the need for municipal budget increases or tax increases to fund the transition.

Covid-19 Impacts:
Because China is the country where COVID-19 originated and from where a significant portion of LED products are supplied, this pandemic had a significant impact on the market for LED drivers. Price changes, delivery problems, and lower production affected the whole industrial sector. Although these difficulties might motivate regional manufacturers to advance their enterprises and procedures, the scarcity of LED drivers presents a significant barrier. In South America, due to postponed construction projects, the growth rate of the LED lighting market revenue has decreased. However, the epidemic increased the demand for LEDs from the medical sector. Market participants also made investments in the study and creation of smart lighting systems. The expansion of LEDs having a direct impact was impeded by the decline in demand for electronic devices and lighting systems, and the supply chain was severely damaged by the material shortage. However, a change in consumer behavior is anticipated to boost the market growth.

Major Companies present in the market:
Samsung, Koninklijke Philips Nv, Panasonic Corporation, Opple Lighting Co. Limited, Osram Licht Ag, Valeo Sa, General Electric Company, Hubbell Incorporated, Magneti Marelli Spa, Seoul Semiconductor, Signify Holding, Stanley Electric Co. Ltd, LG Electronics

Considered in this report
• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• South America LED Lighting market with its value and forecast along with its segments
• Country-wise LED Lighting market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• Brazil
• Argentina
• Colombia

By Product:
• Lamps
• Luminaries

By Application:
• Indoor
• Outdoor

By Sales 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.

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