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The Brazil LED (light emitting diode) lighting market is estimated to grow at a CAGR of 11.64% between 2022 and 2027. The size of the market is forecasted to increase by USD 1,651.14 million. The growth of the market depends on several factors, including the declining manufacturing cost of LEDs, the increasing demand for energy-efficient and sustainable lighting, and supportive government legislation.
This Brazil LED (light emitting diode) lighting market report extensively covers market segmentation by application (general LED lighting, automotive LED lighting, and LED backlighting), product type (new and retrofit), and distribution channel (offline and online). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The declining manufacturing cost of LEDs is notably driving the market growth, although factors such as high import duties may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Brazil LED Lighting Market Driver
The declining manufacturing cost of LEDs is notably driving the Brazil light emitting diode lighting market growth. The cost of manufacturing LED lights has declined since 2012, and it is expected to continue declining during the forecast period. The decreasing ASP of the chips and components used for manufacturing LEDs has lowered the ASP of LED lights. Moreover, many vendors are focusing on LEDs instead of traditional lighting sources. For instance, in February 2016, GE Lighting announced that it would cease the production of CFLs to focus on LED bulbs.
Government subsidies on the purchase of semiconductor equipment used for manufacturing LEDs are also leading to a decline in the manufacturing cost of LEDs. Hence, LED manufacturers have increased their production capacity. The shift toward bigger-diameter sapphire substrates used to produce LED chips is another major factor that has resulted in a decline in the manufacturing cost of LEDs. The price wars in the LED market are expected to intensify, as manufacturers will focus on cutting costs and transitioning to large-diameter sapphire wafers for LED production. Thus, the declining manufacturing cost of LEDs will decline the ASP of LED light. This, in turn, is expected to increase the adoption of LED lighting in residential and commercial buildings in Brazil.
Significant Brazil LED Lighting Market Trend
The emergence of smart lighting is a key trend influencing the Brazil light emitting diode lighting market growth. Smart lighting helps in saving electricity by controlling the cooling, heating, and lighting operations remotely. Some of the popular features of smart lights include switching on when someone enters a room. Smart lights use sensors to identify objects and people and provide light as required.
Vendors are using a wide range of smart technologies in LED lighting. They are also analyzing system upgrades on lower time frames. This can provide opportunities to adopt the latest IoT and smart innovations. In addition, the increasing focus on smart lighting in Brazil has encouraged vendors to establish strategic partnerships and develop a smart lighting ecosystem in Brazil. The advent of efficient LED lighting and the need for connected lighting in businesses and cities are expected to complement the growth of the LED lighting market in Brazil during the forecast period.
Major Brazil LED Lighting Market Challenge
The high import duties may impede the Brazil LED (light emitting diode) lighting market. In Brazil, imports are subjected to different fees and taxes that are generally paid during the customs clearance process. The import duty, the Merchandise and Service Circulation tax, and the industrialized product tax account for a majority of import costs. In addition, there are numerous smaller taxes and fees that apply to imports.
The high taxes and import duties on lighting fixtures are hindering the growth of Brazil LED (light emitting diode) lighting market. The import duty on importing lighting fixtures to Brazil is 18%, along with handling fees, storage fees, airport fees, and declaration fees. The import duty in Brazil is higher when compared to other BRIC nations. These duties and taxes affect the final price of the products. Therefore, high import duties are expected to hinder the growth of the LED lighting market in Brazil during the forecast period.
Key Brazil LED Lighting Market Customer Landscape
The Brazil LED (light emitting diode) lighting market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global LED Lighting Market in Brazil Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the general LED lighting segment will be significant during the forecast period. General LED lighting is popular because it is widely used in homes, offices, stadiums, factories, streets, and theaters. This segment includes applications across architectural, residential, outdoor, industrial, hospitality, retail, and office segments. Customers prefer LED lights as they last longer than traditional incandescent bulbs. In addition, they are environment-friendly and consume less electricity. The decrease in prices has further increased the demand for LEDs in Brazil.
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The general LED lighting segment showed a gradual increase in the market share of USD 1,271.45 million in 2017 and continued to grow by 2021. The increasing number of initiatives by governments to improve energy efficiency in the power sector is expected to fuel the growth of the market during the forecast period. Brazil has committed to increase energy efficiency in the power sector by 10% by 2030. Organizations such as The World Bank Group are helping the country achieve its target. For instance, in 2018, The World Bank Group announced its plan to partner with Caixa Economica Federal to establish the Financial Instruments for Brazil Energy Efficient Cities (FinBRAZEEC) Project. This project will focus on efficient street lighting and industrial energy efficiency. Such initiatives will increase the demand for general LED lighting in the country, which is expected to boost the growth of Brazil LED (light emitting diode) lighting market during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The reports categorize the LED lighting market in Brazil as a part of the Electrical Components and Equipment market, which covers companies engaged in the manufacturing of electric cables and wires, electrical components, and electrical equipment. Technavio calculates the global electrical components and equipment market size based on the combined revenue generated by manufacturers of water heaters and accessories, motors, motor control, encoder and amplifier, automation solutions, electrical distribution and protection equipment, small generators, wire and cable accessories, power supplies and conditioners, sensors, meters and indicators, recorders and loggers, process safety systems, instrumentation, test and measurement equipment, switches, transmitters and receivers, heating, ventilation, and air conditioning (HVAC), and safety components. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
LED Lighting Market in Brazil Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.64% |
Market growth 2023-2027 |
USD 1,651.14 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
11.04 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Acuity Brands Inc., Dialight Plc, Eaton Corp. Plc, Gardasoft Vision Ltd., Havells India Ltd., HELLA GmbH and Co. KGaA, Kian Lighting, Lutron Electronics Co. Inc., O2 Led Illumination, OSRAM GmbH, Panasonic Holdings Corp., Seoul Semiconductor Co. Ltd., The Feilo Sylvania Group, Toshiba Corp., Consumers Lighting and Lamps, Koninklijke Philips NV, Weidmuller Inc., Wolfspeed Inc., and Nichia Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product Type
8 Market Segmentation by Distribution Channel
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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