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North America Cabinet LED Lighting Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type and Application

North America Cabinet LED Lighting Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type and Application

  • May 2022
  • 129 pages
  • ID: 6289924
  • Format: PDF
  • The Insight Partners


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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 décor 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.

The North America cabinet LED lighting market analysis includes 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.

Hafele America Co., Acuity Brands Lighting LLC, Kichler, WAC Lighting, and SGi Lighting are the cabinet LED lighting market players in North America profiled in this market study.

Impact of COVID-19 Pandemic on North America Cabinet LED Lighting Market

Countries in North America, especially the US, recorded an unprecedented rise in COVID-19 confirmed cases.As a result, several small & medium enterprise owners reduced their workforce.

Also, many owners have laid off unnecessary employees shortly owing to restricted business operations.Over a few years, businesses in North American countries faced critical issues, such as the presence of minimum staff in most manufacturing plants, a halt in 2020 manufacturing operations, and disruptions in the supply chain of components and parts.

Construction and hospitality are among the work-hit sectors in the region. The supply chain and demand for cabinet LED lighting was hampered due to shipment delays from cabinet LED lighting manufacturers, which restricted revenue generation in the North America cabinet LED lighting market.

The number of hotel construction or renovation projects reduced significantly in the US, Canada, and Mexico in 2020, which showcased poor demand for cabinet LED lighting.The federal government’s restrictions on construction activities and workers’ movement in North America declined the demand for kitchen cabinet LED lighting.

This impacted the North America cabinet LED lighting market growth.However, the lockdown caused due to the COVID-19 pandemic has prompted residential and commercial customers to adopt energy-efficient cabinet LED lighting to save money.

Also, the cabinet LED lighting market is expected to grow between 2022 and 2023, owing to increased residential building construction, improved supply chain system, surged demand for kitchen cabinet lighting, and government incentives and policy support. Therefore, development in hospitality sector in terms of new project construction or renovation are creating lucrative growth opportunities for cabinet LED lighting market.

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