North American Cabinet LED Lighting Industry is Expected to Grow to $3.6 Billion by 2028 -
Cabinet LED lighting is an energy-efficient technology, and demand for ENERGY STAR-rated products has risen in recent years in the US. Light fixtures must use 1/4th energy of traditional lighting, have lower energy bills and bulb replacements, have a lifetime of at least 10,000 hrs, and have even light distribution; these are factors considered to receive an Energy Star rating. The COVID-19 pandemic slowed down the growth of the construction of houses in North America. However, there will be an increase in the construction of houses in 2022.
For instance, as per the US Census Bureau and the US Department of Housing and Urban development for new residential construction in March 2022, the privately-owned housing units authorized by building perm building permits, housing starts, and housing completions are 1873000, 1793000, and 1303000, respectively. Development in residential sector will positively create more demand for LED lights, and thus in turn impacting the cabinet LED lighting market growth.
As per the Canadian Real Estate Association (CREA), in 2022, the construction of house sales will increase due to the government's favorable policy for buying homes. For instance, the Canadian government created real estate investment trusts (REITs) which investors widely use because they are easier to liquidate than traditional real estate investments. REITs also allow investors to diversify their holdings. For example, investors can invest US$ 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 decor and save electricity bills, driving the cabinet LED lighting market.
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