LED Lighting Market in Brazil to grow at a CAGR of 11.64% from 2022 to 2027

According to Technavio, the LED lighting market in Brazil size is estimated to grow by USD 1,651.14 million from 2022 to 2027. The market is estimated to grow at a CAGR of  11.64% during the forecast period. The declining manufacturing cost of LEDs, growing demand for energy-efficient and sustainable lighting, and supportive government legislation are the driving factors shaping the growth during the forecast period.

The declining ASP (average selling price) of the chips and the components used to manufacture LEDs have reduced the manufacturing costs of LED lights. The LED lighting market has a high growth potential, which compels vendors to focus more on LEDs instead of traditional lighting sources. For instance, GE Lighting has stopped the production of CFLs in 2016 to focus on the production of LED bulbs. The reduced manufacturing costs led to a low-cost initial installation cost of LED fixtures and lamps. This accelerates the rapid installation of LED fixtures and lamps across Brazil.

Brazil's high import duties may impede the growth of the LED lighting market in the country. Imports in the country are subjected to different fees and taxes which are paid during the customs clearance process.

Various smaller fees apply to imports along with the import duty, the merchandise and service circulation tax, and the industrialized product tax.

Along with the 18% import duty, which is higher than that of other BRIC nations, other fees like handling fees, storage fees, airport fees, and declaration fees are factors that increase the final price of the product.