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Shibuya-ku, Tokyo, Japan, Japan, Apr 04, 2022, 10:16 /Comserve / -- Mexico LED Lighting Market With Top Countries Data, Industry Analysis , Size, Share, Revenue, Prominent Players, Developing Technologies, Tendencies and Forecast
The Mexican LED lighting market is expected to witness a CAGR of 17.1% during the forecast period. In the current market state, LEDs have gained a mainstream in the lightings market. Key factors behind this are the continuous declining LED prices in the country coupled with favorable government initiatives.
- The National Public Lighting Program to replace traditional lightings with LED aimed at sustainable use of energy.The National Public Lighting Program in support from CONUEE, and the Federal Electricity Commission for guidance on implementation, verification, and financing of efficient lighting projects.
- According to the World Bank, Over 2.6 million high-efficient light bulbs were sold to the residential customers for a subsidized cost of 60% in two cities (Guadalajara and Monterrey) as part of the pilot project demonstration for efficient LED lighting. This project - ILUMEX has surpassed its physical targets and successfully demonstrated the feasibility of reducing both greenhouse gas emission and reduction in electricity consumption.
- Nevertheless, due to the availability of low-cost materials and a recovering economy, global players are setting up their manufacturing facilities in the region. For instance, in June 2019, a USD 1 billion plant in the State of San Luis Potosi, Mexico, was unveiled, which will be BMW's second in the Americas when production starts in early 2021.
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Key Market Trends
Increasing Demand for Outdoor Lighting Due to Smart Development Initiatives to Drive the Market Growth
- In Mexico, even though the LED penetration is low for the residential end user, the government is mainly focusing on outdoor lighting for reducing electricity consumption as well as greenhouse gas emission. According to the study by INEGI, the average penetration of LED in residential rooms is just 12% in the country.
- Recently, the government has initiated the project to replace all the streetlights in the Guadalajara city, half of the total 80,000 streetlights in the city across 200 districts along 100 roads. The project is reportedly self-financed with the energy savings it creates. The program is planned on a 10-year leasing contract valued at MXN 300 million (close to USD 19 million). With this program, the city is expected to create savings of over USD 500,000 per month.
- The Servicio Express Aeropuerto Carret on Monterrey-Laredo Highway needed an energy-efficient lighting solution for the service station's parking lot and canopy that covers the pumping stations. The authority has mentioned that by replacing the old 23 inefficient metal halide flood and canopy fixtures with LED enabled to save energy of 268,000 kWh and USD 32,160 in energy and maintenance.
Industrial Use of LED Lighting in Mexico is Expected to Grow Significantly
- With around 621 medical device manufacturing companies, Mexico is one of the largest exporters of medical devices to the United States, and parts of Latin America, known for its high quality. With export revenues going as high as USD 9 billion, in 2019, medical device manufacturers are having zero tariffs on imports and exports under NAFTA. This makes Mexico a potential destination for setting up a UV-based medical device franchise, which is one of the highest growing fields of UV-LED light applications.
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- Mexico has a severe freshwater shortage, and the re-use of water is extensively practiced across the region. Considering this, UV-based consumer products, like sterilizers and disinfectants, are expected to gain importance over the forecast period considering that 80% are urban population, according to the World Bank. Additionally, the WHO has stated that the use of UV-based disinfectants is becoming prevalent in the country; hence, healthcare-associated infections (HAIs) are the most common reasons for death.
- Vendors offering LED solutions are expanding their presence in Mexico to support ongoing local demand. For instance, Aquionics, a part of the Halma Group, and a prominent UV-LED based disinfectant product manufacturer, has strengthened its team in Mexico, anticipating the demand for industrial LED lighting.
Competitive Landscape
The Mexican LED lighting market is highly fragmented, with the presence of a large number of domestic as well as international players in the country. Due to the fragmented nature of the market, the competition among the players is high.
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 High demand for LED lighting in the outdoor lighting segment driven by smart development initiatives
4.2.2 Increasing awareness among households on LED and favorable government regulations
4.2.3 Steady reduction in the prices of LED lighting products and higher shelf life
4.3 Market Restraints
4.3.1 Adoption of LED remains low in comparison to other countries
4.4 Market opportunities
4.4.1 Adoption of Smart homes and scope for replacement sales in major segments
4.5 Industry Value Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Assessment on the Impact of COVID-19 on the market
4.8 Major Industry Standards and Regulations (NOM standards in Mexico)
4.9 PESTEL Analysis – Mexico LED Lighting Industry
4.10 Key technological innovations in LED Lighting
5 ANALYSIS OF LIGHTING INDUSTRY IN MEXICO
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