◆英語タイトル：Mexico LED Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Mexican LED lighting market is expected to grow at a CAGR of 17.1% over the forecast period (2021 – 2026). The growing demand for energy-efficient lighting systems, declining prices of LED products, and stringent government regulations are major factors driving the adoption of LED lighting in Mexico. In the country, LEDs have been undergoing rapid technological and economic development as a new source of lighting, motivating further investment in the sector.
- LEDs were earlier limited to electronics in the country, but it is becoming an integral part of lighting systems with recent advancements. For instance, in the last few years, the country has witnessed increasing LED adoption for domestic applications and industrial and commercial ones. Over the past few years, the market studied has advanced due to the rapid improvisation in semiconductor technology, owing to the growing demand for energy-efficient and sustainable solutions.
- 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.
- However, the market has been affected by the recent outbreak of COVID 19, and companies have been forced to restructure their strategies to deal with the ongoing pandemic. Companies, like Signify, were the worst hit due to this pandemic. Signify in February 2020 had planned to upgrade their solar connected street light to toggle between solar and grid power by using Philips Combo Charge Controller. But the company has gone into financial crunch due to the COVID outbreak, the company in March 2020 had announced a 20 percent pay cut of all their employees.
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.
- 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.
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.
- May 2020 – Dialight launched new upgrades to the Vigilant and SafeSite Area Light. This further upgradation consists of a new Universal Mounting Adapter (UMA), which offers stock flexibility to its distributors and customers at the time of its installation.
- March 2020 – Signify announced the completion of the acquisition of Cooper Lighting Solutions from Eaton for USD 1.5 billion. With this acquisition, the company has planned to focus on the innovation of connected lightings and systems. This is estimated to drive the revenue growth of the company in the North American market with an aimed increase in professional revenues from 42% to 53%.
- February 2020 – Signify introduced a new integrated Philips Combo Charge Controller for streetlights, enabling the emergence of a hybrid solar system. With this innovation, the company is aiming at creating a new market for solar powered outdoor lightings in Asia, Africa, South America, Australia, and Spain, where the company has already installed solar-powered lights.
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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 Industry Attractiveness – Porter’s Five Forces Analysis
4.2.1 Bargaining Power of Buyers/Consumers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Market Drivers
4.3.1 High demand for LED lighting in the outdoor lighting segment driven by smart development initiatives
4.3.2 Increasing awareness among households on LED and favorable government regulations
4.3.3 Steady reduction in the prices of LED lighting products and higher shelf life
4.4 Market Challenges
4.4.1 Adoption of LED remains low in comparison to other countries
4.5 Market opportunities
4.5.1 Adoption of Smart Homes and Scope for Replacement Sales in Major Segments
4.6 Major Industry Standards and Regulations (NOM standards in Mexico)
4.7 Assessment on the Impact of COVID-19 on the market
4.8 PESTEL Analysis – Mexico LED Lighting Industry
4.9 Key technological innovations in LED Lighting
5 ANALYSIS OF LIGHTING INDUSTRY IN MEXICO
5.1 Adoption of Fluorescent, Incandescent, and LED Lighting in Urban and Rural regions| Import-Export Analysis
6 MARKET SEGMENTATION
6.1 By Product Type
6.2 By End-user Vertical
6.2.2 Commercial (Offices, Retail, and Hospitality)
6.2.3 Urban and Street Lighting
6.2.5 Other End-user Verticals (Horticulture, Entertainment, Healthcare, etc.)
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Acuity Brands Inc.
7.1.2 Signify Holdings BV
7.1.3 General Electric Company
7.1.4 Dialight PLC
7.1.5 Opple Lighting
7.1.6 ASSIC Group
7.1.7 Eaton Corporation
7.1.8 OSRAM GmbH
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS
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