North America Cabinet LED Lighting Market to Grow at a CAGR of 9.3% to reach US$ 3,691.22 million from 2022 to 2028

The North America cabinet LED lighting market 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 a small and inconspicuous light source virtually invisible and can be easily installed. Government initiatives toward sustainable green energy, such as net-zero emission by 2050 and the ENERGY STAR program by the US Environmental Protection Agency and the US Department of Energy, are promoting energy efficiency. Cabinet LED lighting offers many advantages, such as low cost and energy bills, and minimum energy consumption, which attract many consumers to install cabinet LED lighting. Thus, these energy efficiency initiatives are positively impacting the cabinet LED lighting market growth. The rising adoption of LED lighting in kitchen cabinets and cupboards and the growing number of new homes would create lucrative opportunities for the North American cabinet LED lighting market players during the forecast period.

As per the Bureau of Economic Analysis, disposable income in the US in December 2021 and 2020 was US$ 18,261.5 billion and US$ 16,706.4 billion, respectively, and the income was US$ 18,519.8 billion in March 2022, which shows a strong economic recovery. Therefore, rising disposable income has made consumers invest in enhancing interiors, such as modular kitchens, where under-cabinet LED lighting is witnessinghigh demand. In addition, the growing use of under cabinet lighting in the hospitality industry is propelling the cabinet LED lighting market growth.

According to the US Census Bureau, new residential construction authorized by building permits, housing starts, and housing completions in March 2022 for privately-owned housing units is 1,873,000, 1,793,000, and 1,303,000, respectively. These stats show that the construction of houses and residential and commercial buildings is likely to increase during the next few years. Since cabinet LED, lighting is mostly used in kitchens, bathrooms, offices, hotels, dining areas, barbacks, and underneath counters to enhance décor. With the increasing new residential construction authorized by building permits, housing starts, and housing completions in the US, the demand for cabinet LED lighting will also increase. The Canadian government has proposed a budget for 2022 and 2023 to build 100,000 new housing units. Thus, a new Housing Accelerator Fund has been established. Over the next five years, the government would invest US$ 4 billion in housing development assistance, such as up-front funding or an annual per-door incentive, as well as in municipal housing planning and delivery processes, which would speed up housing development in the coming years. These government initiatives have fueled the construction of houses and boosted consumers' inclination toward modular kitchens. Thus, it is anticipated that the demand for cabinet LED lighting will grow over the coming years.

North America Cabinet LED Lighting Market: Key Players

Hafele America Co., Acuity Brands Lighting LLC, Kichler, WAC Lighting, and SGi Lighting are the 5 key market players operating in the North America cabinet LED lighting market. The listing of these players is derived by considering the following key parameters: Overall revenue, segmental revenue, brand image & industry expertise, current cabinet LED light portfolio and related products, customer base, geographical reach, research and development investments, patents, technology integration, new product launches, partnerships, mergers & acquisitions, and other market-related activities. In addition to these players profiled in the report, several other global, regional, and country-level LED light portfolio manufacturers and providers operating in the North America market ecosystem/value chain were also studied for a 360-degree view of the market.

North America Cabinet LED Lighting Market: By Type

Based on type, the North America cabinet LED lighting market is segmented into in-cabinet lighting and under-cabinet lighting. The under-cabinet lighting segment dominates the market due to the increasing proliferation of cabinet LED lighting in the kitchen. The in-cabinet lighting segment is anticipated to register a higher CAGR during the forecast period. In-cabinet lighting for shelf lighting can be used for decorative purposes, such as open shelving or utility, when additional illumination is required. The most common type of lighting is linear lighting, which is hidden behind the frame or recessed beneath the shelf.

Impact of COVID-19 Pandemic on 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 resulted in slow growth of the cabinet LED lighting market. 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 size 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.

North America Cabinet LED Lighting Market: Market Initiative

Market initiatives are a strategy adopted by companies to expand their footprint worldwide and meet the growing customer demand. Market players present in the North America cabinet LED lighting market is mainly focusing on product and service enhancements by integrating advanced features and technologies into their offerings.

• In 2022, Acuity Brands, Inc. announced it is expanding its collaboration with Microsoft to bring new capabilities to Acuity's smart lighting, lighting controls, and building automation solutions.

• In 2020, Savant Systems, Inc. announced that it had acquired GE Lighting. Under a long-term licensing agreement, GE Lighting, a Savant company, will continue using the GE brand on its products moving forward.

North America Cabinet LED Lighting Market Revenue and Forecast to 2028 (US$ Million)

The North America cabinet LED lighting market is analyzed on the basis of type, application, and country. Based on type, the market is bifurcated into in-cabinet lighting and under-cabinet lighting. By application, the market is segmented into residential, commercial, retailer, and hospitality. By region, the market is segmented into the US, Canada, and Mexico.

North America Cabinet LED Lighting Market Report Scope