The smart lighting market is expected to grow at a CAGR of 16% during the forecast period. Development of smart cities, drivers.2, and drivers.3 are some of the significant factors fueling smart lighting market growth.
Development of smart cities
The smart lighting market in South America is expected to grow at a substantial rate during the forecast period. The growing focus on reducing energy costs is increasing the adoption of LEDs in the region. Increasing awareness about the long-term benefits of LEDs is driving the regional market growth. Hence, several vendors are increasing their presence in the region.
The growing focus on developing smart cities in the region is a primary driver for the demand of smart lighting. Several countries in the region, such as Brazil and Colombia, are increasing their investments in smart city projects. For instance, in July 2019, the government announced a new policy, which included strategies for sustainable smart cities. According to the policy, the government announced that it would set goals and define indicators for the transformation of cities into smart cities under environmental, economic, social, and cultural perspectives. Colombia is also working towards transforming its major cities like Bogota and Medellin into smart cities for efficient and sustainable utilization of resources.
Additionally, due to the growing globalization and increase imports and exports of the region, the presence of large multinational organizations spaces is also increasing in South America. Due to this, the commercial office spaces are rising at a rapid pace. This proportionally increases the demand for a smart lighting solution to efficiently manage the energy costs of the office spaces.
Therefore, growing smart city projects and commercial office spaces are the major drivers that will lead to the growth of the regional market during the forecast period.
