The growing energy crisis in the Latin American region and associated long term benefits of using energy efficient lighting solutions has accelerated the phasing out of incandescent lamps in the region. This will not only help the region to cut down its energy consumption by almost 4 percent, but also help reduce CO2 emission along with financial savings.
As a result, conventional lamps are steadily losing out their market share to advanced products such as CFLs and LED lamps. Also, with the drop in prices of CFLs and LED lamps due to growing competition, the market may see a partial offset in the overall market growth in terms of revenue generated.
The lighting market globally is witnessing a shift towards energy efficient lighting solutions, with the Latin American region showing high potential for growth. The Latin America energy efficient lighting market is expected to expand by 250 percent from 2012 to 2018.
Among all the countries in the Latin American region, Brazil is the most attractive market with highest growth potential due to the upcoming FIFA World Cup in 2014 and the Olympics in 2016. In Brazil, along with preparations underway for these two mega events there is an underlying energy crisis that the country is facing, which in turn is propelling the demand for energy-efficient lighting solutions.
The demand for energy efficient lighting solutions is also driving market growth for the ballasts market, which is following similar growth patterns across different regions and product segments, as exhibited by the energy efficient lamps market.
Latin America ballasts market is expected to grow at a CAGR of 24.7 percent from 2012 to 2018, and reach a market size worth USD 1,036.1 million by 2018, the research said.
However, magnetic ballasts market is expected to see a sharp decline in growth due to lower energy efficiency and availability of advanced solutions, such as electronic ballasts and LED drivers.