LEDs will shrink the overall value of the lighting market
By Anthony Capkun
May 18, 2012 – Improving lighting efficiency is an investment in the future. While today cost remains a barrier to the adoption of more efficient lighting, particularly LED lighting, those costs are declining rapidly, and mass adoption could happen in a relatively short timeframe.
According to a recent report from Pike Research, LEDs will displace more than 52% of the global market for lamps in commercial buildings by 2021. The firm anticipates the combination of declining prices for LED lighting and the accompanying extended lamp lifetimes will have the effect of shrinking the overall value of the market.
While revenues from LED lamps in the commercial sector will rise by 8.5% through 2021 to $2.7 billion, Pike forecasts the overall market for commercial lighting will peak at $54 billion in 2012 before contracting through the remainder of the decade, hitting about $30 billion in 2021.
“It would be hard to imagine in today’s world that technology will not beat out tradition,” says senior analyst Eric Bloom. “The commercial lighting industry will undergo a transformation over the next 10 years that will result in a significant drop in direct revenue from unit sales. Lamp and luminaire manufacturers and others in the value chain will have to rely on lighting controls and services to offset the revenue and profit lost in this process.”
Pike Research’s report, “Energy Efficient Lighting for Commercial Markets”, describes the key factors that are influencing the market for energy-efficient lighting around the world: trends in energy codes; rebate and subsidy programs; sustainability/green certifications; raw material supply issues; geopolitical influences in developing and developed nations, etc. An Executive Summary of the report is available for free DOWNLOAD online.