I see the LED light now. For according to a study titled Energy-Efficient Lighting for Commercial Markets conducted by the analyst firm Pike Research. For it is predicted that by 2020, Light Emitting Diodes (LEDs) lighting will most notably account for 46 percent of all lighting. That’s most specifically in the commercial, industrial, and also the outdoor stationary sectors.
For this report states the LEDs will account for almost half of the $4.4 billion a year commercial lighting market within 10 years. These are from reports by Danny Bradbury of BusinessGreen.
Report Details on LED lighting
Key findings from recent market analyses reveal:
The LED adoption landscape in 2010 was characterized by rapid growth and also optimistic projections. Especially for the future of solid-state lighting (SSL) in the commercial sector. Key findings from reports and market analyses of that time include:
Market Growth Projections:
The global LED lighting market is expected to grow from €7 billion in 2010 to €40 billion by 2016. That’s also with a compound annual growth rate (CAGR) of 34%.
By 2020, the LED lighting market is projected to reach nearly €65 billion ($94 billion). That’s representing about 60% of the total lighting market.
Adoption Rates:
In 2010, LED penetration in the general lighting market is around 7% in Asia, North America, and Europe.
Projections are indicated that LED penetration will reach approximately 70% in these regions by 2020.
Energy Savings:
The U.S. Department of Energy (DOE) reported that lighting accounted for 700 TWh of electricity consumption in 2010. That’s literally 19% of total energy used in the country.
Most likely, our transition to more efficient lighting technologies, including LEDs, is expected to significantly reduce energy consumption in the coming years.
Market Drivers:
First of all, the quality of light. I mean that’s including factors like CRI, color temperature, and also that light distribution. For it’s also identified as the top purchasing criterion for most commercial applications.
The lifecycle cost and energy efficiency were the second most important factors for commercial buyers.
As well, payback periods of three years or less were generally expected to encourage the adoption of LED lighting over traditional options.
Sector-Specific Adoption:
Architectural lighting was an early adopter of LED technology due to benefits like color control, with projections of 85% LED penetration by 2020.
Rapid growth was also expected in hospitality, retail, and outdoor lighting applications.
Office and industrial lighting sectors were anticipated to have slower LED adoption due to the prevalence of cost-competitive linear fluorescent lamps.
Regional Trends:
Asia, particularly China, was expected to experience the most rapid growth in the general lighting market, with its market share projected to rise from 35% to 45% by 2020.
Europe and North America were forecasted to follow with market shares of 25% and 20%, respectively.
Market Structure:
The general lighting market was described as fragmented due to the diverse applications and purchasing decision-makers involved.
The fixture manufacturing landscape varied by region, with Europe having over 100 companies, the U.S. market being relatively consolidated, and China having many local companies including OEM suppliers.
Technological Disruption:
LED technology was expected to fundamentally disrupt the lighting industry along the entire value chain, challenging standard lighting approaches with new possibilities like design flexibility and dynamic color temperature control.
The controllability of LED-generated light was anticipated to enable intelligent lighting systems, with revenue from control-system components projected to reach €7 billion by 2020.
These 2010 reports highlighted the transformative potential of LED technology in the commercial lighting sector, predicting significant market growth, energy savings, and technological advancements over the following decade.
In addition, optimistic projections reflected the industry’s recognition of LED’s superior efficiency. As well as longer lifespans, and versatility. Especially compared to traditional lighting technologies.
3. Adoption Rates:
- A-type lamps represent nearly half of all LED lighting installations, with an installed penetration of 32.9%.
- Outdoor lighting has seen greater LED penetration (51.4%) compared to indoor lighting (29.8%).
- Low/high bay fixtures and A-type lamps have provided the greatest energy savings for indoor applications.
LED Lighting Safe
Clint Wheelock, Managing Director at Pike Research, said that the LED lighting is already used in traffic signals and exit signs. He also said that the LED manufacturers will also switch their attention. Most likely to concentrate on the outdoor stationary sector. That’s followed by lighting for retail, professional and finally the institutional buildings.
However, the report predicted that other forms of energy efficient lighting will continue to play a sizable role in the market until the cost of LED lighting falls substantially.
Conclusion
However, the Indian government has begun to explore ways to reduce the cost of LED lighting in a bid to establish the country as a major manufacturing hub for the technology.
Finally, the National Manufacturing Competitiveness Council has formed a new committee. One that has also recommended aggregating demand for LEDs in various Indian states. That’s in order to encourage domestic manufacturing and more importantly reduce costs. According to reports, the committee is hoping to put in place targets for price and performance. Especially in LED applications such as institutions and public lighting. That’s in consultation with manufacturers and potential customers.
