Sep 8, 2016: Over the past few years, the green energy industry has been witnessing reduced prices in wind, lithium batteries and solar energy sectors. This has further led to new developments in the green energy industry.
Goldman Sachs, the leading US banking firm, has placed LED as the topmost industry disruptor among green energy markets despite the other sectors are transforming the green market. In August 2016, the firm published 60 charts associated with low carbon economy, where it claimed LED as one of “the fastest technology shifts in human history.”
Industry analysts expected that the reduced wind and solar energy prices would impact the energy sector to a great extent. However, only a handful of nations adopted such green energy technologies. In addition, wind and solar energy has not been able to replace the conventional electricity power sector. As against this, LED has been successfully replacing traditional lights at a quick rate.
LED market penetration
The LED market shares were almost zero in 2010. However, over the past years, it has replaced a number of conventional light sources owing to its rapid market share. Goldman Sachs predicts that the LED luminaire sales will hit 69% by 2020, and by 2025 the percentage will increase to nearly 95%.
The long term price LED trends point out that reduced prices have helped in boosting LED market penetration, thus paving the way for its transformation as a mainstream light source. LEDs may have depended on heavy government subsidies as other green energy sectors. However, LED has become so price competitive within a short period of time that it has surpassed traditional light sources.
The LED shift
GE Lighting has announced it will be withdrawing from CFL and shift to LED by February 2016. Many other lighting firms will follow suit and exit from CFL sector soon, Goldman Sachs has predicted. As LEDs are rooted in semiconductor technology, it has developed at a speedy rate as compared to the conventional lighting technologies. In addition, the semiconductor quality of LEDs has paved the way for higher energy efficiency. All these have made LED more competitive in the green energy industry after incorporating the lighting into independent micro grids and related power applications.
Over the recent years, the LED industry has pushed enormous market changes. For instance, the LED luminaire industry is likely to create almost 2 million job opportunities. Furthermore, LEDs have not only affected the lighting sector, it has also been used extensively in LED lighting.
A number of smart buildings and IoT technologies are willing to use LEDs for connecting nodes, and its energy efficiency will give LEDs more significant roles in creating smart connected lighting for future homes and buildings.