Feb 10, 2017: Global industrial and commercial LED lighting market is expected to exhibit 30.8% CAGR from 2013-2019 due to the growing demand from commercial sector, according to a ResearchMoz report.
LED lighting delivers high efficiency, high level of brightness, long lifespan and high reliability. LED lights are manufactured using semiconductor components and emit less radiated heat as compared to other products such as incandescent and fluorescent. According to the US Department of Energy (DOE), LEDs emit very less heat compared to incandescent bulbs (90%) and CFLs (80%).
LEDs are often used in the lamps as a replacement of incandescent light sources. The advantages of LED over incandescent light lamps such as high efficiency, longer life span, high reliability, high brightness levels and condensed size are driving the LED market as a whole. Hence, LEDs are being used in various applications such as aviation lighting, camera flashes, traffic signals, headlights, etc., market players are adopting product launch as their key developmental strategy. Recently, GE Lightings launched a new bulb that can be connected to a smart-phone very economically.
Smart lighting is also expected to offer lucrative opportunities for application in commercial and industrial areas. It has the ability to adjust the amount of light required using control zones. Smart city schemes have become prevalent in the U.S. and Europe with rising focus on strategies to reduce peak power demand and the overall consumption of energy.
High initial cost and dominance of fluorescent lamps may inhibit industrial and commercial LED lighting market growth. However, government regulations to ban incandescent lamps are expected to minimize the impact over the next few years.
The industry can be classified on the basis of application into industrial, commercial, outdoor, and architectural segments. The architectural application includes illumination of building structures, digital signage, statues, landscapes and columns and other decorative features.
Faster price erosion of LED lights has implications for its penetration in various application areas, decreasing the size of traditional lighting in terms of both, units and revenue. The industrial segment is expected to be slow growing as compared to other counterparts owing to the presence of existing and widely used high-intensity discharge (HID) and fluorescent technologies with high performance.
Commercial segment further includes retail, hospitality, education buildings, office, and warehouse storage applications. The segment has witnessed high adoption as an alternative to HID, fluorescent and incandescent lighting.
Outdoor applications include corporate campus, airport, industrial warehouse government & healthcare, municipal and other non-public outdoor areas. Its demand can be affected by public policy interventions and municipality. Government initiatives such as LightSavers program by The Climate Group are expected to triggers the substitution of traditional counterparts. Growing demand for high resolution 10 mm signs and billboards, which are ideal for high-volume pedestrian traffic zones, and customizable content are expected to revolutionize the outdoor display industry over the next seven years.
Europe industrial and commercial LED lighting market is anticipated to account for substantial share due to rising government investment and ban on producing and importing incandescent lamps.
Asia Pacific is also expected to be one of the leading contributors due to high construction rates, replacement of existing outdoor infrastructure and government funding for high-efficiency building lighting. The Chinese government has provided huge incentives to replace traditional streetlights with LEDs in order to deploy standardized quality products and solutions. In 2012, the government also announced to ban imports and sales of 100-watt and higher incandescent bulbs which is further expected to elevate demand. In addition, increasing investment in infrastructure including roads, shopping centers, and rapid urbanization in countries such as Mexico, India and Taiwan has created for energy efficient technologies.
Other countries such as Russia, Germany, Denmark and the UK are focusing on deploying efficient methods to improve quality and lower the overall cost.
Competitive market share insights
Companies dominating industrial and commercial LED lighting market share include Philip Electronics N.V., Cree Corporation, Osram Opto, Digital Lumens Inc., GE, Toshiba Corp., Dialight Plc, and Cooper Industries Plc. These manufacturers focus on improving the technology by the development of cost effective products with improved performance. Production optimization, technology innovation, and product development are crucial for industry participants to maintain a competitive edge.