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Viewing report
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World LED Lighting Market
Frost & Sullivan, April 2011, Pages: 119
The world LED market has experienced a surge in the recent past. What started as a luxurious niche segment in the market for architectural and ambient lighting has today established itself as the technology of the future for all applications. Yet the penetration of LED in the total lighting market remains low. Consumer demand remains strong only in the regions of the world that have taken active steps to implement a phase-out plan for incandescent lighting. Incandescent replacement is one of the key drivers for this market going forward. The market is concentrated in the hands of a few global participants. However, as the attractiveness of the market increases, it is expected new entrants will intensify the competition
Research Overview
This Frost & Sullivan research service titled World LED Lighting Market provides competitive market analysis and examines geographic trends. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: North America, Europe, Asia and the Rest-of-World. Included is an examination of commercial and industrial, retail and hospitality, residential, public, street and architectural lighting applications.
Market Overview
Technological Advances Light Up Future Prospects of LEDs
From a mere 3 per cent penetration in the lighting technologies market, light emitting diodes (LEDs) are set to grow into the most dominant lighting technologies in the future. On-going technological developments will enable suppliers to tap into all applications from functional lighting indoors to the already established markets of architectural and street lighting. “The world LED market will expand strongly, driven largely by improvements in technology,” notes the analyst of this research. “Such advances will enable their wider application in illumination and will be further reinforced by measures adopted by authorities to support energy efficient lighting.”
In Europe and North America, measures have been adopted to phase out incandescent lighting or impose minimum efficiency criteria on lighting technologies. This will lead to incandescent lighting being replaced by more energy-efficient equivalents such as LEDs. “Simultaneously, suppliers across the globe are undertaking to improve the quality of LED lamps by enhancing their efficiency, quality of light output, colour rendition and thermal management,” states the analyst. “Thus, LED lamps are set to become better equipped for use in functional lighting across all building sectors, even as public authorities reinforce the need to employ them.”
Focus on Improving Quality to Combat High Cost Factor and Encourage End-user Adoption
While the improvement in LED is likely to make it a better technology in the long run, it remains the most expensive lighting technology in the market. Currently, the price difference between LED lamps and other energy-efficient technologies such as compact fluorescent lamp (CFL) is significant. Although such price differences are anticipated to narrow over time, it is still likely to dampen more widespread adoption by end users. The market for indoor lighting – both residential and commercial – is price sensitive. These segments are untapped and offer considerable potential for future growth. LEDs, being energy efficient involve lower maintenance costs for the user. However, the initial investment is very high and thus restrains uptake. Unless suppliers can work on reducing prices, market growth could be hampered.
“However, price reduction is difficult till economies of scale enter the market,” explains the analyst. “Instead, suppliers could focus on providing better quality lamps – that is lamps with increased lumens per watt – at the prevailing prices, so that payback period on the investment is reduced and the product becomes competitive with competing energy-efficient technologies.” At the same time, manufacturers and distributors will need to work together to increase consumer awareness about the benefits of using LEDs and the energy savings that could result in the long run from its adoption. Emphasis on the fact that LEDs are likely to enable the user to achieve the lowest maintenance cost needs to be highlighted, so that the initial cost is not perceived as a hurdle in adopting LEDs. “The technical advantages of LED need to be highlighted,” concludes the analyst. “Equally important is the need to stress on the long-life of the lamp.”
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following application sectors in this research:
- Commercial & industrial
- Retail & hospitality
- Residential
- Public
- Street
- Architectural
By Geographical Region
- North America
- Europe
- Asia
- Rest-of-World (RoW)
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