LED market for indoor residential lighting poised to surge

November 27, 2012 - LEDs have struggled to gain a foothold in the marketplace for indoor lighting applications, but technology improvements and supportive legislation are gathering momentum to help push LED adoption for residential buildings — the largest lighting application sector.

Global sales of LEDs for lighting applications totaled $3.57B in 2011, and should surge to $23.24B by 2018, calculates Frost & Sullivan. Behind that swell is "legislation that will essentially phase out incandescent lighting and other inefficient lighting technologies," as well as declining prices for LEDs that will boost demand and penetration of LED technology across multiple lighting applications, explains Frost & Sullivan industry analyst Hammam Ahmed.

The European Union has been an early adopter of legislation supporting a shift away from both manufacturing and sales of incandescent lighting; this legislation, though coming in multiple phases, has been echoed with similar policies sprouting up and implemented in various other countries (US, Switzerland, Canada, Australia). In Asia, Japan, China, Taiwan, and Korea are adopting LED-supportive legislation including financial incentives for both consumers and manufacturers.

Total global LED lighting market (2011), percent LED revenue by region (left)
and application (right). All figures are rounded. (Source: Frost & Sullivan)

Key factors limiting LED penetration into general lighting applications are pricing and technology improvements, but sharp and continued price declines should speed up the tipping point of price parity with other lighting technologies by the end of this decade, Frost & Sullivan says.

On the other side of that coin, manufacturers continue to improve lumens/dollar by pushing R&D and improvements in brightness, design, and quality of components, Hammam notes — though he admits "it remains to be seen how customers receive these new product developments." Additionally, those same relentless price declines are forcing manufacturers to come up with sustainable, long-term growth plans. "Participants from Eastern Asia, who have the ability to compete on prices, need to address quality issues to expand into the more developed markets of North America and Europe," he noted, while current market leaders "need to offer high-quality products and explore avenues for reducing cost of production."

POST A COMMENT

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

NEW PRODUCTS

Dynaloy unveils safer cleaners
11/19/2014In response to evolving industry trends and customer preferences for products with better environmental, health, and safety (EHS) profiles, Dynaloy LLC is launching three...
Entegris' VaporSorb filter line protects advanced yield production
10/21/2014Entegris, Inc. today announced a new product for its VaporSorb line of airborne molecular contamination (AMC) filters. ...
Next-generation nanoimprint lithography technology
10/21/2014EV Group (EVG) today introduced its SmartNIL large-area nanoimprint lithography (NIL) process....