by Brianna Crandall — November 25, 2016 — The transformation of the lighting industry to light-emitting diode (LED) solutions is the biggest disruption the lighting industry has ever witnessed, according to a new report from global growth partnership company Frost & Sullivan. Advanced lighting control and light management solutions have a significant opportunity to bring to life the benefits of LED lighting in terms of energy efficiency, advanced functionality and exploitation of growth in new applications beyond illumination.
Cloud-based light management systems (LMS) solutions are expected to be a key enabler for new business models for lighting, such as remote management and control and light-as-a-service (LaaS), while LED and Internet of Things adoption will drive growth in this sector.
Frost & Sullivan Energy & Environment Partner John Raspin stated:
The next generation of lighting control and light management systems (LC-LMS) is enabling the lighting industry to accelerate into a new paradigm beyond the recent era of energy efficiency and total cost of ownership. In the next five years, LC-LMS will facilitate the transformation to value-adding LED lighting to bring benefits in terms of comfort, health and wellness, connectivity, internal positioning and business productivity.
According to European Market for Lighting Controls and Light Management Systems, new analysis from Frost & Sullivan’s Homes & Buildings Growth Partnership Service program, the market is hindered by:
Affordability and return on investment for end-users restricting the pace of LC-LMS adoption; and
The lack of certified technical training to build awareness across stakeholders and channel partners in relation to the latest developments in LC-LMC product variety and options for the Internet of Things (IoT).
Innovative, market-leading companies such as Philips Lighting, Schneider Electric, ABB and Zumtobel Group are bringing lighting to the center of an integrated connected home solution rather than focusing solely on lighting as a functional application, notes Frost & Sullivan.
The United Kingdom, Germany, France, Denmark, Czech Republic, and Poland will be the fastest growing markets, with office, residential, healthcare, and education being the largest segments. Real estate investment, including retrofits, in countries such as the United Kingdom, Germany, Spain, and Scandinavia are expected to be strong in the next few years, which will accelerate growth in the office and residential segments.