by Shane Henson — February 7, 2014—The global demand for light-emitting diode (LED) solutions is increasing, as evidenced by the market earning revenues of $9.18 billion in 2012 and the forecast for earnings to rocket up to $36.52 billion in 2017, according to a new report from global growth consulting firm Frost & Sullivan.
Per the report, World LED Lighting Markets (2013 Update), the need to reduce energy consumption and minimize greenhouse gas (GHG) emissions in lighting is driving the LED lighting market. To speed up adoption, market participants are offering end users integrated LED lighting solutions that include consultation from concept to implementation along with maintenance services.
Reduction in the prices of LED lamps will reportedly also boost global sale volumes and encourage emerging nations to turn to solid state lighting (SSL) to meet their energy requirements. The residential and outdoor application segments, in particular, will witness rapid growth, the report notes.
“Governments worldwide are opting for SSL to cope with the demand for artificial light, which is expected to see a 60 percent increase by 2030,” observed Frost & Sullivan Energy and Environmental Research Analyst Balaji Anand Sagar. “Energy-saving LED light sources, therefore, have immense scope as they last an average of 15,000 hours and produce the same lumen output as incandescent lamps, which last just 1,000 hours.”
However, the global LED lighting market has not reached its full potential as the phasing out of incandescent and compact fluorescent lamps (CFL) is still in progress or in the nascent stage in most nations. End users, who are often content with incandescent and CFL lighting technologies, need time and greater awareness on the benefits of LED lighting to make a transition.
While the recession-proof replacement market continues to grow, the dip in construction activities owing to the recent economic slowdown is affecting new installations. As a result, the global LED lighting market is expected to witness increasing consolidation with more mergers and acquisitions taking place to strengthen market presence and enhance brand visibility.
“To further penetrate the market, obtain repeat orders, and increase brand recall, market participants are forging strong relationships with channel partners, architects, electrical installers and customers,” noted Sagar. “They are also rolling out reliable, high-quality LED lighting solutions with warranties to remain competitive.”
