Energy-efficient Lighting Technology Industry: Growing Demand for LEDs Vital for Global Market

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The global energy-efficient lighting technology market is dominated by players such as OSRAM GmbH, GE Lighting, and Royal Philips Electronics. According to Transparency Market Research, focusing on the development of energy-efficient LED lighting is likely to a popular strategy among leading players in the global market in the coming years. The leading players in the energy-efficient technology market are thus expected to invest in the production of LEDs and development of improved LED models and acquire smaller players specializing in the production of a promising LED technology. 

The valuation of the global energy-efficient lighting technology market is expected to rise to US$173.4 bn by the end of 2016. 

LEDs to Challenge CFLs as Dominant Contributor to Energy-Efficient Lighting Technology Industry 

By product type, LEDs are likely to exhibit robust growth till the end of 2016 and emerge as a key contender in the global energy-efficient lighting technologies market. LEDs are highly suitable for use in remote areas, where alternative energy sources such as solar and wind power can be used to power a highly energy-efficient lighting network. This eliminates the need for a grid connection and causes virtually no damage to the environment. 

CFLs are another key product segment of the global energy-efficient lighting technology market and are likely to remain a key contributor to the industry till the end of 2016. “CFLs offer a high brightness-to-power-consumption ratio, which has made them popular in residential applications,” states TMR’s lead analyst. CFLs also offer a high operational life and have low maintenance requirements, which also makes them attractive for residential consumers. 

Geographically, the U.S. is the leading contributor to the global energy-efficient lighting technology market due to the widespread support for the incorporation of technologies that minimize the impact of human activities on the environment. The U.S. market’s contribution to the global CFL market is likely to reach US$27.5 bn by the end of 2016, while the valuation of the LED market in the U.S. is likely to reach US$6.9 bn by the end of 2016.

High Costs of Energy-efficient Lighting Hold Global Market Back 

Energy-efficient lighting technologies have come to the fore primarily as an environmentally viable alternative to incandescent lighting. The latter, which wastes much of its power as heat, is thus being replaced by various types of energy-efficient lighting in several applications. The steady government support to the widespread adoption of environmentally sound technologies has also benefited the global energy-efficient lighting technologies market and is likely to remain a leading driver for the market in the coming years. 

While energy-efficient lighting technologies are gaining demand as a suitable alternative to conventional incandescent lighting, their high costs of production are a significant restraint on the market. Despite the relatively low payback period of most energy-efficient lighting technologies, their high costs have been a key hindrance to widespread adoption. 

The information in this preview comes from a Transparency Market Research report titled ‘Global Energy Efficient Lighting Technology Market by Correlated Color Temperature (CCT), Application and Geography 2011- 2016.’