Global Energy Efficient Lighting Market to Hit $32.2 Billion by 2015
From 2010 to 2015, the global energy efficient lighting market is projected to increase from $13.5 billion to $32.2 billion, according to the latest issue of EL Insights. This represents a compound annual growth rate (CAGR) of 19% during this time period.
Today, 20% of the world’s electricity is used for lighting. Electricity consumption can be reduced to 4% with the full-scale adoption of LED (light-emitting diode) and could translate to a savings of 334 million barrels of oil per year in the United States. According to the U.S. Department of Energy, the adoption of LED lighting in the U.S. over the next 20 years would reduce electricity consumption by 25%, save an accumulated $120 billion in energy costs, and reduce greenhouse gas emissions by 246 metric tons of carbon.
In addition, according to EL Insights, from 2010 to 2012, growth will be strongest in commercial lighting, and residential lighting growth will follow from 2012 to 2015. LED technology is on track to capture nearly 50% of the $4.4 billion commercial lighting market by 2020.
According to EL Insights, here’s what companies can expect:
–Incumbent manufacturers of traditional lighting will face challenges to offer LEDs at the same price point as emerging, solely-LED manufacturing companies which will benefit from economies of scale and continue the rapid decline of prices until reaching global stasis.
–Barriers to entry are low for LED manufacturers, and start- ups can introduce new technology within 3 months, opposed to 18 months from traditional manufacturers.
–LEDs will take over conventional light sources by…
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