Frost & Sullivan: Legislation and Technology Improvements to Illuminate World LED Lighting Markets
-- The analysts forecast a massive growth: from three to 23 billion by 2018
LONDON, Nov. 14, 2012 /PRNewswire/ -- Low penetration in indoor lighting applications has, so far, been a bane for the light emitting diode (LED) market. However, improving technology and supportive legislation are set to push residential buildings – the largest lighting application sector – into adopting LED technology for their lighting needs.
New analysis from Frost & Sullivan (http://www.buildingtechnologies.frost.com) World LED Lighting Markets (2012 Update), finds that the market earned revenues of $3,573.5 million in 2011 and estimates this to reach $23,242.7 million by 2018.
"The LED lighting market is being driven by legislation that will essentially phase out incandescent lighting and other inefficient lighting technologies," noted Frost & Sullivan Industry Analyst Hammam Ahmed. "This will effectively narrow the competition for LED lighting. Declining LED prices will further boost the demand for, and penetration of, LED across multiple lighting applications."
The European Union has been among the first to adopt legislation supporting the withdrawal and ban on the production and sale of incandescent lighting. Although such legislation will be implemented in multiple phases, it has already begun to have an impact on the demand side.
Similar policies have been adopted and, in some cases, implemented in countries like the United States, Switzerland, Canada and Australia. In Asia, Japan, China, Taiwan and Korea are also adopting supportive legislation, with some of these countries even offering financial incentives to consumers and manufacturers.
Pricing and technology have been the key factors limiting the penetration of LED in general lighting. However, sharp and continued declines in prices, are expected to help LEDs achieve price parity with other lighting technologies by the turn of the decade.
However, while prices are declining, it is important for manufacturers to provide better value for money. This implies that the lumens per dollar ratio needs to improve.
"R&D in this respect has been a priority for manufacturers, and improvements are being made in brightness, design and quality of components to overcome this challenge," stated Hammam. "It remains to be seen how customers receive these new product developments."
Manufacturers will also need to address the pricing pressure that has developed over the last year to make 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," concluded Hammam. "Leading market participants, on the other hand, need to offer high quality products and explore avenues for reducing cost of production."
If you are interested in more information on this study, please send an e-mail with your contact details to Chiara Carella, Corporate Communications, at firstname.lastname@example.org.
Analysis of the LED Lighting Market is part of the Building Technologies Growth Partnership Service programme, which also includes research in the following areas: European Energy-efficient Lighting Market, The LED Revolution and Key Opportunities for Lighting Companies in the Global Market and European Lighting Equipment Market: Opportunities by Vertical Application Sector. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Analysis of the LED Lighting Market
Corporate Communications – Europe
SOURCE Frost & Sullivan
Mer från detta företag
Will FinTech Make Banks Disappear?
Why 'Deception' is Essential to Your Cybersecurity Strategy
21 Feb, 2017, 17:07 CET
Skapa innehåll för din webbplats
Förbättra din webbplats eller blogg med PR Newswires skräddarsydda nyhetsflöden.
Kontakta PR Newswire
Skicka oss ett mail till email@example.com eller ring oss på +46 (0)8 507 413 00
Bli en PR Newswire kund
Begär mer information, se PR Newswire produkter & tjänster eller ring oss på +46 (0)8 507 413 00