The market research company estimates that IoT technologies, such as light-as-a-service (Laas), will not only drive better energy management but also new business models. By 2025, Frost & Sullivan predicts LEDs will account for 98 percent of the global lighting market, with India, Asia-Pacific, Latin America, and Africa set to record the highest growth rates.
The LED market evolution is continuing with a steep decline in cost per unit, high energy-efficiency ratings, and favourable government initiatives driving adoption. But IoT will shift focus from energy efficiency, product reliability, and O&M costs to include controllability, connectivity, and technology integration in smart buildings and smart cities.
According to the report, the Asia-Pacific region contributes the most to global market revenues. Express construction in many Asian countries, government endorsement of energy-efficient lights in India and China, and the existence of a large number of LED chip and package factories in China, Japan, South Korea, and Taiwan are factors driving growth.
While residential, outdoor, and retail make the highest contributions at present, office, industrial and hospitality are expected to be future growth sectors. The firm recognizes the popularity of Organic LED (OLED) lighting for its ability to emit warm light over large areas, provide colour comfort, and bring improved form factors to the lighting industry.