LED lighting in buildings to pass USD10.3n mark in 2014
The market is also predicted to grow still further to reach almost $23 billion by 2018 representing a compound annual growth rate (CAGR) in the overall market of 22.8% over the six-year period.
Memoori reports that a combination of continued consumer confusion over the benefits of LED lighting, a slow decline in sale prices and lower than expected global GDP growth meant that 2013 revenue growth for LED lighting was disappointing. However the market analyst predicts that oversupply concerns are likely to ease towards the end of 2014 as capacity is absorbed by a steady increase in global demand.
Memoori says that major players such as Philips, Osram, Cree, Acuity and GE have set in place their strategies to retain a large slice of the market as the LED Lighting business grows. Ever increasing amounts of their revenues are coming from LEDs rather than traditional technologies.
Whilst the future looks bright in the medium term, lighting manufacturers are expressing increasing concern about what is going to happen after 2020 when the replacement market is essentially saturated; with predicted levels of 70-80% adoption of long-lasting LEDs that will lengthen replacement cycles.
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