Market researcher expects price drop in non-residential LED market
According to a recent study from Frost & Sullivan, the non-residential LED Market in Asia-Pacific earned revenues of approximately US$183.8 million in 2012 and expects to reach US$420.4 million by 2017. The study covers the application sectors of commercial, architectural, public, industrial and public lighting.
"LED lights are ideal for areas with low clearance, excessive moisture or dust, corrosive atmospheres, and high ambient temperature," said Energy & Environmental Research Analyst Prashanth Kay. "The high recyclability of LED lamps is in line with businesses’ corporate social responsibility policies to reduce their carbon footprint."
While LED’s benefits are apparent, customers are often deterred by the high initial investment required to transition from conventional lighting to LED. However, investors can be persuaded by demonstrating the return on investment through energy savings. Further, with supply expected to exceed demand, there could be a drop in prices, the analyst estimates.
Another reason for a likely price reduction is technology development. The LED market offers a diverse range of products that property owners can choose from to suit a particular property or lighting need. An LED company’s success will partly depend on the versatility and customizability of its products as well as its ability to help customers make an informed decision.
"Recent breakthroughs will greatly extend the performance limits of LED lights, increasing their applications as well as making them feasible to several end-user segments," noted Kay. "As LED lighting technology improves, the rate of adoption of LED lights for general lighting is also expected to increase."
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