Outdoor LED luminaire revenue to reach USD1.4bn by 2021
The report entitled ‘Outdoor and Parking Lighting Systems’ released by Navigant Research points out that outdoor lighting systems are in the early stages of a transition from fluorescent, high-pressure sodium, and metal halide lamps to light-emitting diodes (LEDs). As LED prices continue to fall, the case for replacing today’s most prevalent lighting technologies in outdoor systems is becoming more and more compelling.
“While the deployment of LED lighting in parking lots will dramatically cut energy bills and help politicians achieve environmental goals, better lighting quality is a significant additional benefit in itself,” explained Jesse Foote, senior research analyst with Navigant Research. “LED lighting can help drivers better identify objects, obstacles, and individuals; minimize glare and light pollution; and make spaces more visually appealing while enhancing safety for pedestrians and motorists.”
Because the lifespan of LEDs is much longer than that of conventional lighting, direct revenue from lamp and luminaire sales will actually decline gradually after 2021, according to the report. This trend will drive the large lighting providers to move toward a ‘lighting-as-a-service’ model, in which LED lighting and energy management will be offered as an ongoing service rather than a one-time equipment sale.
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