MENU

US demand for LED lighting to grow more than 10 percent annually to 2017, reports Freedonia

US demand for LED lighting to grow more than 10 percent annually to 2017, reports Freedonia

Market news |
By eeNews Europe



Freedonia Industry Market Research’s report entitled ‘LEDs & High Efficiency Lighting’ says the growth will be supported by technological improvements and regulatory changes designed to lower electricity used in lighting applications.

Freedonia noted that the US market for high efficiency lighting is continuing to adjust to the provisions of the Energy Independence and Security Act (EISA) of 2007, which is leading to a phase-out of traditional incandescent lamps and supporting demand for products such as LEDs and compact fluorescent lamps.

Technological innovations that are improving the performance of LEDs and many types of high efficiency lamps are also supporting demand. In addition, particularly in the LED segment, improvements in manufacturing are leading to lower purchase prices for many products, thereby boosting market penetration for these efficient lighting products.

However, because high efficiency lighting products have much longer useful lives, the average replacement rate will decrease over time, eventually depressing high efficiency lighting demand.

Demand for LEDs will grow the fastest of any high efficiency lighting product through 2017. Increased penetration in many residential and non-residential building applications, as well as in the outdoor lighting market, will support advances. While the high initial price of LEDs has hindered their adoption in many traditional lighting applications, technological innovations that reduce costs and improve performance will make these products increasingly competitive.

Freedonia predicts that the market for other energy efficient linear fluorescent lamps will also register strong growth, supported by heightened penetration of T5 and T8 lamps, in place of less efficient T12 products. In addition, the rebound in non-residential building construction will provide a boost.

Freedonia anticipates that through 2017, the building market for high efficiency lighting products will see strong growth which will be supported by a shift to higher value, longer lasting lighting products and driven in part by rising efficiency standards for lamps.

Residential demand is likely to be bolstered by the replacement of less efficient lighting that has been phased out due to EISA. Businesses, institutions, and government entities will turn to high efficiency lighting products to lower energy expenses and to reduce the labour costs of replacing lighting products. In the long term Freedonia points out that the market will be restrained by the longer service lives of LEDs and newer lamp products, which will limit replacement demand.

Visit Freedonia at www.freedoniagroup.com

If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :    eeNews on Google News

Share:

Linked Articles
10s