As people spend more on constructing buildings, they buy more lighting devices. Furthermore, many government projects and investments require the purchase and implementation of lighting, such as highways, public transit and government buildings. Government consumption and investment is expected to increase in the next 5 years.
The Energy Independence and Security Act (EISA), which was phased in January 2012, restricted the manufacture and import of 40- to 100-watt incandescent bulbs. The law mandates that light bulbs meet a minimum Lumens per watt level, which measures efficiency against lighting capabilities. The law mandates that incandescent bulbs reduce their energy output; by 2020, most light bulbs must be 60.0% to 70.0% more efficient than standard incandescent bulbs.
The ultimate effect of the EISA is to encourage the move toward more efficient lighting systems, such as CFL bulbs. Consequently, CFL light bulbs are more energy efficient than incandescent bulbs and generally less expensive than LEDs. While the rising popularity of CFLs has increased, it has also brought additional concerns for industry players: To create fluorescent lighting, CFLs use tri-phosphors, which contain “poisonous and health threatening” rare earth oxides (e.g. cerium, europium, terbium and yttrium).
Although LED bulbs are more costly than traditional light bulbs, demand for these items has significantly increased because they provide unprecedented efficiency and durability in addition to the excellent flexibility in terms of color, dynamics and architectural integration. Moreover, recent developments in LED technology have made LED bulbs much more affordable. As a result of the rise of LED technology, the industry’s major companies have gradually shifted from production of incandescent bulbs and compact florescent (CFLs) bulbs to LEDs.
LED products, which have grown from accounting for a mere 1.5% of the global lighting market in 2009 to over 25.0% in 2015, are expected to continue growing in popularity in the years to 2020. Industry sources, including reports from General Electric and Philips Lighting, claim that by 2020, LEDs could control as much as 80.0% of the global lighting market…
*Compiled from IBISworld® market report 2015