Energy efficient lighting market to reach market size of $ 173.4 billion by 2016
(Resource: BIZ LED Magazine)
October 22, 2015
A new market research report published by Transparency Market Research based on “Global Emerging Lighting Technology Market by Correlated Color Temperature (CCT), Application and Geography (2011- 2016)” states that the Global Energy-Efficient Lighting Technology Market is estimated to be USD 118.7 billion in 2011 and expected to reach USD 173.4 billion in 2016 at a CAGR of 7.9% over the forecast period 2011 to 2016. The LED segment is the fastest growing with CAGR14.9% during 2011 and 2016.
The field of lighting has witnessed tremendous improvements in the past few years, especially in the area of solid state lighting and compact fluorescent lamps (CFL). The traditional incandescent bulbs market is expected to be superseded with the onset of CFL and LEDs (light emitting diodes).
As compared to incandescent bulbs, fluorescents have been considered for offering greater efficiency. LED lasts longer than fluorescent and HID lighting and has proven to be the most efficient in the industry. The typical lasting power of LED light bulbs is 50,000 hours – twice as long as fluorescents. They are four to six times more efficient than incandescent. One advantage about LED lights is it does not get hot when in use. This makes it the present market leader in energy efficient lighting solutions.
In the overall lighting technology market, LED light bulbs are the fastest growing market growing at a CAGR of 14.9% from 2011 to 2016. It is becoming popular due to the increasing applications of LED lighting in decorations, residential spaces, display backlighting, and signal indicators. LED lighting applications will see double-digit growth with the highest market share, post 2020. LED lighting is enjoying the highest growth because of its exceptional features that include long operational life, high energy-efficiency, and robust weather resistant design.
Today, lighting accounts for about 18% to 20% of total energy consumption globally, while around 27% to 30% of total energy consumed is for domestic purposes. The U.S. is projected to be the largest market of LED in 2016. However, this will be taken over by the Asian regions that will witness the highest growth rate at a CAGR of 16.6% from 2011 to 2016.
Since the compact fluorescent lamps (CFL) are more energy efficient than incandescent light bulbs, they consume about 70% of the market shares. CFL includes improved light quality and longer operational life and gives healthier concentrated light than linear fluorescent. CFL’s size is just about one-fourth of the size of conventional fluorescent lamps but are however capable of slashing carbon dioxide emissions by about 1,300 lbs. over its entire lifetime. As the electricity consumption is far lesser than that of incandescent bulbs, CFL light bulbs appreciably help fight global warming too.
In contrast to all the above benefits, the growth and expansion of LED lighting market will rise slowly due to the existing high penetration of cost-competitive CFLs and fluorescent lamps.
This report is aimed to cover in-depth energy-efficiency lighting market on the basis of correlated color temperature (CCT). According to the study report, the LED market by Correlated Color Temperature (CCT), the 5000K – 6500K segments accounted for the largest market share at over 40% revenue share, which was followed by 2700K – 3000K segments at around half of the revenue share as compared to the 5000K – 6000K segments in 2010. In addition, the 5000K – 6500K segments are also expected to grow fastest at a CAGR of 15.8% from 2011 to 2016. The report includes all the major products, applications, ingredients, and submarkets under each of these technologies along with an exhaustively geographic analysis for the major regional markets such as, the U.S, Europe, Asia, and Rest of the World (ROW).