LED technology has transformed the lighting industry in recent years. At the same time, buildings’ energy efficiency has become a top priority in the fight against carbon emissions.
A study by market research firm Guidehouse Insights examines how the two trends have converged, especially as it concerns commercial buildings.
Guidehouse published Market Data: Energy Efficient Lighting for Commercial Markets in the third quarter of this year, and the report examines and estimates the size of the global commercial market for energy-efficient lighting over a 10-year period. Information was gathered primarily from phone and in-person interviews with industry leaders including executives, engineers and marketing professionals.
The report makes several significant findings. For example, it notes that dramatic improvements in performance combined with steep price declines have contributed to a widespread adoption of LEDs in commercial lighting.
It also notes that government interventions, in the form of lighting efficiency regulations and financial subsidies and incentives, have also encouraged LED adoption. Sustainability targets, efficiency codes and advanced LED system functionalities are also contributing to the trend.
Based on these and other market drivers, Guidehouse projects growth in global LED revenue over the next 10 years, with a concurrent decline in revenue from all other lighting technologies (i.e., incandescent, halogen, T8 and T5, T12, CFL and miscellaneous fluorescent, and high intensity discharge).
The LED market will lead to growth in the overall lamp and luminaire global market by a 2.5% compound annual growth rate over the 10-year period examined, from 2022 to 2031. The LED market itself will grow from just under $40 billion to about $60 billion in that time frame. LEDs represent about 85% of the total market.