US
demand for advanced lighting is forecast to increase 9.3 percent per annum
through 2015 to more than $11 billion. A government-mandated phaseout of traditional
incandescent lamps and a projected improvement in the cost effectiveness of
advanced lighting will drive gains.
Starting in 2012, the Energy Independence and Security Act of 2007
(EISA) will limit US lighting sales to products that meet certain energy
efficiency standards. The elimination of
traditional 40-100 watt incandescent lamps will power growth in advanced
lighting sales through 2015. The much
longer useful lives of advanced lighting products will decrease the average
replacement rate for residential lighting and eventually depress advanced
lighting demand. These and other trends, including market share and product
segmentation, are presented in Advanced
Lighting, a new study from The Freedonia Group, Inc., a
Cleveland-based industry market research firm.
In
nonresidential building and outdoor lighting applications, traditional
incandescent lamps account for a smaller share of the market, so the EISA will
have less impact on advanced lighting demand. Instead, a projected decrease in the cost of
advanced lighting, particularly for light emitting diodes (LEDs), will spur
demand growth through 2015. Businesses,
institutions and government entities will turn to advanced lighting products to
lower energy expenses and to reduce the labor costs of replacing lighting
products.
Demand
for LEDs will grow the fastest of any advanced lighting product through 2015,
rising nearly 15 percent per year to $6.1 billion. Increased penetration in the residential
building market will support advances.
While the EISA will also boost unit sales of compact fluorescent lamps
(CFLs) and halogen lamps through 2015, over the long term LEDs are expected to
take market share from these types. LEDs
consume far less energy than halogens, do not contain mercury (unlike CFLs) and
last considerably longer on average than halogens or CFLs. These advantages, combined with a rapid
decline in unit prices, will eventually result in LEDs leading the residential
market in both unit sales and value demand.
Sales of metal halide lamps (a type of high intensity discharge lamp)
and halogen lamps will benefit from a projected rebound in motor vehicle
manufacturing through 2015.
The Freedonia
Group is a leading international business
research company, founded in 1985, that publishes more than 100 industry
research studies annually. This industry analysis provides an unbiased outlook
and a reliable assessment of an industry and includes product
segmentation and demand forecasts, industry trends, demand history, threats
and opportunities, competitive strategies, market share determinations and
company profiles.
