Lighting accounts for nearly 15 percent of the energy consumed in the U.S. building sector, compelling building owners to seek more energy efficient lighting systems. This places the spotlight on light emitting diode (LED) lighting due to its reasonable cost, technology improvements and long life.
New analysis from Frost & Sullivan's (buildingtechnologies.frost.com) Analysis of the North American LED Lighting Market research finds the market earned revenue of $1.15 billion in 2012 and estimates this to reach $3.63 billion in 2017. The market is primarily segmented into indoor and outdoor LED lighting.
For more information on this research, please email Britni Myers, Corporate Communications, at britni.myers[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
"The need to conserve energy by upgrading older systems to LED lighting is a key driver for the market," said Frost & Sullivan Energy and Environment Industry Analyst Alejandra Lozano. "In particular, we find there is higher adoption of energy efficient lighting in the outdoor segment due to government funding for lighting upgrades in exterior applications."
The North American LED lighting market will also get a leg up from supportive legislation, such as the Energy Policy Act of 2005 and Energy Independence and Security Act of 2007, which mandates greater energy efficiency of general service incandescent lamps. The legislation also hastens the market introduction of efficient and high performing solid-state lighting (SSL) products, including LED lighting.
However, despite the thrust from the government, the higher initial costs of LED lighting products compared to that of competing technologies restrain their adoption. The economic downturn of the last few years has made end users particularly prudent as they demand cost effective systems that also offer energy savings.
Although the operating costs of an LED lighting system are low, the capital expenditure of LED lighting products is often prohibitive to end users that do not have a clear vision of the short- to medium-term return on investment from energy savings. The technology will experience wider uptake as ongoing research helps lower costs of production, making LED lighting more affordable.
"Educating customers about the lifecycle cost benefits of installing an LED lighting system and demonstrating the energy savings that are achievable with these systems are vital to market success," concluded Lozano.
Analysis of the North American LED Lighting Market is part of the Energy and Environment Growth Partnership Service program, which also includes: Analysis of the North American Lighting Equipment Market, World LED Lighting Markets, and European Energy-efficient Lighting Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Analysis of the North American LED Lighting Market / NAF2-19