Energy-efficient lighting technology market is all set to chart a high growth trajectory owing to plethora of reasons. Continuously increasing worldwide population is one of the key reasons boosting the market growth. The energy-efficient lighting technology has linear and compact fluorescent lighting in addition to LED lighting. There are wide range of lighting options such as LED, incandescent lamp, and gas discharge lamp available in the energy-efficient lighting technology market. Growing awareness about benefits of these lighting options is projected to boost the demand for products from this market. In gas discharge lamp category, customers can select from LFL, CFL, and arc lamp as per their need.
In recent times, there is swift growth in urbanization all across the world. Owing to this situation, the demand for energy has increased tremendously. Players working in the global energy-efficient lighting technology market are growing efforts to advance their production capacity. These efforts will support them to meet the rising demand for their products. This situation also signifies an opportunity for new entrants to make their space in the market by fulfilling the rising demand. Thus, growing demand owing to urbanization is driving the growth of the global energy-efficient lighting technology market.
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Besides, governments of many countries have taken initiatives that are supporting the market growth. As a part of these initiatives, many countries announced the construction of new power plants. However, residents nearby these plants showed strong opposition for these government moves. As a result, government had to withdraw these plans in some places. Governments have temporarily stopped plans for new power plants and have shifted their focus to extend the life of present power plants. Moreover, increasing efforts from governments to promote the use of energy-efficient products is big positive for the global energy-efficient lighting technology market. These efforts are expected to fuel the market growth during forecast period.
Energy-efficient Lighting Technology Market – Snapshot
The energy-efficient lighting technology comprises compact and linear fluorescent lighting as well as LED lighting. Exponentially growing population and urbanization lead to the rise of commercial and residential buildings. Over the last 30 years, the demand for energy has risen significantly. In order to meet this increasing demand, governments across the world have started construction of new power plants. However, strong resistance from people staying near these plants have resulted in several legal actions and lawsuits that decelerated and, in some cases, stopped the construction of new power plants. Therefore, in order to extend the life of existing power plants and provisionally avoid the need to build new ones, governments have started promoting the use of energy-efficient products. The global energy-efficient lighting market is projected to expand at a CAGR of 3.5% during the forecast period and reach value of US$ 29,712.6 Mn by 2026.
Prices of energy-efficient light bulbs (such as CFLs and LEDs) were initially very high. Therefore, though being energy-efficient, these bulbs hardly replaced any incandescent lights. Currently, prices of LED bulbs have dropped considerably since its introduction and these bulbs have become affordable for the common man for use in lighting applications. Furthermore, since an LED light bulb can last from 20,000 to 50,000 hours i.e. 5–8 times longer than any other bulb, its cost of operation is lower than other bulb types. Also, an LED bulb is a filament-less bulb. It does not break like an incandescent bulb, which makes it more durable than others. Moreover, energy-efficient light bulbs offer significant electricity savings, as they utilize less energy and last longer. Thus, owing to their lower operating costs, these bulbs are increasingly being preferred in upcoming smart buildings and they are also replacing the existing traditional light bulbs in several other applications.
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However, major energy-efficient light bulbs such as CFLs and LEDs are not suitable for extreme environments. For example, in case of a CFL, extreme temperature can affect the rated lifetime and light level of the bulb. Sudden breaking of the bulb in extreme temperatures may result in mercury leakage, which can be highly toxic to humans and the environment. Similarly, LED light bulbs become ineffective or stop working in high ambient temperatures. High temperature results in overheating of the LED package, ultimately leading to device failure. Therefore, these bulbs require continuous monitoring. However, the impact of this restraint is expected to decrease during the forecast period, as adequate heat sinking is being used to remove all excess heat and prevent these bulbs from malfunctioning before the due time.
Energy-efficient lighting is expected to witness growth opportunities as Internet of Lights (IoL). Internet of Lights is formed when all smart lights in a space are connected by digital networks and they are able to communicate with one another; communicate with a server or gateway; and communicate with sensors and controls in the vicinity of lights. In such a configuration, Internet of Lights becomes the backbone of a building-management or home automation network. Along with residential applications, IoL is expected to witness growth opportunities in commercial applications during the forecast period.
Some of the prominent players operating in the global energy-efficient lighting technology market are Bajaj Electricals Ltd., Cree Inc., Eaton Corporation, General Electric Company, OSRAM Licht Group, Apple Inc., Nichia Corporation, Toshiba Lighting & Technology Corporation, LIGMAN Lighting Co, and Bridelux Inc.