LED Lighting Solutions Continue To Eat Into The Lighting Market Share.
Since the introduction of the LED it has slowly and continually changed the lighting market and cut into conventional luminary sales. The lighting market is set to continue at the 3% growth that it has enjoyed over the past 4 years (2010 – 2014) increasing from $112 billion to $133 billion in 2020. Research by BCG (Boston Consulting Group) notes that the LED market share will increase by 5% in 2010 to 45% in 2020 with profits remaining stable and increasing to $6 billion in 2020, currently $4.9 billion.
During the analysis of the lighting market by BCG the following segments were found to be dominating the market share:
- Professional luminaires hold the largest segment of the market; accounting for $43 billion, 39% market share
- Automotive lighting comes in a healthy second at $21 billion and a market share of 19%
- Consumer luminaires and systems $19 billion and 17% market share
According to the analysis the growth of the lighting market will predominantly be through development in emerging markets, as more and more households gain access to electricity. Rapidly developing countries like China and countries in Latin America accounted for around’ 70% of lighting-industry growth over the last five years’
The research has highlighted significant shifts within the internal market. In 2010, conventional luminaires made up 51% of the market and 14% came from conventional lamps in 2014 the market share for these categories dropped to 41% and 12% respectively. During the same period, between 2010 and 2014, saw the initial rise of the LED which tripled from 5% to 15%.
It is predicted that by 2020 the LED will dominate the market which will be split as follows:
- LED 45% market share
- Automotive Lighting to 19%
- Market share of the conventional luminaire is expected to plummet to 11% and conventional lamps to 4%
Due to the affordability and cost savings of the LED more and more offices are investing in LED lighting systems, as a result the LED segment for professional spaces will, measured by volume, hit 80% by 2020. Another area that is expecting substantial growth is in systems that control building lighting, set to grow at 15% CAGR. It is also expected that there will be an increase from 5% (2014) to 25% (2020) in luminaires sold as part of a connected lighting system.
The investment in lighting systems is set to increase due to their potential to further improve already large savings that LEDs bring companies – the introduction of smart systems can only add to savings which are predicted to be around 40%.
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