As new LED products have reached the market in the last few years, the technology has become increasingly competitive with the fluorescent lighting typically used in commercial applications. While still more expensive, LEDs have been found to be more efficient and to offer a range of benefits, including improved color quality and better dimming. According to Navigant Research, global unit shipments of LED lamps and luminaires are expected to total 10.7 billion from 2014-2023.
"Long term, it's possible that LEDs could trigger a fundamental change in the way lighting is provided to commercial spaces," said Jesse Foote, senior research analyst with Navigant Research. "The traditional lamp/luminaire model could be replaced by products that integrate the two, and even the concept of providing light through fixtures in the ceiling could shift, as flat and flexible LEDs allow for more creative designs that can be incorporated into other building materials and placed in nontraditional locations."
LED use in commercial applications is expected to be most apparent in retrofit projects, where older lighting is often replaced specifically to improve efficiency, according to Navigant. Although research indicates that only 15% of lamps sold to retrofit projects worldwide in 2014 were LED-based, that share is expected to grow to nearly 74% by 2023, potentially eliminating inefficient technologies like incandescent and halogen.
