Trade Resources Industry Views Scale of LED Industrial Lighting to Reach US$2.9 Billion in 2016

Scale of LED Industrial Lighting to Reach US$2.9 Billion in 2016

The LED industrial lighting market has enjoyed accelerated growth in recent years owing to the rising demand worldwide and government subsidies, says LEDinside, a division of TrendForce. According to LEDinside’s latest report, 2016 Industrial Lighting: Explosion-Proof Lamps, the market of LED industrial lighting is forecast to grow from US$2.93 billion in 2016 to US$5.20 billion in 2020, representing a CAGR of over 15% during the five-year period.

Explosion-proof LED lighting is used in hazardous environments where petrochemical vapors, explosive gases and/or combustible dusts exist. “In addition to having a critical role in the operation of the petroleum industry, explosion-proof lighting also has sizable market shares in other lighting applications including mining, transportation and military,” said Joanne Wu, assistant research manager for LEDinside. “The outlook for LED explosion-proof lighting is especially favorable this year on account of the strong replacement demand.”

The manufacturers of LED explosion-proof lamps already have extensive R&D experience since these products have been on the market for many years. Wu added that LED has many advantages over conventional light sources when it comes to explosion-proof lamp design, such as smaller form factor, lighter weight, longer lifespan and lower costs. Companies in the oil and gas industry and the petrochemical industry are most likely to choose LED-based solutions not only because these products offer higher quality and greater safety, but they are also very cost-effective. Indeed, the technologically mature explosion-proof LED lighting may be the only choice in the future as mercury-vapor lighting is being banned by governments worldwide.

The safety standards of explosion-proof lighting equipment vary according to regions. Products based on International Electrotechnical Commission (IEC), for instance, are seeing widespread adoption around the world. In the U.S., the National Electrical Code (NEC) is the standard, and the usage of electrical equipment must adhere to NEC Articles 500 or 505. The agency that enforces the NEC, broadly defined as Authority Having Jurisdiction (AHJ), can also differ depending on the circumstances. The national standards of other countries are more or less based on IEC or NEC 500/505, such as China’s GB3836. Wu noted that the diverse standards along with the high cost of product certification force manufacturers of explosion-proof LED lighting products to set up factories in regions where they operate. Localization of production ensures that installation, maintenance and after-sale services would meet all safety and regulatory requirements.

Source: http://www.ledinside.com/node/view/24822
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Scale of LED Industrial Lighting to Reach US$2.9 Billion in 2016 as Explosion-Proof Lamps Become The Focus of Demand, Says Ledinside
Topics: Lighting