Prices for LEDs have come down dramatically, and the market for LED luminaires and lamps is set to explode in the residential segment as prices continue to fall, efficacy improves, and new use cases for lighting develop. Accompanying the spread of LEDs are advances in connected lighting that promise to dramatically alter the way people interact with the lighting in their homes. According to a new report from Navigant Research, worldwide shipments of LEDs for residential applications are expected to grow from 81 million annually in 2014 to more than 1.1 billion by 2023.
"At the same time that many countries are phasing out or banning incandescent light bulbs, prices for LED bulbs are falling dramatically, especially for the popular A-type bulbs," said Jesse Foote, senior research analyst with Navigant Research. "While compact fluorescent bulbs (CFLs) are still less expensive than LEDs, they cannot offer the same performance, and their use of mercury is an ongoing concern. LED adoption is therefore expected to increase rapidly in the coming years, as consumers choose to switch from incandescent to LEDs rather than to CFLs."
Some LEDs are being designed with an embedded radio that allows the homeowner to remotely control a bulb, or a group of bulbs, using a smartphone, rather than the traditional wall switch. For lamp makers facing revenue pressure because of the longer replacement cycles of LED lamps, the connected lighting revolution is likely to provide a timely boost, the firm said.
