Trade Resources Industry Views LED Lighting Forecasts to Reach 32% of Total Lamp Revenue in Office Lighting in 2015

LED Lighting Forecasts to Reach 32% of Total Lamp Revenue in Office Lighting in 2015

LED lighting is forecast to reach 32% of total lamp revenue in office lighting in 2015, according to the latest projection by market research firm IHS Inc. Global revenue for office lamps is projected to be $3.5bn, of which $1.2bn is expected to be LED. The remainder is mostly fluorescent lighting. 

LED lighting is gaining popularity in high-end installations in developed countries. Also, lighting designers are increasingly eschewing fluorescent lighting in their projects, in favor of LEDs. 

The key factors used to make decisions about office lighting installations are the following: upfront cost, running cost (i.e. electricity cost) and the ease and frequency of maintenance. LED lighting does well in most of these categories. However, one notable exception is the initial installation cost, which is higher than other technologies. In office lighting projects installed in 2014, maintenance accounted for 18% of project cost, compared with 51% for equipment, 25% for installation, and 6% for design and engineering. 

Increasing use of LED lighting is only part of the story, as the lighting industry is also a shifting toward smart lighting. Smart-lighting solutions are only used in a small number of offices globally, but there are many different types of systems available. According to one US-based lighting designer, "occupancy and vacancy sensing is essential and, depending on where you are in the country, also daylight sensing". Smart lighting is most commonly introduced to meet legislative requirements to save energy. Where such regulations do not exist, its penetration rate is currently still very low, notes IHS.

Technology challenges also exist in office lighting, but none are insurmountable, says the market research firm. One of the biggest issues today is dimming, with a wide variety of control standards available. Until organizations have a more coherent collaboration, the market will remain inhibited, IHS reckons. It would be beneficial to the industry to improve this in the next few years, it concludes.

Source: http://www.semiconductor-today.com/news_items/2015/jul/ihs_020715.shtml
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LED Lighting to Reach 32% of Office Lamp Revenue in 2015
Topics: Lighting