New energy-efficiency requirements have created a large market for energy-efficient lighting equipment in the US, and can reduce electrical costs by up to 30% per month. Consumers are eager to not only adopt products that have the least impact on the environment, but also reduce energy consumption.
Rockefeller Foundation President Judith Rodin said: “Buildings consume approximately 40% of the world’s energy and are responsible for 40% of global carbon emissions. However, proven technologies to retrofit buildings can both conserve energy and — even more importantly in these difficult economic times — have the potential to create a large number of jobs.”
Congress passed the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007, which impose specific energy-efficiency standards on buildings and lighting products. The government also offers tax deductions for energy-efficient lighting systems and utility rebates for energy-efficient lighting products. This has led to the phasing out of incandescent lamps, magnetic ballasts, and other inefficient light sources, which, in turn, bodes well for the energy-efficient lighting equipment market.
Rising energy costs has led to reassessments of energy consumption. Building owners and facility managers are exploring ways to save energy by replacing their lighting systems with more energy-efficient ones.
Despite the vast opportunities in the market, intense competition and the higher initial costs of advanced lighting products are limiting revenue growth and market penetration. The slowdown in construction activity has further dampened the growth rate of the market. In the last few years, due to the challenging economic environment, customers have started inspecting more cost-effective systems. However, once the economy recovers, the market is anticipated to witness steady growth until 2016.
Overall, manufacturers with a competitive pricing strategy as well as high quality products that offer the most energy savings will have an edge in the market.
