energy efficient lighting fuels growth in the lighting market
DESCRIPTION
Given the increasing focus on reducing energy consumption in North America, building owners and facility managers are looking for ways to manage their energy usage. Because lighting accounts for close to 15.0 percent of all primary energy consumed in the building sector in the United States, according to the U.S. Department of Energy (DOE), using more energy efficient lighting products such as light emitting diode (LED) lighting solutions can result in a considerable reduction in energy consumption. View the analyst briefing below for an assessment of the lighting equipment market, including highlights of the major market trends, challenges and drivers. Link to on-demand webinar: http://www.frost.com/prod/servlet/analyst-briefing-detail.pag?mode=open&sid=275598164TRANSCRIPT
Energy Efficient Lighting Fuels Growth in Energy Efficient Lighting Fuels Growth in Lighting Equipment MarketLighting Equipment Market
Energy Efficiency: Main Driver in Lighting Equipment MarketEnergy Efficiency: Main Driver in Lighting Equipment Market
Alejandra Lozano, Industry Analyst
Building TechnologiesBuilding Technologies
April 25, 2013
© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Today’s Presenter
Alejandra Lozano, Industry Analyst
Frost & Sullivan
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• Technical expertise and in-depth understanding of the building
technologies sector.
• Ability to provide analysis-based strategic recommendations as well
as prepare and analyze market data with a focus on key growth areas
and product trends.
• Over 5 years of experience
Focus Points
Market Forecast & Trends
Drivers and Restraints
Introduction
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Focus Points
Revenue Breakdown by Product Segment
Product Segment Growth
Key Market Trends
Conclusion
Introduction
Lighting Equipment Market
Lamps Fixtures
Ballasts & Incandescent Commercial / Lighting Controls
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Control GearIncandescentFluorescent
HalogenHIDLED
Fluorescent Ballasts
HID BallastsHalogen
TransformersLED Drivers
Commercial / Institutional Industrial
ResidentialOutdoor
Lighting Controls
User InterfacesSensors
Control Modules
Source: Frost & Sullivan.
Drivers and Restraints
Key Takeaway: Energy savings is the most important factor in the market in 2012.
Lighting Equipment Market: Key Market Drivers and Restraints North America, 2012-2016
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Market Forecast and Trends
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• The lighting equipment market generated revenues of $17.8 billion, growing by 2.6% over 2011.
• By 2016, the market is expected to reach $20.8 billion and is forecasted to grow at a CAGR of 4.0% from 2012 to 2016.
Source: Frost & Sullivan.
Revenue Breakdown by Product Segment
• The total market was divided among the market segments as shown below.
• The ballasts and control gear segment was the smallest segment and the fixtures segment was the largest segment in terms of revenue in 2012.
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Source: Frost & Sullivan.
Product Segment Growth
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Source: Frost & Sullivan.
• The lighting controls product segment witnessed the highest growth during the forecast period.
• The lamps product segment witnessed the lowest growth during the forecast period.
Key Market Trends
• The market is moving toward energy-efficient products that provide energy savings while at the same time protecting the environment.
• The Energy Independence and Security Act of 2007 is phasing out incandescent and T12 linear fluorescent lamps due to the relative inefficiency of those lamps compared to more energy-efficient lamp alternatives.
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efficient lamp alternatives.
• The market has experienced an increase in demand for CFLs and LED solutions. LED demand has increased due to improvements to the technology, enhanced energy efficiency, longer life, and government programs that support the development of LED technology for general lighting applications.
• Demand for LED lighting is anticipated to increase as prices continue to decline.
Source: Frost & Sullivan.
Key Market Trends (continued)
• The demand for electronic ballasts and more intelligent controls is also anticipated to increase.
• The 2005 Title 24 control requirements are also anticipated to support demand for lighting controls not only in California but in other states as well.
• Although integration with automation systems is currently low,
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Although integration with automation systems is currently low, integration is expected to increase by the end of the forecast period.
• Another major market trend is the use of wireless technology. Wireless lighting products are expected to gain traction because they provide added flexibility and easier installation.
Source: Frost & Sullivan.
Poll Question
When do you think the adoption of wireless technology will increase significantly in North America?
� Next 2-3 years
� 4-5 years
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� 5-10 years
� Over 10 years
Conclusion
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Key Drivers:• Energy savings• Legislation and incentives• Technological innovation
Demand for energy-efficient lighting products will continue to increase over the next five years.
Key Restraints:• Intense competition
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The lighting controls segment will witness the highest growth during the next five years.
The integration of lighting with automation systems and the adoption of wireless technology will substantially increase in the next five years.
3• Intense competition• High cost of advanced products• Economic environment
Source: Frost & Sullivan.
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For Additional Information
Britni Myers
Corporate Communications
Environment & Building Technologies
(210) 477-8481
Alejandra Lozano
Industry Analyst
Environment & Building Technologies
(210) 477-8483
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Konkana Khaund
Industry Manager
Environment & Building Technologies
(416) 495-2673