Overview of the global industrial lighting market
Technavio’s market research analyst predicts the global industrial lighting market to grow steadily at a CAGR of above 2% by 2021. One of the key drivers for this industry is the strong government support provided to the manufacturers in the industry. This support is propelled by the government’s goal to reduce power generation from coal plants, expand the nuclear power generation base, encourage green technologies in all areas of manufacturing, and promote efficient lighting technologies to reduce power consumption. For instance, governments in the BRIC countries are encouraging the use of LED lights by launching new programs and providing subsidies to manufacturers. All government efforts are focused on increasing the adoption of LEDs in the domestic market, which, in turn, will increase the growth prospects for the market during the forecast period.
One of the latest trends gaining traction in this market is the emergence of Internet-connected light bulbs. The evolution of the Internet of Things (IoT) and the secure sockets layer (SSL) technologies has transformed the lighting market. LEDs and IoT architecture for powering smart lighting is being considered as a viable alternative to the generation of light with wires and gas inside a heated enclosure. Moreover, the high user adoption of this technology has encouraged both existing vendors and start-ups to enter this market. Increasing number of vendors and initiatives undertaken by governments will help in growing awareness and adopting smart lighting systems during the forecast period.
Competitive landscape and key vendors
At present, the
Overview of the global LED lighting market for horticulture application
Market research analysts at Technavio predict that the global LED lighting market for horticulture application will grow steadily during the next four years and post an impressive CAGR of more than 22% by 2020. This market research analysis identifies high electricity consumption and increasing power prices as one of the primary factors driving the usage of LED lighting in the horticulture market. Rapid industrialization, rise in population, and increased energy consumption result in increasing the demand for electricity across the globe. Also, the rise in raw materials used by power generation and distribution companies induces utility companies to increase electricity prices. This increase in energy costs and consumption will induce both the governments and consumers across the globe to reduce the consumption of electricity and focus more on adopting power saving technologies. Since the use of LED technology allows the effective use of lighting controls, which increases the potential for power saving, there will be an exponential increase in the demand for LED lights for horticulture lighting, especially by marijuana growers.
With global warming and the rapid depletion of non-renewable power resources becoming a major concern, several countries across the globe will increasingly focus on energy efficiency. This will induce governments to introduce policies that ban the usage of incandescent light bulbs with low power efficiency. The Australian Federal Government has already banned the sales of incandescent light bulbs and
Outlook of the lighting market in the hospitality sector
Market research analysts at Technavio have predicted that the global lighting market in the hospitality sector will show tremendous growth and will post an impressive CAGR of over 7% over the forecast period. With the introduction of several energy-efficient certification programs to promote and encourage the widespread adoption of energy-efficient lighting products, the lighting market in the hospitality sector will have a positive outlook in the coming years. To save energy and reduce carbon footprint, governments of many countries have introduced energy certification programs, such as the ENERGY STAR certification, DLC, and Lighting Design Lab certification. These certifications define guidelines for products including a minimum level of requirement for color quality, lifespan, energy efficiency, and optical output that must be met before lighting products can be used. For instance, in the US, the ENERGY STAR label is also shown on the EnergyGuide appliance label for qualifying products. ENERGY STAR-certified LED products consume 75% less energy than incandescent light bulbs, leading to increased adoption among consumers.
In terms of geography, the APAC region led the global lighting market in the hospitality sector and accounted for more than 55% of the total market shares. The growth of this market is attributed to the rapid urbanization and development of the hospitality sector in the region. Investments in the hospitality sector in APAC is driven by an upsurge in domestic and international tourism; for instance, during 2015, the local tourism in China grew by more than 10% with the expansions of numerous international hotel brands and the upgradation of tourist spots. Most
Overview of the global LED lighting ballast market
Market research analysts at Technavio have predicted that the global LED lighting ballast market will grow impressively during the forecast period and will post a CAGR of more than 26% by 2020. Lighting applications account for a considerable share of the global energy consumption. The escalating energy costs and consumption will compel both governments and consumers to reduce power consumption by employing energy-efficient lighting solutions. LED lights reduce energy consumption more effectively than the incandescent lamps and are also more durable than incandescent bulbs. Moreover, the implementation of flexible LED technology will enable the effective use of lighting controls, which will increase the potential for power saving. This will encourage more consumers to deploy LED lighting in many sectors, resulting in the augmented growth of the LED ballast market.
Several cities across the globe, especially in the developed countries, have started revamping their homes to smart homes, where the home network is always connected to consumer electronic devices and entertainment gadgets that interact with each other. The smart home market will grow significantly during the predicted period and will accelerate the installation of intelligent lighting systems including lamps and fixtures, which in turn, will accelerate the adoption of LED lamps and lighting ballasts for residential applications.
Competitive landscape and key vendors
The market is characterized by the presence of well-diversified international and regional
Global outlook of the smart lighting market
Technavio’s market research analysts have predicted that the global smart lighting market will grow steadily during the forecast period and will post a CAGR of more than 19% by 2020. The evolution of the Internet of Things (IoT) and Secure Sockets Layer (SSL) has transformed the global lighting market as manufacturers have started using semiconductors in place of wires and gas to power smart lighting systems. Since IoT facilitates easy monitoring and control enabling energy efficiency, the constantly increasing energy prices and a rise in the demand for energy will drive the need for smart lighting systems. The market’s growth potential will soon induce several existing LED manufacturers and new companies to enter this market. For instance, the new company Ketra, which provides smart lighting solutions, claims to have raised almost USD 31 million in funding, and is one of the leading smart lighting companies. Similarly, Ilumi has also started developing multicolor and tunable Bluetooth light bulbs to meet their end-user’s demands. This industry research report identifies this emergence of Internet-connected lightbulbs to be one of the major factors that will have a positive impact on the growth of this market in the coming years.
The development of smart cities is one of the major trends that will gain traction in the market in the next four years. A smart city is simply a set of connected solutions that is aimed at improving the quality of
Overview of the global lighting ballasts market
It has been estimated that lighting applications account for more than 20% of the global electricity consumption, and this has led several countries across the globe to frame policies that ban the use of inefficient lighting sources and promote the use of efficient lighting sources through subsidies and tax incentive programs. For instance, the Custom Energy Rebate Program announced by the Elk River Municipal Utilities (ERMU) of Orono, US, offers rebates to customers who purchase and install energy-efficient lighting solutions in new buildings. Even electric utility companies such as Minnesota Valley Electric Cooperative in Jordan, US, have announced lighting retrofit rebate programs that offer rebates on the purchase and installation of energy-efficient lighting products in existing buildings. The rapid depletion of non-renewable energy and the growing awareness on global warming among all countries across the globe will result in the introduction of new policies and subsidies, which will demand the use of energy-efficient lamp ballasts during the predicted period.
The continuous decline in the average selling price of chips and components used during the manufacturing process of LED devices has resulted in the decrease in manufacturing cost of LEDs. Market research analysts at Technavio predict that this decline in manufacturing costs will continue in the coming years and will lead to a decline in the initial installation cost of LED lights and fixtures. This recent decrease in the cost of installation will propel the adoption and installation of LED lamps across all residential and commercial projects.
Competitive landscape and key vendors
Though the market is
There have been a number of innovations in the lighting industry, mainly focused on energy consumption. Companies operating in this space are investing in design and innovation activities to improve their lighting products, while working towards the ultimate goal of creating lighting that has zero environmental impact.