| Forecast for LED lighting is bright |
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| Written by Weston Sedgwick |
| Thursday, 13 May 2010 08:21 |
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Lighting accounts for about 17.5% of global electricity use and, within the United States, the majority of lighting energy is consumed in commercial buildings. Recent innovations in lighting technologies, particularly the development of solid state lighting using light emitting diodes (LEDs), hold significant long-term potential for energy savings in the commercial building sector.
Because of their energy-frugal characteristics, LEDs have always had the potential to save commercial properties a significant amount of money on their electricity bills. However, the initial expense of the lighting systems have made LEDs cost-prohibitive in many situations. Not so anymore, according to Pike Research.
The prices for commercial solid-state lighting systems have come down and will continue to decline enough to make them a practical and attractive option for commercial properties. There are federal and local government incentives to install LEDs in new buildings and as retrofits in existing properties. For these reasons, people can expect to see a significant increase in the use of LED lamps for commercial and industries properties, according to Pike Research. The shift to LED installations will start outdoors.
“LED lighting will reach an inflection point in the next five years,” said Wheelock. “As solid state lighting costs come down and performance increases, LEDs will become a practical option for an increasing number of commercial applications.”
Wheelock adds that LEDs are already widely used in traffic signals and exit sign lighting, and Pike Research anticipates that those markets will become saturated within the next few years. The outdoor stationary sector will be the next growth area for LED lighting, followed by retail and office/professional and institutional buildings. However, despite the strong long-term prospects for LED lighting, Pike Research’s analysis indicates that the category still faces a number of technological and economic hurdles. As a result, while the cost and efficacy of solid state lighting are rapidly improving, it will be a number of years before LEDs lead the commercial lighting market. During this period of transition, fluorescent T8 and T5 lamps, which offer good efficacy and life at very reasonable prices, will overtake incandescent lamps as the leading technology prior to the coming of age for LED lighting products.
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