World demand for lighting is projected to climb more than 12% annually through 2016 to $78.3 billion, according to “World Lighting: Lamps & LEDs,” a new study from The Freedonia Group. Sales will be driven by an increase in economic activity, personal income, global motor vehicle output and construction spending.
Even more significant will be the ongoing shift to higher value, more efficient lighting technologies, especially as incandescent lamps are phased out. This shift is being propelled by the rising availability of light-emitting diodes (LEDs) and other high efficiency light sources at more affordable prices. Prices for compact fluorescent lamps (CFLs) and LEDs are expected to fall significantly.
Some other findings include:
- Market gains in developing countries will outpace sales in the United States, Western Europe and Japan;
- China will account for 49% of all additional product demand through 2016;
- Above-average growth is expected in such countries as Russia, Mexico and Brazil;
- LED (or solid-state) lighting devices will record the fastest global market gains of any major product segment;
- Sales of fluorescent lamps will continue to expand, spurred in the near term by government-led efforts to phase out the use of energy-inefficient incandescent lamps in many areas; and
- Sales of CFLs are expected to be more limited due to concern for safe disposal of the bulbs and the increasing price and performance competition from LEDs
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually.