27 August 2011

Outdoor LED lighting viability led by US market 

The US market has taken the lead in proving the viability of LED technology for outdoor lighting applications, according to the report ‘LED Outdoor and Area Lighting; Market Analysis and Forecast’ from market research firm Strategies Unlimited.

Although China has more installations, it has become the first casualty of quality issues. The Chinese market for outdoor lighting has shrunk in 2011 in order to address these quality issues. Elsewhere, especially in North America, quality consciousness has kept progress towards transitioning to LEDs due to the efforts of the Department of Energy (DOE), the Municipal Solid-State Street Lighting Consortium, and the Design Lights Consortium.

The 20–25% drop in the price of LED packages, which started in fourth-quarter 2010, has proved to be a benefit for quality luminaire manufacturers. The average price of outdoor luminaries will continue to decline in 2011, and the trend is likely to accelerate going into 2012, forecasts Strategies Unlimited. This decline in price will help post-pilot and post-stimulus programs, it adds.

While the compound annual growth rate (CAGR) for unit growth is forecast to be 26% from 2010 to 2015, the CAGR for revenues will be only 11% as downward pressure on price continues. Revenues are expected to reach more than $544bn in 2015. Considering that LEDs compete against other efficient technologies, the viability of LED applications in outdoor applications will be a test for LED technology, Strategies Unlimited says.

Tags: LEDs LED outdoor lighting

Visit: www.strategies-u.com