Seven drivers for outdoor LEDs (MAGAZINE)

Seven market forces are setting the stage for accelerated adoption of outdoor LED lighting, says Jeff Bocan of venture-capital firm Beringea LLC.

Nov 5th, 2010
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My fellow readers of LEDs Magazine will be fully aware of the LED revolution for outdoor lighting. However, for industry outsiders and the general public, the recent and rather sudden emergence of LED-based lighting is a curious and welcome development. The venture-capital (VC) community in particular is making its awareness and interest known in an aggressive and impactful way. Over the last two years, VCs (my firm included) have stroked checks for a couple of hundred millions of dollars into many LED-lighting related companies. Funding has ranged from new LED technologies to light-engine manufacturers and control system technologies amongst others in 2010 alone.

As a VC who has spent recent years analyzing and subsequently investing into the outdoor LED lighting sector, I wanted to share my enthusiasm and the investment logic for why many VCs believe this market is set to explode. The outdoor LED market is rather non-existent at this point in time, but over the past two years there has been significant technological advance, cost reductions and increased market awareness of LED lighting, positioning the market for explosive growth. The forces of technological progress, innovation and buyer motivation are on the outdoor lighting industry’s horizon, and the winds of change are in the air.

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This article was published in the November/December 2010 issue of LEDs Magazine. To read the full version of this article, please visit our magazine page, where you can download FREE electronic PDF versions of all issues of LEDs Magazine. You can also request a print copy of LEDs Magazine (available by paid subscription) and sign up for our free weekly email newsletter.

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