Strategies Unlimited forecasts robust growth for LED downlights with the world market expected to exceed $4.2 billion in 2016

Jan. 4, 2013
Date Announced: 04 Jan 2013 Mountain View, CA — Strategies Unlimited, the leading market research firm covering LEDs and LED lighting, projects robust growth for the LED downlight market over the next five years. The global market is forecast to grow by a 28% compound annual growth rate (CAGR) through 2016. Although unit demand is forecast to grow at a 52% CAGR over the period, revenue growth will be moderated by a projected16% per year decline in average selling price. The research covers LED downlights, including recessed, surface-mount, pendants, ceiling lights, spot lights and track lights that are used in commercial and residential indoor applications.On the supply side the improvements in LED technology, luminaire design, and manufacturing, as well as the continuous decrease in pricing of LED components, will benefit manufacturers of LED downlights. On the demand side the growing awareness about LED lighting and general satisfaction with the quality of products, as well as a steady decrease in pricing of finished products, will continue to fuel increasing market penetration.The commercial sector showed the strongest adoption for LED downlights in 2011 – 2012, with retail and hospitality displaying the most activity in Japan, North America, and Europe. The fastest growth is anticipated in growing economies as a result of new construction projects and expansion of the retail sector.The forecast unit growth for growing economies is expected to be 167% from 2011 – 2016 with 129% growth in revenues. North America and Europe will show revenue growth of 31% and 27%, respectively, and these regions will account for 44% of global revenues in 2016.Consumer sales showed strong response in 2011 – 2012 in the North American market, as sales through big box retail stores gained momentum. Going forward, the demand from consumer channels in North America will show continuing robust growth as prices continue to decline and consumer awareness and acceptance increase.LED Downlights Market Analysis and Forecast – 2012 is the latest report in a series of reports on LED lighting by Strategies Unlimited. Founded in 1979, the company is the world’s leading market research firm in the area of LEDs and LED lighting, and has conducted research on LEDs since 1994. Based in Mountain View, California. Strategies Unlimited is a research unit of PennWell Corporation, a global media and information company. PennWell's many brands include LEDs Magazine, Solid State Technology, and Laser Focus World.

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