LED replacement lamp market to see high growth rates, says Strategies Unlimited

Legislation banning inefficient lamps, coupled with customer awareness of the cost of ownership analysis, will create a strong demand for replacement LED lamps.

Jun 18th, 2009
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Market conditions are right for the LED replacement lamp market to accelerate in the next few years, according to a new report from Strategies Unlimited. Although the market for LED replacement lamps is still in its early stages of development, lamp revenues are forecast to grow at a CAGR of 107% through 2013.

The report entitled "LED Replacement Lamps—Market Analysis and Forecast, 2009" analyzes five LED-based lamp types that are designed to replace lamps that currently populate billions of sockets: A-lamps and globes; PAR and R lamps; MR 16s; candelabra and decorative lamps; and linear fluorescent tubes.

Dramatic improvements in commercially available LED performance in recent years, as well as significant cost reduction, has made it feasible to design LED lamps to offer comparable lumen output and to compete with other established lighting technologies on the basis of cost of ownership.

Ecomaa replacement LED lamp
The market is in a state of flux as utilities, energy efficiency organizations and customers look for optimum solutions which save energy, minimize the cost of ownership, and give acceptable quality of light. Customers are in the process of being educated about comparing cost of ownership, rather than looking just at the initial price of lamps.

Regulations in Europe will ban the 100W incandescent clear glass lamp starting in September 2009, and will progressively ban all inefficient incandescent lamps by 2012 and all incandescent lamps by 2016. Similarly, the Energy Information and Security Act of 2007 began the process of restricting the sale of inefficient lamps in the US. By 2012, with a few exceptions, the result of the legislation will be that inefficient incandescent lamps cannot be sold.

GlacialLight replacement LED lamp
Although the awareness of these regulations is still weak in the marketplace, they will create market opportunities for LED replacement lamps. Recognizing the potential of LED technology to save energy, policy makers have been supporting the R&D of LED technology and helping its commercialization.

In the short run, while LED replacement lamps become a viable alternative, regulators are encouraging compact fluorescent lamps (CFLs). However, over the next five years the advantages of LED technology over CFL will become recognized, especially with respect to the quality of light, dimmability, controllability, lamp life and environmental cost of ownership. Some well-designed LED lamps already offer effective lumen efficacies that compete with CFLs.

The commercial and industrial segments will embrace LEDs to control costs and save energy. The LED lamps will be used for directed light applications, in hard-to-reach places and where the cost of replacement is very high.

In the report, the markets for five categories of replacement lamps are analyzed for market drivers and challenges, trends, units and revenues for 2008. The report also offers a five-year forecast for 2009-2013.

"LED Replacement Lamps—Market Analysis and Forecast, 2009" is available for immediate delivery from Strategies Unlimited at a price of $1,895. More information on the report is available by contacting Tim Carli, Sales Manager, at +1 650-941-3438 ext. 23, or on the Strategies Unlimited website.

Strategies Unlimited specializes in market research and has published reports on LED markets and technology since 1994. It established Strategies in Light, the first annual industry conference on HB LEDs, in 2000. The company, based in Mountain View, California, is a research unit of PennWell Corporation., which publishes over 45 periodicals, including LEDs Magazine.

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