LED Industry 2016 and Beyond

After the historic COP21 summit in Paris, the world’s attention is on climate change and the effects of energy consumption. Lighting accounts for around 15% of the world’s electricity consumption, and that demand is set to rise by 50% by 2030.  With the population growing, urbanization increasing and billions of people being connected to energy grids, energy efficient lighting is at the forefront of people’s minds. This renewed focus could mean major developments for the LED lighting market. As 2015 comes to a close, we look into 2016 and beyond, to identify possible trends for the LED lighting market.

Indoor Growing– With more research into the effects of climate change, there will be a greater demand for technologies that enable the growing of crops in a factory environment, rather than out in open flooded or arid areas.

Less Specialization– Less talk about lamps and lighting products, more about systems which also include lighting and controls.

Consumption– Energy efficient lighting will be important, but the focus will shift toward reducing energy consumed by lighting.

Smart Lighting– Connected lighting will drastically change the landscape of computing devices, including PC’s, smartphones, tablets, and activity trackers. Expect companies to develop technology to create easy to use, and convenience applications for the new connected devices.

Payback– Connected and smart lighting, will be cost-justified using a creative mix of simple payback, life-cycle cost and a cost-benefit analysis which integrates human factors considerations

Cities get more involved– Cities and towns around the world are installing LED streetlights in an effort to reduce energy bills and cut emissions. If done in the world’s largest 500 cities, lighting upgrades could save up to $243.2 billion in energy costs to 2030, according to the New Climate Economy report.

Companies change their strategy– Recently Ikea announced that in 2016, it will no longer sell non-LED light bulbs. In addition, the company says it will change more than one million light sources in the store to LED energy-efficient lighting. Expect other large companies to follow this trend.

Non-visible LED light applications increasingly valued- Due to intense LED pricing competition, manufacturers are searching for new applications to boost profitability. This has led to an increase in LED applications in the non-visible spectrum such as UV or IR LED’s. The largest market for these applications include curing, disinfection, security and remote control applications. However expect applications such as proximity sensors, biometrics, and mobile device security to increase in both the IR LED and UV LED market in the near future.

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Report: Energy Savings Forecast of SSL in General Illumination Applications

http://www.energy.gov/eere/ssl/downloads/energy-savings-forecast-solid-state-lighting-general-illumination-applications

http://apps1.eere.energy.gov/buildings/publications/pdfs/ssl/energysavingsforecast14-summ.pdf

 

References

http://www.ledinside.com/node/24123

http://www.businessgreen.com/bg/news/2425262/philips-lighting-chief-demands-focus-on-energy-efficiency-ambition-at-paris-climate-summit

http://www.ledjournal.com/main/blogs/looking-back-looking-forward/#more-13289

http://www.ledsmagazine.com/articles/iif/2012/10/ikea-stores-will-only-sell-led-lighting-by-2016.html

http://www.energy.gov/eere/ssl/led-lighting-forecast