Commercial Projects to Raise Demand for Industrial & Commercial LED lighting Products
In 2015, the commercial LED lighting products and global market were at $17.89bn USD. It has been said that by 2019, it will reach $86.07bn, meaning that its CAGR from 2013 to 2019 will rise to a remarkable 30.8%. The commercial sector will remain the principal contributor of revenue up until 2019, with an overall holding in the market of 52.6%. The continued construction of commercial buildings, retail stores, and offices globally will contribute to the growth of this sector. But, because of the upsurge in the requirement for street lighting throughout the world, in countries like China, Germany, the USA and Canada, growth in CAGR of 34.1% is anticipated within the outdoor lighting sector within the same time frame.
Regulations brought by the Government which is advantageous are in place to support the growth of Commercial and Industrial LED lighting across Europe. Concerning revenue in 2015, Europe was geographically the leading sector. The massive increase in consumption of energy and the mounting carbon emissions have forced Governments to enforce harsh measures for the promotion and implementation of energy efficient lighting. The measures implemented have consequently driven the upsurge of LED lighting within the sector. Furthermore, awareness of the benefits of LED lighting is becoming more widespread and thus, is pushing the demand for this type of lighting.
These two factors are the reason why the area is likely to retain its governance until 2019. The increase in investment and the latest technology for lighting are the drivers behind the growth of the Industrial and Commercial LED markets within the Asia Pacific. China, Japan, and South Korea are an example of these countries. A CAGR of 31.7% is predicted within the Asia Pacific during the period forecast. Energy conservation awareness is on the rise as well as the upward demand for green technology and these are the reasons aiding the growth within this region. Promoting the sale of LED Lighting products by increasing the awareness of their durability and efficiency.
Due to the many advantages of LED lighting products, these appear to be outstripping sales of the more conventional lighting products. Some of the benefits are their energy efficiency, size and longevity, diminished heat dissipation but also that they are environmentally friendly. Governments worldwide have levied a ban on incandescent lamps. The phasing out of these type of bulbs, and with the growing awareness of the many benefits of Commercial and Industrial LED lighting products, it is allowing for a strong push into the industry market. Additionally, global utility plants have begun to fund the distribution of LED lighting, which is likely to make an impact on market growth.
Demand for LED lighting products is still very low, despite all the positive factors associated with them. A TMR analyst states “The lack of ‘demand’ may be accredited to the embryonic stages of the technology for LED lighting and the domination of other competing technologies.” Furthermore, the preliminary high cost of this style of lighting may be limiting its implementation. With that said, there is a growing demand for smart lighting, which may produce further avenues for manufacturers of LED lighting. There are vast unexploited opportunities within the global lighting industry, and this may be why the Commercial and Industrial LED lighting market is anticipated to rise at a quicker pace over the upcoming years.
There are four major players in the industry, who collectively in 2012, denoted more than 34% of the global market for Industrial and Commercial LED lighting. They were Osram Opto, GE Lighting, Cree Inc. and Philips Electronics N.V. In a more recent study, TMR (Transparency Market Research) found that these top players were continuing to supplement their portfolio of products with smarter solutions and products for many applications. The author of the report stated, “Some manufacturers are consolidating their relationships with architects, urban planners, lighting professionals, and Governments, to attain a competitive advantage within the vastly fragmented industry marketplace.” An additional go-to strategy for global market players is Mergers and Acquisitions.