US LEDs & High Efficiency Lighting Market
NEW YORK, Nov. 27, 2013 — /PRNewswire/ — Reportlinker.com announces that a new market research report is available in its catalogue:
US demand to rise more than 10% annually through 2017 US demand for high efficiency lighting is forecast to increase more than 10 percent annually to $11.7 billion in 2017, supported by technological improvements and regulatory changes designed to lower electricity used in lighting applications.
The US market for high efficiency lighting continues to adjust to the provisions of the Energy Independence and Security Act (EISA) of 2007, which is leading to a phase-out of traditional incandescent lamps and supporting demand for products such as LEDs and compact fluorescent lamps. Technological innovations that are improving the performance of LEDs and many types of high efficiency lamps are also supporting demand. In addition, particularly in the LED segment, improvements in manufacturing are leading to lower purchase prices for many products, thereby boosting market penetration for these efficient lighting products. However, because high efficiency lighting products have much longer useful lives, the average replacement rate will decrease over time, eventually depressing high efficiency lighting demand.
LEDs to be fastest growing high efficiency lighting Demand for LEDs will grow the fastest of any high efficiency lighting product through 2017. Increased penetration in many residential and nonresidential building applications, as well as in the outdoor lighting market, will support advances. While the high initial price of LEDs has hindered their adoption in many traditional lighting applications, technological innovations that reduce costs and improve performance will make these products increasingly competitive.
The market for other energy efficient linear fluorescent lamps will also register strong growth, supported by heightened penetration of T5 and T8 lamps, in place of less efficient T12 products. In addition, the rebound in nonresidential building construction will provide some prospects.
Building market to offer best growth opportunities Through 2017, the building market for high efficiency lighting products will post especially strong growth, supported by a shift to higher value, longer lasting lighting products and driven in part by rising efficiency standards for lamps.
Residential demand will be bolstered by the replacement of less efficient lighting that has been phased out due to EISA. Businesses, institutions, and government entities will turn to high efficiency lighting products to lower energy expenses and to reduce the labor costs of replacing lighting products. Over the longer term, the market will be restrained by the longer service lives of LEDs and newer lamp products, which will limit replacement demand.