13 September 2010


Lamps market to reach $24bn by 2015, driven by LEDs and CFLs

The global market for lamps is forecast to reach $24bn by 2015, according to ‘Lamp: A Global Strategic Business Report‘ from market research firm Global Industry Analysts Inc (GIA), with key drivers including the replacement of conventional incandescent lamps by new energy-efficient lighting technologies such as LEDs and CFLs (compact flourescent lamps) to cut energy costs and address global warming.

The lamps market is currently characterized by a constant increase in demand for energy-saving and eco-friendly light sources such as CFL and LED lamps. Backed by economic stimulus programs around the world and huge investments in public work projects, demand for such high-performance lamps looks promising in the coming years, says the market research firm. The trend towards energy saving is eclipsing incandescent lamps, with several governments (including California, Australia, Taiwan, the European Union, Ireland and Canada) announcing the gradual discontinuation of incandescents. The future may see the complete replacement of incandescents by LEDs across all regional markets, comments GIA.

Another prominent trend in the lamps market includes rapid advances in next-generation light sources such as organic LEDs (OLEDs), which are expected to become core component of lighting applications, including architectural lighting, general-purpose lighting, industrial lighting, and backlighting, adds GIA.

According to the report, the largest region for lamps worldwide is Europe, followed by the US. However, driven by increased demand from non-residential buildings, consumer electronics and motor vehicle industries, demand for LED lamps in the US is expected to exhibit rapid growth over the next few years, providing strong competition to conventional lamps. Asia-Pacific is projected to be the fastest-growing regional market for lamps, with a compound annual growth rate (CAGR) of about 2.6% through 2015, with the rapid increase in demand for energy-efficient light sources in major countries such as China, India, Australia and Taiwan being a key factor driving growth.

Although incandescents currently constitute the largest product segment of the lamps market globally, this is expected to decline by 2012, impacted largely by the incandescent-extinction policies in several countries including EU, Australia, Taiwan, China, and California.

Demand for incandescents is expected to fall further by 2015, when most global markets will replace incandescent bulbs with energy-efficient alternatives. Meanwhile, the lamps market is witnessing the rapid growth of LEDs and CFLs. In particular, the LED lamp market has been witnessing high growth, due mainly to the introduction of advanced new products, says GIA.

Prominent application areas for LEDs include backlighting color displays in cellular phones, and dashboard lighting. Besides LEDs, the global use of CFLs almost doubled in the first half of the decade. Compared to conventional incandescents, CFLs produce less heat and use 75% less energy for producing the same light. CFL lamps are also smaller in size, start up faster, and are much cheaper.

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