Government Ban on Incandescent Bulbs Leads to Prosperity in LED Lighting Market

Posted By: admin on Aug 26, 2016 in Industry news

Commercial and Industrial LED Lighting Market – Prediction and Trends till 2019.

LED lighting delivers energy efficient, highly bright, long lifetime and sound products. LED lamps are produced using semiconductor components and give off less radiated heat as compared to other products such as fluorescent and incandescent . According to the U.S. Department of Energy (DOE), LEDs let off very less heat compared to CFLs (80%) and incandescent bulbs (90%). LED lamps are used across various consumers applications such as commercial, architectural, industrial and outdoor.

The worldwide commercial and industrial LED lighting market is growing fast mainly because of high efficiency of LED lamps, government policy to prohibit incandescent bulbs and attractive reward from LED lighting. Additionally, LED lighting is eco-friendly lighting, as it does not give off harmful gases that lead to dangerous disorders in human beings. For instance, fluorescent lights vent detrimental gases that are carcinogenic and may cause cancer, while incandescent bulbs send out large amounts of CO2. However, LEDs overcome these drawbacks with improved soundness and high degree of brightness.

China led bulbs

Incandescent bulbs consume more energy than LED bulbs; therefore, many governments have announced measures to prohibit their use. Governments have released minimum efficiency standards and brought out measures to ban the use of incandescent bulbs. For instance, in America, federal law scheduled the exit of incandescent bulbs by 2013 and substituted energy efficient LED bulbs for them. The ban of incandescent bulbs began in January 2013 started with 100 watt bulbs, then 75 watt bulbs in 2014. Furthermore, incandescent bulbs in 40W and 60W are hoped to join the list next. In Japan, all incandescent bulbs have been inhibited since 2012. In China, 75-watt and 100-watt have been inhibited since 2012 and 2013. In Brazil, 100-watt and 60-watt+ were banned since 2012 and 2013 respectively. In addition, non-commercial growth drivers include actions in the market taken to support LED lighting systems at the legislative level, development of regulations and standards that fuels the growth of LED lighting systems and different programs for implementing energy-efficient lighting systems at the level of an individual organization levels. After the Japan’s Ministry of Economy decided to ban the sell and use of incandescent bulbs in 2012 , some lighting factories announced that they would stop producing incandescent bulbs and to improve the production of LED lamps. Therefore, penetration of LED lighting grew to 30% in 2012 from 16% in 2010. Europe countries banned production as well as import of all incandescent bulbs from September 2012. The United Sates has banned incandescent bulbs since 2012; South Korea started to ban the use of incandescent bulbs in 2013.

Based on a conservative study published by the Department of Energy LEDs have the possibility to cut down yearly consumption by 190 terawatt hours in America. Moreover, LED lighting can further lower greenhouse gases by 10% at least in 5 to 10 years. LED lighting reduces overall cost of lighting as it offers about 50,000 hours of illumination with a fraction of energy used by traditional incandescent bulbs. It extends time between bulb replacements. LED lighting is preferred as low maintenance lighting system. Suppliers of LED lighting provide over 150 different bulbs and lamps styles to meet the demands of consumers and business.

Lighting gives big chance to lessen energy consumption. The global lighting market is currently under-developed by LED lights. Low penetration is ascribed to the early stage of LED technology and dominance of other technologies in lighting. In 2012, incandescent bulbs took up 58% of the lighting market , followed by fluorescent lamps with 25%. LED lighting is expected to expand its market share when LED products compete truly with current products on price and performance. LED penetration in the market is less than 10% attributed to higher penetration of  CFLs and fluorescent . Higher penetration of fluorescent lamps as compared to LED light and high cost of LED lights as compared to fluorescent lights are some of the factors limiting the growth for LED lighting market. Yet, government regulations to inhibit incandescent bulbs is expected to decrease the impact of this limitation as LEDs are expected to grasp the market shares of incandescent bulbs in next few years.

The report includes dividing of Commercial and Industrial LED lamps market by consumer and location. Moreover, it offers current and forecast market scale by revenue for the above-mentioned categories. Cross sectional analysis for end user and geography segments is a part of the scope. Factors effecting and banning the growth of the market have been analyzed. Porter’s 5 forces analysis gives insights on market competition.


Source: SBwire, Industrial and Commercial LED Lighting Market Grows by Government Prohibition on Incandescent Lamps, July, 2016

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