Navigant: Falling LED Prices to Accelerate Adoption in Parking Lots, Outdoor Systems
As prices fall, the business case for replacing fluorescent, high-pressure sodium and metal halide lamps with LED lighting in outdoor systems will become more compelling, according to a report by Navigant Research.
The report, “Outdoor and Parking Lighting Systems,” forecasts that worldwide revenue from LED lighting for outdoor and parking applications will grow from $921 million annually in 2014 to $1.4 billion in 2021.
Global shipments of outdoor lighting luminaires will grow at a compound annual growth rate of 6.2 percent over the 10-year forecast period, rising from 9 million units in 2014 to 15 million units in 2023. The market for luminaires is led by LEDs, which will account for almost 50 percent of unit shipments in 2014, the report says.
Direct revenue from lamp and luminaire sales will decline gradually after 2012 because the lifespan of LEDs is much longer than convention lighting, the report says. For example, over the 2014-2023 timeframe, lamp shipments are expected to only increase from 100 million units to 109 million units.
That trend will push large lighting companies to move towards a lighting-as-a-service model, in which LED lighting and energy management will be offered as an ongoing service instead of a one-time sale.
Graphic: Navigant Research
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