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
Why bring buildings online? What information can operations teams glean from real-time data that they can’t just get from the monthly data provided by utility companies? Click to learn more.
- Existing Building Technologies Combine for Increased Savings
- The Future of Operational Risk Management: The Oil & Gas and Chemicals Approach
- Combined Heat and Power
- 2014 Environmental Leader Product and Project Awards
- Improve Your Company's Environment and Energy Performance
- Energy Financing Report
- Unlocking the Value of Energy & Operational Data
- Let's Do The Math for DR
- Smart Companies Utilize Integrated Energy Solutions
- How "Fixed" is the Fixed Price Product?
- Cut Costs and Improve Facility Operations with Energy Data
- Energy Procurement Strategies for Winter 2014 and 2015
- Energy Efficiency Requires Engineering Efficiency
- Integrated Building Optimization: A Crucial Convergence of Demand-side and Supply-Side Energy Management Strategies
- Driving Productivity and Profit with Industrial Energy Management