Linear, Low-Bay/High-Bay LEDs Have Greatest Market Potential

LED Installations Energy ManageLinear and low-bay/high-bay LEDs are the most fertile ground for future energy savings in lighting, according to a new report from the US Department of Energy (DOE).

The report, Adoption of Light-Emitting Diodes in Common Lighting Applications, investigates the current US market adoption and resulting energy savings of LEDs in 10 common white-light applications: A-type, decorative, directional, small directional (MR16), linear fixtures, low-bay/ high-bay, parking lot, parking garage, area/roadway and building exterior.

The adoption of LED products is growing across all lighting applications, but market shares remain low overall, leaving substantial room to increase market penetration and related energy savings, the report found.

Annual source energy savings from LEDs in 2014 were about 143 trillion British thermal units (Btu), which is equivalent to an annual energy cost savings of about $1.4 billion. However, if all applications switched “overnight” to the best-available LEDs, annual source energy savings could approach 4,896 trillion Btu, resulting in cost savings of about $49 billion.

Other major findings of the analysis include the following:

  • From 2012 to 2014, installations of LEDs have increased in all applications, more than quadrupling to 215 million units, while total LED penetration increased to 3 percent.
  • A-type lamps represent about 36 percent of all LED installations, but LEDs currently only have a penetration rate of 2.4 percent in this application. LED small directional (MR16) lamps have the highest penetration rate at about 22 percent; however, their rate of adoption is slowing. In the outdoor sector, area/roadway has the highest penetration of LED lighting at nearly 13 percent in 2014.
  • In 2014, when comparing indoor versus outdoor applications, LEDs have a higher penetration in outdoor applications, at 10.1 percent, compared to indoor applications where LEDs have a total penetration of 2.8 percent.

This the fifth such report issued by DOE since 2003 and provides an update to the 2013 analysis. The report was prepared by Navigant Research.

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