Worldwide shipments of luminaires with LED lamps for outdoor and parking applications will grow from 4.1 million annually in 2014 to nearly 14 million in 2023, according to Outdoor and Parking Lighting Systems.
Global shipments of outdoor lighting luminaires are forecast to 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. Over the same time frame, lamp shipments are expected to only increase from 100 million units to 109 million units, reflecting the dwindling need for replacement lamps as lighting becomes more efficient.
Combined revenue for lamps, luminaires, and controls are forecast to decline marginally between 2014 and 2023, dropping from $2.81 billion to $2.75 billion as growing demand for controls (basic and intelligent) fails to offset declining selling prices and shrinking revenue from lamp replacements, the report says.
Currently, LED outdoor area luminaires must compete with existing technologies that are relatively energy efficient and low cost, making lifetime cost savings more challenging in a market led by retrofits and replacements. But with LED prices continuing to fall, the case for replacing today’s most prevalent lighting technologies is becoming increasingly compelling, according to the report.
The growth of smart city initiatives is also driving outdoor lighting systems to become increasingly sophisticated, according to the report. Smart lighting systems can make decisions in real time; a networked light in a city park, for example, can detect when an individual lamp burns out and immediately schedule a maintenance crew visit. Many companies in the lighting sector now refer to themselves as being at the center of the “Internet of Things,” rather than as pure-play lighting companies, the report says.
The report’s findings follow those from a Precision-Paragon study released earlier this week. Lighting installers expect to furnish more LEDs than fluorescent fixtures over the coming year for the first time, according to the Precision-Paragon, report.
LEDs were selected as the preferred product by 49 percent of responding installers, while fluorescents were chosen by 46 percent. LED’s share almost doubled from the 26 percent that chose it as the leading technology a year ago. Strong growth has been seen in the commercial sector.