LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global high brightness LED market to grow at a CAGR of more than 7% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global high brightness LED (HB LED) market for 2017-2021. The report also lists consumer electronics, general lighting and automotive as the three major application segments, of which the consumer electronics segment accounted for more than 37% of the market share in 2016.
According to Sunil Kumar Singh, a lead analyst at Technavio for lighting research, “The stringent government regulations regarding the use of energy have increased the adoption of HB LED lighting market worldwide. In terms of revenue, the residential and commercial segments are the largest contributors to the HB LED lighting market.”
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global HB LED market:
- Demand for energy-efficient lighting solutions
- Upcoming mega events and infrastructure projects
- Government support and incentives for LED lighting
Demand for energy-efficient lighting solutions
Escalating energy costs and consumption have been compelling both governments and consumers to reduce energy consumption and employ power-saving lighting solutions. HB LEDs are technically efficient in terms of lighting and power consumption. In addition to providing power-efficient lighting, HB LED bulbs last longer than incandescent bulbs by up to thousands of hours. In addition, flexible HB LED technology enables the effective use of lighting controls and thus increases the potential for saving.
Upcoming mega events and infrastructure projects
The 2018 FIFA World Cup, which will be hosted by Russia, is expected to contribute significantly to the global HB LED market. The Russian government has allocated USD 25 billion for the installation of LED flood lights and other high-power outdoor lighting for nearly 30 large sports stadiums. There will be increased demand for flood lights and other commercial lighting due to the construction of athletes' villages and the upgrade of infrastructure facilities like roads, hotels, tourist facilities, and commercial complexes. This will accelerate the demand for HB LED lighting solutions, particularly for the outdoor segment.
Apart from the above event, there are several infrastructure projects announced by the government of several countries to complement economic growth and to cater to the demands of the fast-growing urban population.
Government support and incentives for LED lighting
Global warming and rapid depletion of non-renewable energy sources impel the need for energy conservation. It is estimated that lighting applications account for more than 20% of the global electricity consumption currently. This high consumption has led several countries to frame policies that ban the use of inefficient lighting sources and promote the use of efficient lighting sources through subsidies and tax incentive programs. These incentives are being offered by different government and non-government entities.
For instance, in 2016, Melrose Public Utilities and its supplemental power supplier Missouri River Energy Services in the US, announced the Bright Energy Solutions Program for business customers. Under this program, Melrose Public Utilities would offer a rebate to customers who purchase and install energy-efficient lighting in new buildings.
“The subsidies offered by governments and utility companies will accelerate the installation of LED lamps and fixtures in all the application segments. This will drive the unit shipment of HB LED lighting solutions during the forecast period,” says Sunil.
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