The report presents a comprehensive research of the LED lighting market in North America by product (LED lamps and LED luminaires) and by application (residential, commercial, industrial, and outdoor). The report also covers the latest trends and developments in the market that are expected to promote growth.
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Market driver: declining manufacturing cost of LEDs
The manufacturing cost of LEDs has been declining steadily since 2012 and will continue to decline during the forecast period. This decline can be mostly attributed to the decreasing ASP of chips and components used in the manufacturing process of LED devices. The decline in the manufacturing cost of LEDs is also contributing to the reduction in the initial installation cost of LED lamps and fixtures will accelerate the installation of new LED lamps and fixtures across all application segments.
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Market trend: growing traction for intelligent lighting systems
The digital revolution has been driving the lighting industry with the introduction of new generation intelligent lighting systems and controls. Lighting products that have embedded intelligence can adapt to changing space needs such as office buildings. Multiple lights can be controlled using a single controller, which provides dimming, timer, and color changing functionalities. Smart LED bulbs redefine the ambiance of a room by providing superior attributes such as energy efficiency and color change.
According to a senior analyst at Technavio for lighting research, “Smart bulbs are controlled through a device that is popularly known as the hub. The user can control lighting through mobile apps, and the hub must be connected to the Internet. LEDs are integrated with sensors and controls. The demand for LED lighting products is growing at a rapid pace, particularly in outdoor and industrial applications. This is because industrial and outdoor segments use light for a longer period compared with other application segments.”
Market challenge: high average cost per LED fixture
Though the total cost of owning LED lamps and fixtures is low compared to traditional incandescent and halogen bulbs, the high initial cost acts as a hindrance. The total cost of installation includes the cost of LED luminaires and labor charges. Furthermore, consumers who install smart lighting fixtures require plenty of resources to set up an IoT infrastructure. The price of incorporating smart bulbs in a fixture also varies depending on the type of manufacturer.
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