LED outdoor area luminaires must compete with the other lamp types that are still relatively energy efficient.
A recent Navigant Research report analyses the global market for outdoor luminaires, lamps, and lighting controls. The study provides a comprehensive assessment of the demand drivers, market inhibitors, and policy and regulatory factors associated with outdoor and parking lighting systems. Global market forecasts for revenue and unit shipments, segmented by lamp type, region, product type, and application area, extend through 2023. The report also examines the main technologies related to outdoor lighting systems and provides in-depth profiles of the key industry players.
Outdoor lighting systems are a major contributor to global energy use. Since many governments and individuals are tackling climate change, more efficient outdoor lighting technologies are now being introduced. However, while light-emitting diode (LED) lighting and controls are making inroads into commercial and domestic lighting, inexpensive high-pressure sodium (HPS) lamps lead in outdoor lighting and will take longer to displace. LED outdoor area luminaires must compete with the other lamp types that are still relatively energy efficient, making it more challenging to achieve lifetime cost savings in a market led by retrofits and replacements.
Although the desire to reduce electricity costs is a significant driver for the adoption of LEDs and controls, it is not the most important one. Cutting maintenance costs is increasingly being seen as the key factor at play. The installation of LED lamps in place of older metal halide lamps leads to less frequent relamping and thus lower maintenance costs. Improving safety and security is another important driver. Efforts are underway to cut crime rates and make people feel safer in public places – and energy efficient lighting and intelligence play a vital role. Yet, growing demand for controls will likely not offset declining average selling prices (ASPs) and revenue from lamp replacements will shrink as facilities become more efficient. Navigant Research forecasts that global luminaire, lamp, and controls revenue will decline slightly from $2.81 billion in 2014 to $2.75 billion in 2023.
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