Global LED Market Growth
- Sep 02, 2019-
Estimates of the expected size of any global market can fall anywhere on a spectrum between industry proselytizing and genuine objective data. Even when an estimate is affected by industry cheerleading, however, genuine growth in that industry cannot be discounted. The global LED market is a good example of very real growth that is bolstered by industry enthusiasm. Specifically, Allied Market Research, a global market research consulting firm, has estimated that the size of the global LED market will be $42.7 billion by 2020. If accurate, this estimate indicates that the global LED market that will more than double in a period of five years.
The general global push toward “green” technologies is also fueling the growth of the LED market. LED lighting systems use up to 50% less energy to generate an equivalent light intensity as CFLs and CCFLs. This reduced energy consumption directly translates into a reduction of more than 735 million tons of carbon dioxide emissions annually, as demand on oil- and gas-burning power plants will be reduced with the adoption of LED technology.
Consumers and other end users who are considering shifting to LED technology can benefit by making that shift sooner. Prices for LED technology have dropped, but an expanding global LED market can lead to an increased demand for LED products. That demand may reverse the current downward pricing trend if manufacturers are unable to maintain supplies to meet that demand. The upfront costs of LED lighting systems will be offset my reduced operating and maintenance costs.
Changing to LED technology will also prepare end users to adopt new LED developments more quickly without having to implement LED retrofits when the demand for those retrofits begins to soar. Early adopters of technologies can benefit from discounts that manufacturers and installers will be more willing to offer before the LED market grows to its estimated $42.7 billion size.