Green Lighting Trends in 2010: LED Lighting Technology Leaps Forward, Compound Annual Growth Rate of LED Light Source Reaches 32%

03 Sep

Energy saving is one of the current focuses which attract attention of human beings, no matter what kind of technology, as long as it can reduce energy consumption, it will save electricity bills, and reduce carbon dioxide emissions or environmental pollutions. Although the costs of these energy-saving technologies are quite different, and the some industries that manufacture products with energy-saving technology are high energy-consuming industries, which are not economical enough after careful calculations, but at least to some extent can reduce the impact on environment during the process of use.

Green Energy Economy Issues are expected to maintain 3-year sustained high demand of energy saving lighting

Does anyone care about green building issues? Solar panel systems are not at a low price, electricity converting devices with high efficiency also cost much, and heat insulating building materials, heat exchange systems are not very common, the green building relevant products that we can often see in 2010 shall be LED lighting, CFL energy-saving lighting, these are the most readily available energy efficient products, stimulated by laws and regulations of phasing out incandescent bulbs, and the preferential tax policies which encourage enterprises to use more energy efficient lamps, they have very bright development prospects.

LED lighting and CFL energy-saving lighting both perform well in their respective fields

Technology of CFL energy-efficient lighting products have been quite mature, the price is accepted by most people, in addition to the laws and regulations that various countries made to phase out incandescent bulbs, U.S. power companies even provided free or super low price CFL energy saving light bulbs to their customers, all these factors make shipments of energy saving CFL lamps greatly increase. Take Chinese mainland market which produces 80% CFL energy saving light bulbs of the world as an example, in 2008 they produced 62 million pieces of CFL energy saving lamps, and in 2009, the number has achieved 120 million, including energy-saving light bulbs with energy saving tubes.

Then what about LED lighting? The time before 2008 can only be considered as initial stage of LED lighting, by 2009 the number of LED lighting products that were developed has greatly increased, besides public area lighting and commercial space lighting, LED lighting products for home lighting have already been introduced to the market.

CFL energy saving lamps have a long lifetime, but LED lighting products last much longer than them, while the price is more expensive. Currently in the market the main LED lighting products include MR16 series of lamps, freezer lighting, light strips, track lights, cabinet lights, landscape lights and arched lights(belongs to indirect lighting, can also be used as direct lighting) and nightlights etc. mainly. CFL energy saving lamps are the most common in home buildings, replaceable type light bulbs(such as E27), down lights, recessed lights, ceiling lamps and so on are the fields that energy saving CFL light bulbs perform well in. Meanwhile, CFL energy saving light bulbs also include well-known T5 tube type, which is widely used in convenience stores, offices, interior indirect lighting for buildings.

Although the price of CFL energy-saving lamps is low, and their lighting efficiency is high, they contain mercury (Hg), if the light bulbs are broken, the mercury vapor will leak out, which will do harm to the environment and human body, they also can not be directly thrown into the trash, otherwise the waste will pollute the underground water.

LED lighting will first take off from commercial space lighting

From the phenomenon that we observed in the market, LED lighting demand has been increasing continuously, especially in recent years after the birth of product technology R & D results one after another, the overall product costs went down to some extent, and the light efficacy has been improved, which makes LED lighting gradually qualified to be used in main lighting fields,more and more replaceable light bulbs and lamps use LEDs as light source.

It is the commercial grade LED lighting system with high lumen output that will significantly grow up in 2010, which is because that LED lighting for home use is still much more expensive for most consumers, drived by the benefits of long-term use, energy-saving and environmental protection appeal and tax incentives, the percentage that commercial space lighting utilizes LED lighting will greatly increase, especially in the areas of parking lot lighting, office lighting, factory lighting, warehouse lighting and others. LED lighting can not only replace high pressure sodium lamps, halogen lamps and incandescent light bulbs, but also CFL energy saving lamps and fluorescent lamps in some fields.

It is estimated that the period from 2010 to 2011 will be the two years that LED lighting grow up fastly and become popularized, while the large-scale applications of LED lighting in home lighting area have to wait until 2011, even 2012, particularly 2012 is the crucial year.

The market share of LED light source in the lighting market in 2010 is expected to reach 3.7%, from 2009 to 2013, there will be a 32% compound annual growth rate. (Figure 1)

Figure 1: WW LED Light Source Market

Source: LEDinside

The problems that limits the development of LED lighting

However, the difficulties that LED lighting development encountered include not only the factors of technology, specifications, heat dissipation and price, but also the chanllenge from above mentioned CFL energy saving lamps and fluorescent lamps, especially the T5 tubes in office lighting system, they all reach a light efficacy of 100lm/W, and their price is much lower than LED strip lights, considering light flickering and light uniformity issues, before LED technology developing to be mature, we believe that LED lighting needs long time to be widely used for office lighting. In addition, CFL energy saving lamps also have an ultra-small, ultra-mini types, which also have 3 watt models and is not bad in light efficacy, these products are quite suitable for areas which need small size light bulbs, which are threats to LED light bulbs with same size.

What can be expected is that, encouraged and stimulated by government laws, LED lighting’s market share in the areas of architectural lighting and commercial space lighting has already reached to the extent of significant growth.

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