Lighting & LEDs

LED Lamps to Surpass Traditional Lamps in Offices by 2019

03 August 2015

The use of smart lighting in offices worldwide is set for an impressive growth in the next five years as LED lamps will overtake traditional lamps by 2019, according to a new report from IHS.

Currently, smart lighting is used in only a minority of offices around the world but is found more commonly in developed countries such as the United States and Japan. However, in the coming years, revenue from LED lamps will grow at a compound annual growth rate (CAGR) of 21.4% during the 2014 to 2019 time frame, IHS says. This revenue growth will overtake traditional lamp revenue in offices by 2019.

World market revenue for LED and traditional lamps in offices. Source: IHS World market revenue for LED and traditional lamps in offices. Source: IHS LED lamp revenue in offices is forecast to grow to $2.3 billion by 2019, up from just $849 million in 2014. On the other hand, traditional lamp revenue in offices will fall to $1.9 billion by 2019, down from $2.4 billion in 2014, according to IHS. Meanwhile, LED luminaires in offices will follow a similar growth pattern as traditional luminaires see a decline in growth over the same time frame.

Smart lighting in offices is most commonly introduced to meet legislative requirements that insist on companies installing LED lighting in order to save on energy. Where such regulations do not exist, the penetration rate of smart lighting is still very low. However, in new projects that are being developed that call on smart lighting, LED is considered the best choice with linear fluorescent lighting not far behind as a suitable alternative, IHS says.

“LED is already the most popular in new high-end installations in developed countries, but overall it is in the minority globally,” says Jamie Fox, principal analyst for LED and lighting at IHS. The most common types of smart lighting are daylight harvesting—lighting that detects the amount of Jamie Fox, principal analyst for LED and lighting at IHSJamie Fox, principal analyst for LED and lighting at IHSdaylight and adjusts accordingly—and vacancy/occupancy detection that uses motion to turn on or off office lighting.

While initial installation of LED office lighting was the result of government regulations, this may change in the future as companies realize the benefits of LED light quality—the sustainability of the technology and the improvement that some LEDs can have with human circadian rhythm, which is important for sleep patterns and what controls the production of melatonin, which makes workers sleepy.

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Related links:

IHS Lighting and LEDs

News articles:

LED Lighting Forecast to Reach 19% of Total Transportation Lighting in 2015

Large Lighting Manufacturers Continue to Transition to LED, as Traditional Business Shrinks

LED Office Lamps to Generate $1.2 Billion in 2015

GE’s $10 LED Bulbs: A Death Knell for CFLs?

Blues in the Light: Human-Centric Illumination Takes Hold

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