LED lighting market will grow 12-fold to $25 billion by 2023
- 28 January 2014
LONDON: New forecasts show that cutting-edge features and rapidly dropping costs will cause the low carbon LED lighting technology market to grow more than 12-fold over the next 10 years.
Pricing and technology for light-emitting diode (LED) lighting has improved so much over the past few years that a new paper from Lux Research predicts that the market will continue to grow, rising 12-fold from today’s US$2 billion to reach US$25 billion by 2023.
The report, Casting the Light: Illuminating the Opportunities in 2023’s LED Luminaire Market, uses historical trends coupled with projected average price decreases to work out future adoption rates of LEDs across office, industrial and street lighting markets.
Details from the report include:
- Cost of LED packages will drop more than 80% thanks to improved efficiency and increased manufacturing yields
- The recessed modular market will increase from US$1.5 billion in 2013 to US$14.5 billion in 2023, by replacing incumbent products like fluorescents
- The secondary optics market will rise to US$6.9 billion in 2023
Christopher Hwang, Lux Research Associate and the lead author of the report, said: “As LED packages rapidly fall in cost and improve in efficiency, the cost structure of LED luminaires will shift, and present opportunities in other components such as secondary optics and drivers. This trend, in turn, influences the rate of adoption of emerging technologies, such as alternating current (AC) LEDs and high-CRI LEDs in recessed modular, high-bay and roadway luminaires."
For more information about the types of markets that will increase, read Casting the Light: Illuminating the Opportunities in 2023’s LED Luminaire Market