Frost & Sullivan: Market for LED Bright Notwithstanding Price Barriers

According to analysis from Frost & Sullivan (News - Alert) world LED Lighting Market, the market for Light Emitting diodes (LEDs) is expected to grow rapidly, reaching $1,895.5 million in 2017.

Frost & Sullivan's Senior Research Analyst Neetha Jayanth is of the view that the expansion in the market will be primarily triggered by technology improvement and measures adopted to support energy efficient lighting.

In addition, Jayanth said, efforts are on to improve the quality of LED lamps and this could make them better equipped for functional lighting across all building sectors.

However, although such improvements could make LED a better technology, the price difference between LED lamps and CFL (compact fluorescent lamp) is still significant enough to dampen widespread adoption.

Although LEDs are energy-efficient and involve lower maintenance costs for users, the initial investment is very high. This needs to be reduced if the market is to grow and suppliers should work on this aspect.

This however is easier said than done for price reduction according to Jayanth is difficult. The alternative could be to focus on producing better quality lamps with increased lumens per watt. This would largely reduce the payback period on the investment and the product would become more competitive in the market.

In addition, manufacturers and distributors would also need to cooperate to heighten consumer awareness about the benefits of using LEDs, highlighting the fact of low maintenance costs and longevity. This, said Jayanth would go a long way in helping users accept the high initial investment.

World LED Lighting Market is part of the Building Management Technologies Growth Partnership Service program.