LED lighting is the next big investment

Energy-efficient lighting solutions, specifically light-emitting diodes (LEDs), is the next major market to experience significant growth, according to a recent report by CleanTechnia. The LED industry will open new markets, encourage new business models and increase product capabilities.

LED lighting

Highly-innovative, reliable and affordable LEDs are taking the spot of incandescent bulbs that are currently being phased out. The bulbs also serve as replacements for commercial fluorescent lighting. Technological advances with LEDs over the last 10 years are helping lighting retrofitting and prevent companies and building owners from having to completely replace fixtures in order to be more energy efficient.

LED lighting is also growing at a fast pace. For instance, one LED manufacturer has experienced a 150 percent growth rate since 2007, the article stated. Some companies have even seen their lighting revenue increase to more than $10.5 million since 2009. Prices of LEDs have dropped by almost 30 percent since 2011, which has proven to be a major motivator in LED adoption. The increased demand for the bulbs, current high electricity rates and technology advancements are boosting the LED market as well.

Street lighting is proving to be a niche LED market, and is considered to be a gateway application for LEDs. According to CleanTechnia, most cities can save as much as 40 percent on energy costs by switching to LEDs.  The process of changing out new streetlights is simple – similar to replacing a burnt out light bulb. It is estimated that unit shipments of LED streetlights will increase to more than 17 million by 2020.

California city tests LED streetlights

Long Beach, Calif., is taking part in an LED streetlight pilot program by partnering with City Light and Power and Southern California Edison. The pilot program is to determine the energy savings the LEDs can provide as well as to receive input from the city’s residents, according to the Los Angeles Times.

LEDs replaced 24 high-pressure sodium lights in four of the city’s neighborhoods – including Alamitos Beach, Park Estates, Stratford Square and Silverado Park. Officials from the utility department said that LEDs will last longer than the previous lights and use up to 50 percent less energy, the Times reported.

“We’re always looking for ways to be more financially and environmentally efficient, and use technology to improve services to the community,” said Long Beach Mayor Bob Foster.

The energy efficiency consultants at Lumenistics can provide more information on the benefits of LEDs.