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Explosive Growth for LED Lights in Next Decade, Report Says

Next-generation bulbs to capture nearly 50% of lighting market by 2020

By Amy Westervelt

May 13, 2010

A new report finds that the market for light-emitting diodes (LEDs) is set to explode in the next ten years, surpassing even compact fluorescent lightbulbs as the ultimate energy-efficient lighting option.

By 2020, LEDs will cover 46 percent of the $4.4 billion U.S. market for lamps in the commercial, industrial and outdoor stationary sectors, driven by the overall push toward energy efficiency, according to a released this week by Pike Research, a Boulder, Colo. cleantech market-research firm.  That's a big jump, considering that LEDs now capture only two percent of the lighting market, according to .

"As energy efficiency becomes increasingly important for controlling costs, improving energy independence, and reducing environmental impacts, governments and organizations have looked to lighting as the 'low hanging fruit' of energy efficiency," the study states.

Currently, lighting accounts for 17.5 percent of the world's electricity consumption, and $40 billion of the electricity bill in the United States, which makes it full of potential for energy and cost savings. While fluorescents have been justly praised for offering greater efficiency than incandescent bulbs, LEDs have been shown to be more efficient and to last longer than any other lighting source on the market, making them the logical next step.

LED lightbulbs typically last 50,000 hours — twice as long as fluorescents — and are up to twice as efficient as fluorescents, which are four to six times more efficient than incandescents. Further, unlike fluorescent or incandescent bulbs, LED tubes do not get especially hot. 

According to a 2009 released by market research group GigaOmPro, incandescent bulbs only convert about 4 to 6 percent of the energy they receive into light; the rest is wasted as heat. While fluorescent bulbs can raise the temperature in a room by up to two degrees, resulting in increased cooling load for buildings, LEDs don't raise the temperature at all.

"Growth rates [for LEDs] have been in the double digits and we don't anticipate growth to slow,," writes analyst Katherine Austin in the GigaOm report.

"With a new administration in the U.S. White House, a new energy secretary, and a new focus on energy efficiency, market conditions for are very likely to remain positive. Other countries, especially China, Korea and Japan, share this focus. By 2012, the market for LEDs in general lighting applications could climb as high as $10 billion, although in light of the recent economic downturn, we expect that $4-5 billion may be more realistic."

In addition to their high efficiency and long lifespan, LEDs also do not require ballast and do not contain toxic mercury, which means disposing of them when they die poses fewer health and environmental hazards.

LEDs are also favored by the Department of Energy, which has been in advancing the technology over the last ten years. The European Union is currently phasing out the use of incandescent bulbs, which the U.S. will do in 2012, leaving only fluorescents and LEDs left as the lighting options.

Cost is Chief Barrier

Despite the positive forecast, there remain short-term financial and technological obstacles to market success for LEDs, with the biggest problem being price.

LED tubes cost anywhere from $50 to $100, compared to $2 to $10 for fluorescents. The other roadblock frequently cited by electrical engineers and facilities managers is brightness; they are concerned occupants will complain that the lights are not bright enough. Both problems are being addressed by LED manufacturers, which are researching ways to increase the luminance of LEDs and cut costs.

LED technology is still

LED technology is still costly in comparison to fluorescent bulbs. Fluorescent light bulbs contain small amount of mercury (4 to 20 mg). When fluorescent light bulb shatters, it releases mercury vapor.


We have been doing everything

We have been doing everything you mention in an and then some for over a year and I can attest to the fact that it works. However it is a slow process of gradual increase in visitor numbers. Pairing the viral marketing approach with mainstream advertising ideas might lead to a faster payoff and visible results. It's just a question of how much competition for your audience is already out there or joining the playing field on a weekly and monthly basis.

Good Post

Nice Post, thanks for sharing.

We are Energy Saving Solutions provider offering various solutions by utilizing the energy of the Sun or providing alternate means to reduce your energy consumption levels and save the environment.

LED Lighting saves up to 70% of your Lighting bills.


Hey friend thanks for

Hey friend thanks for reviewing this article on LED lights. As technology keeps on changing in today's world so LED's are also taking growth now in market. But I also agree with the above statement as still at this point LED's are more costly compared to fluorescent bulbs. There are only some financial & little other technological problems like price is main obstacle in success of LED's. Anyways hope in future it will be minimized.


I thought your post on LED lighting was very interesting.  LEDs are far superior than its predecessors in that they use less energy, they have a longer life and they are better for the environment.   While the initial cost of LEDs is higher than incandescents and CFLs, it will be offset by the energy savings and the long life of the bulb.  It would be beneficial for any household to make the switch over to LED lighting.  I currently work with Sharp, but I have always been a fan of their products they have to offer.  If you are in the market for lighting, I recommend you check out their <a href="">LEDs</a>

Cost is coming down

The cost of the led lights are coming down. In few years time it will replace CFL and other outdoor lights

LED Lights

After observing the massive growth of , it can be said that in the upcoming future, advertising and marketing of any business will be done completely from them. With the spend of time, their quality is also improving. Their softwares are also introduced in the market due to which a big LED lighting system can be controlled and operate from a software.

Lighting Design

We are a Design, Manufacture and Installation company who has helped many companies add impact to their signage by changing there lighting system to LED. We have also designed, manufactured and installed for casino across the country using the LED lighting system and have been able to really give our customers a good deal with a lighting system that is energy efficient, last longer, can be programmable to change colors etc... and is safer for the environment.

While I don't feel the

While I don't feel the technology has fully matured, it's definitely reached a point where it's at least good enough to use for many applications. There are some applications where I don't think we'll see LED lighting in large scale but for every day use, I believe the writing is on the wall.

LED lights will save our planet...

LED light bulbs are non-toxic and not made from hazardous materials.

Fluorescent light bulbs contain small amount of mercury (4 to 20 mg). When fluorescent light bulb shatters, it releases mercury vapor. Mercury is hazardous and the quickest way for mercury to enter your body and absorbed into your bloodstream is by breathing in mercury vapor.

More info from the link below:

LED Lights is far from being mass applied

Hi, guys. Although we can list tens or hundreds of benefits of LED lighting, the barrier is the price. As developed countries can afford that price for saving the planet, 4/5 of the human will still not regard this as an alternative to incandescent bulbs.

While LED has come a long

While LED has come a long way, there are still some major disadvantages to using it.
First the light output is considerably lower than that of fluorescent bulbs. Yes it consumes less, but it doesn't light the area as well as a linear bulb. What's more the angle at which the light is emitted is extremely narrow making it difficult to use LED to light up a wide area.
Secondly, as mentioned in the article, LED technology is still costly in comparison to fluorescent bulbs.
Thirdly, there is not product standardization at this point, meaning that when your LEDs start to burn out you may find yourself having to replace the entire system.
This article is great to read to learn more about the difference between LED and fluorescent technology:

White LED is already there and improving so fast

That article os lumiversal is completely uncredible and probably designed to "eat" uninformed minds. Is not scientific at all, they dont show the light sources used, they do not give any reference at all or the way the testing was undertaked. And they have good reasons to put down leds due to theyr main bussines lines.
LED technology has overcome T5 performance more than 2 years ago, you just have to ask CREE or Seoul Semiconductors or OSRAM among others.

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