US Lamp Demand to Reach $6.8 Billion in 2011

US demand for lamps is projected to advance 5.0 percent per year through 2011 to $6.8 billion. Growth will be driven by a shift in product mix away from inexpensive incandescent lamps toward more expensive, energy-efficient lamps such as compact fluorescents (CFLs). Strong nonresidential building construction activity through 2011 will bolster demand for lamps. Advances will also benefit from a modest recovery in motor vehicle production and greater lamp use per vehicle. These and other trends are presented in Lamps, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Among the major product types, fluorescent lamps will enjoy the largest gains in lamp demand through 2011, overtaking incandescent lamps in terms of value. Most of this growth will be fueled by CFLs, which are being tapped as an alternative to the less energy-efficient incandescents in the large residential market. Federal restrictions on the use of certain types of incandescents have been proposed. As a result, CFLs will face competition from LEDs, as well as next-generation incandescents and halogens designed to be more energy efficient.

Despite the negative outlook for incandescent lamps, these products will remain a key component of lamp demand for the foreseeable future. The large size of this segment derives from their widespread use in residential applications, which is in turn attributable to their low prices and good light quality. While the incandescent segment will no longer be the largest in the lamp market by 2011 in terms of value, these lamps will still account for the largest share in unit terms. To address the challenge from CFLs, manufacturers of incandescent lamps are developing new types that are more energy efficient. These products, which are expected to be available by 2010, will appeal to consumers' familiarity with traditional incandescent lamps, but will be more expensive.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product and market forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.