US Demand for Advanced Lighting Products to Reach $6.8 Billion in 2013

US demand for advanced lighting products is forecast to grow nearly eleven percent per annum to $6.8 billion in 2013.  Gains will be spurred by legislation aimed at reducing the energy consumed by lighting.  Imports are a significant source of advanced lighting products, and will account for almost 70 percent of demand in 2013.  Therefore, domestic shipments of advanced lighting products will proceed at a slower pace, as products with rapidly growing demand, such as compact fluorescent lamps (CFLs) and light emitting diodes (LEDs), are largely produced overseas.  However, the US is a leading exporter of advanced lighting products, and domestic producers will continue to benefit from growing demand in emerging markets.  These and other trends, including market share and product segmentation, are presented in Advanced Lighting, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

CFLs are expected to enjoy the fastest demand growth through 2013.  The Energy Independence and Security Act of 2007 will ban the sale of general service incandescent lamps starting in 2012, and CFLs are expected to replace most of these lamps as they burn out.  Demand for CFLs will surge more than 20 percent annually through 2013 as consumers transition to the new technology.  Long-term demand will ultimately proceed at a slower pace, however, due to lower replacement rates, as CFLs last much longer than incandescent lamps.  Nearly one-half of additional advanced lighting demand generated between 2008 and 2013 will be accounted for by CFLs. 

LEDs are also forecast to experience robust growth through 2013, benefiting from greater demand in consumer electronics, motor vehicles and nonresidential buildings.  Falling prices, increases in light output and improvements in energy efficiency will make LEDs more competitive with conventional lighting products over the forecast period.  LEDs will be the fastest growing advanced lighting product through 2018, when demand is expected to approach $3 billion.  Demand for advanced high-intensity discharge (HID) lamps will be driven by growth in motor vehicle and streetlight applications.  Metal halide HID lamps are increasingly finding use as motor vehicle headlamps, and demand will grow as motor vehicle production recovers from its low 2008 level.  Sodium vapor HID lamps are widely used to illuminate streets and highways, and will benefit from increased spending on transportation infrastructure over the forecast period.  Furthermore, the Energy Policy Act of 2005 banned the sale of mercury vapor lamp ballasts, effectively phasing out the use of mercury vapor lamps starting in 2008.  Advanced HID products, the closest substitute, will be used to replace most mercury vapor lamps when their ballasts fail.

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 segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.