LEDs set to storm the market

The demand for the typical incandescent lightbulb is slowing fading away with the more energy efficient lighting sources to replace them. The USA and China are supposedly banning incandescent lightbulbs from being purchased in 2015 and 2017, respectively.

“Technologies such as fluorescent, high intensify discharge and particularly light emitting diodes are gaining rapidly in capability and efficiency and are finding new uses in areas such as building design, signage and automobiles.”

Lighting contributes to 19% of the global electricity consumption but consumers had previously given little though as long as it was cheap. The global lighting market is approximated to be worth €100 billion by 2020 compared to €73 billion in 2011.

LEDs are forecasted to account fro 41% of the overall value of the lighting market in 2016 with it rising to 63% by 2020; these are compared to a low figure of 12% for 2011.

Drew Nelson, the co founder and chief executive of IQE said, “I am absolutely certain that LEDs will become the worlds universal lighting source”. As soon as the price for these LEDs comes down the market will take off. LEDs last on average 50 times more than your average incandescent bulb and this is a threat to the replacement of them in the market, meaning that with a longer lifespan and cheaper in price they could save money.

However with manufacturing these LEDs brings with it a possible job cuts as producing LEDs requires different skills needed to make and it is all together less labour intensive than a traditional bulb. Osram is one of the worlds biggest lighting companies by sales and last month they announced plans to cut 4,700 jobs by 2014 after already cutting 1,900 jobs in 2012.