Saturday, May 25, 2013

Technological Improvements to Lead to LED Bulb Dominance

Improvements in the production process of LED bulbs looks set to guarantee the product the Lion’s share of the lighting market. As production techniques are perfected, the costs are falling as are the asking prices. The LED bulb has long been recognized as a more effective, cost efficient and energy efficient alternative to its lighting predecessors, but its higher price has often put off customers. Now however, with the perfected technology an ex CEO of Phillips Lighting has predicted that the LED bulb will hold an 80% market share by 2020.

Former CEO of Phillips Lighting, Ludo Carnotensis suggested that the 80% market share was ‘in the cards’. This would represent a dramatic increase for a product that only held a 12% share in 2012 and is predicted to hold a quarter by 2014.

Many current ambassadors for LED lighting are already enjoying the long-term financial gains from implementing the product. The higher energy efficiency means that electricity bills may decrease significantly. The higher initial cost has many balking and ignoring the eventual return. This may be completely reversed as the prices continue to drop.

The lighting market has been a relatively stable one for nearly a century with minimal revolutions, breakthroughs and innovations. Large companies like Phillips and Osram have been able to dominate the marketplace and make it difficult for new pretenders to throw their hat into the ring. This is partially due to the necessity of specially crafted and expensive glass furnaces in the production process. However, it is possible for new entrants to mass produce LED bulbs in a cost effective and competitive manner.

The current CEO of Phillips Lighting North America, Ed Crawford, has described this revelation as a ‘paradigm shift’. The lighting industry has a major new player for the first time in a century.

The increased competition naturally leads to higher quality products and greater variety. The vast majority of fittings now accept LED bulbs like old friends. Properties can benefit from LED downlights now just as readily as public areas can be lit by a host of specially rendered LED floodlights. The aforementioned energy efficiency is even more apparent when halogen bulbs are replaced by their LED brethren en masse.

The United States’ LED bulb industry reached a pivotal point this year as manufacturer Cree released a bulb for less than $10 and was winning the battle with superpower Phillips for shelf space at home ware mega-store Home Depot.

This could be the start of the death march for the halogen bulb as its boisterous younger brother takes the reigns.

Guest Blog from Chris Balme

1 comment:

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