The lighting industry is at an inflection point. Advances in LED technologies and government efforts to reduce CO2 emissions in buildings and benchmark energy use are opening up a major opportunity for controls companies.
According to a report by research company, Memoori, in 2013 the world value of lighting control products was approximately $1.67 billion at factory-gate prices. From 2013 to 2020, this number is forecasted to grow at a CAGR of 12 percent.
The last seven years showed a volatile performance for lighting controls, with the main reasoning being a decline in new building construction.
According to Memoori, it will take until 2016 to show growth compared to the last eight years. This would require a CAGR of 4.2 percent from 2012 to 2016. Additionally, the retrofit market could provide a growth in demand of 7.5 percent in 2017 and beyond. Supervisory software has helped to increase the value of lighting controls in major buildings, especially in the last five years.
In the last fifteen years it has been a challenge to get all the environmental services in buildings to work together. We’ve finally reached a point where connectivity can be achieved through IP. New intelligent lighting makes other services a possibility.
In order for the lighting controls market to maximize the growth opportunities forecasted, an increase must also happen in the retrofit market. And, though retrofitting buildings with LEDs is becoming more convincing, improvements still need to be made in wireless technologies to bring the cost down and improve the ROI.
View the full article at greentechmedia.com.