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LEDs to drive legislation-led European energy efficient lighting market, says Frost & Sullivan

February 22, 2012 // Julien Happich

LEDs to drive legislation-led European energy efficient lighting market, says Frost & Sullivan

Growth in the European energy efficient lighting market is being driven primarily by European Union legislation to phase out incandescent lamps and other inefficient lighting technologies. Market prospects are, however, being dimmed by concerns over the quality of energy efficient products, as well as their relatively high initial cost.

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New analysis from Frost & Sullivan European Energy Efficient Lighting Market, finds that the market earned revenues of USD 1.15 billion in 2011 and estimates this to reach USD 1.92 billion in 2018. While compact fluorescent lamps (CFLs) are currently the major product segment, the light emitting diodes (LEDs) segment is expected to grow rapidly as the technology improves and prices fall. "The EU's objective of reducing carbon emissions by 20 per cent by 2020 has resulted in the implementation of several directives, including the Directive on Energy using Products (EuP) and the Directive on Energy Performance of Buildings (EPBD), which impose certain energy efficiency standards on buildings and EuPs, including lighting products," states Frost & Sullivan Research Associate Vivek Wali. "This has led to the EU-wide phase out of incandescent lamps and other inefficient light sources."

Energy efficient lamps have a higher initial price compared to less efficient light sources. European consumers also exhibit a preference for the quality and colour of the light provided by halogen and incandescent lamps over that of energy efficient alternatives. These factors have posed a significant hurdle in the wide-scale adoption of energy efficient lighting. "The high initial price of energy efficient lighting technology is a barrier for market penetration, especially in the price-sensitive residential sector," notes Wali. "Residential consumers, who constitute the largest end-user segment in the lighting market, also prefer the quality of light from incandescent lamps over energy efficient equivalents."

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