European market energy-efficient lighting update
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 affected by concerns over the quality of energy efficient products, as well as their relatively high initial cost.
A new study shows the market earned revenues of $1.15 billion in 2011 and estimates this to reach $1.92 billion in 2018. While CFLs are currently the major product segment, the LED 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, which impose certain energy efficiency standards on buildings and EuPs, including lighting products," said 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 bulbs can have a higher initial price compared to less efficient light sources such as incandescent bulbs, and this price has an impact on how many people use the new technology.
"The high initial price of energy efficient lighting technology is a barrier for market penetration, especially in the price-sensitive residential sector," Wali said. "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."
A competitive pricing strategy, along with reliable, high-quality products, is the key to garnering market share in the energy efficient lighting market. Manufacturers need to ensure that their products match the advertised claims of light quality and lifetime.
"While the price of CFLs and LED lamps are highly dependent on market pressures upstream in the supply chain, manufacturers need to assure the quality of their products," he said. "They also need to focus on maintaining competitive prices to gain market share."
As previously reported in ProudGreenHome, in the U.S., incandescent bulbs began to be phased out on January 1 this year. The U.S. Department of Energy's Energy Independence and Security Act of 2007 required that household light bulbs had to become at least 25 percent more efficient within five years or they couldn't be manufactured or imported in the U.S. As a result, the bulbs are being phased out and replaced with more energy efficient bulbs such as CFLs and LEDs as well as halogen.
In the U.S., here are the options of types of bulbs and their approximate prices:
- Cost is approximately $1 for a 100-watt bulb
- Lifespan is about 750 to 1,500 hours
Compact fluorescent lamp (CFL) —
- Cost is approximately $6.50 for one 26-watt bulb (equivalent to 100-watt incandescent)
- Lifespan is about 8,000 hours
LED (light emitting diode) —
- Cost is approximately $40 for one 5-watt bulb
- Lifespan varies, up to 50 times longer than incandescents and 10 times longer than CFLs
- Cost is approximately $1.50 for a 72-watt bulb (equivalent to 100-watt incandescent)
- Lifespan is about 2,000 hours
Read more about energy efficient lighting.
Teena Hammond Teena Hammond has published more than 2,000 articles in People and W magazines, Women's Wear Daily, and in dozens of newspapers and books. She also wrote a home improvement, remodeling and decor column that ran in Gannett newspapers nationwide. She's interested in all things green and would love to hear from you with your story ideas.