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Energy Efficient Lighting Fuels Growth in Energy Efficient Lighting Fuels Growth in Lighting Equipment MarketLighting Equipment Market

Energy Efficiency: Main Driver in Lighting Equipment MarketEnergy Efficiency: Main Driver in Lighting Equipment Market

Alejandra Lozano, Industry Analyst

Building TechnologiesBuilding Technologies

April 25, 2013

© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Today’s Presenter

Alejandra Lozano, Industry Analyst

Frost & Sullivan

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• Technical expertise and in-depth understanding of the building

technologies sector.

• Ability to provide analysis-based strategic recommendations as well

as prepare and analyze market data with a focus on key growth areas

and product trends.

• Over 5 years of experience

Focus Points

Market Forecast & Trends

Drivers and Restraints

Introduction

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Focus Points

Revenue Breakdown by Product Segment

Product Segment Growth

Key Market Trends

Conclusion

Introduction

Lighting Equipment Market

Lamps Fixtures

Ballasts & Incandescent Commercial / Lighting Controls

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Control GearIncandescentFluorescent

HalogenHIDLED

Fluorescent Ballasts

HID BallastsHalogen

TransformersLED Drivers

Commercial / Institutional Industrial

ResidentialOutdoor

Lighting Controls

User InterfacesSensors

Control Modules

Source: Frost & Sullivan.

Drivers and Restraints

Key Takeaway: Energy savings is the most important factor in the market in 2012.

Lighting Equipment Market: Key Market Drivers and Restraints North America, 2012-2016

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Market Forecast and Trends

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• The lighting equipment market generated revenues of $17.8 billion, growing by 2.6% over 2011.

• By 2016, the market is expected to reach $20.8 billion and is forecasted to grow at a CAGR of 4.0% from 2012 to 2016.


Revenue Breakdown by Product Segment

• The total market was divided among the market segments as shown below.

• The ballasts and control gear segment was the smallest segment and the fixtures segment was the largest segment in terms of revenue in 2012.

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Product Segment Growth

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• The lighting controls product segment witnessed the highest growth during the forecast period.

• The lamps product segment witnessed the lowest growth during the forecast period.

Key Market Trends

• The market is moving toward energy-efficient products that provide energy savings while at the same time protecting the environment.

• The Energy Independence and Security Act of 2007 is phasing out incandescent and T12 linear fluorescent lamps due to the relative inefficiency of those lamps compared to more energy-efficient lamp alternatives.

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efficient lamp alternatives.

• The market has experienced an increase in demand for CFLs and LED solutions. LED demand has increased due to improvements to the technology, enhanced energy efficiency, longer life, and government programs that support the development of LED technology for general lighting applications.

• Demand for LED lighting is anticipated to increase as prices continue to decline.


Key Market Trends (continued)

• The demand for electronic ballasts and more intelligent controls is also anticipated to increase.

• The 2005 Title 24 control requirements are also anticipated to support demand for lighting controls not only in California but in other states as well.

• Although integration with automation systems is currently low,

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Although integration with automation systems is currently low, integration is expected to increase by the end of the forecast period.

• Another major market trend is the use of wireless technology. Wireless lighting products are expected to gain traction because they provide added flexibility and easier installation.


Poll Question

When do you think the adoption of wireless technology will increase significantly in North America?

� Next 2-3 years

� 4-5 years

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� 5-10 years

� Over 10 years

Conclusion

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Key Drivers:• Energy savings• Legislation and incentives• Technological innovation

Demand for energy-efficient lighting products will continue to increase over the next five years.

Key Restraints:• Intense competition

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4

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The lighting controls segment will witness the highest growth during the next five years.

The integration of lighting with automation systems and the adoption of wireless technology will substantially increase in the next five years.

3• Intense competition• High cost of advanced products• Economic environment


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For Additional Information

Britni Myers

Corporate Communications

Environment & Building Technologies

(210) 477-8481

[email protected]

Alejandra Lozano

Industry Analyst


(210) 477-8483

[email protected]

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Konkana Khaund

Industry Manager


(416) 495-2673

[email protected]