A major factor in the rapid advancements in lighting in recent years has been the development of light-emitting diodes (LEDs) technology. LEDs are quickly replacing incandescent bulbs and are great for saving energy as they are much more efficient and have a much longer lifespan. They are also significantly better than fluorescent lamps, with some of them able to produce more than 100 lumens per watt. For this reason, the LED market is predicted to grow substantially over the next 5 years, estimated to reach $25 billion in 2023.
Changing the Industry
LEDs offer unmatched energy and cost savings and their long life expectancy is over 4x’s more than other lighting technologies. They also don’t need a warm-up time and can be up to 85 percent more efficient than conventional bulbs. They are literally changing the entire landscape of the lighting industry. Because of their wide variety (and endless possibilities) of design styles, brightness levels (lumens), color (kelvin), and other characteristics, LEDs have moved lighting from an afterthought into a sophisticated design element of the modern home. Now, every aspect of lighting ‐‐ placement, function, control, style – can be designed to provide precisely what is needed in a particular room and for particular tasks, offering further opportunity for energy savings, convenience, homeowner comfort.
Back in 2016, U.S. Department of Energy estimated an annual savings of 5.1 quads by 2035, representing a 75% reduction in energy consumption, and resulting in cumulative savings of over $630 billion in avoided energy costs from 2015‐2035. Take a glimpse of what LEDs could mean for you:
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ESTIMATED ANNUAL COST ALL PROJECT HOMES |
ESTIMATED ANNUAL COST PER HOME |
ESTIMATED ANNUAL COST SAVINGS PER HOME |
| 100% LED | $302.24 | $60.45 | |
| 50% 13W + 50% 40W |
$791.08 | $158.22 | $97.77 |
| 50% 13W + 50% 60W |
$1089.59 | $217.92 | $157.47 |
| 100% Incandescent | $1791.11 | $358.22 | $297.77 |
ESTIMATED ANNUAL CONSUMPTION SAVINGS (kWh) PER HOME
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ESTIMATED ANNUAL CONSUMPTION (kWh) |
ESTIMATED ANNUAL CONSUMPTION (kWh) PER HOME |
ESTIMATED ANNUAL CONSUMPTION SAVINGS(kWh) PER HOME |
| 100% LED | 3132.60 | 626.52 |
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| 50% 13W + 50% 40W |
8030.95 | 1606.19 | 979.67 |
| 50% 13W + 50% 60W |
11061.47 | 2212.29 | 1585.77 |
| 100% Incandescent | 18184.63 | 3636.93 | 3010.41 |
Global Growth
The growing number of households and urbanization is one of the major trends being witnessed in the global LED market. The increase in urbanization is driving the installation of new lamps and LED luminaires which in turn, will lead to an increase in unit shipments and thereby revenue from LED products. In addition, rapid urbanization is driving governments of various countries to invest in large-scale urban infrastructure projects.
One of the key factors contributing to the growth of the global LED market is the declining manufacturing cost of LEDs. The manufacturing cost of LEDs has declined since 2012 and will continue to do so during the forecast period primarily because of the declining ASP of chips and components used in the manufacturing process. This is leading to a decrease in the installation costs of LED lamps and fixtures thereby driving the installation of new LED lamps and fixtures across all application segments.
LEDs & the Energy Code
Lighting efficiency standards have been included in the International Energy Conservation Code (IECC) since the 2009 edition, where the prescriptive compliance path called for 50% of bulbs and fixtures were to be “high efficacy.” Since first being introduced into the code, the lighting industry as a whole has experienced rapid advancements in technology that have increased efficiency levels, improved quality and durability, decreased costs, and now provides a wide variety of “high efficacy” lighting options. As a result, energy codes has advanced to reflect the current state of the industry. The 2009 IECC required 50% “high efficacy” bulbs and/or fixtures as a prescriptive requirement. Now, the 2015 IECC makes that 75% requirement MANDATORY!
LED lighting is one of the common options for meeting the “high efficacy” lighting requirements in the code, which also includes halogens, CFLs, and linear fluorescent bulbs. However, meeting “high efficacy” standards is not the only way LEDs help you with code compliance. Read more in Meeting Code With LEDs.
Reports
Learn more about LEDs and the energy code. Check out the reports below from Newport Ventures:
The Building Bulletin 