A paradigm shift with LEDs

The GCC’S construction boom is fuelling international interest in the region’s fast-growing lighting market. The need for good quality and energy saving lights has expanded exponentially over the years.

The lighting market is a rapidly evolving and is fuelled by innovative technical developments. The global electronics industry is entering into the era of convergence where completely different streams of digital technology are merging. The emergence of cost-competitive LEDs has caused a “paradigm shift” in the lighting industry that has brought about a phenomenal shift in the lighting industry in the recent years

LEDs are a break from the history of illumination. LED’s are the latest and most exciting technological advancement in the lighting industry. LEDs are extremely energy efficient and consume up to 90 per cent less power than incandescent bulbs. Since LEDs use only a fraction of the energy of an incandescent light bulb there is a dramatic decrease in power costs. Also, money and energy is saved in maintenance and replacement costs due to the long LED lifespan.

Although LEDs have a higher initial cost than incandescent and compact fluorescent light bulbs, the cost is quickly recouped over time in lower electricity costs.

Due to their significantly increased energy efficiency, LEDs have become the go-to option in a world where energy and resources are becoming scarcer and more expensive. Although they have been around in one form or another since the early 1960s, it is only in the past decade or so that LED technology has developed to the point where it has become both practical and economical to use in a wide variety of applications.

According to industry reports, the global LED lighting market is expected to grow from €7 billion in 2010 to €40 billion in 2016 — a compound annual growth rate (CAGR) of 34 per cent. Subsequently, growth is expected to slow down, with a CAGR of 13 per cent from 2016 to 2020. The LED lighting market will amount to almost €65 billion ($94 billion) by 2020, representing close to 60 per cent of the total lighting market.

Likewise, reports also indicate that the residential LED lighting market is likely to be worth over €20 billion by 2020. Architectural lighting has been an early adopter of LED lighting due to benefits such as color control, and is expected to see 85 per cent LED penetration by 2020. Rapid growth in LED penetration is also expected in hospitality, shop and outdoor-lighting applications.

LED lighting products compete with traditional lighting technologies on the basis of the numerous benefits of LED lighting relative to such technology including greater energy efficiency, longer lifetime, improved durability, increased environmental friendliness, digital controllability, smaller size, directionality, availability in a variety of colours and lower heat output.

Reports also indicate that the LED Video displays are a perfect fit for the GCC’s future, and will enhance landmark buildings and spaces for many decades. Fuelled by increased demand from the fully revived construction sector, the Gulf lighting fixtures market is expected to grow between eight per cent to 10 per cent annually between 2014-2018, creating major opportunities for global manufacturers and designers to capitalise on renewed in-vestment across the region.

Panasonic, meanwhile, plans to expand its LED light business across Middle East and is introducing its expansive range of professional luminaire line-up soon. Japan has been among the fastest adopters of LED lighting, driven in part by the energy crisis that dates the tsunami and nuclear plant disaster. Panasonic has enjoyed success in its home country and has already offered lighting solutions to many countries.

Further augmenting and strengthening its portfolio, Panasonic bought  Anchor, India in 2007 where products like lighting, home automation, interior design solutions and security systems have been made available. Moving on in 2013, Panasonic also acquired major stake in leading Turkish Electrical manufacturer Viko. Viko produces electrical wiring accessories including switches, sockets, and protection devices such as circuit breakers. 

The writer is director, Eco Solutions Division, at Panasonic Marketing Middle East and Africa. Views expressed by him are his own and do not reflect the newspaper’s policy.