Worldwide shipments of luminaires with LED lamps for outdoor and parking applications will grow from 4.1 million annually in 2014 to nearly 14 million in 2023, says Navigant Research.
Outdoor lighting systems market is dominated by fluorescent, high-pressure sodium, and metal halide lamps; however, over the next 10 years, LEDs will gain prominence among outdoor installations.
The growth of smart city initiatives has contributed for the growth of LEDs. Smart lighting systems are integrated as part of these initiatives. Such systems can make decisions in real time, says Navigant Research.
For example, a networked light in a city park can detect when an individual lamp burns out and immediately schedule a maintenance crew visit. Many companies in the lighting sector now refer to themselves as being at the center of the Internet of Things, rather than as pure-play lighting companies.
“LED outdoor area luminaires must compete with existing technologies that are relatively energy efficient and low cost, making lifetime cost savings more challenging in a market led by retrofits and replacements,” says Jesse Foote, senior research analyst with Navigant Research.
“With LED prices continuing to fall, however, the case for replacing today’s most prevalent lighting technologies is becoming more and more compelling,” Foote added.
Earlier this year, a report released by Lux Research said LED luminaires, or optimized permanent light fixtures, is expected to grow more than 12-fold over the next decade – from $2 billion today to $25 billion in 2023.