Supportive Legislation Leads to LED Market Growth


The North American LED lighting market earned revenue of $1.15 billion in 2012, and will reach $3.63 billion in 2017, according to analysis from Frost & Sullivan.

The research says the market is primarily segmented into indoor and outdoor LED lighting.
Lighting account for about 15 percent of the energy consumed in the US building sector, and the need to conserve energy by upgrading older systems to LEDs is key driver for the market, according to Frost & Sullivan analysts.
Energy and environment Industry analyst Alejandra Lozano says there is higher adoption of energy efficient lighting in the outdoor segment because of government funding for such upgrades
The North American LED lighting market will also get a leg up from supportive legislation, such as the Energy Policy Act of 2005 and Energy Independence and Security Act of 2007, which mandates greater energy efficiency of general service incandescent lamps. The legislation also hastens the market introduction of efficient and high-performing solid-state lighting products, including LED lamps.
However, despite backing from the government, the higher initial costs of LED lighting products compared to that of competing technologies restrain their adoption. The economic downturn of the last few years has made end users particularly prudent as they demand cost effective systems that also offer energy savings.
Although the operating costs of an LED lighting system are low, the capital expenditure of LED lighting products is often prohibitive to end users that do not have a clear vision of the short- to medium-term return on investment from energy savings. The technology will experience wider uptake as ongoing research helps lower costs of production, making LED lighting more affordable.



1 reply
  1. Brandon
    Brandon says:


    I am getting into the LED business. Could you please send me information that will help me to convince people that investing in LED lighting is a great decision. Also, if you could send me information about current and future lighting legislation that may make it a requirement to upgrade to LED now or in the future?

    Thank you,


Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.