Demand for Energy-Efficient Lighting Products Continues to Grow

Sept. 27, 2002
Manufacturers and distributors of electronic ballasts and programmable lighting controls can expect steady growth through 2008, according to a new market

Manufacturers and distributors of electronic ballasts and programmable lighting controls can expect steady growth through 2008, according to a new market study.

New analysis from the Frost & Sullivan study, “North American Lighting Controls Market,” reveals that revenues in this market totaled $1,311.3 million in 2001 and are projected to reach $1,609.7 million by 2008.

“The lighting controls market is expected to experience steady growth, despite the threat of economic fluctuations and resulting variations in construction start-ups,” said Sanjiv Bhaskar, Frost & Sullivan industry analyst.

An interesting trend in this market is the growing dominance of energy-efficient electronic ballasts over magnetic ballasts. Falling prices of electronic ballasts since the mid-90s have helped bring them almost on par with magnetic ballasts. This, combined with the growing acceptance of high intensity-discharge ballasts in commercial and retail applications, has helped penetrate the market further and boost revenue.

“Lighting controls have been shown to reduce lighting energy consumption by up to 50 percent in existing buildings and at least up to 35 percent in new constructions,” said Bhaskar.

The trend in lighting controls is rapidly moving toward remote controllable breaker-based panels. Many manufacturers of conventional relay-based controls are working on providing remote controllable panels as part of their portfolio, hoping to capitalize on current trends and changing preferences of end users.

The retrofit segment of this market represents an important growth area. Energy efficiency programs implemented by the federal and state governments give rise to the need for suitable lighting products in “older” buildings, thereby creating opportunities for energy-saving ballasts and controls. Investing in research and development to innovate currently static technology or adopting technologies from related industries such as electronics and industrial automation can create competitive advantage.