Market research firm IHS Inc. forecasts that 32 percent of total lamp revenue in office lighting will come from LED lighting. The firm projects that the total worldwide revenue for office lamps will reach $3.5 billion in 2015. Of this total IHS predicts $1.2 billion will come from LED lighting. The company expects that the remainder will mostly come from fluorescent lighting. IHS notes that high-end installations in developed countries are increasingly turning to LED lighting. The company contends that lighting designers are increasingly turning away from fluorescent lighting in their projects, in favor of LED lighting.
Upfront cost, running cost (cost of electricity for usage), and ease and frequency of maintenance are the key factors examined in choosing office lighting. While LED lighting has a low running cost and has low maintenance costs, the upfront (initial installation) cost for LED lighting is higher than other technologies, IHS said. In 2014 office lighting projects, maintenance accounted for 18 percent of project cost. Of the total project cost 51 percent paid for equipment, 25 percent was for installation, and 6 percent for design and engineering.
IHS also points to the lighting industry’s shift to smart lighting. So far, only a small number of offices use smart lighting solutions worldwide, but IHS says many different types of smart lighting solutions are available. IHS cited one U.S. lighting designer who said, “occupancy and vacancy sensing is essential, and depending on your region of the country, also daylight sensing.” According to IHS, smart lighting is most commonly installed to meet legislative requirements for saving energy. Places where such regulations don’t exist still have very low penetration rates for LED lighting, IHS asserts.
IHS says that the office lighting market has some technical challenges to overcome, but these issues are not insurmountable. Among the biggest issues, according to the firm, is dimming. Another issue is the need for control standards. IHS suggests that more coherent collaboration will be necessary to overcome market inhibitions.