LED market to expand in U.S., Europe
Frost + Sullivan's report reveals the LED market could expand up to $2 billion by 2017. The expansion could be even greater if the market narrows the gap between LED and CFL costs
Analysis from Frost + Sullivan revealed that the light emitting diode (LED) market is primed to grow explosively in the next several years. The study estimated that the market, which earned revenues of almost half a billion in 2010, could reach as high as $2 billion in 2017.
One of the main reasons for this growth is the expansion of green technology and efforts to phase out incandescent lighting. LEDs, as a result, are taking their place for basic lighting as the United States and many countries in Europe continue to push for energy efficiency and cutting costs overall in hard economic times.
In spite of the expansion, the main problem remains that LEDs are the most expensive and will continue to be even as technology improves and costs reduce. The gap remains significant between compact fluorescent lamps (CFLs) and LEDs. While LEDs reportedly require less maintenance and have a longer life, the initial costs remain an issue for potential investors in the technology whether it be lightbulbs or televisions.
The study from Frost + Sullivan concludes that the best way to help narrow that cost gap and continue market expansion is to increase awareness about the benefits of LED technology. Not just for now, but for the future, as well.