By Carolina Ruiz

Global unit shipments of LED lamps and modules are expected to grow at a compound annual growth rate (CAGR) of 19% between 2015 and 2024, revealed the latest Navigant Research report on this matter.

This report analyzes the global market for LED lamps and modules across all major space lighting uses, as well as market issues, including drivers and trends, barriers, cost issues, and technological developments, associated with LED lighting.

“LED prices have declined to a point where this type of lighting is becoming the economical choice in almost every application,” the study affirms. Hence, the adoption of LED lighting is ramping up across all major end uses: commercial buildings, residential buildings, industrial buildings, and outdoor applications.

This is no surprise for companies such as Sylvania, LED technology enterprise with operations in Costa Rica and Central America: “Our forecast for 2015 is that LED technology sales will grow 15% in the region,” said Laurence Vega, product manager of Sylvania. The company is expecting to achieve $35 million sales in Central America this year.

According to the Navigant Research report, while early adopters sought some of the unique features of LED lighting, such as improved operation in cold environments and enhanced control, the current wave of adoption is much more focused on the value of ongoing energy savings compared to a modest increase in upfront cost.

Vega agrees: “LED technology is efficient because it is brighter. This makes the user achieve energy savings of up to 90% without losing power in the quantity and quality of light. This savings are motivating the massive adoption.”

The Sylvania specialist also explained that consumers’ purchases are being motivated by savings achieved in in maintenance costs as well. “The life of LED lights exceeds 50,000 hours; fluorescent tubes, in contrast, can be used for up to 15,000 hours, “he explained.

Challenges

While this growth presents opportunities for companies involved in the lighting industry, significant challenges are also arising, Navigant Research specialists alert. “The fall in LED prices is leading to the commoditization of many LED components, fueling price wars. Meanwhile, patent disputes are increasing as the owners of intellectual property protect their turf,” they affirm.

Companies such as Sylvania, with decades of being present in Costa Rica and Central America are not escaping this scenario.

“We have no benefits over new entrants. We are facing competition from products that have very low quality and that are, accordingly, sold at very low prices, “Vega explained.

Even though, companies are optimistic about the future, considering that no technology will overshadow the LED market growing pace. “I really doubt it. LED is the future, “assured the specialist from Sylvania.