Commercial LED lighting revenue will reach $25 Billion annually by 2021

July 24, 2013 – Boulder, CO – When light-emitting diodes (LEDs) were first introduced in the mid-2000s for general space lighting, they were considered a disappointment. Almost too dim to be useful, they were expensive and no more efficient than traditional fluorescent technology. Today, LED-based lighting products can successfully compete with rival technologies on the basis of light quality, efficiency, dimmability, and almost any other important metric except for price – which is falling rapidly. According to a recent report from Navigant Research, revenues from LED lighting products (including lamps and luminaires) in commercial building markets will grow from $2.7 billion in 2013 to more than $25 billion in 2021.

“The rise of LED technology will transform every part of the commercial lighting industry,” says Jesse Foote, research analyst at Navigant Research. “While other lighting technologies have limited potential for future improvements, new designs for LEDs that push quality and efficacy to new levels continue to emerge from lighting labs around the world.”

In the coming years, LED prices are expected to fall to a point where savings from electricity consumption will provide a short payback period that will encourage consumer adoption en masse, according to the report. This shift will be most dramatic in the share of lamps sold for retrofit projects, where older lighting is often replaced specifically to improve efficiency. Although Navigant Research forecasts that only 5 percent of lamps sold to retrofit projects worldwide in 2013 will be LED-based, that share is expected to grow to 40 percent by 2017 and 63 percent by 2021.

The report, “Energy Efficient Lighting for Commercial Markets”, examines the worldwide market for energy-efficient lighting in commercial buildings, including LED, fluorescent, halogen, and high-intensity discharge lamps and luminaires. The report details the market drivers for these technologies, including electricity costs, green building certifications, and improved controls, as well as the remaining barriers to adoption. Profiles of leading industry players are provided, along with global forecasts for unit shipments and revenue through 2021, segmented by region and by lamp type. An Executive Summary of the report is available for free download on the Navigant Research website.

About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.

About Navigant
Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.