The ‘Opportunities for Power Components in LED Lighting’ report by IMS Research claims that the widespread adoption of retrofit LED lamps will create global energy savings worth $100bn over the next five years.
Right now LED lighting for general use is not widespread but the rapid uptake of retrofit LED lamps will result in a potential market of more than 4 billion units by 2016, the market research firm expects.
Although LED adoption is often driven by legislation it is forecast to accelerate as consumers become more aware of the long-term savings that are possible when compared with competing lighting technologies.
LED’s to save Planet Earth $billions
“The environmental impact that global adoption of LED lighting will have is colossal,” says report co-author and senior market analyst Ryan Sanderson. “Lighting accounts for approximately 19% of the world’s energy use at present,” he adds. “IMS predicts that in 2016 around 15% of all lighting will be accounted for by LED, which would reduce global energy consumption of lighting by around 20%.”
Retrofit LED lamps use a fraction of the power of incandescent lamps to provide an equally good if not better luminance. The report forecasts that in 2012 alone the use of retrofit LED lamps in place of incandescent lamps will result in energy savings of more than 30 gigawatt hours. By 2016, with widespread adoption of retrofit LED lamps, these savings are forecast to reach more than 300GWe. It is calculated that the five-year cumulative total will be more than 800GWe, worth more than $100bn.
“To generate the 800GWe of energy in 2016 years you would need to run more than 50 nuclear power stations at full capacity,” says report co-author and market analyst Jonathon Eykyn. “At a time when the world is struggling to balance the use of more sustainable power sources with the need to provide access to low-cost power sources to support economic growth, LED lighting could be a large part of the solution,” he adds.
Reducing your bills
The benefits of using LED lamps to the general consumer are reductions in average household energy bills, says IMS. To buy and power a lamp for four hours a day for a year, it costs the average household $20 for an incandescent lamp currently, but it would cost $16 for an LED lamp (a saving of 20%).
An LED lamp has an average life expectancy of 30,000 hours (30 times longer than an incandescent lamp and 3.75 times longer than a CFL lamp). If the savings were calculated over the lifetime of the lamp, LED lamps become the cheapest solution, notes IMS.
For example, a typical house with 15 lamps would save more than $5100 over 20 years by switching from incandescent to retrofit LED lamps. These savings will increase as the cost of LED lamps continues to fall significantly, especially over the next five years, forecasts the market research firm.
The Table below, provided by Istoria LED breaks down the cost savings to give you a clear understanding of the savings that can be made
|Bulb cost over 10 years
|Energy cost over 10 years – @15cents/kWhr