Technology for traditional lamps has slowed, and with it, so have sales. As more homes and businesses are converting to LED and luminaire lighting systems, manufacturers have realized they need to change their ways to avoid becoming obsolete. With business declining, a greater investment is expected to be made in advancing the technology of lamps.
The U.S. Environmental Protection Agency (EPA) has strict guidelines for lamps, and each state may have their own guidelines as well. Among the regulations listed by the EPA are waste rules, which determine how much energy each product is allowed to use. These changes have led to a drop in fluorescent light sales.
The decline is not a surprise, especially for T12 bulbs. In 2012, the U.S. Department of Energy regulated certain types of bulbs for reaching the market, citing their poor energy efficiency. The T12, a technology that was first used more than 80 years ago, was high on that list.
Newer bulbs are more energy efficient and provide better quality. LED lights generate nearly twice as much lumens per watt than T12 bulbs, while reducing energy use by nearly 40 percent.
The Growth of the LED Market
Lamp manufacturers have come to the realization that if they do not adapt to the changing marketplace, they are likely to disappear forever. LED and luminaire lighting systems are not only the hot trend currently, but projections show the technology is here to stay. Figuring out the best way to adapt will give businesses the best chance at survival.
Global lamp revenue in 2013 was $29.1 billion, according to IHS Technology. By 2019, that market is expected to grow and bring in $34.6 billion, an annual growth rate of 2.4 percent. LED revenue, in that same time span, is projected to rise by 16 percent. Not surprisingly, traditional lighting technology, such as T12 bulbs, will see a greater decline. IHS Technology projected that over the next four years, traditional technology will see a compound annual loss of 7.2 percent.
As stricter guidelines continue to be enforced and lighting technology expands, it is expected that traditional lamps will slowly start to disappear altogether.
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