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The global lighting market will grow to at least $150 billion annually in the next six years.

January 13, 2016

According to business consultant McKinsey,  the global lighting market  will grow to at least $150 billion annually in the next six years. The majority of that increase, as much as $90 billion annually by the same year, will be in the LED sector.

This represents  a 30% increase. By 2020, LED’s are expected to make up at least 60% of the lighting market. Even more important: lighting costs should be reduced by 30% a year in the same period, dramatically lowering energy and maintenance costs, in addition to being more aesthetically pleasing and being more environmentally friendly.

What could be more attractive to investors than such significant growth, both in the short and long term?

Government regulation on the environmental front as well as a lack of carbon dioxide emissions are growing LED demand at record rates. LEDs lead the “greening” of the lighting industry, by not only removing  dangerous chemicals that were a part of earlier products but significantly (50-85%) reducing energy consumption.

Here’s just one example:

A factory that pays over $10K/year to power their lighting can expect LED technology to instantly reduce that cost to $3,000 with payback in less than two years and, for most, zero money down! Not a very difficult decision, is it?

A corporation or government agency can’t afford to ignore the economics associated with LED lighting. Plus, the higher the in-country electricity costs, the quicker the payback. The use of LED lighting in North America reduces costs to a payback/ROI in approximately two years, frequently less, depending on local electricity costs. In third world countries, where power is much more expensive to begin with, elapsed time to payback can be as little as one year or less. The point is, regardless of locale or previous costs, the results of switching to LED lighting are win/win for all concerned.