North America is witnessing increase prevalence of energy-efficient lighting equipment in the market as a result of new energy-efficiency needs and environmental consciousness of end users. Eco-friendly and energy efficiency are the major aspects being taken into account by consumers while selecting the products.
The need for bringing improvements to the existing lighting systems have become critical as lighting covers over 20% of primary energy consumption in the U.S. commercial buildings.
The report titled ‘Analysis of the North American Lighting Equipment Market’ from Frost & Sullivan shows that the market has gained $17.3 B revenue in 2011 and anticipates achieving $20.8 B in 2016.
North America’s legislation like the year 2005’s Energy Policy Act, and the year 2007’s Energy Independence and Security Act entails energy-efficiency standards on lighting products and buildings. In addition, the government offers utility rebates for energy-efficient lighting products and tax deductions for energy-efficient lighting systems, thereby promoting the energy-efficient lighting equipment market.
Although, the market has high potential, the revenue growth and market penetration are being hampered by high initial costs of advanced lighting products and intense competition, leading to decline in market growth. Over the recent years, economic downturn has inspired end users to analyze and investigate each of the purchase and they are demanding cost-effective systems. Development in economy will enable the market to have a stable growth till 2016.
The market will be a lucrative platform for manufacturers having competitive pricing strategy and high quality products that promote energy efficiency.