Governments: a growing market for high efficiency lighting

Several parts of the government market are installing high efficiency lamps at a fast pace, reports the Cleveland-based Freedonia Group research firm in a recent market report.  The report is Study Number 3068 and the title is “LEDs & High Efficiency Lighting.” The report was issued in November 2013. Go here to view a pamphlet on the report.

The market for high efficiency lighting in several categories of government and institutional buildings will increase 9.7 percent annually to $1.2 billion in 2017. This market reported 2012 sales at $739 million for LEDs, energy-efficient fluorescent fixtures and other high efficiency lamps.

According to Freedonia analysts, “Gains will be supported by solid growth in many types of institutional construction activity, including schools and health care facilities. In addition, since these buildings utilize relatively inefficient lamp products, including some incandescent lamps, there are opportunities for more efficient lamp products as well as opportunities for LED lighting products in existing buildings.”

The report notes that “Because institutional buildings are often large and include many interior rooms that have no access to sunlight, they are typically intensive users of lighting products.” Freedonia analysts say that the need to illuminate many of these buildings at all times (particularly hospitals) generates substantial replacement demand in this market.

Freedonia says other government facilities will also be likely purchasers of high efficiency lighting products. These facilities include airport terminals, port buildings, public safety structures, and recreation facilities, such as theaters, performing arts buildings, sports and fitness buildings, convention centers, and social centers. Freedonia includes these structures in the other nonresidential buildings category.

Demand for high efficiency lighting in the other nonresidential buildings category totaled $213 million in 2012, or 10 percent of the nonresidential market, say Freedonia analysts. Through 2017, demand is forecast to increase 7.1 percent per year to $300 million. The market for high efficiency fixtures will be supported by increased construction activity in this segment as modest improvements in state and local budgets will allow a recovery in construction spending for public buildings. Government facility managers, says the report, will be replacing older incandescent and halogen lamps in certain settings, with more efficient fluorescent lamps.

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