Lighting contributes significantly to business energy use and operating costs. Increasing energy prices highlight the need to reduce the cost of lighting. Energy use associated with lighting systems can be reduced by up to 82 per cent if energy efficient lighting practices are adopted. Integrating all of the possible energy reduction techniques into an overall lighting strategy creates a holistic solution for any project and is best practice.

The trend for the increasing efficacy also means users tend to get more and better quality light at a lower running cost. That is, the higher energy efficiency of the LED sources translates into lower energy bills and greater reductions in CO2 emissions. LED costs fall rapidly, then slow in 2017, reaching near parity with CFLs in 2020. Actual LED pricing in a given country may vary from these levels. They depend on, for example, volume of imports and consumer demand.

Light Emitting Diode (LED) lamps provide unidirectional light output. This presents a hindrance to market growth, since a few applications require the broad beam for lighting. While LED lamps accounted for a relatively small market share in the year 2012, this segment is estimated to witness high demand over the forecast period. The ASP of these products is considerably higher in comparison to other lamp types; however, with the enhancement in the manufacturing process it is expected to result in a significant cost reduction. Residential sector was the largest end-use segment in 2012. This trend is expected to continue over the next few years, particularly in the developing nations. Industrial lighting accounted for a very small percentage of the total market in 2012; it is further expected to lose market share in the future.

Asia Pacific is anticipated to be the fastest growing economy over the forecast period, with high expected production & consumption of the energy efficient lamps in general, and LED lamps  particularly. Additionally, the favorable government policies for the energy efficiency are expected to drive the market in mature economies of North America & Europe. GE Lighting, Philips Lighting, Osram Licht AG, Havells, and Panasonic are among key market participants. Product innovation & differentiation along with the energy efficiency ratings are the major strategies followed by the leading companies.

Some of the prominent players operating in the global energy-efficient lighting technology market are, Cree Inc., Bajaj Electricals Ltd, Eaton Corporation, General Electric Company, Apple Inc., OSRAM Licht Group, Nichia Corporation, Toshiba Lighting & Technology Corporation, LIGMAN Lighting Co, and Bridelux Inc.