Groom Energy and Greentech Media Research predict that the LED enterprise lighting market will grow next year by 30 percent and surpass $1 billion in annual revenue by 2014. In a document released today entitled Enterprise LED Lighting Research Report, the 2010 U.S. market for commercial and industrial LED lighting is sized at $330 million in annual revenue. READ MORE..
My Take: As a consumer and investor I have had my eye on LED lighting for the past 3 years. The main hurdle the technology has left in its way is price competitiveness. The ‘green’ predecessor to LEDs in the household lighting market is the CFL (compact fluorescent light). CFLs once were in a very similar situation to that of LEDs; great selling points, but too high priced for most to adopt.
If LED manufactures are able to lower the production costs associated with their product, they have an easy sell. LED lights last longer, have a clearer/brighter light and run cooler than other lighting alternatives. They also don’t have strange side-effects that lights like the CFL family has; no strange humming noise (at times), no delay when turning the light on, no warm-up time, no mercury in the light.
Currently Cree (CREE), a publicly traded pure-play on LED development/manufacturing, has rebounded from the $50’s into the $70s. Though I’ve had my eye on Cree for a while (years), I do think that you probably should wait for a pull back before jumping in.
The difficulty I see as an investor in the LED industry is exposure to pure-play companies in the field. Sure GE & Philips are making a major push in the LED arena, but their LED lines are still very small in comparison to their entire business.
If I find any other pure-play LED companies or companies developing related LED technologies or materials, I’ll notify you.