Lighting

Lighting’s Future will Shine Bright by Bringing Intelligence into Buildings

Since electrical lighting was invented some 130 years, the incandescent lighting bulb has evolved at a very slow rate. It is still the main source of light across the world, despite the fact that LEDs appeared on the scene in the early 1960's and now deliver a much lower energy consumption, longer life, smaller size and faster switching light. However LEDs are now rapidly replacing other light sources and are expected to take a 75% share of the lighting market within the next 9 years. This is a remarkable achievement for lighting, but it does not stop there for its future is inextricably linked with bringing intelligence into buildings. Memoori’s latest report on The Lighting Controls Business – 2015 to 2020 builds its analysis on the fact that LED Lighting and its control network could provide the platform for many of the Building Automation Services (BAS) that are installed in Smart Buildings. The logic is […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $200 per year per user (just $17 USD per month) for Access to Quality Independent Smart Building Research & Analysis!

What Exactly Do you Get?

  • Access to Website Articles and Notes. Unlimited Access to the Library of over 1,700 Articles Spanning 10 Years.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now

Since electrical lighting was invented some 130 years, the incandescent lighting bulb has evolved at a very slow rate. It is still the main source of light across the world, despite the fact that LEDs appeared on the scene in the early 1960's and now deliver a much lower energy consumption, longer life, smaller size and faster switching light.

However LEDs are now rapidly replacing other light sources and are expected to take a 75% share of the lighting market within the next 9 years. This is a remarkable achievement for lighting, but it does not stop there for its future is inextricably linked with bringing intelligence into buildings.
LED Lighting

Memoori’s latest report on The Lighting Controls Business – 2015 to 2020 builds its analysis on the fact that LED Lighting and its control network could provide the platform for many of the Building Automation Services (BAS) that are installed in Smart Buildings.

The logic is simple, lighting is pervasive in most buildings. Combine this with the ability of solid-state lighting to convey data both through IP and eventually Li-Fi and for the sensors in the control systems to gather data; then there is a realisation that lighting control is in a strong position both technically and commercially to take the leading role in integrating most of the technical services in a building.

Add in the potential that the latent retrofit market might open up for lighting controls and it can be seen that there could be enormous opportunities for those able to understand the various market influences and how to exploit them.

Our analysis, encompassing Merger & Acquisition, Strategic Alliance and Investment in lighting shows that a number of companies have set out a business model to achieve this objective by moving into value added products and services and moving out of the commodity end of the business with low margins and ever falling prices. They have yet to prove the veracity of this strategy but there is no shortage of venture capitalist prepared to back them.

[contact-form-7 id="3204" title="memoori-newsletter"]

3 of the top lighting companies Philips, Osram and GE Lighting have all made very significant changes to their business models and surprisingly have come up with different solutions.

GE have just reorganized its lighting business from top to bottom and the conventional lighting group is no longer called GE Lighting. It looks like it might be being made ready for sale. It has moved its commercial and industrial LEDs into a broad new $1 billion “startup” energy services business called Current.

It is part of GE CEO Jeff Immelt's overarching 'industrial internet' strategy. Immelt has staked the future of the company on digitally connecting the tools and objects of the industrial world to create nothing less than what he calls “the next industrial era”. This goes well beyond developing the tools for the Building Internet of Things (BIoT) for GE's goal is to embed and connect sensors into everything it touches, whether it's jet engines, gas turbines, locomotives or light bulbs. Those networked sensors would allow customers to gather data that helps them run the assets more efficiently.

Osram divested their LED manufacturing business in September this year when they announced that it will be selling its 13.5% stake in Foshan Electrical and Lighting (Foshan Lighting) to a subsidiary of Guangdong Rising Assets Management (GRAM) for more than €350 million (US $392.51 million). The deal it sealed with GRAM’s subsidiary at a premium of 30% of Foshan Lighting’s current share price.

Philips have made the most dramatic change by selling their Lumileds business this year and have made it known that the general lighting business will be floated or disposed of soon. Our report shows that Philips over the last seven years has spent far more than any other player on acquiring lighting companies in order to build up scale for its LED products but they have obviously taken the view that they cannot get sufficient business from this and the open market to make a satisfactory return. Making this decision must have been a difficult one being the premier company in the world’s lighting market for many decades. They will invest the proceeds from their lighting business into their higher value add operations.

All the current suppliers in the Lighting Controls business will have to redefine their business models, "wait and see" is not an option, because lighting now has the capability to offer the most logical route to deliver the IoT in building and beyond.

For more in-depth information on the topics discussed in this article, refer to our reports - Smart Buildings: The Lighting Controls Business 2015 to 2020 and The Internet of Things in Smart Buildings 2014 to 2020.

Most Popular Articles

SPIE
Energy

SPIE Technical Facility Management Business 2024 Examined

This Research Note examines the French public company, SPIE and its focus on building solutions, which is one of four strategic markets that the group addresses in central and northern Europe. This article covers the Group’s fields of expertise, its development since 2013 through platform and bolt-on acquisitions and its expansion in the Netherlands, based […]

Infogrid Acquicore Lawsuit
Smart Buildings

Infogrid Faces Lawsuit over 2022 Acquisition of Aquicore

Established in 2018, UK-based smart building firm Infogrid quickly made a splash in the market, picking up a range of high-value customers including banks, supermarkets, and restaurant chains, as well as the UK’s National Health Service (NHS) during the peak of the global pandemic. The firm has attracted $135.5m in investment (including debt financing) from […]

IWMS Spacewell Nemetshek 2023
Smart Buildings

Spacewell Smart Buildings Business & Financials 2023 Examined

In this Research Note, we examine Spacewell, part of the Manage segment of Nemetschek, which provides software for the management and operations phase in the building lifecycle. This article is based on their 2023 annual results, investor presentations, Annual Report of the parent company, published on 21st March 2024 and the group’s strategy in the […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy