IDC Energy Insights reports that the industrial market for LEDs is picking up momentum as companies looking to build new “smart” facilities or retrofit old ones choose energy efficient LED lighting. Adoption of LEDs for industrial lighting is good news for the commercial sapphire market and others in the LED supply chain. More LED lighting means more demand for sapphire.
First, let’s start with some background. Warehouses are particularly fertile ground for LED lighting since instant-on LED lights provide virtually no cycle time compared to traditional industrial lighting sources like HID (high-intensity discharge lamps) along with lower lifetime costs (including maintenance), higher efficacy and local utility incentives among others.
For those who watched the recent Super Bowl in New Orleans, the HID lights may be familiar. After the electricity loss during the second half, the lengthy delay in the game – more than 20 minutes — was partially due to the cycle time of the HID lighting for the interior of the stadium. In a warehouse situation, HID cycle time becomes a big issue as no one wants to wait for the lights to cycle and as a result, many warehouses just keep the lights on, running up energy costs.
IDC Energy Insights research analyst Casey Talon commented in her clean energy blog that LED lighting and “smart building” will be the disruptive technology for energy efficiency over the next three years.
Talon highlighted two big announcements in early January 2013 that demonstrate the momentum of smart building with LED lighting. First, lighting leader Acuity Brands acquired Adura Technologies. Adura’s Zigbee wireless mesh architecture enables individual fixture controls for cost and energy savings. Secondly, Digital Lumens, a leader in the industrial lighting solutions market, announced new growth numbers and funding, that demonstrates the viability of the emerging smart building technology segment. The company secured a new round of $10 million in financing and reported a footprint of 500 ‘large-scale’ installations representing 150% growth.
She notes in the blog that “fundamentally this news demonstrates that end users are increasingly aware of the benefits of energy efficiency to both their bottom lines and corporate goals. The activity in these markets illustrates a growing acceptance of upfront costs to achieve longer term benefits.”
LED lighting combined with lighting control and management software offers the ability to track and manage the benefits of LED lighting. Wireless controls and analytics help building managers understand when to have lighting on or off when employees are present, measure “free” ambient light from outside to cut down reliance on lighting, and know when and where to adjust brightness in areas when high precision work is needed.
Using analytics already is paying off. According to one case study from Digital Lumens, Vector Aerospace Helicopter Services North America, a worldwide leader in helicopter maintenance, repair and overhaul for Sikorsky, Eurocopter, AgustaWestland and Boeing helicopters, saved more than 72% on their annual energy costs with a Digital Lumens retrofit.
According to Talon, “If these early announcements are a signal, then 2013 may mark a tipping point in the smart buildings marketplace as customer awareness and investment begin to converge for broader adoption of intelligent energy management solutions.”
IDC Energy Insights, Illuminating the Smart Building, https://idc-insights-community.com/energy/clean-energy/illuminatingthesmartbuilding
Greenbiz.com, LED lighting gaining traction in commercial retrofits, http://www.greenbiz.com/news/2013/02/05/led-lighting-gaining-traction-commercial-retrofits