In order to figure out the impact of the LED on the general lighting market, IMS Research created a global installed base model of incandescent, CFL, linear fluorescent HID and halogen lamps, divided by region in 2010. The graphic below shows that there are approximately; 3.9 billion incandescent, 1.75 billion CFL, 1.75 billion linear fluorescent, 50 million HID and 550 million Halogen lamps installed in the United States alone.
Incandescent bulbs have enjoyed long dominance since the days of Thomas Edison. According to IMS analyst Phillip Smallwood, “the main reason behind this is that incandescent lamps are extremely cheap with an average selling price of approximately $0.43 cents. Add an average cost of electricity of $0.11/kWh to the equation, and you get a large group of consumers that base their lamp purchasing decision solely on the initial cost of the lamp.”
Unfortunately for consumers, Congress enacted The Energy Independence and Security Act (EISA) of 2007. That act created higher efficiency standards targeting 40–100W incandescent and halogen general-service lamps. Starting in 2012, 100W lamps will be required to be 28% more efficient, 75W lamps in 2013 and 40-60W lamps in 2014. According to Smallwood, the new efficiency standards effectively ban most current incandescent technologies from being purchased after the block out date.