Hazardous Location LED Lighting Global Market Forecast 2020-2030

 

 

Report Summary -

Published:                 April 5, 2021

Text Pages:               320 pages – PDF

Excel File:                 Market Forecast Database (2020-2030)

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Report Description

April (2021) – This is the ElectroniCast analysis and forecast of global market consumption of LED-based hazardous location luminaires (explosion-proof and other evaluation levels). 

Unsafe lighting is one of the most common potential sources of ignition causing an explosion.  Working environments that contain explosive gases or dust are extremely volatile environments. A variety of luminaires (light fixture + LED light source) are available that are considered suitable for hazardous locations, since they prevent any possible ignition sources from being exposed to the air. In various lighting applications, hazardous locations are defined as areas that are at risk of fire or explosion due to the combined presence of electrical equipment and flammable gases or vapors, flammable liquids, combustible dusts, ignitable fibers, or other substances. 

In the process of this market research project, in addition to interviewing existing customers and potential customers of LED-based hazardous location lighting, we also studied lighting manufactures with various ranges of hazardous area lighting products. The luminaires are designed for locations where explosive gases and dusts are found, providing suitable lighting without enabling a risk of explosion.

The emergence of solid-state lighting (SSL) light emitting diodes (LEDs) in the general lighting industry continues to push lighting-industry vendors, as well as end-users, to consider innovative solutions (new products) to adopt hazardous location LED lighting solutions.

Solution-Level Quantified in this Study - Below, are five levels (or “food chain”) pertaining to the LED marketplace.  For the purposes of this ElectroniCast study, we quantify and provide a market forecast for Level 5. 

 - Level 1 - The bare chip or die

- Level 2 - The packaged LED chip

- Level 3 – LED array, optics, boards (PCB), heat sink, driver, other components

- Level 4 – Lamp/Light source

- Level 5 – Luminaires (light fixture, initial lamp/light source, inclusive fittings/brackets)   

The following regions are quantified in this study report:

·         America (North, Central and South America)

·         EMEA (Europe, Middle East and Africa)

·         APAC (Asia Pacific)

 This report provides the market forecast (2020-2030) by the following functions:

 ·         Consumption Value (US$)

·         Quantity (number/units) – (Million)

·         Average Selling Prices ($, each)

Some luminaire (fixture and lamp) styles do not necessarily fit in the General-Area, Linear of Flashlight categories; therefore, they are placed in the “Specialty or Miscellaneous” category.  ElectroniCast also places the Panel-style of flood lamp/ luminaire device in this last category.  The Panels, especially, often use a larger number of component LEDs per lamp panel versus the number of LEDs used in other lamp-types. 

This analysis and forecast of global market consumption of LED-based hazardous location (explosion-proof and other) luminaires (light fixture, initial lamp/light source, inclusive fittings/brackets); external/separate electrical (cord) installation apparatus and LED replacement lamps are not included in the volume and average selling prices (ASPs) market data.

The value is then based on the end-use application and the end-use region.  The assumed prices are the estimated or forecasted average prices paid during the indicated calendar year.  These are the original manufacturer’s (“factory”) prices invoiced to the first (original) customer (OEM, distributor, wholesale, retail, end-user, and other), or transfer prices for internal (captive) production. 

They take into account the typical purchase quantities and related quantity discounts, as well as the variation in performance specifications between one user and another.  The costs of supplier testing, qualification, documentation and other ancillary costs are included in the price calculation.  The price for any particular purchase may vary widely from the average, depending on quantity, multiple-year contracts, specifications and competitive bidding pressures.

During the market research process, ElectroniCast analysts perform interviews with authoritative and representative individuals in the LED and lighting industry, plus – R&D and industrial/factory/manufacturing, from the standpoint of both suppliers and users of explosion-proof and other harsh environment LED lighting products.

Market Forecast Product Categories   This market forecast of the worldwide consumption is presented for four (4) major lamps (with luminaire/fixture)-type categories, as shown below:

·         Spot, Flood and General-Area

·         Linear: Tube and String/Strip

·         Portable: Flashlights, Wearable, and Other Portables

·         Specialty, Panel and Miscellaneous

Market Forecast Sub-Application Categories            This market forecast of the worldwide consumption for LED luminaires used in hazardous location lighting is presented for four (4) major end-user group (sub-application) categories, as shown below:

 ·         Power Plants, Pumping Stations, Substations

·         Military Bases, Airports, Other Transportation Facilities

·         Gas Stations, Paint-Spray Booths, Other Commercial/Industrial, Other/Non-Specific

·         Oil Fields, Oil Refineries, Offshore Oil Platforms, Oil Tanks, Tunnels, Wharf, Mining, and other

      Hazardous location (explosion-proof and other) LED lighting solutions, offer improved vision and safety in industrial areas where the danger of explosion is higher due to the nature of the activity.  Hazardous location LED lighting products are used on a large scale in mines, oil fields and also in various industrial and commercial, military, and other applications where highly inflammable and explosive substances are present.

 The risk of explosion in some work environments requires the need to use specific solutions. Specially designed hazardous location LED lighting provides is often underestimated. Mixtures of gas, air or dust can actually cause life-threatening explosions and cause extensive harm to your employees and the plant. The incorrect assumption is often made that the danger of explosion is more or less exclusive to the chemical industry. Dust from timber, animal feed, food-stuffs or plastics can also cause an explosion. Unsafe lighting is one of the most common potential sources of ignition.

The International Electrotechnical Commission (IEC) for technical use recommends the term luminaires.  Light fixtures (US English), light fittings (UK English), or luminaires are electrical devices used to create artificial light by use of an electric lamp. Most luminaires have a fixture body and a light socket to hold the lamp and allow for its replacement.

 Luminaires require an electrical connection to a power source, typically AC mains power, but may also have battery power for portable (flashlights/torches and wearable headlights) and emergency lights. Permanent lighting fixtures may be directly wired. Moveable lamps have a plug and cord so that they can be plugged into power source in a safe area or apparatus.

 Luminaires may also have other features, such as reflectors for directing the light, an aperture (with or without a lens), an outer shell or housing for lamp alignment and protection, electrical ballast or power supply, and a cover to diffuse the light or direct it towards a workspace. In technical terminology, the lamp is the light source, which is typically called the light bulb or globe.

             This report provides the research findings of our study of the global consumption of Light Emitting Diode (LED) luminaires in hazardous location applications.  The term "solid state" refers to the fact that light in a light emitting diode is emitted from a solid object, which does not contain moving parts or parts that can break, rupture, shatter, leak or contaminate the environment —a block of semiconductor—rather than from a vacuum or gas tube, as is the case in traditional incandescent light bulbs (lamps) and fluorescent lamps.  Compared to incandescent lighting, LED-based solid-state lighting (SSL) delivers visible light with reduced heat. In addition, its solid-state nature provides for greater resistance to shock, vibration, and wear, thereby significantly increasing its lifespan.

 

            Coronavirus Adjustment             April 2021 – The coronavirus pandemic remains a grave concern throughout the world. In some countries, all “non-essential” businesses are closed, employment is affected by quarantine of the public.  Depending on political, economic, health and several other consideration factors, these restrictions could be extended several more months.  Because of the impact on production, supply, decreases in sales, slowdowns in marketing, shipment and implementation (and other) caused by the negative effects of the coronavirus (COVID-19), we estimated a slowdown in consumption in 2020 and we are forecasting a sluggish recovery for one or more years.

             ElectroniCast methodology in determining the slowdown of the increase in consumption (use) of LED luminaires used in explosive-proof lighting, begins with the volume (quantity) forecast before any considerations of the coronavirus impact.  Then, we evaluated current manufacturing (not only luminaires, but all relative components, products and services), inventory, distribution channels, shipping, logistics, sales/marketing channels, installation and maintenance, and user restrictions, with the emphasis on actual possibility of installations for both essential and non-essential or selective implementation of communication networks or other. Other considerations include: financial/economy in general, employment (staffing) of all levels, such as design, implementation, production, marketing/sales, management, OEM capability and product/service demand, distributors, sales agents, customers (at all levels), and many other concerns were considered.

    Market Dynamics   The study process by ElectroniCast Consultants takes into account the following points:

 

• Standards (including general regulations & standards, environmental issues, etc.)
• Policies and schemes for promoting the penetration of LED lighting
• Industry trends in LED lighting fixtures
• Distribution/Sales Channel
• Competitive environment is considered / Intellectual property and patents

 This industry sector, excluding the use of LED solutions, is product-oriented mature; therefore, the established (incumbent) end-users already have relatively expensive legacy hazardous location luminaires (lighting fixtures with light source) installed, using High-intensity discharge lamps (HID lamps), fluorescent or other (incandescent) lighting technology; however, pushed to the marketplace with strong incentives (operating costs/savings) and successful sales-efforts, the acceptance of LED-based lighting solutions is in the growth stage of the product life cycle.

 

Product life Cycle Increasingly, the automatic assembly and test manufacturing process for LED solid-state lighting products allow for mass-production capability.  In addition, over the next few years, the average selling prices of LED-based lighting products will be driven lower, as a result of production efficiencies, yield improvements (aided by quality controls), competition (both market competition and technology competition), marketing/sales distribution improvements, and other factors.

 

With on-going evaluations relative to the future of LED-based hazardous location (explosion-proof and other) luminaires, there is a challenge to enter the displacement process versus traditional lighting technologies.  There is the need to overcome misconceptions about the true value proposition of LEDs. While some are seeking to replace existing fixtures with LED lamps, others recognize the new paradigms that are evolving.  LEDs offer a new model for light - digital light - with a set of features that completely change the value proposition of light, the relationship between light and information, how consumers experience light, how they control it, how they can use it. 

 

The overall use of LEDs in explosion-proof and hazardous location lighting has already exited the development stage, as well as the introduction or innovation stage and is currently in the growth stage in the product life cycle (PLC).  

Competitors: Hazardous Location Lighting   Table 1 presents a list of manufacturers/vendors dealing with hazardous location lighting that ElectroniCast studied in the process of our market research efforts.

Selected Competitors: Hazardous Location Lighting

            (Source: ElectroniCast)

 

 

• ABB (Hazlux®)
• Acuity Brands ® / Haolophane ®, Lithonia Lighting ®
• Aeon Lighting Technology (ALT)
• Allison Park Group, Incorporated
• Allsman Enterprises (AE Light)
• Atex Global Ltd.
• ATM Lighting sp. z o.o.
• AZZ Electrical Products Group (Rig-a-Lite)
• BARTEC FEAM (FEAM srl; FEAM is part of BARTEC Group)
• Cortem Group
• Dialight plc
• DCD Technologies
• Dongbu Lightec Company Ltd. (Gold Company. Ltd - Korea)
• Eaton Corporation plc (Crouse-Hinds/Hazard-Gard®)
• ECOM (Pepper AND Fuchs)
• Emerson Electric Company (Automation Sloutions Division - Appleton Group)
• EnduraliteLED 
• Eneltec
• Energy Focus
• Everyindustry (EVE®)
• FEAM srl (BARTEC FEAM; FEAM is part of BARTEC Group)
• Federal Signal (Victor Products Ltd / Victor Group)
• FoxFury LLC.
• GE Current, a Daintree Company (Current Lighting Solutions, LLC)
• GEMS Qatar WLL
• Glamox Group
• Guangzhou Guangya International Lighting Technology Company Ltd.
• Hangzhou (FAYA) Fittings Manufacturing
• Herberts Industrieglas GmbH & Co. KG (METAGLAS®)
• Hilclare Limited
• Hubbell (Chalmit, Killark)
• IKIO LED Lighting
• Jiangsu Ouhui Lighting Company Ltd.
• K and H Industries
• Larson Electronics
• LDPI, Incorporated
• Leoyo Holdings Group Company Ltd.

   

• Lind Equipment
• L.J. Star Incorporated (LUMIGLAS®); F.H. Papenmeier GmbH & Co. KG (LUMIGLAS®)
• Maes Lighting
• Marechal Electric (TECHNOR®)
• McGeoch Technology Ltd.
• Nemalux Inc.
• NJZ Lighting Technology Company Ltd.
• Nordland Lighting
• Northern Light Technologies
• Ocean's King Lighting Science & Technology Company, Ltd (OKTECH)
• Orga BV
• Pelican
• Phoenix Products Company Inc.
• Prolux International Fz LLC
• Proof Holdings (PTY) Ltd. (Hudaco Group)
• Q Light Electronics Company Ltd.
• RAB Lighting
• Raytec Ltd
• R. STAHL AG (STAHL)
• SA Equip
• Sammode
• Schuch (Adolf Schuch GmbH)
• Shanghai Qinsun Electric Company Ltd. (QINSUN)
• Shanxi Guangyu LED Lighting Company Ltd. (GYLED)
• Shenzhen CESP Co., Ltd - Chinese Energy South Power (CESP)
• Shenzhen KHJ Semiconductor Lighting Co., Ltd. (KHJ)
• Shenzhen Nibbe Optoelectronic Tech (NIBBE)
• Signify Lighting (Cooper) (Chloride)
• Sylvania Lighting / Feilo Sylvania Group (Shanghai Feilo Acoustics Company Ltd.)
• Thorlux Lighting (FW Thorpe Plc)
• Unimar, Incorporated
• Venas Company, Ltd
• WAROM Mena (Warom Technology MENA FZCO)
• Wenzhou Boshi Electric Technology Company (Boshi Electric)
• Western Technology Incorporated
• WISKA
• Wolf Safety Lamp Company
• Worksite Lighting LLC.
• Wrestt Group Company Ltd.
• Zhejiang MA Safety Signal Company, Ltd (MA Safety Signal)
• Zhejiang Mingchuang Optoelectronic Technology Company Ltd. (MC-LED)
• Zhejiang Tormin Electrical Company, Ltd. (Tormin)

  

Consumption Value Forecast     Market forecast data in this study report refers to consumption (use) for a particular calendar year; therefore, this data is not cumulative data.   Last year (2020), the global consumption value of LED-based luminaires for use in hazardous location lighting (explosion-proof and other) reached $483.14 million (rounded-down to $483 million.  The consumption (use) value is forecast to increase at an average annual rate of 8.4% during the 1^st-half of the forecast period (2020-2025) to reach $723.97 million in the year 2025, and then at a slower (more mature) annual pace (5.5%) during the 2^nd-half (2025-2030), to reach $946.24 million in 2030.  [1]  

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[1]  All values and prices in this report are at factory as-shipped levels, and are in current dollars, which include the effect of a forecasted 5 percent annual inflation rate over the forecast period.