CFL market to reach $14 billion by 2020, report predicts

The compact fluorescent lamp (CFL) market is set to flourish in the next few years, according to a report published by business intelligence company GlobalData. Increased demand for energy-efficient lighting coupled with the increasing compatibility of CFLs with existing lighting infrastructure is causing a steep rise in the market for new lamps and replacements.

The global CFL market size increased from US$6.82bn in 2006 to US$9.44bn in 2010 at a CAGR of 8.4%. GlobalData predicts revenue will reach about US$14bn in 2020.

Environmental concerns and government awareness programs continue to drive the CFL market, as the need to decrease emissions has compelled businesses to seek energy-efficient technologies.

Both developed and developing countries are looking to energy-efficient lighting solutions to decrease the financial and environmental impact of electricity use, with CFLs providing suitable solutions to address these issues.

CFL unit sales were boosted from 2006 to 2010 by the phase-out of inefficient lamps. The continuation of this phase-out until 2014 is expected to support the CFL market in the future, the report said.

The replacement market is expected to increase its contribution in total CFL sales during the forecast period, due to the growing use of CFLs worldwide. In 2010, CLF sales made up about 40% of the replacement market, but by 2020, much of the world will have adopted this technology, so over 85% of sales will stem from the lamp replacement market, the report predicted.

While the combination of legislation, rising energy demand and environmental concerns will continue to drive the market, it may be inhibited by a lack of uniform standards, lack of awareness among consumers, hazards in waste disposal and the cost of CFL products, the report found. GlobalData anticipates that the CFL market will grow rapidly if these issues are addressed.

The report, Compact Fluorescent Lamp (CFL) Market - Global Market Size, Price Analysis, Regulations and Key Countries Analysis to 2020 provides a detailed overview of CFL technology and provides historical and forecast data to 2020.