Despite prevalent usage, LEDs reduce profitability for manufacturers

A recent survey conducted by the

National Academies of Sciences, Engineering, and Medicine reports that

despite residential and commercial industries widely adopting

energy-efficient light emitting diodes (LEDs), the drop in LED prices

is driving away manufacturers because of decreased profitability,

dramatically dislocating and restructuring the solid-state lighting

marketplace.

Since the last Academies report in 2013 that assessed the state of

solid-state lighting -- which uses diodes, a semiconductor technology,

as an alternative light source to incandescent bulbs -- the annual

residential installation of LED bulbs has increased six-fold between

2012 and 2014, from 13 million to 78 million.

The report also cites the emergence of new applications for

solid-state lighting that have the potential to create new markets and

commercial opportunities for the industry, as well as add value to

aspects related to quality of life.

For example, product and lighting designers are exploring options that

collect and process data from the illuminated environment and offer

additional features to consumers.

Developing new products with multiple features that offer functions

beyond illumination could promise higher margins for manufacturers,

said the committee that conducted the study and wrote the new report.

The report warns that the successful proliferation of such

applications would not focus on the reduction of energy consumption

alone, but the U.S. Department of Energy (DOE) should think of ways to

continue to improve their efficiency, given their inevitable growth.

The committee recommended developing strategies for supporting broader

research that enables more efficient use of light across all

applications, with attention to both the lighting design process and

the design of lighting products.

With the possible emergence of new applications for solid state

lighting, both consumers and industry need to be more fully educated

about the transformative and broader implications of solid state

lighting, the report highlights.

To achieve this, DOE should partner with industry, states, and utility

companies to develop and implement a public outreach program to deploy

solid-state lighting.