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Uncertainty for the Energy Efficiency Market But the Lighting Control Sector Appears to be a Bright Spot Finds Frost & Sullivan -
Uncertainty for the Energy Efficiency Market But the Lighting Control Sector Appears to be a Bright Spot Finds Frost & Sullivan


PRZOOM - /newswire/ - London, United Kingdom, 2009/03/25 - "Energy Efficiency" was the buzzword of 2008, and rightfully so. With high energy prices and the "green" movement in full swing, it made both economic and social sense to invest in energy saving technologies.

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Entering 2009, however, the world finds itself in a different economic situation. Energy prices have declined, and the financial crisis leaves companies with little or no capital to spend on investments. In light of these new economic conditions, it is questionable whether the trend toward energy efficiency will continue. However, Frost & Sullivan believes that the demand for energy efficiency in buildings will remain a powerful driver in the short and medium term future.

When oil prices peaked in 2008, it became clear that measures to reduce energy consumption were needed. This need, combined with increased environmental awareness and challenges to meet the rapid growth in global energy demand, fuelled the growth of the energy efficiency market. Energy efficiency seemed to be the perfect solution; organizations cut energy consumption costs by investing in green technology and earned themselves a greener image which gave them a competitive advantage.

However, in the midst of a recession, oil prices have been falling so energy efficient technology has lost its appeal as a cost-effective investment. Sheer lack of capital has caused many organizations to be reluctant to invest in energy efficient measures. Although a variety of energy efficient technologies are available, such as the Intelligent Business System (IBS), which helps organizations seamlessly integrate their physical equipment layer into their IT network and promises immediate cost reductions, organizations are unable to come up with the initial costs of such an investment.

Despite the questionable outlook of the energy efficiency market as a whole, the European lighting control equipment sector seems to have a bright future. Spurred by sustained customer investment in solutions for energy efficiency and combined with technology developments in the broader lighting equipment markets, the European lighting control equipment market will experience robust growth up to 2014. The market has grown strongly in recent years and although the outlook for the next two years is subdued with demand projected to decelerate, the underlying demand drivers are strong enough to ensure solid growth in the medium and longer term.

New analysis from Frost & Sullivan (, European Lighting Control Systems Market, finds that the market earned revenues of $620.5 million in 2007 and estimates this to reach $919.2 million in 2014. The product sectors included in this research were fixture mounted, wall mounted and integrated building automation systems (BAS)

At a time when the construction market is in trouble and there is uncertainty about energy prices in the future, successful competitors will be those that build their proposition around educating customers about the true benefits of better lighting control to achieve energy efficiency. The benefits include both, improved environmental performance of the building and reduced operating costs.

"The environmental issue is growing but when compared to other energy efficiency technologies, customers are not aware of how much lighting control systems can contribute to reduce carbon dioxide emissions," counsels Frost & Sullivan's Partner John Raspin. "Suppliers need to work hard on the message and value proposition as well as push for lighting control to be seen as a more integrated form of energy management and energy efficiency within a building."

The global energy demand is still very much alive. It is estimated that world energy usage will increase by 26% between the years 2005 and 2015. However, the only remaining driver of the energy efficiency market is the green movement and the legislation that stems from it. The question is whether emissions regulations and related environmental legislation will be enough to keep the energy efficiency movement going at full-steam.

Companies now face an ethical dilemma: will they be driven to go beyond the minimum requirements even though it is no longer cost effective in the short run, or will they revert back to their old ways, taking advantage of the now declining fuel prices? "It is now that we will find out which companies are serious about 'being green," concludes Raspin.

If you are interested in receiving more information on the energy efficiency market, then send an email to Chiara Carella, Corporate Communications, at chiara.carella[.], with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

GIL 2009: Europe

Frost & Sullivan has expanded its flagship Global Congress on Corporate Growth - GIL Global - into several major cities around the world including London. For the first time ever in Europe, Frost & Sullivan will be hosting the Growth, Innovation and Leadership Congress 'GIL 2009: Europe' on 19-20 May, at the Sofitel St James in London. GIL Global is the industry's only event designed to support senior executives in their efforts to achieve sustainable, top-line growth. To register, obtain a programme agenda, explore sponsorship opportunities, or attend as a member of the media for 'GIL 2009: Europe', please contact Chiara Carella, Head of Corporate Communications for Frost & Sullivan in Europe, at chiara.carella[.] One-on-One interviews with Frost & Sullivan senior growth consultants are also being scheduled.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

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Uncertainty for the Energy Efficiency Market But the Lighting Control Sector Appears to be a Bright Spot Finds Frost & Sullivan

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Frost & Sullivan | GIL 2009: Europe
Contact: Chiara Carella 
+44 (0) 20 7343 8314 chiara.carella[.]
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