Market Segments

Target Market: Is the company targeting residential, commercial,

industrial or outdoor segments? The target market will influence the
companys product, pricing model, sales and distribution strategy.
The LED market can be broadly divided into three end-use segments:
1) Commercial 2) Industrial/Outdoor and 3) Residential. It can also be
divided into three product categories:
1) Retrofit bulbs/linear 2) Lighting fixture ballasts, and 3) High power.
Market Market Segments - End-Use Segments
Commercial: This segment includes lighting in commercial buildings
requiring highest energy savings and light quality in sometimes thermally-
challenged environments. Here, high-performance efficiency, power factor,
low EMI and therefore these are the required Energy Star compliance.
These include fixture ballasts (In a fluorescent lighting system,
the ballast regulates the current to the lamps and provides sufficient voltage
to start the lamps) and lamps for retail shops and high-end solutions such as
track lights, recessed ceiling lights, under-cabinet lights and accent lights.
Typical power requirements ranges are from 15W to 40W. This market
includes fixture ballasts as well as retrofit bulbs and linear troffers.
Industrial/Outdoor: These are infrastructure applications which include
street lights, tunnel lights, external wall sconces, pathway lights, garage
structures, parking lots, factories, warehouses, and refrigerators. Solutions
range from 40W to 200W, and require high power factor, efficiency and low
EMI demanded by local utilities.
Dimming is generally set from an external control input and is often done
for energy savings as opposed to aesthetic purposes. Special fixtures designed
for special environments using ballasts as well as linear troffers are the
mainstream in this market.
Residential: This segment includes lighting used in homes. Cost is the key
driver with the traditional A-style and PAR-style form factors dominating this
market. Triac (Triode for Alternating Current, is a genericized
tradename for an electronic component that can conduct current in either
direction when it is triggered (turned on)) dimming is required in new
products and the cost is carefully weighed against efficiency and dimming
performance. Allowable power factor and EMI are regulated based on the
geographic region.
Market Market Segments - Product Categories
Retrofit bulbs/linear: Used in all three end-use segments described
below, these products include bulbs, lamps, and linear tubes.
Cost and smallest size solution for these products with an ability to be
integrated into the LED subsystem. The company should provide a range of
reference designs to improve customers development time and cost.
Lighting fixture ballasts: Lighting fixture ballasts are composed of a
fixture body, a power supply, and a socket. These fixture ballasts deliver high-
quality and dimmable light management for indoor environments for all three
end-user segments described below.
High power products (greater than 100W): Products in this category are
designed to support large area lighting needing more than 100 watts of drive.
These products are used in both commercial and industrial/outdoor and rated
for high-humidity environments , these are ideal for street lights, tunnel lights,
pathways, garage structures, and parking lots. The indoor modules have the
same performance as the outdoor versions but with added support for easy
centralized power distribution in conference rooms and other in-building
systems.



Lighting Market Penetration in Industrial & Outdoor Segments



Lifetime Cost of Lighting (LCOL) by Variable


For consumers, the initial large exposure to LED for general lighting
applications will come in the form of LED bulb replacement that can be used
in existing sockets. As the initial perception of the technology by consumers
will come from this first exposure to bulb replacement, their quality and
performance will be critical to the future of the industry. Standards and
regulations are therefore needed to ensure simplicity of operation and a
reasonable level of quality.
Dedicated LED modules and luminaries will come in a second wave and
deliver the full benefit of the technology. Additional standardization efforts
are however needed to ensure a minimum level of upgradability and
interoperability.