Compact fluorescent lamp (CFL) market could soar, says GlobalData report

A new report by GlobalData predicts a steep rise in the market for compact fluorescent lamps (CFLs) as energy-efficient lighting becomes increasingly important as an immediate solution to rising electricity consumption and as CFLs become more compatible with existing lighting infrastructures.

The global CFL market size has increased from $6.82 billion in 2006 to $9.44 billion in 2010 at a CAGR of 8.4%. GlobalData preducts revenue from CFL sales will increase by about 4% over the next 10 years to reach approximately $14 billion by the end of 2020.

The report predicts that this increase will be the result of a steep rise in the market for both new lamps and replacement parts.

Environmental concerns and government awareness programs will increasingly drive the CFL market, says the report, as the need to decrease emissions compels governments to look for clean technologies, with many initiating programs to lower the financial and environmental implications of their energy usage. The need for efficient power-consuming technologies has also boosted the sales of CFLs in many developing countries, proving that the technology is attractive at all economic levels.

The replacement market is also predicted to increase its contribution to total CFL sales, due to the growing use of CFLs worldwide.

In 2010, the replacement market consisted of around 40% of total CFL sales. By 2020, GlobalData predicts that much of the world will have already adopted CFL technology and anticipates an increase to over 85% of sales.

Favourable legislation, rising energy demands and environmental concerns are major market drivers, says GlobalData. However, market growth is still inhibited by a lack of uniform standards, lack of awareness among consumers, hazards in waste disposal and the relative expensiveness of CFL products. But if these issues are overcome, the growth of the CFL market could soar.