The emergence of cost-competitive LEDs has caused a "paradigm shift" in the lighting industry that has changed everything. The LED lighting industry rapid technological change has been brought by enormous changes in the regulations affecting lighting. Short product lifecycles are a result of new manufacturing and materials science that are the result of companies trying to improve the economies of scale to make price points more attractive to customers.
According to the market research report, frequent product introductions have characterized the LED lighting industry. There is a highly competitive pricing environment with the current price point of US$6 per light in 2015 about to decline further, creating competitive changes in the lighting markets. Technology innovation creates market characteristics that increase the need for continuous investment in research and development. Partners remain core to supplier positioning.
Sales of LEDs that outpace incandescent bulbs in North America are expected to soon completely eliminate incandescent bulbs. The LED lighting market is anticipated to increase 45% per year through 2020 LED lights at US$13.6 billion in 2014, are estimated to reach US$63.1 billion by 2020. Market forecasts are based on indications that LEDs are leveraging economies of scale to achieve price points attractive to users. Markets appear to be moving toward 100% LED replacement of existing technology. The reason is the declining price points, the increased interest by the channel in pushing LEDs to consumers. LEDs provide the best lighting solution. The phase-out of incandescent lights has begun, the onset of LED command of the market is upon LED light makers.