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									   Energy Efficient Lamps Market in Europe to 2015 - Compact
   Fluorescent Lamps (CFLs) to Advance in Southern Europe;
          Halogen Lamps Dominate Northern Europe
 Reference Code: GBICT0039ICR                                                                                                    Publication Date: March 2011


                                     European Union (EU) 2020 Targets Accentuate the Need for Energy Efficient Lamps
Energy efficient lamp is             Concerns over rising environmental pollution and green house gases (GHGs) that result in global
the most cost effective              warming have been driving the European energy efficient lamps market. The EU has set objectives
step towards developing              to achieve energy savings and emission reduction targets of 20% by 2020. As of 2007, the EU has
an eco friendly system;              achieved a reduction of 9.3% from 1990 emission levels, yet there is still a long way to go. To this
each lamp saving almost              end, energy efficient lighting systems are one of the fastest and most cost-effective ways to reduce
30kg of CO2 emitted each             GHGs and develop an eco-friendly energy system. These systems indirectly reduce carbon
year                                 emissions by consuming less energy, thereby decreasing fossil fuel consumption in electricity
                                     generation. Presently, 14% of EU electricity consumption is accounted to lighting with almost two-
                                     third of the lamps in use being inefficient. On average, a typical energy efficient lamp (EEL) is
                                     estimated to save 30kg of carbon dioxide (CO2) per year compared to an incandescent equivalent.
                                     If all the incandescent lamps used in domestic applications were to be replaced by EELs, an
                                     estimated annual saving of 23 million metric tons of CO2 could be achieved in Europe.
                                     Comparative EU emissions (with 1990 index equal to 100) from 1990–2020 are shown in figure
                                     below:

                                      Europe, Emissions CO2 Equivalents, 1990–2020

                                                                     105


                                                                     100      100


                                                                      95
                                             Index(1990 Level=100)




                                                                                                                                    91.7
                                                                                                                                              90.7
                                                                      90


                                                                      85


                                                                      80
                                                                                                                                                     80.0

                                                                      75


                                                                      70
                                                                           1990     2001   2002     2003      2004     2005      2006      2007      2020



                                      Index 100 = Year 1990 Emissions

                                      Source: GBI Research




Energy Efficient Lamps Market in Europe to 2015 - Compact                                                                     GBICT0039ICR / Published MAR 2011
Fluorescent Lamps (CFLs) to Advance in Southern Europe;
Halogen Lamps Dominate Northern Europe                                                                                                                      Page 1
                                                                                            © GBI Research. This is a licensed product and is not to be photocopied
                                     Government Initiatives and Media Agencies are Playing a Vital Role in the Phase Out Of
                                     Incandescent Lamps
                                     The EU government and media agencies are working in tandem for the successful implementation
                                     of the incandescent lamps phase out. Their initiatives were of great significance in promoting the
                                     market for EELs including compact fluorescent lamps (CFLs), light emitting diodes (LEDs) and
                                     halogens. Various campaigns, workshops, seminars and forums have been arranged to increase
                                     consumer awareness and share information about the benefits of energy efficient products.
                                     Consumer concerns related to mercury content, color quality, health concerns and side effects of
                                     CFLs are being actively addressed by the government and other associations involved with the
                                     lamp industry. In order to promote the market for energy efficient CFLs, governments have
                                     provided subsidies on CFLs and even distributed them for free. For instance, around 100 million
                                     units of CFLs were distributed for free by the UK government in 2008 and 2009. The media and
                                     advertising agencies promoted the benefits of energy efficient products and the incandescent bulb
                                     ban through various means. Knowledge of energy labels and registered marks and so on was also
                                     shared with the public to prevent them from purchasing low quality products.
                                     High Energy and Cost Saving Potential Will Spur the Deployment Path of Energy Efficient
                                     Lamps
                                     The huge potential of EELs to reduce GHG emissions is driving their market in Europe. EELs
                                     require a high initial investment, yet the benefits in terms of energy bill savings over their life time
                                     are remarkable. Energy efficient lighting products such as CFLs and LEDs can save up to 60% and
                                     80% electricity respectively compared to incandescent lamps. In addition, an increased life span of
                                     10–12 times a traditional incandescent lamp delivers substantial savings in terms of both electricity
                                     and money. Their long life means they need replacing less often and so are particularly suitable for
                                     use in inaccessible fixtures or for elderly and disabled people. Increasing awareness on the high
                                     energy and cost saving potential of energy efficient products is expected to spur the deployment
                                     path of EELs. One energy efficient lamp can save 30kg of CO2 per year versus an incandescent
                                     equivalent. If all the incandescent lamps used in domestic applications were replaced by energy
                                     efficient lamps, 23 million metric tons of CO2 could be saved in Europe. The saving potential per
                                     annum for various lighting applications are shown in the table below:




Energy Efficient Lamps Market in Europe to 2015 - Compact                                                GBICT0039ICR / Published MAR 2011
Fluorescent Lamps (CFLs) to Advance in Southern Europe;
Halogen Lamps Dominate Northern Europe                                                                                                  Page 2
                                                                         © GBI Research. This is a licensed product and is not to be photocopied
                                     Halogen Lamps expected to be the First Choice of Movement toward Incandescent Lamps
                                     Replacement
                                     The European halogen lamps market grew at a CAGR of 12.1% from 432 million units in 2005 to
                                     681 million units in 2009 and is anticipated to have a CAGR of 20.2% during the forecast period
                                     2009–2015. The ban on incandescent lamps is one of the most important factors for the growth in
                                     demand of halogen lamps in Europe. The unavailability of the most popular incandescent lamps in
                                     the market will force consumers to purchase energy efficient alternatives. Halogen saver lamps
                                     have a similar look, color quality and CRI (Color Rendering Index) as incandescent lamps and are
                                     cheaper in price compared to other EELs available in the market.
                                     After the ban on certain incandescent lamps on September 1, 2009, halogen lamps experienced an
                                     increase in their sales growth, yet a drastic influence was not observed as consumers already had
                                     stocks of incandescent lamps. On September 1, 2010, the most popular 60 W incandescent lamps
                                     were banned in Europe. Industry experts expect the ban to cause robust growth in the halogen
                                     lamps market in 2011. These experts confirmed halogen lamps to be the first choice of consumers
                                     among available alternatives such as LEDs and CFLs. CFLs, with low mercury content and yellow
                                     light offering, are expensive compared to the equivalent wattage halogen lamp. Similarly, LEDs
                                     offer high quality light but require a high initial investment. As of now, halogen lamps are the best
                                     available option to the consumer in Europe. However, in the long run, prices of LEDs are expected
                                     to reduce to a much greater extent which will drive LEDs market.

                                      Halogen Lamps Market, Europe, Volume (Million Units), 2005–2015

                                                                     2,500




                                                                     2,000



                                                                                                       CAGR (2010-2015) : 20.2%
                                           Volume in Million Units




                                                                     1,500




                                                                     1,000
                                                                             CAGR (2005-2010) :12.7%




                                                                      500




                                                                        0
                                                                                    2005                          2010                          2015


                                      Source: GBI Research




Energy Efficient Lamps Market in Europe to 2015 - Compact                                                                         GBICT0039ICR / Published MAR 2011
Fluorescent Lamps (CFLs) to Advance in Southern Europe;
Halogen Lamps Dominate Northern Europe                                                                                                                        Page 3
                                                                                               © GBI Research. This is a licensed product and is not to be photocopied
                                     Breaking Consumer Inertia is Imperative for the Accelerated Growth of CFLs
                                     Despite a massive regulatory push and an extensive OEM media campaign, there has been limited
                                     public enthusiasm for the energy efficient alternatives of incandescent lamps. Consumer reluctance
                                     in embracing new technology is inhibiting the growth of energy efficient lamps in general and CFLs
                                     in particular. With regards to CFLs, consumers have been known to complain about their aesthetics
                                     and light quality, specifically their colder temperature compared to incandescent bulbs. Indeed
                                     another complaint about CFLs is that they take longer to get to full brightness; a trait exploited by
                                     marketing teams for LED lamp manufacturers, where no such delay in startup or flickering occurs.
                                     Indeed a key driving factor behind halogen lamps having success in Western Europe is simply to
                                     do with the desire in countries such as the UK to have light as warm as incandescent lamps.
                                     A large cross section of consumers invariably assumes that CFL is simply an equivalent product to
                                     the incandescent lamps. Moreover, the marketing and promotion of CFL is done, from a
                                     consumer's perspective, simply as an energy efficient light bulb, the energy saving alternatives of
                                     inefficient incandescent bulbs. This is extremely misleading. CFL is an entirely new product on
                                     account of the technology involved in it.
                                     European CFL Lamps Market to Have Stable Growth and is Expected to Reach 1.3 Billion
                                     Units by 2015
                                     CFLs have achieved commercial success in an industry dominated by incandescent lamps. In
                                     2009, CFL volumes were about 698 million units compared to 406 million units in 2005 – a CAGR
                                     of 14.5%. The increase in CFL volume was due to rising consumer awareness of EELs with most
                                     CFLs being used in the residential area. Consumers across Europe are interested in replacing
                                     incandescent lamps with CFLs but have concerns of side effects, health issues, mercury content
                                     and CRI of CFLs. CFLs save 60–80% of electricity but offer white light, often disliked by the public,
                                     who would prefer to purchase halogens lamps over CFLs for the replacement of incandescent
                                     lamps. Halogen lamps are giving the next best competition to CFLs in terms of price and color
                                     quality. The presence of cheap and low quality CFLs in the market further hampers the trust of
                                     consumers. Many vendors in Europe are importing cheap CFLs from China and selling them under
                                     various local brands. Best technology CFLs now have only 1mg of mercury content but are
                                     expensive. GBI Research, in consensus with the industry experts, expects the CFL market volume
                                     to experience a CAGR of 10.4% during 2010–2015 to reach 1.3 billion units in 2015.

                                      Compact Fluorescent Lamps Market, Europe, Volume (Million Units), 2005–2015

                                                                    1,400



                                                                    1,200
                                                                                                       CAGR (2010-2015) : 10.4%


                                                                    1,000
                                           Volume (Million Units)




                                                                     800
                                                                            CAGR (2005-2010) : 14.1%


                                                                     600



                                                                     400



                                                                     200



                                                                       0
                                                                                     2005                                2010                    2015


                                      Source: GBI Research




Energy Efficient Lamps Market in Europe to 2015 - Compact                                                                         GBICT0039ICR / Published MAR 2011
Fluorescent Lamps (CFLs) to Advance in Southern Europe;
Halogen Lamps Dominate Northern Europe                                                                                                                          Page 4
                                                                                                 © GBI Research. This is a licensed product and is not to be photocopied
                                     Illumination Applications to be the Cornerstone of Growth for European Light Emitting
                                     Diode Lamps Market
                                     LED lamps are used in applications such as mobile devices, signs and displays, illumination and
                                     traffic signals. Mobile applications, including laptops, digital cameras and cell phone displays
                                     contributed 53.7% to the overall European LED revenues in 2009. Signs/displays stood second
                                     with a market share of 16.1%, followed by automotive and illumination applications. In 2009, the
                                     illumination application contributed 6.7% to the total European LED revenues and is expected to
                                     witness robust growth in the years ahead. This sector is expected to have a market share of 20.7%
                                     of the overall European LED revenues by the year 2015. The illumination LED lamps market is
                                     expected to reach $1.8 billion in 2015 from $247m in 2009 at a CAGR of 48.1%. In the illumination
                                     segment, LED lamps are used in residential and commercial lighting, including hotels, restaurants
                                     and showrooms. LED lamps save 80–90% of electricity compared to incandescent lamps and the
                                     huge saving in energy cost and GHG emissions are driving market penetration. However, the high
                                     initial investment involved with LEDs presently hinders their deployment path. Manufacturers
                                     across the globe are involved in research and development (R&D) and cost reduction to speed up
                                     the deployment. As of now, the LED price gap is not supporting market dominance, however in the
                                     next three to four years LED lamp prices are expected to reduce drastically, ramping up their
                                     commercialization.

                                      Light Emitting Diode Market, Sales Revenue Breakdown on the Basis of End-User, (%),
                                      2009


                                                             Others, 15.9%




                                             Automotive, 14.2%

                                                                                                                   Mobile Applications,
                                                                                                                         53.7%




                                                        Signs / Displays,
                                                             16.1%


                                      Source: GBI Research




Energy Efficient Lamps Market in Europe to 2015 - Compact                                                   GBICT0039ICR / Published MAR 2011
Fluorescent Lamps (CFLs) to Advance in Southern Europe;
Halogen Lamps Dominate Northern Europe                                                                                                     Page 5
                                                                            © GBI Research. This is a licensed product and is not to be photocopied
                                     1         Table of Contents
                                     1   Table of Contents ........................................................................................................................ 6
                                         1.1    List of Tables..................................................................................................................... 8
                                         1.2    List of Figures ................................................................................................................... 9
                                     2   Introduction ................................................................................................................................ 10
                                         2.1    European Lighting Industry Overview ............................................................................. 10
                                         2.2    GBI Research Report Guidance ..................................................................................... 11
                                     3   Phase Out of Incandescent Lamps, Overview ........................................................................... 12
                                         3.1    Why Phase Out? ............................................................................................................. 12
                                            3.1.1       Europe Green House Gas Emissions by Sector, (%), 2007 .................................... 13
                                            3.1.2       Energy Efficient Lighting, Annual Saving Potential .................................................. 14
                                            3.1.3       Rising Energy Demand and Increasing Cost of Conventional Fuels ....................... 15
                                         3.2    How to Implement Phase Out? ....................................................................................... 16
                                         3.3    What is the Impact of Phase Out? .................................................................................. 17
                                     4   Phase Out of Incandescent Lamps in Europe, Market Force Analysis ...................................... 19
                                         4.1    Phase Out of Incandescent Lamps in Europe, Key Success Factors ............................. 19
                                            4.1.1       Stringent and Planned Regulations ......................................................................... 19
                                            4.1.2       Government Initiatives and Media Agency Promos ................................................. 19
                                            4.1.3       Manufacturers Support ............................................................................................ 20
                                            4.1.4       Consumer Awareness on High Energy and Cost Saving Potential.......................... 20
                                         4.2    Phase Out of Incandescent Lamps in Europe, Key Restraints........................................ 21
                                            4.2.1       Consumer Behavior ................................................................................................. 21
                                            4.2.2       Low Level of Knowledge .......................................................................................... 22
                                            4.2.3       Lack of Surveillance ................................................................................................ 22
                                            4.2.4       Economic Downturn ................................................................................................ 23
                                            4.2.5       Quality Barriers ........................................................................................................ 23
                                     5   European Energy Efficient Lamps Market, Sizing and Forecasts, 2005–2015 .......................... 24
                                         5.1    European Compact Fluorescent Lamps Market, Sizing and Forecasts, 2005–2015....... 24
                                            5.1.1       European Compact Fluorescent Lamps, Market Analysis on the Basis of Region .. 26
                                            5.1.2       European Compact Fluorescent Lamps Market Analysis on the Basis of End-Users,
                                                        2009 ........................................................................................................................ 33
                                         5.2    European Halogen Lamps Market, Sizing and Forecasts, 2005–2015 ........................... 34
                                            5.2.1       European Halogen Lamps Market Analysis on the basis of Region ........................ 36
                                            5.2.2       European Halogen Lamps Market Analysis on the basis of End Users, 2009 ......... 40
                                         5.3    European High Intensity Discharge Lamps Market, Sizing and Forecasts, 2005–2015 .. 41
                                            5.3.1       European High Intensity Discharge Lamps Market Analysis on the Basis of Region
                                                         ................................................................................................................................ 42
                                            5.3.2       European High Intensity Discharge Lamps Market Analysis on the Basis of End-
                                                        Users ....................................................................................................................... 44
                                         5.4    European Light Emitting Diodes Lamps Market, Revenue and Forecasts, 2005–2015 .. 45
                                         5.5    European Illumination Light Emitting Diodes Lamps Market, Revenue and Forecasts,
                                                2005–2015 ...................................................................................................................... 47
                                            5.5.1       European LED Lamps Market Analysis on the Basis of End Users, 2009 ............... 49
                                     6   European Energy Efficient Lamps Industry, Competitive Landscape ........................................ 50
                                         6.1    European Compact Fluorescent Lamps, Market Share Analysis, 2009 .......................... 50
                                         6.2    European Light Emitting Diode Lamps, Market Share Analysis, 2009 ............................ 51
                                         6.3    European Halogen Lamps Market, Market Share Analysis, 2008 ................................... 54
                                         6.4    European High Intensity Discharge Lamps Market, Market Share Analysis, 2009 ......... 56
                                     7   Cost Comparison of Energy Efficient Lamps Against Incandescent Lamps .............................. 58
                                         7.1    Cost Comparison of Halogen Lamps against Incandescent Lamps ................................ 59
                                         7.2    Cost Comparison of Compact Fluorescent Lamps (CFL) against Incandescent Lamps 59
                                         7.3    Cost Comparison of High Intensity Discharge Lamps (HID) against Incandescent Lamps
                                                 ........................................................................................................................................ 60
                                         7.4    Cost Comparison of Light Emitting Diode Lamps (LED) against Incandescent Lamps ... 60
                                     8   European Energy Efficient Lighting Industry, Regulatory Framework........................................ 61

Energy Efficient Lamps Market in Europe to 2015 - Compact                                                                             GBICT0039ICR / Published MAR 2011
Fluorescent Lamps (CFLs) to Advance in Southern Europe;
Halogen Lamps Dominate Northern Europe                                                                                                                                            Page 6
                                                                                         © GBI Research. This is a licensed product and is not to be photocopied
                                        8.1    European Energy Efficient Lighting Industry, Standards ................................................. 61
                                           8.1.1   Waste Electrical and Electronic Equipment (WEEE) Directive 2002/96/EC ............ 61
                                           8.1.2   Restriction of Hazardous Substances (RoHS) Directive 2002/95/EC ...................... 61
                                           8.1.3   Energy Efficiency Labeling of Product (EELP) Directive .......................................... 63
                                           8.1.4   Energy Using Products (EuP) Directive ................................................................... 63
                                           8.1.5   International Electrotechnical Commission (IEC) Standards ................................... 64
                                           8.1.6   The CFL Quality Charter ......................................................................................... 64
                                        8.2    European Energy Efficient Lighting Industry, Programs .................................................. 65
                                           8.2.1   Bottom up to Kyoto’ (ButK) ...................................................................................... 65
                                           8.2.2   European Efficient Residential Lighting Initiative (EnERLIn) ................................... 66
                                           8.2.3   The European GreenLight Program ........................................................................ 67
                                        8.3    European Energy Efficient Lighting Industry, Promotion Agencies ................................. 68
                                           8.3.1   European Lamp Companies (ELC) Federation........................................................ 68
                                           8.3.2   EURELECTRIC ....................................................................................................... 69
                                           8.3.3   EuroCommerce ....................................................................................................... 69
                                     9 European Energy Efficient Lamps Market, Key Deals and Company Profiles ........................... 71
                                        9.1    European Energy Efficient Lamps Market, Key Deals .................................................... 71
                                        9.2    European Energy Efficient Lamps Market, Key Companies ........................................... 74
                                           9.2.1   Osram GmbH .......................................................................................................... 74
                                           9.2.2   GE Lighting, LLC ..................................................................................................... 76
                                           9.2.3   Koninklijke Philips Electronics N.V .......................................................................... 80
                                           9.2.4   Aura Light International AB ...................................................................................... 83
                                     10 European Energy Efficient Lighting Industry, Technology Analysis ........................................... 85
                                        10.1 Technology Analysis of Fluorescent Lamps .................................................................... 85
                                           10.1.1 Technical Overview of Fluorescent Lamps .............................................................. 85
                                           10.1.2 Types of Fluorescent Lamps ................................................................................... 86
                                        10.2 Technology Analysis of Compact Fluorescent Lamps .................................................... 86
                                           10.2.1 Construction of Compact Fluorescent Lamps .......................................................... 87
                                           10.2.2 Types of CFL ........................................................................................................... 88
                                           10.2.3 Features of Compact Fluorescent Lamps ................................................................ 88
                                           10.2.4 Applications ............................................................................................................. 89
                                        10.3 Technology Analysis of High Intensity Discharge Lamps ................................................ 90
                                           10.3.1 Construction of HID Lamps ..................................................................................... 90
                                           10.3.2 Types of HID Lamps ................................................................................................ 90
                                           10.3.3 Features of High Intensity Discharge Lamps ........................................................... 92
                                           10.3.4 Applications ............................................................................................................. 92
                                        10.4 Technology Analysis of Halogen Lamps ......................................................................... 94
                                           10.4.1 Types of Halogen Lamps ......................................................................................... 94
                                           10.4.2 Features of Halogen Lamps .................................................................................... 95
                                           10.4.3 Applications ............................................................................................................. 95
                                        10.5 Technology Analysis of Light Emitting Diode Lamps ...................................................... 96
                                           10.5.1 Construction of LEDs ............................................................................................... 97
                                           10.5.2 Types of LED Lamps ............................................................................................... 97
                                           10.5.3 Features of LED Lamps ........................................................................................... 98
                                           10.5.4 Applications ............................................................................................................. 99
                                     11 Appendix ................................................................................................................................. 100
                                        11.1 About GBI Research ..................................................................................................... 100
                                        11.2 Market Definition ........................................................................................................... 100
                                           11.2.1 Calculation of Energy cost for Lamps .................................................................... 100
                                        11.3 Abbreviations ................................................................................................................ 101
                                        11.4 Methodology ................................................................................................................. 103
                                           11.4.1 Coverage ............................................................................................................... 103
                                           11.4.2 Secondary Research ............................................................................................. 103
                                           11.4.3 Primary Research .................................................................................................. 104
                                           11.4.4 Expert Panel Validation ......................................................................................... 104

Energy Efficient Lamps Market in Europe to 2015 - Compact                                                                          GBICT0039ICR / Published MAR 2011
Fluorescent Lamps (CFLs) to Advance in Southern Europe;
Halogen Lamps Dominate Northern Europe                                                                                                                                      Page 7
                                                                                       © GBI Research. This is a licensed product and is not to be photocopied
                                         11.5       Contact Us .................................................................................................................... 104
                                         11.6       Disclaimer ..................................................................................................................... 104


                                     1.1       List of Tables
                                     Table 1: Incandescent Lighting Annualized Cost Breakdown Estimates, 2009 ............................... 10
                                     Table 2: Europe, Emissions CO2 Equivalents (Tg),1990–2020 .................................................... 12
                                     Table 3: Europe, GHG Emissions by Sectors, (%),Tg of CO2 Equivalents, 2007 ........................ 14
                                     Table 4: Europe, Energy Efficient Lighting Saving Potential (Per Year) ....................................... 14
                                     Table 5: Europe, Annual Energy and Cost Saving with CFL,2008 ............................................... 15
                                     Table 6: Europe, Annual Energy and Cost Saving with CFLs, 2009 ............................................ 20
                                     Table 7: Compact Fluorescent Lamps Market, Europe, Volume (Million Units), 2005–2015 ....... 25
                                     Table 8: Compact Fluorescent Lamps Market, Northern Europe, Volume (Million Units), 2005–
                                                2015 ............................................................................................................................... 27
                                     Table 9: Compact Fluorescent Lamps Market, Western Europe, Volume (Million Units), 2005–
                                                2015 ..................
								
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