Product Code: 56103
The hazardous location LED lighting market was valued at USD 383.03 million in 2019, and is expected to reach USD 723.49 million by 2025, registering a CAGR of 11.20%, over the forecast period of (2020 - 2025). Hazardous substance sensors to LED lighting networks can provide a highly effective early-detection system for plant safety. In addition to detecting hazardous conditions and triggering an alert, the sensors could be configured to automatically illuminate the lights along the evacuation route dynamically, based on the absence of the offending substance, to guide personnel on the fastest, safest escape route. In addition to it, LED fixtures incorporating smart sensors can help reduce energy use by an additional 50%.
- Increasing government regulations promoting LED lighting for worker safety in remote and hazardous areas is driving the market. Governments and public organizations across the world are bracing down on the use of incandescent lamps as when incandescent light and high-pressure sodium gets easily compounded due to surrounding reactive gases, maintenance issues are highly created. The United States has been at the forefront of LED adoption, supported by the introduction of reforms, such as Energy Star Program, which mandates lighting applications to adhere to industry standards such as IEC, NEC and test procedures.
- Regulatory standards promoting the replacement of traditional lighting with LED is driving the market as high power LED provides a high luminous and high efficient for using as a lighting source and LED solution offers corrosion and vapour resistance, in comparison to traditional lighting, which is growing the market.
- LEDs, however, produce high temperature during the operation especially for the high power LED. When working at the full power condition, high power LED generates around 100?C and there is no thermal management strategy for it, which is a challenge for the market.
Scope of the Report
The hazardous location LED lighting market is in demand due to the replacement of conventional lighting. Explosion proof lighting is also playing a crucial role in the industrial operations of hazardous locations. From the end user perspective, the increasing oil extraction and refining activities coupled with the growing regional consumption and its growing demand worldwide is further anticipated to propel the growth of the Class I segment.
Key Market Trends
Coal Owing to Low Electricity Consumption Will Increase the Market Share in Future
- Due to the increasing adoption of LED lighting, switching to LED lights can reduce kWh energy usage by between 50 - 70% in coal mining. Each diode can be controlled through lensing to aim the light exactly where it is needed and eliminate light pollution, light spill and glare. This is the most prominent characteristic of LEDs that allows for control and energy waste reduction. It can decrease light pollution by up to 50% and energy waste by up to 70%.
- Operators of a coal mine consider a retrofit of the 1000 W HID floodlights on a shovel. They can choose to simply purchase 13 new 1000 W lamps or they could retrofit the shovel with the comparable 300 W LED floodlights. If they select the LED option, the coal mine will see a 70% decrease in lighting-related energy usage, as well as an estimated 85% reduction in lighting-related maintenance.
- LED technology presents a dimming control features. A system can be installed that controls the light output from 0 - 100% for certain areas that do not require full illumination at all times. Adjustments can be made for the time of day and the type of activity occurring in the illuminated area in mining which saves the energy consumption.
- A coal mine in Mpumalanga, South Africa has increased its operational efficiency and environmental credentials after adopting LED light towers from Atlas Copco Portable Energy. As a result of adopting LED technology, the coal mine has increased its above ground light tower coverage by 25% compared to the metal halide lamps it used previously. In addition, the mine has realised average light tower fuel consumption savings of 60% and a reduction in associated CO2 emissions of up to 70%.
Europe to Account for a Significant Share
- Europe is gaining the market share as the stringent worker safety regulations coupled with supporting government regulations are promoting the growth of the LED manufacturing sector in the region leading to the demand of LED lighting in hazardous locations in Europe.
- Higher productivity levels and competitive tax systems are other factors driving pharmaceutical manufacturing in this region which in turn driving the hazardous location lighting market, specifically LED lights, for their improved efficiency and reliability. The region has immense potential for hazardous location lights in the oil and gas sector due to the presence of companies, such as Wintershell and DEA AG as well as a robust power sector.
- As oil prices continue to rebound, Russia plans on bringing in billions of dollars into the federal budget and billions in revenues for energy companies by strengthening its diplomatic ties with Japan, Qatar, Iran, and potentially, the United States. This is expected to pump up the production in the oil and gas industry in Russia, which is in turn, expected to drive the hazardous location led light market.
The hazardous location LED lighting market is fragmented owing to the presence of several players in the market that are investing in R&D and innovating new products in the lighting industry, which creates a high rivalry in the market. Key players in the market are Thomas & Betts Corporation (ABB Ltd), R. Stahl Limited, Emerson Automation Solutions (Appleton), etc. Recent developments are -
- May 2019 - Emerson introduced a new solution for the oil and gas industry to easily and safely illuminate land-based drilling rigs. The Appleton linear luminaire, streamlines the cumbersome and time-consuming task of installing and maintaining bright, energy-efficient lighting in hazardous areas on drilling rigs. The Appleton Rigmaster solves these challenges by integrating LED technology into a lightweight, low-profile package that performs durably, is resistant to harsh conditions and damaging vibrations, yet allows faster, safer installations throughout the drilling rig.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Increasing Government Regulations Promoting LED Lighting for Worker Safety in Remote and Hazardous Areas
- 4.3.2 Regulatory Standards Promoting the Replacement of Traditional Lighting with LED
- 4.4 Market Restraints
- 4.4.1 Lack of Thermal Management Strategy
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Class
- 5.1.1 Class I
- 5.1.2 Class II
- 5.1.3 Class III
- 5.2 By Zone
- 5.2.1 Zone 0
- 5.2.2 Zone 20
- 5.2.3 Zone 1
- 5.2.4 Zone 21
- 5.2.5 Zone 2
- 5.2.6 Zone 22
- 5.3 By End User
- 5.3.1 Oil & Gas
- 5.3.2 Power Generation
- 5.3.3 Petrochemical
- 5.3.4 Pharmaceutical
- 5.3.5 Processing
- 5.3.6 Other End Users
- 5.4 Geography
- 5.4.1 North America
- 5.4.2 Europe
- 5.4.3 Asia-Pacific
- 5.4.4 Latin America
- 5.4.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Thomas & Betts Corporation (ABB Ltd)
- 6.1.2 R. Stahl Limited
- 6.1.3 Emerson Automation Solutions (Appleton)
- 6.1.4 NJZ Lighting
- 6.1.5 Digital Lumens Inc.
- 6.1.6 Larson Electronics
- 6.1.7 Current, Powered by GE
- 6.1.8 Chalmit (Hubbell Inc.)
- 6.1.9 Cooper Industries (Eaton Group)
- 6.1.10 Dialight PLC
- 6.1.11 Hilclare Lighting
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS