The cost of LED bulbs will decrease by half by the end of the decade, thanks to technology advances, according to Boston-based Lux Research.
Innovation in areas including thermal management, drivers and optics will combine to slash prices from $18.18 to $11.06 by 2020, Lux analysts found, and the cost of the central LED package—a component of the bulb—will drop by a whopping 70 percent, to $2.14 in the next decade.
However, the report found that other LED system costs must be reduced in order for LED lighting to be competitive with fluorescent lighting, which dominates the market.
“We find that today’s balance of system technology solutions fall short of the dramatic costs needed to mirror the LED package and existing alternate solutions are ineffective and uneconomical, presenting opportunities for technology innovation,” said Pallavi Madakasira, analyst and lead author of the report.
Image credit: Freedigitalphotos.net
