IDC Energy Insights published a new report this week covering investment opportunities in lighting retrofits for energy management, and more specifically the benefits of utilizing LED technologies.
Upfront cost and limitations in functionality have historically stagnated widespread adoption of LED technologies for general lighting retrofits in commercial, industrial, and institutional facilities. Lighting industry innovation and significant pressure for new cost containment solutions in the building management industry signify a turning point for LED retrofits. Furthermore, the market trend toward Smart Building transformation amplifies the benefits of investing in LED technology when the solution integrates advanced controls and automation.
After fine-tuning the operations of exiting building systems, many decision makers are exploring Smart Building investment opportunities to further improve how their facilities operate. These stakeholders must assess their existing facility infrastructure, prioritize investment, and ensure capital expenditure supports their business goals and benefits their bottom lines. Lighting retrofits that incorporate advanced controls, automation, and integration represent an important opportunity for investment due to the significant share of energy demand required for general lighting and the predominantly immature control systems infrastructure in buildings today. The question for these decision makers is how to choose between available lighting control technologies and, more specifically, when does an investment in a Smart Building light emitting diode (LED) solution make sense?
The decision to invest in a Smart Building LED solution lies in the economics of up-front capital requirements, savings estimates, and benefits associated with deploying the technology. This IDC Energy Insights study will help end users understand the value their businesses can realize from deploying Smart Building LED solutions, how the innovations in LED technologies are changing the economics of investment, and how a Smart Building LED retrofit can support cost containment and efficiency goals. The building management industry is at a crossroads as new building automation and information technologies reshape how facilities operate. Smart Building LED solutions support this transformation with sophisticated energy management capabilities via controls, automation, and analytics and data management.
In the Smart Buildings' construct, the most mature lighting solution will incorporate automation, controls, integration, and analytics and data management to generate the greatest energy and operational efficiency improvements. These systems alter lighting production by responding to data signals from occupancy and daylight sensors, as well as internal policies and scheduling commands to intelligently optimize system performance. When LED technologies are the fixture component of these solutions, the energy savings and efficiency improvements are magnified by the technology design.
This new IDC Energy Insights report will help end users understand the value their businesses can realize from deploying Smart Building LED solutions, how the innovations in LED technologies are changing the economics of investment, and how a Smart Building LED retrofit can support cost containment and efficiency goals.
Smart Building LED systems will be a disruptive technology in the lighting industry and an important enabler in the transformation of facilities for optimization. As the market becomes increasingly aware of the benefits of LEDs and as the costs continue to drop, adoption of these systems will ramp up and provide real-world demonstrations of technology-enabled cost and energy savings.