New LED light in the end of the tunnel

It is called LED and it is about to make changes to the lighting market in line with what digital cameras did to the analog photography. The technology is not new but as in many other cases of paradigm shifts it is now getting close to become affordable for everyone. And because of the disruptive nature of new technologies the market can look totally different in several years from now.

 

LED or light emitting device has been around for almost half a century when Mr. Nick Holonyak, Jr. invented the first practical LED when working for General Electric in 1962. Since then LEDs became wide spread in alarm clocks, computer lights, calculators, street lights, street signs etc.  Initially available only in red it is now expanded to several other alternatives including bright white. 

 

The push for potential wide spread application of LED for traditional residential and commercial lighting came with energy conservation movement. Fluorescent bulbs gained momentum because they use 20% of the energy compared to traditional incandescent bulbs. But fluorescent lights use mercury gas and are less durable than LEDs. LEDs are not only energy efficient, they can also last 20 years.

 

The main barrier for wide adoption has been the price. Today you will have to pay 20-40 US dollars for one LED light bulb. This is hardly compelling in today’s economy. But market giants are working vigorously to change the situation. On top of that, because the underlying technology is more in line with computer chips than with Edison’s light bulb, competition is getting hot from unlikely players. We all know about GE and Philips when it comes to lighting but  Samsung and LG were not necessarily associated with lighting. Yet, these companies are geared towards competing for this 100 billion dollar market.

 

Department of Energy came up with L prize whose winner will offer an affordable alternative for 60 billion incandescent light bulbs installed in the US. Hopefully, with all the buzz we will soon see an affordable LED bulbs in our local stores.

 

Comments: 0; Published: January 28, 2010; Permalink

Tags: new technologies