Troffer Market - Forecast(2023 - 2028)

Overview

Troffer Market is forecast to reach $9.47 billion by 2025, after growing at a CAGR of 6.20% during 2020-2025. The global demand for troffers is rising due to the rise in the adoption of troffers by lighting designers, architects, specifiers and engineers for new construction. Troffer lighting is now mainly being used in LED which is a major growth factor for the troffer industry during the forecast period.

Report Coverage

The report: “Troffer Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Troffer Market.

Key Takeaways

• LEDs are highly efficient, reliable, and they yield longer life span, which is anticipated to boost their application in both indoor and outdoor settings.
• According to the U.S. Department of Energy (USDA), the majority of troffer retrofit kits has an initial lumen output between 3,500 and 5,400 lumens. This is comparable to the lumen output range of louvered troffers with two or three standard-output T8 fluorescent lamps operating on a normal ballast factor ballast.
• Governments are offering incentives and rebates on replacement of traditional lamps with LED troffer products, this enables to improve the adoption of LED products worldwide.
• In European countries, the price of LED lamps is anticipated to compete with compact florescent lamps by 2018, which shall further speed up the shift from CFLs to light-emitting diodes.

By Type - Segment Analysis

The polymer type segment held a significant share in the troffer market in 2019. Glass and transparent plastics, especially acrylic resins, have long been used in the lighting industry for various aesthetic and functional purposes in optics design. Luminous LED troffers are made with a lightweight, shatter-resistant ABS plastic frame molded with fire retardant material with an anti-UV coating to prevent yellowing. This lightweight frame makes the fixture lighter, easier to install, less expensive to ship, and less likely to get damaged. Troffers made from polymer types like ABS makes them lightweight and durable.

By End-User - Segment Analysis

The commercial segment held a significant share in the troffer market in 2019. The 1x4 parabolic troffer fixture provides low glare, light cut-off, and visual comfort for all commercial buildings requiring general illumination in a recessed ceiling configuration. According to U.S. Department of Energy, a vast majority of lighting in U.S. commercial buildings is provided by fluorescent troffer ceiling fixtures. More than 360 million troffers provide general lighting in commercial buildings, according to the U.S. Department of Energy (DOE). Lighting troffers are recessed ceiling fixtures that commonly use lower efficiency fluorescent technology. With the use of troffer lights in commercial purposes like hospitals, schools, airport lounges, indoor spaces, and others, the energy consumption will be less and overall lighting performance increases.

Geography - Segment Analysis

Asia-Pacific dominated the troffer market with a share of more than 41.5% during the forecast period. The high demand is mainly attributed by the modernization of hospitals in developed regions like China and Japan. China has implemented energy-saving certification for ensuring saving quality of LED lighting products since 2011. China is the biggest producer, consumer and exporter of efficient lighting products in the world, whereas Japan is in the front ranks of the world in the LED chip technology, which leads to the development of the global LED lighting industry which in turn expands the market for troffers during the forecast period.

Drivers – Troffer Market

·         The rise in acceptability of LED troffers for outdoor lighting solutions

LED lighting can really move the needle in reducing the consumption of electricity for buildings as well as outdoor lighting solutions. A typical 2x4 fluorescent troffer light can utilize up to 160 watts per fixture. The same fixture utilizing LED technology instead, utilizes between 30 and 50 watts per fixture. This results in 50% to 80% reduction in cost savings just by making the switch to LED. The way LEDs generate light and progress through their functional life results in a much longer operating life compared to conventional fluorescent troffer lights. LED troffer lifetimes range from 50,000 to 150,000 hours and can have up to a 10 year manufacturer warranty.

Challenges – Troffer Market

·         Ballast Compatibility

One potential disadvantage of replacing fluorescent lamps with LED lamps instead of replacing the luminaire is ballast compatibility. Compatibility issues may arise between the new lamp and the current ballast, even between lamps and ballasts from the same manufacturer. Performance depends on the existing fixture/ballast. Lack of innovation within the troffer designs and variety may hamper the growth of troffer market.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the troffer market. In 2019, the market of troffer has been consolidated by the top five players accounting for xx% of the share. Top 10 companies of troffer market are General Electric, Acuity Brands Lighting, Eaton Corporation, Koninklijke Philips, Zumtobel Group and Herbert Waldmann GmbH among others.

Acquisition/ Product Launch

Ø  In September 2019, Acuity Brands, Inc acquired The Luminaires Group (TLG), provider of specification-grade luminaires for commercial, institutional, hospitality and municipal markets. Luminaire LED offers indoor and outdoor vandal-resistant lighting.

Ø  In February 2016, Toyoda Gosei Co. developed a new LED package for lighting that produces up to 200 lumens per watt (lm/W), while maintaining color fidelity. This new product gives clients cost-effective alternatives to a fluorescent ballast and lower CRI (Color rendering index) LED products and can help reduce overall energy consumption.