Does Europe Lead LED Adoption?

Another Light + Building expo is over, leaving many of us with the task of sorting through new business contacts and thoughts on how different are the approaches to lighting in Europe and in the U.S.?  My first trip to L+B in Frankfurt left me reflecting on the differences in the lighting market in Europe and the U.S. generally, and in LED lighting in particular. After walking through the exhibition halls and talking to exhibitors, I am left with the following observations:

The first is in regards to regulations. There are multiple organizations in the EU, including Global Lighting Association, CELMA, and ELC that are promoting the standards for the European Lighting industry. The unification of LED lighting for all 27-plus nations using the same standards is quite challenging for EU officials at the moment.

Despite this, LED lighting is more widely accepted by consumers in the EU than by those in the U.S. This judgment is based—not on speculation about official penetration rates— but on the number of exhibitors that offered LED lighting products at Light + Building, and the numerous claims made regarding sales, the number of pilot projects, and the manufacturing of LED products in the EU that were made there.

Second, the U.S. Department of Energy’s initiative to promote SSL and to educate consumers and buyers about the benefits and quality of LED lamps is well-regarded, if not praised, in Europe. European manufactures admit that the DOE’s policy is quite effective in promoting LED lighting and higher quality standards in the U.S. Getting the message across to one nation is definitely easier than reaching all the members and non-members of the EU.

Third, EU LED lighting manufacturers have a preference for growth in local markets and have fewer ambitions to serve global markets. I asked several exhibitors (small to mid-size, and some publicly traded companies with interesting LED lighting solutions and proven track records in their country of origin) whether they had global ambitions or would consider expanding their reach to the U.S. More often than not I heard that they want to stay local and grow in the EU (or UK). Some would not even consider joint venture opportunities. Reasons for staying local and not expanding into particular parts of the world, however, vary.

Fourth, Many exhibitors are proud to have 100% European manufacturing. Many companies offered their LED products for the first time at the fair in hopes of scoring some major sales. I asked if they would, if orders exceed their manufacturing capabilities, consider outsourcing the manufacturing.. The majority of companies would prefer to grow their manufacturing locally rather than outsource it.

Fifth, LED lighting is all about energy savings, but it can be aesthetically pleasing.  Many designer solutions provided by European manufacturers were simply stunning. The fact that these beauties also save energy made them even more attractive.

Finally, business during happy hour or pleasure during business hours seemed the same at Light + Building. At a 9 a.m. business meeting, you are just as likely to be served beer as coffee. While it did not work for me, the approach is a success with many others.