Daniel Doxsee, Deputy Managing Director, Nichia Chemical Europe noted that a transition is underway from mid-power to chip-scale packing (CSP) for lighting applications. Mid-power LEDs have become 1/2 the cost of high-power, and CSP will be lower than mid-power when high production volumes are achieved.
Christian Schraft, CEO of Havells-Sylvania observed that consolidation of the industry is underway, but the level of consolidation depends on where you are in the supply chain. Lots of consolidation is expected in the chip/package industry. As you go higher, less consolidation is expected. Luminaries are a regional and applications specific business, so don't expect much consolidation there.
Vern Nagel, CEO of Acuity Brands stated that Acuity has developed strong brand identity and strong channel relationships. It expects to grow its business through connected lighting applications. It will continue with acquisitions (e.g. Distech) and is building its internal controls and software capabilities.
Dan Coyne, Managing Director, Investment Banking at Canaccord Genuity said that he sees an increasing pace of mergers and acquisitions in the LED and lighting industries. He is seeing bigger deals and more of them. However, the trend in valuation is to lower multiples of revenue.
Pierre-Yves Lesaicherre, CEO of Lumileds, which is in the process of being sold by Philips, agreed with Nichia’s Daniel Doxsee that CSP is the wave of the future in LEDs for lighting due to a much lower bill of materials. Volumes are growing rapidly. Some companies recently entering the market with CSP products are claiming to have invented CSP. However Lumileds and Nichia have been doing it for several years already. They are working hard to solve the droop problem, and expect to drive CSPs at up to 2-3 amps.
Klaus Vambersky, EVP of Group Technology, Zumtobel Group(substituting for Ulrich Schumacher, CEO who was taken ill and could not attend) likened the lighting industry today to the mobile phone industry, in which the one-time market leader Nokia lost out to the emerging players Apple and Google, because it didn't have a competitive smart phone. The lighting industry is now in its second phase in which LED penetration is passing 50% with increasing volumes, and costs have been reduced, but luminaire form factors haven't changed. At this point revenue is stagnant, and the challenge is to move in to the third phase with value added products such as smart lighting systems. Lighting companies need to begin to think more like the semiconductor companies to remain competitive.
Masimilliano Guzzini, Vice President of iGuzzini, discussed how lighting affects the way we socialize, perceive and construct our environments and navigate through them, providing many examples of how innovative lighting has improved public spaces and buildings, and helped to enhance treasured artworks such as Da Vinci's The Last Supper.
Dominieke Plancke, Head of Business Group Professional, Philips Lighting, reviewed the many challenges and opportunities facing the lighting industry in the next decade, including the addition of 10 billion additional sockets by 2025, and the lighting needs of an increasingly elderly population. Lighting can provide three benefits to life: visual, biological and emotional. LED lighting can provide these benefits and meet these challenges in a cost effective way. With the use of controls, 80% energy savings can be realized.
Andrew Parker, Strategic Marketing Director - Smart Lighting, Schneider Electric, addressed how lighting can be integrated with building energy management systems. Because lighting fixtures are present everywhere in buildings, and are powered, they are the logical access points for a wide variety of data gathering to provide input for building energy management. Industry wide cooperation and international standards are needed to develop a framework to address future technologies in this space.
Zoltan Koltai, EMEA Technology Director, GE Lighting stated that the idea of intelligent cities is an ongoing experiment to discover which among the many possibilities for data gathering and analysis will be the most useful for promoting increased productivity and human centric outdoor lighting. Several experimental smart cities installations done by GE have provided input for going forward, Among the most important lessons learned is the need to connect people, not just lights.
This track featured sessions on Advances in Component Technology, Luminaire Design Challenges and Opportunities, Outdoor Lighting/Smart Cities, Energy Aspects of Lighting Systems, and Thermal Management. In these sessions the audience learned: