New lighting technologies and demand from wind turbines will sustain industry growth
Los Angeles, CA (PRWEB) February 08, 2012
The Obstruction Lighting Manufacturing industry operates in a niche market where a relatively small number of firms compete for market share in a highly regulated global environment. The market size is primarily determined by the number of tall structures (e.g. towers, bridges, wind turbines and power plants) that must be visible to aircraft to comply with domestic and international air travel regulations. The industry also produces beacons and light systems that are used to prevent collisions in maritime travel.
Technological advancements in lighting, most notably light-emitting diodes (LEDs), have opened new growth opportunities for the industry. The advantages of new lighting technology applications, such as LEDs, help lengthen the life-span of obstruction lights, which reduces maintenance costs and improves energy. As a result, many older obstruction lighting systems are being phased out and steadily replaced with more modern technology, primarily LED lights. These new systems can range from a few thousand dollars to hundreds of thousands of dollars. According to IBISWorld industry analyst Kathleen Ripley, “US manufacturers in this niche industry stand to benefit from the conversion to more modern equipment domestically and abroad.” Over the five years to 2012, the Obstruction Lighting Manufacturing industry has benefited from a growing number of broadcast and cell phone towers that have undergone retrofits to accommodate new obstruction lighting technology and growing demand from the energy business (refineries, power plants and wind turbines).
In the five years to 2012, IBISWorld expects that industry revenue will increase at an average annual rate of 6.8% to $221.0 million. A large portion of industry revenue is generated from exports, which are estimated to grow at an average annual rate of 20.9% during the five years to 2012, to $70.1 million. At the same time, firms compete heavily with imports from European nations, primarily UK and Germany, as well as countries in Asia. In 2012, imports are expected to account for about 52.1% of domestic demand. The industry has received a boost from wind-turbine installations, which contributed to an 11.7% growth over 2012. Ripley adds, “In the five years to 2017, continued demand for alternative fuels and clean energy incentives by government regulations will drive demand for wind turbines in the United States and abroad.” This factor will create new market opportunities for industry firms and help drive growth. Major industry operators like Dialight and Hughey & Phillips will capitalize on these opportunities, expanding their market share and driving revenue growth.
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This industry manufactures obstruction warning lights. Obstruction warning lights are high-intensity lights installed on tall structures such as buildings, utility towers and industrial smoke stacks for aviation safety. Obstruction lighting is also used on marine vessels, structures and other marine hazards. The industry may also provide installation and maintenance services.
IBISWorld industry Report Key Topics:
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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