Next Wave of Mass-Market Residential and Business Lighting

With consumer interest in energy-efficient lighting growing rapidly, the next wave of mass-market residential and business lighting could be coming from LEDs - light-emitting diodes, also known as solid-state lighting. That's the key finding of a new consumer survey commissioned by Arrow Electronics, Inc., a leading global provider of products, services and solutions to users of electronic components and enterprise computing solutions. The survey was conducted for Arrow by Harris Interactive'.

Commonly used today in flashlights and electronic devices, LEDs are being adapted by manufacturers to replace the common light bulb. Although more expensive than other lighting options, LEDs use a fraction of electricity of traditional light bulbs, last longer than regular incandescent light bulbs and compact fluorescent lamps (CFLs), and contain no hazardous materials.

Consumers are enthusiastic about the prospects of LED lighting in their homes, the survey found, with 87 percent saying they would be willing to try the technology for some or all of their home lighting needs to be more energy efficient. Amid rising concerns over energy prices, 82 percent of consumers cited the cost savings that LEDs can deliver as motivation to pay more for the bulbs, while 53 percent pointed to the environmental benefits.

“While the benefits of LEDs have long been recognized by electronics makers, the public’s rising concerns over energy costs and the environment signify a positive shift for this important technology,” said Michael J. Long, president and chief operating officer of Arrow Electronics, Inc. “It represents a rapidly developing market where electronic lighting modules are playing an increasing role.”

The study found that consumers say they would be willing to pay an average of $4.70 per LED-based bulb, which compares with an average of $0.50 for incandescent bulbs and $3 for CFLs, according to media reports. Eleven percent of consumers are open to paying between $6 and $10 for an LED bulb, and 4 percent say they would be ready to spend $11 or more.

The study found that 47 percent of consumers use CFLs in their homes, 36 percent use regular fluorescent lamps and 20 percent use halogen bulbs.

The most popular methods of light-related conservation in the home (of those listed) are hitting the “off” switch (87 percent) and replacing incandescent or regular glass light bulbs with CFLs (46 percent). Other energy-saving measures include keeping the thermostat lower in the winter (58 percent), using Energy Star appliances (50 percent) and using renewable energy sources such as solar and wind power for some or all of their energy needs (4 percent).

Additional findings of the study include:

  • Many consumers indicated that the use of LED lighting by a friend or family member (58 percent) and use of LED by their employer (45 percent) would encourage them to use LED lighting in their home.
  • Factors that would influence a consumer to pay more for LED lighting than alternative bulbs are cost savings on their energy bill (82 percent), fewer replacements over time (77 percent), and more natural lighting (48 percent).
  • Four in 10 consumers (40 percent) stated that they are more concerned about saving money in the short term than with saving energy.


The LED Lighting survey was conducted online within the United States by Harris Interactive on behalf of Arrow Electronics between October 12 and October 16, 2007, among 2,711 U.S. adults ages 18+. This online survey is not based on a probability sample and therefore no estimates of theoretical sampling error can be calculated. For complete methodology, including weighting variables, please contact John Hourigan.

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