Market Challenges And Opportunities

Hospital Lighting Market - Drivers

Advantages of LED Technology over Conventional Lighting System also expected to fuel the growth of hospital lighting market. According to U.S. Department of Energy, lighting is a significant component of hospital energy use, representing over 10% of energy consumption. This leads to increasing global demand for green technologies, which is expected to fuel growth of LED technology segment in hospital lighting market. Advantages of LED technology include long life, improved efficiency, eco-friendly, durable, and more dispersed light over conventional lightening systems and this is expected to be a major factor for increasing adoption of LED. Furthermore, advancement in lighting technology is expected to aid in growth of the hospital lighting market. For instance, integration of LED in intelligent lighting systems and solutions, is expected to aid in growth of the hospital lighting market.

Key players in hospital lighting market could focus on growth opportunities in the emerging economies such as India and China. Rapidly growing population per capita income, rising life expectancy, high incidence of lifestyle-related diseases, and ambitious medical infrastructure projects in developing countries are factors expected to aid in growth of the market. Governments are taking initiatives in increasing the investments in the healthcare sector, in order to cater the growing demand, which in turn is expected to aid in growth of the market. For instance, Saudi Arabia’s government allocated US$ 28.8 billion to health and social welfare, which includes funding for 11 new hospitals, 11 medical centers, and two medical complexes, on top of the 132 hospitals and healthcare centers, in 2014. This is expected to aid in growth of hospital lighting market in the region.

Additionally, bilateral commercial relation will also help in increasing the number of hospitals, thus propelling growth of the hospital lighting market. The U.S.-U.A.E. Business Council reported that the U.A.E. has witnessed a dramatic expansion of its healthcare industry from 7 hospitals and 12 health centers to 70 public and private hospitals and 150 centers and clinics since 1971. Moreover, governmental initiatives is expected to aid in increasing the number of public and private hospitals with national and international standards. For instance, U.A.E.’s Vision 2021 aims the highest-level U.A.E. government strategic plan for “world-class healthcare” as one of its priority. Another factor driving growth of the hospital lighting market is contracts between hospitals and manufacturers for the supply and installation of equipment. For example, in 2012, Philips was awarded a contract to supply and install lighting equipment for Jordan’s first LEED- rated hospital.