Philips, Osram Lighting Spin-Offs Diverge on LED Challenge - Energy Watch News

Philips, Osram Lighting Spin-Offs Diverge on LED Challenge

In terms of size, the two are comparable: Philips Lighting had core earnings in 2015 of 547 million euros ($624 million), on sales of 7.5 billion euros. In the same year, Osram reported core earnings of 567 million euros on sales of 5.6 billion euros. Both seek to profit from steady growth in general lighting for streets, homes and offices – predicted by Boston Consulting Group (BCG) to be worth $105 billion by 2020, up from 87 billion in 2014 and LEDs will make up more than 50 percent of the $130 billion global lighting market by 2020, and lighting companies will have to think creatively to make up for weaker margins from “precipitously” falling prices. In that it will have to compete with the likes of General Electric, including selling services around networked LED lights, which are programmable and will become an important part of the “Internet of Things”. The Philips unit also faces an unexpected threat from newcomer Acuity Brands, which had more professional systems sales than Philips did in the first three months of 2016 for the first time. Acuity has outmaneuvered competitors and seized U.S. market share with a superior sales and distribution strategy, and shares are up more than 300 percent over the past five years.

Tagged with: , , , ,
Posted in Industry News

Leave a Reply

Your email address will not be published. Required fields are marked *


Featured Product


Featured Job