Market Opportunity
Market Timing & Consumer Choice
Virtually every industrialized nation has set timetables for banning the incandescent light bulb and mandating adoption of energy efficient lighting.
The main energy efficient technology generally available for residential use today is the Compact Fluorescent Light (CFL). While much more efficient than a normal incandescent bulb, the CFL has a number of shortcomings. The fatal technology flaw is that all CFL bulbs contain the neurotoxin Mercury (Hg). The media is only just beginning to pick up on this with an increasing number of articles describing the “CFL toxic time bomb”. The Environment Protection Agency acknowledges that we face a “pending environmental disaster” coming from improper disposal of hundreds of millions of CFLs.
The largest players in the lighting industry are investing heavily into non-mercury, energy efficient technologies – primarily the Light Emitting Diode (LED). They hope to eventually provide a long-term, clean solution that is affordable and consumer acceptable. Unfortunately the promise is many years away. Consumers will soon be faced with replacing their burned out incandescent bulbs with a toxic CFL bulb or an expensive, high-glare, LED bulb.
Market timing for Vu1 lighting technology could not be better. Vu1 is preparing to offer the consumer a choice without compromise – a bulb that is mercury-free like an LED, energy efficient and affordable like a CFL, but fully featured and an authentic replacement for today's much loved, though terribly inefficient, incandescent bulbs.
Rapid Global Growth for Energy Efficient Lighting
The US residential sector for energy efficient lighting has surged from 5% of units sold in 2005 to 20% in 2007.More energy efficient lights were sold in the US market in 2007 than in the previous three years combined. Europe and China are already experiencing similar adoption rates.
Key Market Drivers of Energy Efficient Lighting
Legislation
The US Energy Independence and Security Act of 2007 (EISA) mandates lighting energy efficiency standards beginning in 2012 that make today’s market dominant technology – traditional incandescent bulbs – obsolete by 2016. During that four year window, the residential “repair and replacement” market of 4 billion sockets alone will be filled with energy efficient lighting products.In Europe, each country is adopting similar energy efficient lighting standards.
Increased community and media awareness
The 2001 energy crises and recently skyrocketing energy prices raised consumer awareness about energy costs and the need for conservation. Increased general awareness of global warming issues has brought global environmental issues into mainstream attention.There has been a marked increase in corporate adoption of environmental initiatives – internal as well as external through marketing and supply-side relationships – plus increasing environmental awareness at the consumer level influencing purchasing behavior.
Adopting energy efficient lighting is the fastest potential source for global warming reduction. The CFL bulb is rapidly becoming one of the iconic symbols for reducing carbon emissions – used and distributed by everyone from the Sierra Club and National Geographic to government agencies and the media.
Retail support of environmental initiatives
Environmental issues have moved retailers to show their support by stocking “green” products. Higher than average selling prices of energy efficient lighting products have provided a strong motivation for major retailers such as Wal-Mart and Home Depot to carry and promote energy efficient lighting products. Costco and IKEA have been leaders in selling energy efficient bulbs for over a decade now.Recent Media Coverage
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