8. Market Issues: Supply and Demand

Issues

Applications such as traffic signals, of course, are not the only market for LEDs. Other industries, including the computer and communications industries, are competing with traffic signals for new products. Supplies, especially of green and amber LEDs, may not always meet demand. Priority for delivery to these industries may be higher than for the lighting industry. Furthermore, the rapid evolution of light sources may actually limit opportunities to evaluate the performance of LED traffic signals and other products using LEDs.

Potential consequences

As a consequence, the market penetration of LED traffic signals could slow if products are not available to meet current demand. Lack of product might have the effect of increasing frustration among specifiers and potential purchasers of these products. At the same time, the rapid introduction of new and evolving LED products could impede product innovation if manufacturers must respond to this evolution by adapting existing product lines to new technologies without a comprehensive understanding of new LEDs.

Options

One potential option is to carefully time the introduction of new products, in order to allow supply to keep up with demand, and to allow manufacturers the opportunity to optimize their products for new LEDs. Additionally, because of the longer rated lives of LEDs and the resulting longer maintenance periods of LED traffic signals, saturation of the LED traffic signal market might occur. The ability to anticipate this eventual saturation could help manufacturers formulate effective strategies for future product lines and possibly, developing new applications for LEDs.

TABLE OF CONTENTS

1. INTRODUCTION
2. TRAFFIC SIGNALS
3. CODES AND SPECIFICATIONS
4. ENERGY
5. COST
6. VISIBILITY
7. OPERATION: POWER AND ENVIRONMENT
8. MARKET ISSUES: SUPPLY AND DEMAND
9. OTHER APPLICATIONS
10. PRELIMINARY CONCLUSIONS AND RECOMMENDATIONS
11. REFERENCES