Strategies in Light: Day 1

I attended the first day of meetings at Strategies in Light and found them very informative.  Below are my raw notes from the sessions:

Tuesday, Tom Princince, CEO, Digital Lumens

  • Customers don’t want to be first with LED or last with CFL or HID
  • Digital Lumens has 500+ installations in 3 years
  • Industrials spend $0.50 to $1.00 per sq ft annually in lighting.
  • Goal is to convince customers to migrate from a fixed cost of light to a service cost.  
  • 4 to 5 year paypack is a tough sell; controls and rebates can move payback to 2 years.
  • Using intelligence with a 175,000 sq ft warehouse and replacing MH 1000, KWh was reduced by 95% with a $75K in energy savings. (95% is a bold statement and I am not sure I buy it.  Princince claimed the savings was from multilevel occupancy, daylight harvesting, scheduling and LED efficiency.)
  • Digital Lumens expects to be the next big lighting company

Tshirt_Speaker.jpg


Tsutomu Schimomura, Founder and CTO of Neofocal Systems

  • This gentleman spoke to an audience of about 500 professionals wearing shorts and a T-shirt.  Sunglasses rested on top of his head holding his bangs out of his eyes.  Unfortunately, this is all I remember about his presentation.  


Rich Green, Senior Vice President, Products and Technology Enlighted, Inc,

  • Basically the technology consists of many sensors and an RF device that speaks 15.4.
  • Sensors stream data to a central point.  Can make predictive reports and backward reports about space utilization. 
  • Because they are powered by the light themselves, there are no wires and no need for separate power. Installation is nominal. 
  • Each sensor is placed approx. 100 square feet apart.. One plugged into every fixture, even existing fluorescent.
  • No site survey required. Goal is NOT to see how few sensors you can use as with traditional product. 
  • Don’t really need a server because the sensors are adaptive and work on their own. 
  • Sensors measure energy, temperature, and occupancy
  • Cist is about 1/3 the cost of competition when site surveys and commissioning are included
  • Simple and reliable.  If one sensor stops, you only lose 100 sq ft.
  • Only 6 skus in the company.
  • 61% sav in warehouse, 71% savings in work center in Oakland;
  • They know who is where and when which is good for security.
  • Direct sales force in global 500.  Moving to reps and distributors as product matures. 
  • Getting employees engaged is helpful.   Saved 40% initially in 35,000 sq ft office, and an additional 30% savings when the employees were engaged.


Vrinda Bhandarkar, Director of Research, LED Lighting, Strategies in Light

LED Market Drivers:

  • Price decline due to large overcapacity in chip manufacturing in China. 
    • Slow TV growth helped cause overcapacity.
  • Tsunami and Fukushima nuclear disaster—strong demand driver
  • Need for energy conversation
    • Global warming
    • High marginal cost of energy generation
    • Financial crises and ensuing financial stimuli
    • Growth of emerging economies

Replacement lamps grew fast in Japan after Tsunami. 

 

2011

2012

 

Lamps

Luminaires

Lamps

Luminaires

N. America

 $307M

$2,173M

$371M

$2,807M

Europe

 $506M

$2,167M

$697M

$2,430M

  • Japan dominated market for replacement lamps.
    • 50% of downlights in Japan are LED
  • Fastest growth rate was China triggered by government subsidies
  • Total LED Illumination Market, 2012 Revenue  Total $14.5 B USD
    • Luminaires: $9.1B
    • Replacement lamps: $2.5B dollars
    • Other  $2.7 B
    • Luminaire market is for CAGR of 13% thru 2017.                                   
    • 60% of India is unreliable power supply, so solar lanterns are very important in India.