Market Overview

Four Evolving Lighting Companies

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Four Evolving Lighting Companies

To run their operations, companies need lighting – among other things. Moreover, this lighting has to be energy-efficient to give the world a shot at taking control over climate change. The LED lighting market has been intensively growing over the last decade. Its strength is a direct consequence of energy efficiency regulations and reduced technology costs. An average building uses about 15% of its energy for lighting, therefore the savings potential of LED lighting across the globe is immense. But, lighting has expanded beyond its traditional purpose of illumination to add additional value such as sustainability. Consequently, it has also become a highly competitive market. Below are four companies that are well-positioned to benefit from this growing trend.

Acuity Brands

Unfortunately, Acuity Brands, Inc. (NYSE: AYI), the parent company of Acuity Brands Lighting was among the S&P 500's biggest fallers on Wednesday, September 23. The stock experienced a 2.56% decline to $98.07. But this is not the bigger picture as the widespread adoption of Far-UVC lighting could create a large retrofit revenue opportunity for this industrial technology company. It is better to wait for October 8th for the company to announce its fourth-quarter results to get a better idea of this prominent company.

Acuity Brands provides lighting products for the whole range of applications: from commercial to residential. Their customers are electrical distributors, electric utilities, retail home improvement centers, and lighting showrooms. Their offerings include luminaires, lighting controls, lighting components, and integrated lighting systems that use a combination of light sources. The majority of the firms' revenue is generated in the United States, but it has operations across Europe and Asia as well, counting 12,000 associates.

Orion Energy Systems Inc

Orion Energy Systems, Inc. (NASDAQ: OESX) is the provider of LED lighting systems while implementing IoT systems and providing ongoing maintenance service. When the company reported its FY2021 first-quarter results, it revealed it secured a contract with a large specialty retailer. The company just announced that its CFO William T. "Bill" Hull, plans to retire in November following its second-quarter results.

Cree Inc

The stock of Cree, Inc. (NASDAQ: CREE) is soaring and is possibly approaching a major achievement in its business. It provides lighting-class LED for power and radio-frequency applications with an international presence spanning across the United States, China and Europe.  On June 28, 2020, the US$6.6 billion market-cap company posted a loss of US$191.7 million for its most recent financial year. Although, its shareholders might be concerned after seeing the share price drop 13% in the last month as they have received good returns over the last five years. In fact, the share price was 154% higher on September 23rd. To some, the recent pullback isn't surprising after such a fast rise. But this does not change the fact that Cree has rewarded its shareholders with a total shareholder return of 22% during the last twelve months.

Energy Focus

Energy Focus Inc (NASDAQ: EFOI) recently won a $4.8 million indefinite-quantity contract to provide LED lighting to U.S. Navy for its demanding exterior shipboard use. LED lights use up to 80% less energy than traditional lighting while meeting the required illumination levels for combat and general operations.

Additionally, Energy Focus also reported that it has gained the right to serve all government agencies in the U.S. Its patent-pending EnFocus lighting control platform embodies the true spirit of "Triple Bottom Line" benefits:  financial, environmental, and health while being affordable and accessible. In other words, EnFocus can enhance occupant well-being and maximize energy savings while being affordable and without increasing security risk. The beauty of its model is that it can span across industries.

Outlook

The global LED lighting market was estimated to be $67,714.7 million in 2019. This is an increase of 3.2% from 2018. Over the last two years, we have observed major players either selling a part of their business or being acquired by another company. Smart LEDs are wanted for the controllability they offer. Companies are going a step forward with circadian lighting that supports well-being. Leading lighting players are also working with healthcare facilities to accelerate the use of UVC LEDs to eliminate the threat of infection arising from contact. Horticultural lighting also did great in terms of demand during the past few years. To cut the story short, there will be many new chapters ahead when it comes to lighting.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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