The industrial lighting landscape is shining brighter than ever, thanks to the emergence and rapid adoption of commercial LED lighting. By 2024, analysts predict the LED lighting market will reach $128 billion globally, with estimated savings of $18 billion in electricity costs and a reduction of 160 million metric tons of carbon dioxide emissions annually.As impressive as they are, figures like this are so spectacular, it’s often hard for small businesses to grasp the significance of these savings. There’s no denying LED lighting is the new gold standard for energy efficient, cost effective commercial lighting. Here’s how these savings really break down for small businesses who adopt commercial LED lighting.
Savings Opportunities with LED Lighting
It’s important for small businesses to jump on this trend now. With uncertain energy prices constantly in flux, and so many economic factors in the world today that are simply out of your control, making the switch to LED gives you critical control over your operating expenses.
1. Decreased Energy Costs
Energy costs are one of the largest operating expenses small businesses face. Lighting is critical to your workspace, so how can you optimize your environment while also cutting costs?
Commercial LED lights typically use 25 to 80% less energy than traditional lighting. This efficiency is expected to result in an estimated $30 billion in energy savings by 2030. For individual businesses, this can translate to $10,000s a year in savings.
2. Reduced Operating Expenses
In addition to immediate cost savings on your energy bills, commercial LED lights further reduce operating expenses thanks to lower maintenance costs.
LED lamps last longer than any other commercial lighting alternative. With a 50,000-hour-plus lamp life, bulbs require less frequent replacements. Depending on the lighting model your business chooses, this maintenance can actually be included with your upgrade, further reducing costs.
3. Incentives and Programs
Businesses of all sizes are turning to green energy to impact long-term profitability. Many businesses focus just on cutting expenses when looking to save money. While this is absolutely effective, simultaneously increasing overall profitability creates even more cash flow.
Commercial LED lights are an easy and affordable green initiative. These types of environmentally friendly programs can qualify your business for government incentives and savings programs that can ultimately increase cash flow.
In addition, these steps can help you boost profitability by bringing in more customers. More than 70% of consumers say they would definitely or probably change their consumption habits to reduce their impact on the environment. Shopping with your business allows them to do just that.
Why Small Businesses Love LED Lighting
In addition to driving significant cost savings, LED lighting is the preferred choice of small businesses, regardless of industry, thanks to:
- High quality light output: Research shows businesses strongly prefer LED lighting for its high quality output, even more so than the cost savings they deliver.
- Diversity of use: Commercial LED lights are available for nearly every application and can be easily customized based on desired beam spread, lumen output and smart technology integration. This is extremely helpful to businesses with more than one location, locations near residential areas and businesses with multi-use campuses.
- Low cost of ownership: As commercial LED lighting adoption has expanded, so have the options for upgrading. Lighting-as-a-Service providers are a popular choice for small businesses thanks to low or zero-cost upgrades, affordable monthly payments and worry-free maintenance.
LED Lighting is Here to Stay in the U.S.
LED has become the global standard. The U.S. LED market reached $9.89 billion in 2020 and is expected to rise to $17.06 billion by 2026. With the declining price of LED lights, adoption will accelerate. Already, more than 60% of small businesses have switched over to commercial LED lighting.
As profitability becomes more important than ever, small businesses are increasingly turning to their energy costs as a way to reduce operating expenses. Commercial LED lights are one of the most affordable and least disruptive ways to upgrade your physical spaces.
Not only do they create a more welcoming environment for customers and employees, commercial LED lighting frees up precious dollars for expansion, talent, marketing and growth. It’s these types of long-term, high-profitability decisions that can keep you in business despite economic and global factors.