Report Predicts LED Price Will Be Cut In Half By 2020

A recent report from the U.S. Department of Energy confirmed that LEDs are indeed the most environmentally-friendly light bulb on the market. Inching past the CFL in life cycle impact, and completely blowing incandescent bulbs out of the water in efficiency, the LED  has the ability to reduce home lighting costs and create a safer manufacturing process. Despite these obvious benefits, LEDs have yet to go mainstream.

A higher price has been a constant roadblock for LED manufacturers looking to edge out the entrenched competition. According to a new recent industry report, however, shifting focus away from package efficiency and toward technological innovation could help slash the cost of LEDs in half within the next 8 years.

LED Cost

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Focus is now shifting from the package to the surrounding systems, with experts predicting that innovation in areas such as thermal management, drivers, and optics will help to halve prices of LED bulbs to $11.06 in 2020, according to the study by Lux Research. To arrive at this conclusion, researchers studied the key elements of cost in a 60 W incandescent equivalent LED bulb, as well as the technologies available to accelerate cost cuts.

They found that active thermal management technologies now in development, such Nuventix’s SynJet will lead to cost savings over aluminum-based solutions; innovation in more efficient dimmable drivers will attract new customers and bring about a 1 percent cost saving; and the fabrication of new secondary optics, which improve the shape of the beam and the ability to collect more light from primary optics, could shave another 5 percent of the LED’s total cost.


Beth Buczynski is a freelancer writer and editor currently living in the Rocky Mountain West. Her articles appear on Care2, Ecosalon and Inhabitat, just to name a few. So far, Beth has lived in or near three major U.S. mountain ranges, and is passionate about protecting the important ecosystems they represent. Follow Beth on Twitter as @ecosphericblog

1 Comment

  • Reply July 11, 2012


    Well Duh- the prices for standard form factor LED luminiares has been dropping
    for years( I’ve been seeling LED products since 1995) what would have made for a compelling article is the developement of OLEDs with their extended lifespans and
    tremendous efficacies ( 130 lumens per a watt – Now,& 200 L/pw by 2014 – and its
    pricing will really decrease over the next 8 years –

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