LEDS AND THE SSL ECOSYSTEM. Dr. Chips Chipalkatti Innovate & Illuminate
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1 LEDS AND THE SSL ECOSYSTEM Dr. Chips Chipalkatti Innovate & Illuminate
2 HOW HAS LED TECHNOLOGY TRANSFORMED THE LIGHTING INDUSTRY? Three questions: How have LEDs changed the Lighting business model? What does the new ecosystem of lighting look like? What areas to focus on for future success? Innovate & illuminate 2
3 IN THE BEGINNING OF THE LIGHTING REVOLUTION (CIRCA 2000) Going from LED indication to illumination - LED modules Innovate & illuminate 3
4 COMMERCIAL LIGHTING TREND Innovate & illuminate 4
5 AND THE NEXT STAGE LIGHT BULBS Shoe-horning LEDs into light bulbs? All based on the old infrastructure making LED light bulbs for Edison s sockets BUT there are about 4 billion light sockets? People buy 2 billion light bulbs/year 5.5 million light bulbs per day If LEDs last forever how soon are all those sockets going to be filled? What is the consequence of the long life and one time replacement? How do we avoid the downward spiral of price? Innovate & illuminate 5
6 LEDS HAVE SURPASSED TRADITIONAL LAMPS! Incandescent Halogen Compact Fluorescent Linear Fluorescent Metal Halide White LED Efficacy (Im/W) chip level Life time (hrs) , , ,000 50,000+ CCT (K) & 4, ,000 CRI à Further benefits from bulbs are only possible by using controls and software! Innovate & illuminate 6
7 LED LIGHTING VALUE CHAIN Modules Materials Chips Packages Light Engines Drivers & & Controls Luminaires Services Raw Materials Substrates (Sapphire) Epitaxial material (InGaN) Phosphors (YAg-Ce) Encapsulant (Silicone) α-al 2 O 3 Innovate & illuminate
8 LED LIGHTING SUPPLY CHAIN DOE Report Innovate & illuminate 8
9 EFFECT OF MOORE S LAW FOR LED LIGHTING High capacity in LED supply à all lighting companies have similar performance How can we differentiate and lead? Source: DOE 2008 Multiyear Program Plan: every decade, the cost per lumen falls by a factor of 10, the amount of light generated per LED package increases by a factor of 20 Innovate & illuminate 9
10 OTHER MACRO TRENDS Innovate & illuminate 10
11 RETROFITS = USING NEW TECHNOLOGY FOR OLD LAMPS! Today this is the main business PAR20 8W replacement for 50W Halogen 25 NFL, 40 FL 50,000 hours life PAR30 15W replacement for 50W Halogen 25 NFL, 40 FL 50,000 hours life PAR38 18W replacement for 60W Halogen 25 NFL, 40 FL 50,000 hours life But is it profitable? What is needed to be profitable in the future? A-lamp 8W replacement for 40W Incandescent 12W replacement for 60W Incandescent 50,000 hours life Globe 8W replacement for 40W Incandescent 50,000 hours life MR16 6W replacement for 20W Halogen 25 NFL 35,000 hours life Innovate & illuminate 11
12 WHAT IS DIFFERENT ABOUT LEDS? They are energy efficient Much better than incandescent lamps, will save $30-70 bill. in energy costs/year by 2020 They are long lasting Red or yellow LEDs last more than 100,000 hours! They are rugged Solid state devices, therefore, no filaments to break or electrodes to corrode They are unique, colored and compact Imaginative, new lighting solutions with color change They are solid state electronics Smart controls can be used to provide many new features! Innovate & illuminate 12
13 TRADITIONAL BUSINESS MODEL Lamps burn out after hours Sockets and luminaires are the same New lamps were purchased by customer and installed The business cycle for lamp replacement is relatively short Revenues depended upon lamp replacement Innovate & illuminate 13
14 DRIVERS FOR A NEW SSL BUSINESS MODEL Challenges to the traditional lighting businesses and the old financial model Long life means no lamp replacement for 10 years! Therefore replacement business is dying! Total controllability and mass customization is needed Energy savings allows more liberties (not just energy savings) You have be the first to get the customer! What is the customers experience of light? The new focus needs to be on long term value for the end user Innovate & illuminate 14
15 OLD WAY NEW WAY Innovate & illuminate 15
16 A NEW GENERATION OF LIGHTING PRODUCTS Traditional form factors were the first wave, but now. Light is produced in new ways (lighting logic) Controls and sensing increasingly being adopted Smartbulb Personalization of lighting scenes Emerging form factors take flexibility to new levels beyond bulbs? Ultimately light is applied in ways that turn lighting practice on its head Courtesy: ilumi Solutions Courtesy: Heilux Innovate & illuminate 16
17 WHAT ARE KEY ELEMENTS OF THE EMERGING ECOSYSTEM OF SSL? GLOBAL COMPETITION AND MARKETS COMMERCIAL LIGHTING APPLICATIONS BUILDINGS AND INFRASTRUCTURE CONTROLS AND PERSONALIZATION LIGHTING AND RENEWABLE ENERGY FUTURE OF DESIGN INTERNET OF THINGS THE EXPERIENCE OF LIGHT THE SOFTWARE OF LIGHTING FUTURE OF CITIES LIGHTING Innovate & illuminate 17
18 ECOSYSTEMS OF LIGHTING: OLD AND NEW New luminous materials Integrated lighting systems The Ecosystem The materials Lamps Sockets Electric supply Switches (then dimmers) Light source and light engines Sensing and automation Power source and controls, intelligence Communications technology Human factors science, biological knowhow Architectural Integration Power distribution, DC micro-grids, Smart-grid compatibility Innovate & illuminate 18
19 LIGHTING INTEGRATED WITH ARCHITECTURE ASSIST Lighting Research Center/RPI Innovate & illuminate 19
20 HUMAN FACTORS IN SSL Get Extra Energy Savings from Human Factors in Solid State Lighting Realize energy saving lighting systems taking advantage of the tunability of SSL systems Novel control algorithms for saving energy Color control to enhance vision and reduce lumen requirements Improve the flexibility, effectiveness and comfort of SSL Understand human color preference and acceptability Do not forget lessons learned from CFLs Only possible with sophisticated controls Innovate & illuminate 20
21 INTERNET OF LIGHTING LIGHT MANAGEMENT SYSTEMS: PERSONALIZATION AND CONTROL Interconnected lighting components Electronic dimmers, photo and occupancy sensors and lighting controls Energy management system interconnects and networks these devices Link to existing LANs for personal lighting control on each user's personal computer. Communication technology designed specifically to transmit unique control signals to hundreds of nodes quickly and reliably Innovate & illuminate 21
22 LED LIGHTING IS MORE THAN JUST PERFORMANCE AND COST emphasize the people side of good lighting! Sparkle per Watt. Visual interest per Watt. Economic development per Watt. Marriage proposals per Watt. Calm customers per Watt. Oohs and ahs per Watt. Benefit per Watt Innovate & illuminate
23 WHAT IS NEEDED TO BE SUCCESSFUL IN THE FUTURE? Simplicity and interoperability Interchangeable devices Connected appliances (+ lighting) Systems solutions Integrated lighting with Luminaires Optics Power Sensing, controls and automation Software and mobile apps Intelligent user interface with mobile solutions Innovate & illuminate 23
24 THE NEXT TRANSFORMATION Lighting industry has in the past seen itself in isolation, as a standalone Today major forces running concurrently, present opportunities to accelerate Convergence with those forces would provide: Acceleration More opportunities Greater rewards Innovate & illuminate 24
25 LIGHTING IS BECOMING A THING Exhibit 16 The Internet takes control of Things hub Integrated in an object Lightbulb Boiler cloud activate Attached to an object Oven Speakers Wearable Screen Shutters Ingestible Drugs Source: Company Data, Morgan Stanley Research Innovate & illuminate 25
26 CONVERGENCE OF TECHNOLOGY IN LIGHTING Exhibit 6 The combination of sensors, microcontrollers and wireless communication is the first building block of the Internet of Things Lots of data Position Movement Integrated in an object Hub Temperature Pressure Gesture Attached to an object Sends data Cloud Light Wearable Body / Blood characteristics Ingestible Source: Morgan Stanley Research Innovate & illuminate 26
27 9 KEY TRENDS THAT ARE VISIBLE LINES OF PROGRESS 1. Personalization and I -centric products 2. Information technology, mobility and i -ecosystem arrival of the smartbulb 3. Patient centric, self driven healthcare management with apps and wearable's, and lighting for health and wellbeing 4. Global supply chains accelerating globalization of industrial design, global standards and regulations 5. Rise of the DC world dc devices are now over 50% in average home. DC grids, microgrids and digitization of electricity on the horizon 6. For lighting, the emergence and convergence of new technologies - going beyond the bulb, changing lighting design rules and consumer expectations 7. Cleantech, sustainability and renewable energy a natural fit for SSL 8. Light for bio-systems, agriculture, horticulture, 9. Increasing recognition that the value of light is more than illumination Innovate & illuminate 27
28 THANK YOU Chips Chipalkatti Innovate & illuminate 28
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