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Creative Destruction in Lighting

 

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At the 2017 Strategies in Light conference, Robert F. Karlicek, Jr., spoke about creative destruction in the lighting industry brought on by LED technology and the Internet of things (IoT). Karlicek is a professor and director for the Center for Lighting Enabled Systems and Applications at the Rensselaer Polytechnic Institute, Troy, N.Y.? After catching his fascinating presentation, I interviewed him for a story for ELECTRICAL CONTRACTOR. Excerpt below:

In 1942, economist Joseph Schumpeter coined the term “creative destruction” to describe the impact of innovation. In the lighting industry, LED technology and integration of IoT services are disrupting traditional lighting and legacy business structures, supply chains and distribution channels.?

For the majority of the market, the primary focus is energy efficiency and performance. The high efficiency and longevity of LED products makes them appealing for both new and existing construction. This is destructive to traditional lighting manufacturing and distribution. ?

In the specification-grade segment, innovation focuses on adding value—new form factors, features, color tuning, dimming, data production, IoT integration and visual light communication. As color tuning and IoT concepts continue to enter the market, Karlicek believes this segment will grow.

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