Philips

Lighting up the streets, and the future

In 2011, Philips Lighting partnered with Kolkata Municipal Corporation to test the performance of outdoor LED lighting. The results were astonishing: the system saved the city 52% in electricity costs, and effectively improved urban safety by directing light towards streets and pavements with 70% more precision. [1]

Kolkata saved 52% of its electricity costs using LED street lighting

Kolkata LED TrialWith results like this, it is no wonder that LEDs are driving a clean lighting revolution.

And for Philips, LEDs have been a shining star of sales success. In 2013, revenues from LEDs made up 25% of Philips’ total lighting sales; a year later, they reached 34%. [2]

The real secret behind the success of these flexible luminaires - aside from being environmentally friendly? The ability to appeal to a wide range of consumers, from the private homeowner to the city administration looking to install new, cost-efficient lighting solutions.

By playing a leading role in the LED revolution, Philips has remained highly competitive in the market. This focus has proved such a good business proposition that in 2014 Philips invested €327 million in LEDs, around 70% of its green investment budget for that year, helping the company hit its €2 billion budget for green innovation one year early. [3]

Philips has invested €463 million in green innovation

LED lighting is the future: it uses 50-75% less energy than traditional lighting systems, saving money and cutting carbon emissions; it reduces excessive waste because it has a longer life expectancy; it is mercury-free, and so avoids the use of hazardous substances; and it lends itself to innovative, sustainable design that simplifies disassembly and recycling.[4]

Kolkata LED TrialLED lighting uses 50-75% less energy than traditional lighting systems

It is estimated that if most people in the United States switched to LEDs by 2027, it could save over $30 billion in energy costs - the equivalent of electricity generated by 44 conventional power plants. [5]

And as the beneficial results of Philips’ contribution to the clean revolution shine across the smartly lit streets of Kolkata and into other cities across the state, a policy push towards LED market acceleration seems to be just round the corner [6]. A promising step that demonstrates bold climate action can deliver increased financial value, and the first step in a brighter future for cities across the world.

RESOURCES:
[1] Kolkata LED Trial
[2] Philips Annual Report 2014
[3] Philips Annual Report 2014
[4] Energy.gov
[5] Energy.gov
[6] LEDs Magazine

Headquarters 
Europe
Revenue 
US$31B
Employees 
117,000
Industry 
Healthcare, Consumer Lifestyle and Lighting Technology