Connected lighting represents an enormous opportunity around the world. The global leader in this industry is Phillips Lighting. Here, Arik Star from Ellerston Global Investments explains how they built conviction in their Phillips position.
Key points:
- Philips Lighting is made up of four divisions; conventional lighting, LED lighting, connected LEDs for the home, and connected LEDs for commercial use
- Philips is already the world leader in connected LEDs
- Lighting will fundamentally change over the next five to ten years
- In the most recent results, the two divisions related to connected LED grew more than 45%
- Every street lamp, office building, and home represents an opportunity for connected lighting
- The City of Los Angeles recently installed 100,000 connected LED street lamps, while Perth Stadium became the first stadium in the world with a complete connected LED experience.
About Ellerston Global Investments
Ellerston Global Investments (ASX:EGI) is a concentrated global equity portfolio with a mid/small cap bias based on the highest conviction ideas from a filtered universe of securities that the Manager feels are in a period of ‘Price Discovery’. Find out more
Graeme Holbeach
Am I missing something? Street lights have for decades automatically come on when it gets dark and gone off when it gets light. That's all they need to do. Why do they need to be "connected"?
Ronen S
But the number of lights required is finite, so whether you have connected or conventional lights selling one will come at the expense of selling the other. Demand for lights should not increase just because they are "connected", if it can make better profits then that's a different story. @Graeme - you are right, but connected lights can do much more. Control systems will be able to adjust the intensity and the colour of the light if needed, furthermore once connected they can report back on temperature, humidity, pollution, and many other KPIs.